Willis Almost Doubles Year-End Income

By Mark E. Ruquet

NU Online News Service, Feb. 6, 8:59 a.m. EST?Willis Group Holdings, Ltd., reported a 97 percent increase in the insurance brokerage firm's net income over 2002, while its 2003 fourth quarter showed no gain.[@@]

Net income for the year rose $204 million going from $210 million, or $1.28 a share, to $414 million, or $2.45 a share. This was on a 20 percent increase in revenues, or $341 million, going from $1.74 billion to $2.08 billion.

In a conference call yesterday, Joe Plumeri, chairman and chief executive officer said this is the first time in the history of the firm that its revenues have gone over $2 billion.

For the fourth quarter, net income was flat at $118 million. Revenues, however, grew 19 percent, or $94 million, going from $483 million to $577 million.

The results, said Mr. Plumeri, reflected strong organic growth in the firm, which he said Willis will continue to stress. He said the firm seeks to grow larger than its current position as the No. 3 ranked global insurance brokerage firm, behind rivals Marsh and Aon.

"This is a big deal for us," he said. "We do not want to be No. 3. We are not here to be No. 3."

When asked about if there were any future implications for the firm stemming from the ongoing claims dispute between Larry Silverstein, the leaseholder of the World Trade Center, and other insurers, Mr. Plumeri said the firm has no exposure: "We have no dog in this fight."

Willis was the broker that secured insurance on the Trade Center towers prior to the terror attack of Sept. 11. Mr. Plumeri said the firm did its job to secure insurance for the towers, which it did successfully.

"There has never been a question over whether the towers were insured," he said, adding that the firm was able to secure more insurance for the towers than Mr. Silverstein wanted. The only question remaining, he said, is the legal interpretation over the number of incidents insured for.

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Willis Almost Doubles Year-End Income

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