Willis reports drop in 2007 profit

Willis Group Holdings Ltd. reported a profit of US$409 million for 2007, compared to US$449 million over the prior year.
The net income for 2007 Q4 was US$95 million, a decrease from 2006 Q4, in which the company reported a net income of US$148 million.
Organic growth in commissions and fees was 3% for the year ended Dec. 31, 2007, a Willis release says.
“This reflected net new business won of 4% and a negative 1% 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 company statement says.
The company has decided to invest in key initiatives in 2008 as part of its ‘The Shaping of our Future’ strategy.
“The company is conducting a thorough review of all businesses to identify additional opportunities for cost savings to help fund a portion of the anticipated investments,” the release says.
The review is not yet complete, but company officials anticipate it will lead to an incurred pre-tax charge in the range of approximately US$60-90 million in 2008 Q1. The company also anticipates the review will lead to annualized cost savings in the range of US$20-40 million in 2008.