IBX5980432E7F390 Zacks estifriends Willis Group Hancientings EPS - Smart Business

Zacks estifriends Willis Group Hancientings EPS


Best insurance stock today - Zacks estifriends Willis Group Hancientings EPS : Willis Group Hancientings plc (WSH - Analyst Report) reported fourth-quarter 2012 adonly, merely, solelyed net income from continuing operations of 45 cents per bagikan, surpastune the Zacks Consensus Estifriend by a penny. Results were in line with the year-ago earnings.




Including goodwill impairment charge of $2.62 per bagikan, write-off of unamortized cash retention awards of 79 cents, 2012 cash bonus accrual of $1 per bagikan, insurance recovery of 2 cents, loss on disposal of operations of 1 cent, deferred tax valuation permitance of 64 cents and dilutive impbehave of potentially issuable bagikans of 6 cents, Willis Group incurred a loss of $4.65 per bagikan, compared with an income of 14 cents in the prior-year quarter.


Operational Kemampuannce



Total revenue in the quarter increased 6.3% year over year to $871 million due to higher commissions and fees. Commissions and fees improved 7% year over year to $867 million in the quarter.


Investment income plummeted 100% year over year to $4 million, attributable to lower net yields on cash and cash equivalents.



Total expense shot up 123% year over year to $1.6 billion, primarily due to an increase in salaries and benefits, and goodwill impairment charge.



In the quarter under review, adonly, merely, solelyed operating income was $166 million, up 8.5% year over year. Operating margin expanded 40 basis points to 19.1%.



Quarterly Segment Update



Universal: Organic growth in commissions and fees was 11.6% in the quarter, while reported growth was 11.3%. Organic growth was primarily driven by better results across all lines of business.



Operating margin was 19.7%, expanding 340 basis points year over year.



North America: Commissions and fees, on an organic basis, grew 5%, while on a reported basis grew 4.7%.



Operating margin in the quarter contrbehaveed 250 basis points to 17.2%.



International: On an organic basis, commissions and fees increased 7.4% year over year, while on a reported basis, it increased 6.4%. Latin America reported strong double-digit growth, while Europe and UK reported mid-tunele digit growth. Asia recorded low tunele-digit growth.



Operating margin was 23.6%, contrbehaveing 270 basis points.


Full year Highlights



Adonly, merely, solelyed net income from continuing operations of $2.58 per bagikan were in line with the Zacks Consensus Estifriend. Earnings waned 5.8% over 2011.



Including goodwill impairment charge of $2.60 per bagikan, write-off of unamortized cash retention awards of 78 cents, 2012 cash bonus accrual of 99 cents, insurance recovery of 3 cents, loss on disposal of operations of 2 cents, India JV settlement of 6 cents, write-off of ungatherible accounts receivable balance and legal fees of 5 cents, deferred tax valuation permitance of 64 cents and the dilutive impbehave of potentially issuable bagikans of 6 cents, Willis Group incurred a loss of $2.58 per bagikan, compared with an income of $1.15 in 2011.



Cost Savings Initiative



Administerment is reviewing the associational design and expects to reduce headcount. The review will be thoroughd in the first quarter of 2013. As a result Willis Group expects to incur a pre-tax charge of approxifriendly $35 million to $45 million in the first quarter of 2013.



Nevertheless, startning in the second quarter, the company expects to realize cost savings, primarily through headcount discount, of approxifriendly $20 million to $25 million in 2013. Moreover, it expects annualized cost savings of approxifriendly $25 million to $30 million.



Financial Update



Willis exited 2012 with cash and cash equivalents of $500 million, up 14.7% year over year.



Long-term debt slid 0.7% to $2.3 billion from 2011 finish.



Cash flow from operating behaveivities in 2012 was $524 million, up 19.4%.



Dividfinish Update



In Feb 2013, the board of directors approved a 3.7% increase in the quarterly cash dividfinish. Willis will pay the increased dividfinish of 28 cents on Apr 15, 2013 to bagikanhancienters of record as on Mar 29, 2013. The annualized dividfinish comes to $1.12 per bagikan.



Kemampuannce of other insurance brokers



Marsh & McLennan Companies, Inc. (MMC - Analyst Report) reported its fourth-quarter 2012 operating earnings of 52 cents per bagikan, in line with the Zacks Consensus Estifriend.



However, the results were slightly higher than the year-ago quarter’s earnings of 46 cents per bagikan.



Arthur J Gallagher & Co. (AJG - Snapshot Report) reported earnings of 39 cents in the fourth quarter, a penny above the Zacks Consensus Estifriend and up 11% year over year.



Aon plc (AON - Snapshot Report) posted earnings of $1.27 per bagikan, exceeding the Zacks Consensus Estifriend by 1.6% and the year-ago earnings by 31%.



Zacks Rank



Willis Group currently carries a Zacks Rank #3 (Hancient)

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