UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date
of Report (Date of earliest event reported): April 28, 2010
Willis Group Holdings Public Limited Company |
(Exact name of registrant as specified in its charter) |
Ireland | 001-16503 | 98-0352587 | ||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
c/o Willis Group Limited, 51 Lime Street, London, EC3M 7DQ, England
and Wales
(Address, including Zip Code, of Principal Executive
Offices)
Registrant’s telephone number, including area code: (011)
44-20-3124-6000
Not Applicable
(Former name or
former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
⃞ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
⃞ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
⃞ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
⃞ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02. Results of Operations and Financial Condition.
On April 28, 2010, Willis Group Holdings Public Limited Company issued a press release reporting results for the quarter ended March 31, 2010. A copy of the press release is attached as Exhibit 99.1 to this Report on Form 8-K and is incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
Exhibit | ||
Number | Description | |
99.1 | Willis Group Holdings Public Limited Company Earnings Press Release issued April 28, 2010. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: |
April 28, 2010. |
WILLIS GROUP HOLDINGS PUBLIC LIMITED COMPANY |
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By: |
/s/ Adam G. Ciongoli |
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Adam G. Ciongoli |
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Group General Counsel |
INDEX TO EXHIBITS
Exhibit | ||
Number | Description | |
99.1 | Willis Group Holdings Public Limited Company Earnings Press Release issued April 28, 2010. |
Exhibit 99.1
Willis Group Reports First Quarter 2010 Results
Reported
net income per diluted share from continuing operations of $1.20;
adjusted
net income per diluted share from continuing operations of $1.27
5 percent reported growth in commissions and fees compared with first quarter of 2009
3 percent
organic growth in commissions and fees compared with first quarter of
2009, with positive organic growth in commissions and fees in each
segment:
1
percent in North America; 7 percent in Global; 3 percent in International
Reported operating margin of 31.0 percent; adjusted operating margin of 32.2 percent
NEW YORK--(BUSINESS WIRE)--April 28, 2010--Willis Group Holdings plc (NYSE: WSH), the global insurance broker, today reported results for the quarter ended March 31, 2010.
“We delivered another solid quarter of financial results, supported by positive organic growth in each segment of our business. Combined with our continued focus on cost control, we expanded our adjusted operating margin by over 200 basis points,” said Joe Plumeri, Chairman and Chief Executive Officer, Willis Group Holdings. “I am pleased with our performance in the quarter as we continue to face a challenging environment, with rates still soft and economic pressures persisting in a number of countries in which we operate.”
First Quarter 2010 Financial Results
Reported net income from continuing operations for the first quarter of 2010 was $204 million, or $1.20 per diluted share, compared with $192 million, or $1.15 per diluted share, in the same period a year ago. Reported net income in the first quarter of 2010 was impacted by a charge of $12 million, or $0.07 per diluted share, relating to the devaluation of the Venezuelan currency, and in the first quarter of 2009, by certain items, which are detailed later in this release.
Adjusted net income per diluted share from continuing operations was $1.27 in the first quarter of 2010 compared with $1.16 in the first quarter of 2009. Other foreign currency movements positively impacted adjusted earnings per diluted share from continuing operations by $0.06 in the first quarter of 2010.
Total reported revenues for the first quarter of 2010 were $972 million compared with $930 million for the same period of 2009, an increase of 5 percent. Total commissions and fees were $963 million, an increase of 5 percent from $915 million reported in the first quarter of 2009. Foreign currency movements increased reported commissions and fees by 3 percent compared with the same period a year ago. Investment income was $9 million in the first quarter of 2010 compared with $13 million in the first quarter of 2009, a decline of 31 percent, principally due to lower interest rates.
Organic growth in commissions and fees was 3 percent in the first quarter of 2010 compared with the same period of 2009. Organic growth reflected net new business won of 5 percent, driven by solid new business generation with steady retention of existing clients. Partially offsetting net new business growth was a negative 2 percent impact from declining premium rates and other market factors.
