Willis Group Holdings plc posts $107 million in net income for second quarter of 2012

Reported net income from continuing operations at Willis Group Holdings plc was $107 million in 2002 Q2, up from $84 million in the second quarter of 2011.

That translates to $0.61 per diluted share for the period ended June 30, 2012 compared with $0.48 per diluted share for 2011 Q2, notes a statement from Willis Group Holdings, a global insurance broker. “The second quarter brought with it modest top-line growth,” Joe Plumeri, chairman and CEO of Willis Group Holdings, notes in the statement.

Reported net income in 2012 Q2 was positively impacted by a $5-million insurance recovery related to previously disclosed fraudulent activity, the company reports. Meanwhile, reported net income for the same quarter in 2011 was reduced by charges amounting to $18 million and $11 million related to the 2011 operational review and a regulatory settlement, respectively.

Other financial highlights for 2012 Q2 include that reported earnings per diluted share from continuing operations increased to $0.61 from $0.48, adjusted net income from continuing operations decreased $3 million to $104 million, total commissions and fees decreased 2% to $837 million, and investment income declined $3 million to $5 million, primarily as a result of declining net yields on cash and cash equivalents.

Premium rates In the North America segment increased while exposure levels declined slightly period over period. In the global segment, organic growth in commissions and fees was led by reinsurance, which grew low double-digits, driven by strong new business growth and an improvement in the rate environment in both North America and international markets.

“The last few quarters have tested our mettle,” Plumeri says. “We can’t turn the global economy around, but we believe that our important initiatives in our sales and placement process will accelerate our momentum in coming months and bode well for the second half of the year.”