Willis To Pay First Dividend

Willis To Pay First Dividend

By Mark E. Ruquet

NU Online News Service, Feb. 6, 3:42 p.m. EST?Willis Group, which went public in 2001, announced it would pay its first stock dividend and reported a more than 300 percent increase in per share earnings for the fourth quarter of 2002.

The London-headquartered insurance broker said it has declared an initial quarterly payment of 12.5 cents a share on April 15 to shareholders of record as of March 31.

"This company is managed for growth and, in this current environment, intends to grow operating cash earnings per share by 25 percent or better in 2003 over the $1.62 reported for the year ended Dec. 31, 2002," said Joe Plumeri, chairman and chief executive officer for Willis.

Mr. Plumeri added that the firm would see 15 percent growth or more in cash earnings per share each year in the future.

For the fourth quarter ending Dec. 31, 2002, net income rose $91 million to $118 million compared to $27 million in 2001. Net income per share increased 54 cents, from 16 cents a share in 2001 to 70 cents. Total revenues rose $96 million, going from $387 million in 2001 to $483 million in the fourth quarter of 2002.

For the year, net income rose $208 million, from $2 million in 2001 to $210 million in 2002. Net income per share increased $1.27, from 1 cent 2001 to $1.28.

Revenues rose $311 million for 2002, going from $1.4 billion to $1.74 billion.

Willis said it has repaid $220 million of long-term debt, bringing its total to $567 million.

By mid-day Thursday, Willis' stock rose $1.71 to $27.82 a share.