Willis Group reports drop in Q3 earnings

Willis Group Holdings Limited (NYSE: WSH) reported a net income of US$36 million, compared with US$67 million a year ago.The results were impacted by financing and integration costs totalling US$10 million, associated with the acquisition of Hilb Rogal & Hobbs Company (HRH) which closed on Oct. 1, 2008, a release says.Organic growth in commissions and fees was 2% in 2008 Q3 compared with 2007 Q3. “This reflected net new business won of 5% offset by a negative 3% impact from declining premium rates tempered by other market factors, such as higher commission rates, higher insured values and changes in limits and exposures,” the release says.Reported net income for the nine months ended Sept. 30, 2008 was US$241 million, compared with US$314 million over the same period of last year.In light of current global economic uncertainty, Willis is reviewing its current stated financial goals for 2009 and 2010. “These are unprecedented times, and we are responding with an appropriate sense of urgency,” said Joe Plumeri, chairman and CEO of Willis. “We are striving to meet the stated financial goals for 2009 and 2010, yet we need time to assess the potential impact of the current global economic uncertainty on the current outlook.”