The North America segment reported 3 percent decline in commissions and fees and 1 percent growth in organic commissions and fees in the first quarter of 2010 compared with the same period of 2009. Included in North America reported commissions and fees were legacy HRH contingent commissions of $8 million in the first quarter of 2010 compared with $20 million in the first quarter of 2009. North America continues to generate strong new business, with steady client and producer retention. The North America segment continued to benefit from specialist industry expertise, with strong results from the healthcare, financial institutions, personal lines and real estate/hospitality businesses. North America’s results also continue to reflect headwinds from the soft insurance market conditions and ongoing weakness in the US economy. As a result of organic growth in commissions and fees and ongoing cost management, operating margin expanded 60 basis points to 25.5 percent in the first quarter of 2010 compared with the prior year period.
The International business segment reported 12 percent growth in commissions and fees and 3 percent organic growth in commissions and fees in the first quarter of 2010 compared with the same period of 2009. Strong growth in the emerging economies of Latin America, Asia and Eastern Europe, was partially offset by slowing growth in some developed European economies and continued weakness in the UK and Ireland retail market. Excluding the UK and Ireland, the International business segment organic growth was 5 percent. Strong new business more than offset the soft rate environment and weakness in the UK and Ireland market. Operating margin was 33.9 percent compared with 34.9 percent in the first quarter of 2009.
The Global segment, which comprises the Reinsurance, Global Specialties, Faber & Dumas, and Willis Capital Markets & Advisory divisions, reported 9 percent growth in commissions and fees and 7 percent organic growth in commissions and fees in the first quarter of 2010 compared with the first quarter of 2009. Growth was primarily driven by the Reinsurance division, with strong organic growth in commissions and fees, especially in North America. Solid net new business in this division more than offset the softness in reinsurance rates. Global Specialties contributed positive organic growth in commissions and fees, led by financial and executive risks and marine. Operating margin was a seasonally high 45.5 percent, in line with the first quarter of 2009.
Reported salaries and benefits were $486 million in the first quarter of 2010 compared with $480 million in the first quarter of 2009. Salaries and benefits improved to 50.0 percent of total revenue in the first quarter of 2010 compared with 51.6 percent in the first quarter of 2009.
Salaries and benefits do not reflect the unamortized portion of annual cash retention awards made to employees. Employees must repay a proportionate amount of these cash retention awards if they voluntarily leave the Company's employ (other than in the event of retirement or permanent disability) before a certain time period, currently three years. The Company makes cash payments to its employees in the year it grants these retention awards and recognizes these payments ratably over the period they are subject to repayment, beginning in the quarter in which the award is made.
During the first quarter of 2010, the Company made $169 million of cash retention payments compared with $111 million in the first quarter of 2009. Salaries and benefits in the first quarter of 2010 include $28 million of amortization of cash retention payments made on or before March 31, 2010 compared with $18 million in the first quarter of 2009. As of March 31, 2010, December 31, 2009 and March 31, 2009, the Company included $233 million, $98 million and $127 million, respectively, in other assets on the balance sheet, which represented the unamortized portion of cash retention payments made on or before those dates.
Reported other operating expenses were $149 million in the first quarter of 2010 compared with $138 million in the first quarter of 2009. Other operating expenses as a percentage of revenues were 15.3 percent in the first quarter of 2010 compared with 14.8 percent in the same quarter a year ago. Reported other operating expenses for the first quarter of 2010 included $12 million in respect to the devaluation of the Venezuelan currency.
Reported operating margin was 31.0 percent for the first quarter of 2010 compared with 29.5 percent for the same period of 2009. Excluding the impact from the devaluation of the Venezuelan currency and other items, which are detailed later in this release, adjusted operating margin was 32.2 percent for the first quarter of 2010 compared with 29.8 percent for the prior year period. The improvement in the adjusted operating margin reflected solid organic growth in commissions and fees and other expense savings.
Tax
The effective tax rate for the quarter ended March 31, 2010 was 26 percent. After adjusting for the net effect of certain items, the underlying effective tax rate for the quarter ended March 31, 2010 remained at 26 percent, the same underlying effective tax rate as for the full-year 2009.
Capital
As of March 31, 2010, cash and cash equivalents totaled $196 million and total debt was $2.4 billion. Total equity as at March 31, 2010 was $2.4 billion.
Dividend
The Board of Directors declared a regular quarterly cash dividend on the Company’s ordinary shares of $0.26 per share (an annual rate of $1.04 per share). The dividend is payable on July 16, 2010 to shareholders of record on June 30, 2010.
