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WILLIS CORROON GROUP plc REPORTS RESULTS FOR THE SIX MONTHS ENDED JUNE 30, 1992

 WILLIS CORROON GROUP plc REPORTS RESULTS
 FOR THE SIX MONTHS ENDED JUNE 30, 1992
 NASHVILLE, Tenn., Aug. 20 /PRNewswire/ -- Willis Corroon Group plc (ADRs traded on the New York Stock Exchange, ticker WCG) has announced its results for the first half of 1992.
 Highlights are as follows:
 1992 1992 1991 Change
 US$(A) Pounds Sterling
 $571.5m Brokerage and fee revenue 300.8m 285.5m 5 pct.
 $102.8m Profit before tax 54.1m 69.4m -22 pct.
 15.8 cts. Earnings per share 8.3p 10.9p -24 pct.
 (A) For convenience, sterling figures have been translated into U.S. dollars at the period-end rate of 1 pound equals $1.90.
 Roger Elliott, executive chairman, and Richard Miller, chief executive, issued the following statement in announcing the results:
 "As a result of world insurance and financial market factors, together with the cost of our long-term investments, our 1992 profits will be below those achieved in 1991. Although current trading is difficult, however, the board has confidence in the company's long-term strategy and intends to declare maintained quarterly dividends for the current financial year.
 "We have devoted considerable resources to many vital projects that will contribute to the Group's profits. These include the following:
 -- 32 million pounds of investments in insurance brokers in Continental Europe and Canada;
 -- improving our network in Eastern Europe, South America and the Far East;
 -- enhancing our business capabilities in marine and energy, aerospace and financial risks.
 "The 5 percent growth in the Group's brokerage and fee revenue in the first half of 1992 compared with the corresponding period last year includes some contribution from these new operations, but less than they will generate when fully established. On an underlying basis, revenue was unchanged.
 "On an underlying basis, the growth of operating expenses over the first half of 1991 was 3 percent. Besides the additional costs of new operations, expenses have been incurred in 1992 to effect rationalizations, including reducing the number of jobs, which, when completed, together with similar steps already taken since the merger, will yield substantial full-year savings.
 "Factors working against us that we are seeking to mitigate are as follows:
 -- reduced net interest income due principally to lower interest rates and the effect of investment;
 -- adverse foreign exchange rates in the second quarter;
 -- the worst U.S. insurance market for many years;
 -- reduced demand as a result of recession's impact on our clients.
 "At the same time, taking advantage of the competitive building market, we are incurring costs over the next two years modernizing our London head office.
 "Comparison of the results of our underwriting activities with those for 1991 is still complicated by the inclusion last year of the U.K. operations which have subsequently been discontinued. The profits of our North American insurance companies were broadly unchanged in the first half.
 "We have accomplished a great deal since our merger in 1990 which has been correct for the medium- and long-term future of our company. Our worldwide network is now in place. The strategic business units, established at the beginning of 1992, have the task of enhancing our service to existing clients, producing new business, and improving our returns to shareholders. All parts of the Group are working well together, the business cooperation worldwide is expanding, and the planned group synergy is being realized.
 "There are strategic goals for the Group which must be achieved if we are to satisfy our clients, shareholders, and staff. We have emphasized our commitment to career development and succession planning, and to instilling a 'one company, one culture' spirit throughout the Group. Expanding our business, improving cash flow, and maintaining effective systems are tasks which will benefit the Group's well-being and reputation for many years to come."
 WILLIS CORROON GROUP plc
 Group Profit and Loss Account
 for the six months ended June 30, 1992
 1992 1992 1991
 US$(m)(B) Pounds Sterling(m)
 607.2 Turnover 319.6 312.7
 49.6 Interest and investment income 26.1 34.9
 656.8 Operating revenue 345.7 347.6
 (534.7) Operating expenses (281.4) (256.5)
 (21.8) Underwriting claims (11.5) (22.4)
 100.3 Operating profit 52.8 68.7
 Share of profit of associated
 7.4 undertakings 3.9 3.0
 (4.9) Interest payable (2.6) (2.3)
 Profit on ordinary activities
 102.8 before taxation 54.1 69.4
 (36.7) Tax on profit on ord. activs. (19.3) (24.9)
 Profit on ordinary activities
 66.1 after taxation 34.8 44.5
 (0.6) Minority interests (0.3) (0.3)
 65.5 Profit for the period 34.5 44.2
 15.8 cts. Earnings per share 8.3p 10.9p
 12.5 cts. Dividends per share 6.6p 6.6p
 Average number of shares in
 issue (millions) 415 404
 (B) The results for the six months ended June 30, 1992, have been translated into U.S. dollars at the period-end rate of 1 pound equals US$1.90. No adjustments have been made to restate the results to comply with U.S. generally accepted accounting principles.
 NOTES
 1) Segmental Analysis
 1992 6 months ended June 30 1992 1991
 US$(m) Pounds Sterling(m)
 Operating Revenue
 609.9 Broking activities 321.0 314.3
 46.9 Underwriting activities 24.7 33.3
 656.8 Total 345.7 347.6
 Operating Profit
 89.3 Broking activities 47.0 68.2
 11.0 Underwriting activities 5.8 0.5
 100.3 Total 52.8 68.7
 2) Dividends Per Share
 The directors have declared a third interim dividend of 3.3 pence per share which will be paid on Oct. 1, 1992, to shareholders registered at the close of business on Sept. 11, 1992. A scrip dividend alternative is being offered in respect of the third interim dividend. Details of the offer will be included in the half-year report.
 Holders of the company's American Depositary Receipts (ADRs) will receive the dividend after it has been converted into U.S. 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 U.K. tax credit in respect of the dividend. The payment will be subject to U.K. withholding tax (currently equal to 15 percent of the gross dividend) and will be sent to ADR holders by the Depositary on Oct. 8, 1992. Holders of the company's ADRs will continue to have access to a dividend reinvestment plan operated by the depositary.
 3) Accounting Presentation
 The results for the six months ended June 30, 1992, which are unaudited and do not comprise full accounts, have been prepared on the basis of the accounting policies set out in the 1991 Annual Report.
 Statutory accounts for the year ended Dec. 31, 1991, upon which the auditors have given an unqualified report, have been delivered to the Registrar of Companies.
 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 six months' report, which will also be available from the company's registered office, on Aug. 24.
 -0- 8/20/92
 /CONTACT: Michael Sabanos in the New York office, 212-363-4100; Peter Stevens in the London office, 071-481-7045, or Mary Fairchild in the Nashville office, 615-872-3044, all of Willis Corroon/
 (WCG) CO: Willis Corroon Group, plc ST: Tennessee IN: INS SU: ERN DIV


BR-BN -- AT002 -- 1578 08/20/92 08:32 EDT
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