Willis reports Q1 results

by David Masters

Story link: Willis reports Q1 results

Bermuda based Willis Group Holdings Ltd, the third largest insurance broker in the world, reported on Wednesday its results for the first quarter, with net income falling by $3 million on year.

Nevertheless, the results exceeded analysts’ expectations, and share prices rose 6.2% to $36.91 by the time the market closed on Thursday.

Net income for the quarter totalled $166 million, or $1.16 per share. This is compared to a net income of $169 million, or $1.10 per share, for the first quarter of 2007.

Total revenue increased 8% on year, from $739 million to $795 million. The company also saw 3% organic growth in commission and fees.

This means that excluding the $33 million that Willis paid in severance and other costs, earnings per share were $1.32, significantly higher than analysts’ predictions of $1.17 per share.

Because of the good results, Willis has increased its forecast for net earnings per share over the next three years.