Conclusion
“As we move through 2010, we will continue to reinforce our sales and revenue culture, maintain disciplined expense management to fund growth and work to further strengthen our balance sheet. Even as we face continued challenges from economic and rate headwinds, I believe these efforts position us well for continued success,” said Joe Plumeri, Chairman and Chief Executive Officer, Willis Group Holdings.
Conference Call and Web Cast
A conference call to discuss the first quarter 2010 results will be held on Thursday, April 29, 2010, at 8:00 AM Eastern Time. To participate in the live teleconference, please dial (866) 803-2143 (domestic) or +1 (210) 795-1098 (international) with a pass code of “Willis”. The live audio web cast (which will be listen-only) may be accessed at www.willis.com. This call will be available by replay starting at approximately 10:00 AM Eastern Time, through May 30, 2010 at 11:59 PM Eastern Time, by calling (877) 387-6450 (domestic) or +1 (203) 369-4751 (international) with no pass code, or by accessing the website.
About Willis
Willis Group Holdings plc is a leading global insurance broker, developing and delivering professional insurance, reinsurance, risk management, financial and human resource consulting and actuarial services to corporations, public entities and institutions around the world. Willis has more than 400 offices in nearly 120 countries, with a global team of approximately 17,000 employees serving clients in virtually every part of the world. Additional information on Willis may be found at www.willis.com.
Forward-Looking Statements
We have included in this document ‘‘forward-looking statements’’ within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934, which are intended to be covered by the safe harbors created by those laws. These forward-looking statements include information about possible or assumed future results of our operations. All statements, other than statements of historical facts that address activities, events or developments that we expect or anticipate may occur in the future, including such things as our outlook, future capital expenditures, growth in commissions and fees, business strategies, competitive strengths, goals, the benefits of new initiatives, growth of our business and operations, plans and references to future successes, are forward-looking statements. Also, when we use the words such as ‘‘anticipate’’, ‘‘believe’’, ‘‘estimate’’, ‘‘expect’’, ‘‘intend’’, ‘‘plan’’, ‘‘probably’’, or similar expressions, we are making forward-looking statements.
There are important uncertainties, events and factors that could cause our actual results or performance to differ materially from those in the forward-looking statements contained in this document, including the following:
The foregoing list of factors is not exhaustive and new factors may emerge from time to time that could also affect actual performance and results. For more information see the section entitled ‘‘Risk Factors’’ included in Willis’ Form 10-K for the year ended December 31, 2009 and our subsequent filings with the Securities and Exchange Commission. Copies are available online at http://www.sec.gov or on request from the Company as set forth in Part I, Item 1 “Business-Available Information” in Willis’ Form 10-K.
Although we believe that the assumptions underlying our forward-looking statements are reasonable, any of these assumptions, and therefore also the forward-looking statements based on these assumptions, could themselves prove to be inaccurate. In light of the significant uncertainties inherent in the forward-looking statements included in this document, our inclusion of this information is not a representation or guarantee by us that our objectives and plans will be achieved.
Our forward-looking statements speak only as of the date made and we will not update these forward-looking statements unless the securities laws require us to do so. In light of these risks, uncertainties and assumptions, the forward-looking events discussed in this document may not occur, and we caution you against unduly relying on these forward-looking statements.
Non-GAAP Supplemental Financial Information
This press release contains references to non-GAAP financial measures as defined in Regulation G of SEC rules. Consistent with Regulation G, a reconciliation of this supplemental financial information to our GAAP information is in the note disclosures that follow. We present such non-GAAP supplemental financial information, as we believe such information is of interest to the investment community because it provides additional meaningful methods of evaluating certain aspects of the Company’s operating performance from period to period on a basis that may not be otherwise apparent on a GAAP basis. This supplemental financial information should be viewed in addition to, not in lieu of, the Company’s condensed financial statements.
