Willis Group Holdings reported a 21 percent increase in first-quarter net income–pushed upward by the brokerage's new business, management said.

The New York-based insurance broker posted net income of $169 million compared with $140 million in the 2006 period.

Earnings per diluted share rose 25 percent to $1.10 compared with 88 cents a year ago.

The company reported that organic growth in commissions and fees, which excludes market remuneration, was 6 percent in the first quarter.

“This growth was attributed to net new business won,” the company said in a statement. “The net impact of declining premium rates was offset by other market factors.”

Bear Stearns analyst David Small said the solid results broke a string of disappointing earnings announcements beating his earnings per share estimate by 3 cents and the consensus by 7 cents.

“The better-than-expected results were driven primarily by superior top-line performance,” Mr. Small wrote.

And the fact that organic growth grew at 6 percent, he said, indicated the company has the momentum, at least in the near term, to face the challenges of declining insurance pricing.

Special Reports /

Willis Quarterly Results Show Organic Growth

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