Willis third-quarter profit slides 46%
Willis Group has recorded a 46% fall in net third-quarter earnings as it accounted the cost of acquiring US firm Hilb Rogal & Hobbs (HRH).
Willis banked $US36 million ($56 million) in reported net income for the quarter ended September 30 compared with $US67 million ($105 million) in the corresponding period last year.
The result was driven down by the $US10 million ($16 million) cost of financing and integrating the $US1.7 billion ($2.7 billion) HRH acquisition, which was completed on October 1. HRH is the eighth-largest US brokerage.
Willis total revenue for the quarter was $US579 million ($907 million), against $US574 million ($899 million) a year ago.
New business growth of 5% was partly offset by a negative 3% impact of declining premium rates.
Chairman and CEO Joe Plumeri cited a 2% organic growth in fees and commissions as proof of the broker’s sound performance.
“Willis continues to deliver impressive growth relative to the industry despite very soft market conditions,” he said.
Willis banked $US36 million ($56 million) in reported net income for the quarter ended September 30 compared with $US67 million ($105 million) in the corresponding period last year.
The result was driven down by the $US10 million ($16 million) cost of financing and integrating the $US1.7 billion ($2.7 billion) HRH acquisition, which was completed on October 1. HRH is the eighth-largest US brokerage.
Willis total revenue for the quarter was $US579 million ($907 million), against $US574 million ($899 million) a year ago.
New business growth of 5% was partly offset by a negative 3% impact of declining premium rates.
Chairman and CEO Joe Plumeri cited a 2% organic growth in fees and commissions as proof of the broker’s sound performance.
“Willis continues to deliver impressive growth relative to the industry despite very soft market conditions,” he said.