WILLIS GROUP HOLDINGS plc |
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CONDENSED CONSOLIDATED INCOME STATEMENTS |
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(in millions, except per share data) |
|||||||||
(unaudited) |
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Three months ended | |||||||||
March 31, | |||||||||
2010 | 2009 | ||||||||
Revenues | |||||||||
Commissions and fees | $ | 963 | $ | 915 | |||||
Investment income | 9 | 13 | |||||||
Other income | - | 2 | |||||||
Total revenues | 972 | 930 | |||||||
Expenses | |||||||||
Salaries and benefits (including share-based compensation of $12 million, $5 million) | 486 | 480 | |||||||
Other operating expenses | 149 | 138 | |||||||
Depreciation expense | 15 | 14 | |||||||
Amortization of intangible assets | 21 | 24 | |||||||
Total expenses | 671 | 656 | |||||||
Operating Income | 301 | 274 | |||||||
Interest expense | 43 | 38 | |||||||
Income from Continuing Operations before Income Taxes and Interest | |||||||||
in Earnings of Associates | 258 | 236 | |||||||
Income taxes | 67 | 62 | |||||||
Income from Continuing Operations before Interest in Earnings of Associates | 191 | 174 | |||||||
Interest in earnings of associates, net of tax | 20 | 26 | |||||||
Income from Continuing Operations | 211 | 200 | |||||||
Discontinued Operations, net of tax | - | 1 | |||||||
Net Income | 211 | 201 | |||||||
Net income attributable to noncontrolling interests | (7 | ) | (8 | ) | |||||
Net Income attributable to Willis Group Holdings plc | $ | 204 | $ | 193 | |||||
Amounts attributable to Willis Group Holdings plc shareholders | |||||||||
Income from Continuing Operations, net of tax | $ | 204 | $ | 192 | |||||
Income from Discontinued Operations, net of tax | - | 1 | |||||||
Net Income | $ | 204 | $ | 193 | |||||
Earnings per Share – Basic and Diluted |
|
|
|||||||
Basic Earnings per Share: |
|||||||||
Continuing Operations |
$ |
1.21 |
$ |
1.15 |
|||||
Discontinued Operations |
- |
0.01 |
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Net Income attributable to Willis Group Holdings plc shareholders |
$ |
1.21 |
1.16 |
||||||
Diluted Earnings per Share: |
|||||||||
Continuing Operations |
$ |
1.20 |
$ |
1.15 |
|||||
Discontinued Operations |
- |
0.01 |
|||||||
Net Income attributable to Willis Group Holdings plc shareholders |
$ |
1.20 |
$ |
1.16 |
|||||
Average Number of Shares Outstanding |
|||||||||
- Basic |
169 |
167 |
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- Diluted |
170 |
167 |
|||||||
Shares Outstanding as of March 31 (thousands) |
169,380 |
167,310 |
WILLIS GROUP HOLDINGS plc |
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SUMMARY DRAFT BALANCE SHEETS |
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(in millions) (unaudited) |
|||||||
March 31, | December 31, | ||||||
2010 | 2009 | ||||||
Assets | |||||||
Cash & cash equivalents | $ | 196 | $ | 191 | |||
Fiduciary funds—restricted | 1,675 | 1,683 | |||||
Accounts receivable, net | 10,528 | 8,638 | |||||
Fixed assets, net | 352 | 352 | |||||
Goodwill and intangibles, net | 3,823 | 3,849 | |||||
Investments in associates | 172 | 156 | |||||
Deferred tax assets | 88 | 82 | |||||
Pension benefits asset | 95 | 69 | |||||
Other assets | 686 | 603 | |||||
Total Assets | $ | 17,615 | $ | 15,623 | |||
Liabilities and Equity | |||||||
Accounts payable | $ | 11,494 | $ | 9,686 | |||
Deferred revenue and accrued expenses | 248 | 301 | |||||
Deferred tax liabilities | 27 | 29 | |||||
Income taxes payable | 82 | 46 | |||||
Short-term debt | 193 | 209 | |||||
Long-term debt | 2,204 | 2,165 | |||||
Liability for pension benefits | 179 | 187 | |||||
Other liabilities | 789 | 771 | |||||
Total Liabilities | $ | 15,216 | $ | 13,394 | |||
Equity attributable to Willis Group Holdings plc | 2,349 | 2,180 | |||||
Noncontrolling interests | 50 | 49 | |||||
Total Equity | 2,399 | 2,229 | |||||
Total Liabilities and Equity | $ | 17,615 | $ | 15,623 |
WILLIS GROUP HOLDINGS plc |
SUPPLEMENTAL FINANCIAL INFORMATION |
(in millions, except per share data) (unaudited) |
1. Definitions of Non-GAAP Financial Measures
We believe that investors’ understanding of the Company’s performance is enhanced by our disclosure of the following non-GAAP financial measures. Our method of calculating these measures may differ from those used by other companies and therefore comparability may be limited.
