Willis sees organic revenue grow

Willis Group has reported a 10% growth in its Q2 organic revenue, with double-digit growth from its reinsurance broker business.
However, the insurance broker’s net income for the same period dropped 37% from the same period last year to reach US$72 million (US$0.45/share) for the Q2 2006.
“Our 10% organic revenue growth in the second quarter is a clear demonstration of the effectiveness of our sales culture,” Joe Plumeri, chief executive of Willis, reports in a press release. “We see traction and accretion from the new hires that we made over the last few years.”
The Compnay says it expects its organic revenue will continue to grow for the full 2006 year and says salaries and benefits expenses will likely account for less than 59% of total revenue.
Modest expansion is also expected to adjust operating profit margin during 2006, according to the broker.
The Q2 operating margin was 20.1%, which represents an increase of two percentage points over the same period in 2005.
In addition, the company’s board of directors authorized a new, US$1 billion share buy back program. The program replaces the initial US$500 million buy back plan and its remaining US$140 million authorization.