By Reuters
April 27, 2012 • Reprints
Willis Group Holdings posted a higher first-quarter profit that topped Wall Street estimates, as it earned more from commissions and fees, but the insurance broker withdrew its previous forecasts due to uncertainty in some operations.
The company’s results suffered from continued weakness in its loan protector business, a non-core unit within its North America segment that provides insurance services to the mortgage servicing industry.
“Unexpected events and operational or economic disruptions can significantly affect our business results,” Chief Executive Joe Plumeri said in a statement.
“With that kind of uncertainty, it does not make sense to offer guidance on future financial results.”
First-quarter net income was $225 million, or $1.28 per share, compared with $35 million, or $20 cents per share, a year ago.
Excluding items, the London-based company earned $1.32 per share.
Analysts, on average, expected the company to earn $1.25 per share, according to Thomson Reuters I/B/E/S.
Total commissions and fees rose marginally to $1.01 billion, while organic commissions and fees grew 3 percent, excluding the negative impact of Loan Protector.
Shares of the company, which have gained 13 percent since touching a year-low in October, closed at $37.32 on the New York Stock Exchange on Thursday.
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