Organic commissions and fees growth
Organic commissions and fees growth excludes: (i) the impact of foreign currency translation; (ii) the first twelve months of net commission and fee revenues generated from acquisitions; (iii) the net commission and fee revenues related to operations disposed of in each period presented; (iv) in North America, legacy contingent commissions assumed as part of the HRH acquisition and that had not been converted into higher standard commission; and (v) investment income and other income from reported revenues. We believe organic growth in commissions and fees provides a measure that the investment community may find helpful in assessing the performance of operations that were part of our operations in both the current and prior periods, and provide a measure against which our businesses may be assessed in the future.
Adjusted operating income and adjusted net income
Adjusted operating income and adjusted net income are calculated by excluding the impact of certain items from operating income and net income, respectively the most directly comparable GAAP measures. We believe that excluding these items, as applicable, from operating income and net income, provides a more complete and consistent comparative analysis of our results of operations.
2. Analysis of Commissions and Fees
The following table reconciles organic commissions and fees growth by business unit to the percentage change in reported commissions and fees for the three months ended March 31, 2010:
Three months ended |
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March 31, |
Change attributable to |
|||||||||||
Organic | ||||||||||||
Foreign | Acquisitions | commissions | ||||||||||
% | currency | and | and fees | |||||||||
2010 | 2009 | Change | translation | disposals |
growth (a) |
|||||||
Global | $ 301 | $ 275 | 9% | 3% | (1)% | 7% | ||||||
North America | 361 | 371 | (3)% | 0% | (4)% | (b) | 1% | |||||
International | 301 | 269 | 12% | 7% | 2% | 3% | ||||||
Commissions
and fees |
$ 963 | $ 915 | 5% | 3% | (1)% | 3% |
(a) Organic commissions and fees growth excludes: (i) the impact of foreign currency translation; (ii) the first twelve months of net commission and fee revenues generated from acquisitions; (iii) the net commission and fee revenues related to operations disposed of in each period presented; (iv) in North America, legacy contingent commissions assumed as part of the HRH acquisition and that had not been converted into higher standard commission; and (v) investment income and other income from reported revenues.
(b) Included in North America reported commissions and fees were legacy HRH contingent commissions of $8 million in the first quarter of 2010 compared with $20 million in the first quarter of 2009.
Our methods of calculating these measures may differ from those used by other companies and therefore comparability may be limited.
3. Adjusted Operating Income
The following table reconciles adjusted operating income to operating income, the most directly comparable GAAP measure, for the three months ended March 31, 2010 and 2009:
Three months ended | ||||||
March 31, | ||||||
% | ||||||
2010 | 2009 | Change | ||||
Operating Income, GAAP basis | $ 301 |
$ 274 |
10% | |||
Excluding: | ||||||
Venezuela currency devaluation (a) | 12 |
- |
||||
HRH integration costs | - |
3 |
||||
Adjusted Operating Income | $ 313 |
$ 277 |
13% | |||
Operating Margin, GAAP basis, or Operating Income | ||||||
as a percentage of Total Revenues | 31.0% | 29.5% | ||||
Adjusted Operating Margin, or Adjusted Operating | ||||||
Income as a percentage of Total Revenues | 32.2% | 29.8% |
(a) With effect from January 1, 2010, the Venezuelan economy was designated as hyper-inflationary. The Venezuelan government also devalued the Bolivar Fuerte in January 2010. As a result of these actions, the Company recorded a one-time charge in other operating expenses to reflect the re-measurement of its net assets denominated in Venezuelan Bolivar Fuerte.
Note: Severance costs arise in the ordinary course of business and these charges (pre-tax), relating to approximately 260 positions, amounted to $8 million in the first quarter of 2010 ($16 million in the first quarter of 2009).
