Intermediary’s commissions and fees grows

The brokerage’s net income remains flat but commissions and fees climb during the first three months of 2013.

Insurance News

By Chinwe Akomah

Willis Group recorded organic commissions and fees growth of 4.1% for the first three months ended 31 March 2013.

Willis International, which includes Australia, reported a 3.8% increase in commissions. The change reflects 3.8% organic growth, a negative 0.1% impact from foreign currency movements, and a positive 0.1% impact from acquisitions and disposals.

Willis Global delivered a 4.1% increase in commissions, and Willis North America reported 4.3% growth.

The group’s net income fell to US$219m, from $225m in 2012. The 2013 figure includes a $46m charge while $13m of the 2012 $225m related to the write-off uncollectible accounts receivable and associated legal fees.

Excluding the after-tax impact of the two items, adjusted net income for the first quarter 2013 was $257m, or $1.46 per diluted share, compared with $233m.

Commissions and fees for Willis Group improved to $1,046m in the first quarter of 2013, up from $1,005m in the prior year quarter. Organic commissions and fees grew 4.1% excluding the net impact of acquisitions and disposals and foreign currency movements.

Investment income for Willis Group declined to $4m in the first quarter of 2013 from $5m in the first quarter of 2012.

Operations in Asia recorded double-digit growth and Australasia grew mid-single digits. Western Europe declined low-single digits in the quarter while Eastern Europe recorded mid-single digit growth. Operations in the UK recorded low single-digit growth. Latin America delivered double-digit growth, with strong growth across a number of the larger countries in the region.

Willis Group Holdings CEO Dominic Cassserley said: " We are very pleased with our solid results in the first quarter, spread evenly throughout our business."

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