(RTTNews) - Monday, insurance broker Willis Group Holdings Limited (WSH: News ) posted an increase in profit for the third quarter from a year-ago, as revenues improved 25%.

Willis' profit from continuing operations for the third quarter $78 million, up from $36 million in the year-ago period. On a per share basis, net income was $0.46, compared to $0.25 in the prior-year period.

Excluding certain items, adjusted earnings per share from continuing operations were $0.53 in the third quarter of 2009, compared with $0.32 in the third quarter of 2008. Foreign currency movements had a negative $0.05 impact on earnings, while taxes increased to $29 million from $2 million in the year-ago period.

On average, 16 analysts polled by Thomson Reuters expected earnings of $0.37 for the quarter. Analysts' estimates typically exclude one-time items.

Willis' total revenues increased 25% to $725 million from $579 million last year, beating analysts revenue expectations of $709.61 million. The company attributed the increase primarily to the acquisition of Hilb Rogal & Hobbs Company. Foreign currency movements decreased reported revenues by 2% compared with a year ago.

Willis reported a 28% growth in commissions and fees to $714 million from $556 million in the year-ago period, reflecting new business won, somewhat offset by declining premium rates and other market factors

The company's investment income decreased to $10 million from $22 million, while operating income improved to $82 million from $66 million in the year-ago period. Operating margins of 11.3% were down from 11.4% in the same period last year.
For the nine-month period, net income rose to $357 million or $2.13 per share from $241 million or $1.70 per share on an increase in total revenue of $2.43 billion from $2.03 billion in the year-ago period.

For the quarter, the company issued $300 million of senior unsecured notes due 2019 at 7.0%, repurchased $160 million of 5.125% senior notes due July 2010. As of September 30, 2009, cash and cash equivalents totaled $203 million and total debt was $2.6 billion with total stockholders' equity at $2.2 billion.

The company has declared a regular quarterly cash dividend of $0.26 per share, or an annual rate of $1.04 per share, payable on January 15, 2010 to shareholders as on record on December 30, 2009.

The company is also planning to sell a portion of its interest in Gras Savoye, and when that occurs, expects to get net proceeds of $100-$150 million and retention of a 33% stake and ability to acquire a majority interest in Gras Savoye in 2015.

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