Printer Friendly


 NEW YORK, Nov. 18 /PRNewswire/ -- Willis Corroon Group plc (NYSE: WCG) (the Group) announced its results for the third quarter 1993.
 Roger J. Elliott, executive chairman, and Richard M. Miller, chief executive, stated the following in making the announcement:
 "The Group's total profits before tax for the nine months ended 30 September 1993 were 70.1 million ($105.1 million at the 30 September exchange rate of $1.50 equals 1), 15 percent higher than those for the same period last year.
 "Third quarter profits of the Group's continuing operations, excluding the discontinued UK underwriting business, rose by 31 percent to 8.9 million ($13.4 million), maintaining the favorable trend set in the year's previous quarters. The overall third quarter result, including that of the discontinued business, was a pre-tax profit of 7.0 million ($10.5 million) compared to 6.8 million ($10.2 million) in the third quarter of 1992.
 "Brokerage and fee revenue growth of 3 percent in underlying terms over the nine months period is encouragingly higher than that achieved in the first half of the year; control of operating expenses has been maintained so that for the nine months, as at the mid-year, these were virtually unchanged in underlying terms over those for the same period last year.
 "Revenue growth continues to benefit from higher premium levels set by worldwide reinsurers and by UK direct underwriters for most classes of business; in the US market most premium rates other than those for highly exposed property risks are still depressed by competition.
 "The profits of the Group's mainstream broking and consulting businesses for the first nine months of the year were 67.9 million ($101.9 million), 30 percent ahead of those for the same period of 1992. These businesses continue to benefit from the strategic investments made in them in the last three years.
 "The improvement in the Group's results for the nine months includes a 6.1 million ($9.2 million) gain arising from differences in foreign exchange rates from those in 1992; this gain more than compensates a 3.0 million ($4.5 million) decline in net interest and investment income arising from lower levels of interest rates, which were in part offset by rising Group cash balances.
 "Additional reserving on the marine account, coupled with further provisions for uncollectable reinsurance, resulted in a loss for the discontinued UK underwriting operations of 1.9 million ($2.9 million) for the third quarter.
 "Our intention to dispose of a majority shareholding in Gryphon Holdings Inc., which comprises the Group's US underwriting operations, by way of an initial public offering has already been announced and is being progressed."
 Unaudited Group Profit and Loss Account
 for the nine months ended 30 Sept. 1993
 1993 1992 1993 1992
 US$(m) US$(m) (m) (m)
 (a) (a)
 Group turnover
 799.1 684.8 Continuing operations 532.7 456.5
 5.6 23.9 Discontinued operations 3.7 15.9
 804.7 708.7 Total 536.4 472.4
 59.9 62.9 Interest and investment income 39.9 41.9
 864.6 771.6 Operating revenue 576.3 514.3
 Operating profit
 114.2 90.6 Continuing operations 76.1 60.4
 (12.5) 0.2 Discontinued operations (8.3) 0.1
 2.4 0.0 Utilization of provision 1.6 0.0
 104.1 90.8 Group operating profit 69.4 60.5
 8.7 6.8 Share of profit of associates 5.8 4.5
 (7.7) (6.2) Interest payable (5.1) (4.1)
 105.1 91.4 Profit before taxation 70.1 60.9
 (40.1) (32.7) Taxation (26.7) (21.8)
 65.0 58.7 Profit after taxation 43.4 39.1
 (0.2) (0.2) Minority interests (0.1) (0.1)
 64.8 58.5 Earnings for the period 43.3 39.0
 Earnings per share
 15.6c 14.1c Total operations 10.4p 9.4p
 17.3c 14.1c Continuing operations 11.5p 9.4p
 Dividends per share 4.95p 9.9p
 Average number of shares in
 issue (millions) 417.0 414.7
 (a) The results for both periods have been translated into U.S. dollars at the 1993 period-end rate of US$1.50 equals 1. This is not the rate used for the original presentation of 1992 results. No adjustments have been made to restate the results to comply with U.S. generally accepted accounting principles.
 Notes to the Profit and Loss Account
 1. Accounting presentation for the nine months ended 30 Sept. 1993 have been prepared on the basis of the accounting policies set out in the 1992 annual report. Comparative figures have been restated on a consistent basis with those policies.