4. Adjusted Net Income
The following table reconciles adjusted net income to net income, the most directly comparable GAAP measure, for the three months ended March 31, 2010 and 2009:
Per diluted share | ||||||||||||
Three months ended | Three months ended | |||||||||||
March 31, | March 31, | |||||||||||
% | % | |||||||||||
2010 | 2009 | Change | 2010 | 2009 | Change | |||||||
Net Income from Continuing Operations,
GAAP basis |
$ 204 | $ 192 | 6% | $ 1.20 | $ 1.15 | 4% | ||||||
Excluding: | ||||||||||||
Venezuela currency devaluation, net of tax ($nil) (a) | 12 | - | 0.07 | - | ||||||||
HRH integration costs, net of tax ($1) | - | 2 | - | 0.01 | ||||||||
Adjusted Net Income from Continuing
Operations |
$ 216 | $ 194 | 11% | $1.27 | $ 1.16 | 9% | ||||||
Diluted shares outstanding, GAAP basis | 170 | 167 |
(a) With effect from January 1, 2010, the Venezuelan economy was designated as hyper-inflationary. The Venezuelan government also devalued the Bolivar Fuerte in January 2010. As a result of these actions, the Company recorded a one-time charge in other expenses to reflect the re-measurement of its net assets denominated in Venezuelan Bolivar Fuerte.
Note: Severance costs arise in the ordinary course of business and these charges (post-tax), relating to approximately 260 positions, amounted to $6 million in the first quarter of 2010 ($12 million in the first quarter of 2009).
5. Condensed Consolidated Income Statements by Quarter
2009 | 2010 | |||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | FY | Q1 | |||||||||||||||||||
Revenues | ||||||||||||||||||||||||
Commissions and fees | $ | 915 | $ | 772 | $ | 714 | $ | 809 | $ | 3,210 | $ | 963 | ||||||||||||
Investment income | 13 | 12 | 10 | 15 | 50 | 9 | ||||||||||||||||||
Other income | 2 | - | 1 | - | 3 | - | ||||||||||||||||||
Total Revenues | 930 | 784 | 725 | 824 | 3,263 | 972 | ||||||||||||||||||
Expenses | ||||||||||||||||||||||||
Salaries and benefits | 480 | 443 | 449 | 455 | 1,827 | 486 | ||||||||||||||||||
Other operating expenses | 138 | 139 | 151 | 167 | 595 | 149 | ||||||||||||||||||
Depreciation expense | 14 | 14 | 15 | 17 | 60 | 15 | ||||||||||||||||||
Amortization of intangible assets | 24 |
23 |
29 |
24 |
100 | 21 | ||||||||||||||||||
Net gain on disposal of operations | - | - | (1 | ) | (12 | ) | (13 | ) | - | |||||||||||||||
Total Expenses | 656 | 619 | 643 | 651 | 2,569 | 671 | ||||||||||||||||||
Operating Income | 274 | 165 | 82 | 173 | 694 | 301 | ||||||||||||||||||
Interest expense | 38 | 43 | 47 | 46 | 174 | 43 | ||||||||||||||||||
Income from Continuing Operations before Income Taxes and Interest in Earnings of Associates |
236 |
|
122 |
35 |
127 |
520 |
258 |
|||||||||||||||||
Income tax charge / (credit) | 62 | 31 | (29 | ) | 32 | 96 | 67 | |||||||||||||||||
Income from Continuing Operations before Interest in Earnings of Associates |
174 |
|
91 |
|
64 |
|
95 |
|
424 |
|
191 |
|
||||||||||||
Interest in earnings of associates, net of tax | 26 | - | 16 | (9 | ) | 33 | 20 | |||||||||||||||||
Income from Continuing Operations | 200 | 91 | 80 | 86 | 457 | 211 | ||||||||||||||||||
Discontinued Operations, net of tax | 1 | - | 1 | - | 2 | - | ||||||||||||||||||
Net Income | 201 | 91 | 81 | 86 | 459 | 211 | ||||||||||||||||||
Net income attributable to noncontrolling interests | (8 | ) | (4 | ) | (2 | ) | (7 | ) | (21 | ) | (7 | ) | ||||||||||||
