What’s New: In Brief (February 04, 2010)

Having “substantially completed” the acquisition of Hilb Rogal & Hobbs (HRH) Company, Willis Group is calling 2009 a “momentous year” marked by increased profits and organic growth.
Reported net income from continuing operations for 2009 Q4 was $79 million, compared with $61 million in the same period a year ago.
In addition, the company reported a 2% organic growth in commissions and fees compared with 2008.
“This growth reflected net new business won of 7%, partially offset by a negative 5% impact from declining premium rates and other market factors,” Willis reported.
The North America segment reported a 1% growth in organic commissions and fees in the fourth quarter of 2009 compared with the same period of 2008, and improved sequentially from the third quarter of 2009, the company said.

Standard & Poor’s Ratings Services today has lowered its long-term counterparty credit rating on Berkshire Hathaway Inc. (BRK) to ‘AA+’ from ‘AAA,’ in anticipation of Berkshire Hathaway to acquire of Burlington Northern Santa Fe Corporation.
The ratings agency also lowered its financial strength ratings on BRK’s core insurance operations to ‘AA+’ from ‘AAA.’
The outlook on these ratings is stable.
“The rating actions are based on our view that Berkshire’s overall capital adequacy, as well as that of its insurance operations, has weakened to levels no longer consistent with a ‘AAA’ rating and is not expected to return to extremely strong levels in the near term,” Standard & Poor’s said in a press release.
“Furthermore, we expect that the consolidated liquidity position of BRK will be reduced from extremely strong historical levels as a result of the acquisition.”