Willis Group Holdings plc (NYSE: WSH), the global insurance broker, today reported results for the quarter and six months ended June 30, 2012.
Highlights of the quarter ended June 30, 2012 include:
- Reported earnings per diluted share from continuing operations of $0.61 compared to $0.48 in second quarter of 2011; adjusted earnings per diluted share from continuing operations of $0.59 compared to $0.61 in year ago quarter;
- Reported commissions and fees decreased 2% compared with the second quarter of 2011;
- Organic growth in commissions and fees of 2%; led by 7% organic growth in Global Segment;
- Reported operating margin of 21.3% compared to 18.1% in second quarter of 2011; adjusted operating margin of 20.7% compared to 21.5% in year ago quarter;
- Repurchased 1,040,000 shares for approximately $37 million during the quarter.
“The second quarter brought with it modest top-line growth and, more importantly, going forward, we are moving past many of the difficult comparable items that make it harder to see the progress we’ve made in the first half of this year,” said Joe Plumeri, Chairman and Chief Executive Officer, Willis Group Holdings. “Strong results in our Global segment led the way and, looking forward, robust sales pipelines and increased recruitment of new producers are evident across our businesses and are providing momentum going into the second half of the year. The global economy continues to be challenging, but the reports from our business heads each show positive developments which we will be sharing with our investors on our earnings conference call.”
Second Quarter 2012 Financial ResultsReported net income from continuing operations for the quarter ended June 30, 2012 was $107 million, or $0.61 per diluted share, compared with $84 million, or $0.48 per diluted share, in the same period a year ago. Reported net income in the second quarter of 2012 was positively impacted by a $5 million insurance recovery related to previously disclosed fraudulent activity. Reported net income in the second quarter of 2011 was reduced by charges amounting to $18 million and $11 million related to the 2011 Operational Review and a regulatory settlement, respectively.