Willis Group reports Q3 profit plunge
US-based insurer Willis Group Holdings has reported its results for the third quarter with profits down 46% on year.
The company was hit hard by an increase in operating expenses.
Net income for the three months ending 30th September dropped to $36 million, or $0.25 per share, compared to $67 million, or $0.46 per share in the same period last year.
This fall in profit occurred despite a small increase in revenue from $574 million a year ago to $579 million.
Commissions and fees increased 2.6% to $556 million, whilst investment income fell 12% to $22 million.
However, operating expenses increased 7% to $513 million, a reflection of higher salaries and benefits as well as other costs increasing.
The results also included $10 million in costs accrued during the acquisition of insurance brokerage Hilb, Rogal & Hobbs Co.
When these acquisition costs are excluded, adjusted profit equates to $0.32 per share.
Willis also pointed out that foreign exchange rates reduced profits by $0.09 per share.
For the first nine months of 2008 Willis’ net income was $241 million, or $1.70 per share, down from $314 million or $2.12 per share in the first nine months of 2007.
Total revenues for the first nine months increased on year, from $1.94 billion a year ago to $2.04 billion.
Shareholders will receive a quarterly cash dividend of $0.26 per share, payable on 16th January 2009.
Category: Financials, Insurance News
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Willis is a global insurance broker with more than 400 offices in nearly 120 countries, with a global team of approximately 20,000 people serving clients in some 190 countries. As a business it does not assume risk as it is not an insurer.