Insurance broker Willis Group Holdings reported third quarter net income dropped 19 percent from the previous year absent a tax credit it received last year, but organic growth remained strong across the board.
The London headquartered broker reported net income dropped $15 million to $64 million over the same period last year. However, the firm received a tax credit of $29 million in the third quarter last year, compared to a tax charge of $10 million this year. Net income per share dropped 10 cents to 37 cents a share. Third quarter revenues grew 1 percent, or $8 million, to $733 million.
For the first nine months of the year, net income was down less than 1 percent, or $2 million, to $357 million. Net income per share was down 5 cents to $2.09 a share. Revenues were up 3 percent, or $65 million, to $2.5 billion, Willis said.
Organic growth stood at 4 percent for both the third quarter and nine months of the year. All segments showed growth with the firm's international business performing the best reporting growth of 6 percent for the third quarter and nine months.
During a conference call with investment analysts, Joe Plumeri, chairman and chief executive officer of Willis, said, "We are very pleased with the results of the first nine months."
Willis' performance, demonstrated by its 4 percent organic growth, underscores the commitment of its sales culture to drive growth, he said.
"We think in this [economic] environment that that's outstanding and we need to support that, and reinforce that, so that we can remain confident that it will continue," he said.
He emphasized the company's aim to continue to control expenses and drive efficiency utilizing technology.
The firm reported an increase in salaries and benefits, up $13 million to $462 million, as it raised incentive compensation and increased employee counts in its international base.
Willis declared a quarterly cash dividend of 26 cents a share payable on Jan. 14 to shareholders of record as of Dec. 31.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.