The chief executive of Willis Group Holdings' assured analysts today that despite the credit market freeze the insurance brokerage has plenty of liquidity available and expects to access the public debt market as soon as there is a thaw.

Joe Plumeri, chairman and chief executive officer of London-based Willis, laid-out for analysts the breadth of company liquidity during an earnings conference call discussing a third quarter in which company net income fell 46 percent.

Explaining that Willis executives have received a lot of calls concerning the firm's bridge financing, Mr. Plumeri said the company has $1 billion bridge financing and $475 million in credit it has not used. Willis also plans to access the public debt market as soon as possible.

"However, on the basis that you always need a plan for the worst, we still have a lot of flexibility, even if the debt market remains tight," Mr. Plumeri continued.

He said in addition to the untapped credit facility, the company expects to generate $400 million cash from stock over the course of the year. Willis is planning to divest itself of "a number of non-core businesses" that are expected to yield $150 million.

"If you add all those things up, under a worse case scenario, and we couldn't replace the bridge over a short term period of time, there are lots of things we can do, from a cash position that provides us with a lot of different options," Mr. Plumeri concluded.

Concerning the company's third quarter financial results, net income dropped 46 percent, or $31 million, to $36 million compared to the same period last year. This translated into a 21-cent drop in earnings per share to 25-cents a share. Revenues during the period rose less than 1 percent, or $5 million, to $579 million.

The drop in net income was blamed in part on $10 million in integration costs related to Hilb, Rogal & Hobbs, which was acquired on Oct. 1. Soft market pressures and the impact of foreign currency also decreased earnings.

For the nine months, net income compared to last year fell 23 percent, or $73 million, to $241 million. Earnings per share were off 42-cents to $1.70. Revenues were up 5 percent, or $96 million, to $2.04 billion.

Willis reported organic growth of 3 percent for the quarter, helped by a 10 percent increase in its international business. North America organic growth was minus -3 percent while global business stood at minus -1 percent.

Future world wide economic uncertainties caused Willis to issue new earnings guidance for 2008. The firm said it expects adjusted earnings per diluted share to be in the range of $2.60-$2.70. Previously, its adjusted earnings per diluted share was $2.85-$2.95 a share for this year.

Mr. Plumeri said the company is doing everything it can to reaffirm its guidance for 2009 and 2010, but he stressed that the broker will "not do anything silly to achieve" that goal.

When asked if the change in guidance was an indication that the company's business is off track, Mr. Plumeri said the current economic crisis has placed the financial world into uncharted waters and Willis is trying to get a grip on the new reality, calling the current situation "unprecedented."

"I've never seen anything like this, ever," he said.

Noting that there are studies that show businesses continue to purchase insurance through financial turmoil, he said he does not know how this current crisis will affect buying.

"It's a question of looking at the world differently," he noted.

Willis announced that it would pay a cash dividend of 26-cents a share on Jan. 16 to shareholders of record as of Dec. 31. It said the annual rate stands at $1.04 a share.

Willis said that it paid $1.7 billion for HRH comprised of 24.4 million shares of common stock valued at $773 million and $942 million in cash. The total purchase price came to $2.1 billion that includes the assumption of $400 million of HRH debt.

Over time, Willis said it plans to buy back the shares issued in connection with the merger.

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