 The financial information contained herein does not comprise full accounts. Statutory accounts for the year ended 31 Dec. 1992, upon which the auditors have given an unqualified report, have been delivered to the Registrar of Companies.
 2. Business analysis
 Cont. opers. Discont. opers.
 1993 1992 1993 1992
 m m m m
 Group turnover 532.7 456.5 3.7 15.9
 Interest and investment income 37.4 39.8 2.5 2.1
 Operating revenue 570.1 496.3 6.2 18.0
 Operating expenses (472.5) (419.1) (5.1) (8.0)
 Underwriting claims (21.5) (16.8) (9.4) (9.9)
 Utilization of provision --- --- 1.6 ---
 Total 76.1 60.4 (6.7) 0.1
 Operating profit
 Share of profit of associates 5.8 4.5 --- ---
 Interest payable (4.6) (4.0) (0.5) (0.1)
 Profit/(loss) before taxation 77.3 60.9 (7.2) ---
 3. Segmental analysis of continuing operations
 Operating rev. Operating profit
 1993 1992 1993 1992
 m m m m
 Broking activities 527.8 460.3 66.7 51.9
 Underwriting activities 42.3 36.0 9.4 8.5
 Total 570.1 496.3 76.1 60.4
 United Kingdom 228.3 221.3 45.7 43.1
 United States of America 319.2 255.2 24.6 13.3
 Rest of the world 22.6 19.8 5.8 4.0
 Total 570.1 496.3 76.1 60.4
 Interim dividends, each of 1.65 pence per share, in respect of the year ending 31 Dec. 1993 were paid on 1 April 1993, 1 July 1993 and 1 Oct. 1993 respectively, absorbing 21.0 million. The directors have declared a fourth interim dividend of 1.65 pence per share which will be paid on 4 Jan. 1994 to shareholders registered at the close of business on 9 Dec. 1993. A scrip dividend alternative is being offered. Details of the offer will be included in the nine months report to be sent to shareholders.
 Holders of the company's American Depositary Receipts (ADRs) will receive the dividend after it has been converted into US dollars by the Depositary, Morgan Guaranty Trust Company of New York. Payments to ADR holders whose residence (for tax purposes) is in the United States will include a refund of the associated UK tax credit in respect of the dividend. The payment will be subject to UK withholding tax (currently equal to 15 percent of the gross dividend) and will be sent to ADR holders by the Depositary on 11 Jan. 1994. Holders of the company's ADRs will continue to have access to a dividend reinvestment plan operated by the Depositary.
 Scrip Dividend
 Shareholders who are on the register at 9 Dec. 1993 may elect to receive the interim dividend payable on 4 Jan. 1994 in the form of fully paid ordinary shares instead of cash, or a combination of shares and cash. Those shareholders who have already completed a share dividend mandate form for all future dividends need take no further action.
 Shareholders who do not participate in the company's Scrip Dividend Scheme (the "Scheme") but now wish to do so may obtain an election form and explanatory documentation from the company's Registrar, Independent Registrars Group Limited at Balfour House, 390/398 High Road, Ilford, Essex IG1 1NQ (telephone 081-478-8241).
 Participation in the Scheme is optional and can be commenced, varied or canceled at any time.
 Participants in the Scheme must return forms of variation to the company's Registrars by 20 Dec. 1993 if they wish to vary the level of their participation in the Scheme in time for the next dividend due. Forms of variation can be obtained from the Registrar at the address shown above.
 The price used to determine the entitlement of a shareholder to new shares instead of the cash dividend will be equal to the average of the middle market quotations for the company's ordinary shares as derived from the Daily Official List of the London Stock Exchange during the period of the five dealing days commencing on 29 Nov. 1993. If on 20 Dec. 1993 the actual share price has decreased by 15 percent or more from this average the scrip dividend alternative will be suspended.
 Copies of this release are available from the company's registered office, Ten Trinity Square, London EC3P 3AX. Shareholders will be sent a copy of the Group's report for the first nine months of 1993, which will also be available from the company's registered office on 22 Nov. 1993.
 -0- 11/18/93
 /CONTACT: John Robins, 071-488-8578, or Peter Stevens, 071-481-7045, both in the U.K. or Kim Bradley in the U.S. 615-872-3083, all of Willis Corroon Group/

CO: Willis Corroon Group, plc ST: Tennessee IN: INS SU: ERN DIV

BN-BR -- AT002 -- 5905 11/18/93 09:36 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Nov 18, 1993

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters