Willis Q1 Net Income Drops 4% on Reorganization Charge

Willis Group Holdings reports first-quarter net income dropped 4 percent over the same period last year on a pre-tax charge of $46 million related to the company's reorganization that eliminated 207 positions.

The insurance brokerage firm says net income was down $9 million to $223 million while revenues increased 4 percent to $1.05 billion. Without the restructuring charge this year and a write-off of $13 million last year related to the discovery of fraudulent overstatements in its Chicago office, Willis says net income would be up 10 percent to $257 million.

Willis CEO Dominic Casserley, who announced the restructuring earlier this year, says the reorganization, which included elimination of positions and consolidations in property and systems is complete and the firm expects no further charges related to this move.

The company expects to produce savings of $20 million for the second quarter of this year and annualized savings between $25 million and $30 million.  

Casserley says organic growth came in at 4.1 percent with North America leading the way at 4.3 percent, International grew at 3.8 percent and Global was up 4.1 percent.

Among the regions producing the strongest business were Latin America and Asia with double digit growth, while Europe's growth was down in the single digits. Reinsurance reports solid organic growth of more than 4 percent.

Casserley, who took over Willis from long time CEO Joe Plumeri at the beginning of the year, says additional changes will be coming with investment in markets or products, or both, that “will provide the best growth and value opportunities.” He says the firm will lay out its plans during its Investor Day in New York on July 30.