Willis 1Q Profit Up 16 Percent On Higher Revenue

NEW YORK (AP) — British insurance broker Willis Group Holdings Ltd. said late Wednesday that its first-quarter profit rose 16 percent, boosted by its acquisition of Hilb Rogal & Hobbs Co.

For the January-March period, the company earned $193 million, or $1.16 per share, compared with $166 million, or $1.16 per share, a year earlier. The earnings-per-share results are based on 167 million shares outstanding in the first quarter of 2009, and 143 million shares outstanding in the prior-year quarter.

Adjusted net income from continuing operations, excluding acquisition-related integration costs, gains and losses on the disposal of operations and other one-time items, was $194 million, or $1.16 per share, compared with $189 million, or $1.32 per share, in the 2008 first quarter.

Analysts polled by Thomson Reuters, on average, were expecting earnings of $1.10 per share. Analysts typically exclude one-time items from their estimates.

Results for 2009 were hurt by a stronger U.S. dollar relative to the euro, which reduced earnings by 14 cents a share, the company said.

Results were also affected by integration costs related to its acquisition of Glen Allen, Va.-based insurance and risk management company Hilb Rogal & Hobbs, which was completed last October.

But the deal significantly boosted Willis' revenue during the quarter. Total reported revenue jumped 17 percent to $930 million from $795 million. Foreign currency translation decreased revenue by 12 percent, the company said. Analysts predicted $981 million.

Total expenses rose 15 percent to $656 million.