Net Income attributable to Willis Group Holdings plc | $ | 193 | $ | 87 | $ | 79 | $ | 79 | $ | 438 | $ | 204 | ||||||||||||
Diluted Earnings per Share | ||||||||||||||||||||||||
- Continuing Operations | $ | 1.15 | $ | 0.52 | $ | 0.46 | $ | 0.47 | $ | 2.58 | $ | 1.20 | ||||||||||||
- Discontinued Operations | 0.01 | - | 0.01 | - | 0.01 | - | ||||||||||||||||||
Net Income attributable to Willis Group Holdings plc shareholders | $ | 1.16 | $ | 0.52 | $ | 0.47 | $ | 0.47 | $ | 2.59 | $ | 1.20 | ||||||||||||
Average Number of Shares Outstanding | ||||||||||||||||||||||||
- Diluted | 167 | 168 | 169 | 169 | 169 | 170 |
6. Segment Information by Quarter
2009 | 2010 | |||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | FY | Q1 | |||||||||||||||||||
Commissions and Fees | ||||||||||||||||||||||||
Global | $ | 275 | $ | 207 | $ | 175 | $ | 165 | $ | 822 | $ | 301 | ||||||||||||
North America | 371 | 332 | 320 | 345 | 1,368 | 361 | ||||||||||||||||||
International | 269 | 233 | 219 | 299 | 1,020 | 301 | ||||||||||||||||||
Total Commissions and Fees | $ | 915 | $ | 772 | $ | 714 | $ | 809 | $ | 3,210 | $ | 963 | ||||||||||||
Total Revenues | ||||||||||||||||||||||||
Global | $ | 278 | $ | 209 | $ | 176 | $ | 172 | $ | 835 | $ | 303 | ||||||||||||
North America | 377 | 336 | 325 | 348 | 1,386 | 365 | ||||||||||||||||||
International | 275 | 239 | 224 | 304 | 1,042 | 304 | ||||||||||||||||||
Total Revenues | $ | 930 | $ | 784 | $ | 725 | $ | 824 | $ | 3,263 | $ | 972 | ||||||||||||
Operating Income | ||||||||||||||||||||||||
Global | $ | 127 | $ | 74 | $ | 33 | $ | 21 | $ | 255 | $ | 138 | ||||||||||||
North America | 94 | 75 | 70 | 89 | 328 | 93 | ||||||||||||||||||
International | 96 | 55 | 30 | 95 | 276 | 103 | ||||||||||||||||||
Corporate and Other (a) | (43 | ) | (39 | ) | (51 | ) | (32 | ) | (165 | ) | (33 | ) | ||||||||||||
Total Operating Income | $ | 274 | $ | 165 | $ | 82 | $ | 173 | $ | 694 | $ | 301 | ||||||||||||
Organic Commissions and Fees
Growth |
||||||||||||||||||||||||
Global | 5 | % | 7 | % | 4 | % | 1 | % | 4 | % | 7 | % | ||||||||||||
North America |
(5 |
)% | (8 | )% | (3 | )% | 1 | % | (3 | )% | 1 | % | ||||||||||||
International | 5 | % | 5 | % | 3 | % | 3 | % | 4 | % | 3 | % | ||||||||||||
Total Organic Commissions and Fees Growth | 2 | % | 1 | % | 2 | % | 2 | % | 2 | % | 3 | % | ||||||||||||
Operating Margin | ||||||||||||||||||||||||
Global | 45.7 | % | 35.4 | % | 18.8 | % | 12.2 | % | 30.5 | % | 45.5 | % | ||||||||||||
North America | 24.9 | % | 22.3 | % | 21.5 | % | 25.6 | % | 23.7 | % | 25.5 | % | ||||||||||||
International | 34.9 | % | 23.0 | % | 13.4 | % | 31.3 | % | 26.5 | % | 33.9 | % | ||||||||||||
Total Operating Margin | 29.5 | % | 21.0 | % | 11.3 | % | 21.0 | % | 21.3 | % | 31.0 | % |
(a) | Corporate and Other includes the costs of the holding company, foreign exchange loss from the devaluation of the Venezuelan currency, foreign exchange hedging activities, foreign exchange on the UK pension plan asset, amortization of intangible assets, net gains and losses on disposal of operations, certain legal costs, integration costs associated with the acquisition of HRH and the costs associated with the redomicile of the Company’s parent company from Bermuda to Ireland. |
CONTACT:
Willis Group Holdings plc
Investors:
Kerry K.
Calaiaro, 212-915-8084
kerry.calaiaro@willis.com
or
Media:
Joshua
King, 212-915-8268
joshua.king@willis.com