Willis Profit Up Above 200 Percent

Excluding the $37 million one-time income tax benefit from the U.K., net income stood at $62 million, a $31 million increase for the period.

Net income per share for the third quarter rose 40 cents to 59 cents a share from 19 cents. Revenues increased 16 percent, or $62 million, going from $390 million in the third quarter of 2002 to $452 million.

The increases reflected a 17 percent increase in commissions and fees for the firm of $63 million, going from $371 million to $434 million.

In an investor's conference call, Joe Plumeri, Willis' chairman and chief executive officer, said the firm's success is attributable to organic growth within the firm and disciplined operation of expenses. He said insurance brokerage would remain the core business of Willis. He stressed there was not much interest within the firm to grow through acquisition, adding that such deals were "too expensive right now."

Mario Vitale, CEO of Willis North America, said the major growth area in his segment has been in specialty practices, such as executive risk and employee benefits, which he said is "growing rapidly."

Mr. Plumeri said half of the growth can be attributed to middle market business and the other half to major market, or large accounts. He also said the company would continue to see double-figure growth in revenue through next year.

For the nine months of 2003, Willis reported net income increased 222 percent, or $204 million, going from $92 million to $296 million. Revenues grew 20 percent, or $247 million, from $1.25 billion to $1.5 billion. Earnings per share rose $1.18 to $1.75 a share, up from 57 cents for the nine months of 2002.