Willis Group Holdings PLCWSH

Morningstar Rating

Stock Research and Analysis

by Bill Bergman

Insurance brokerage and risk consulting leader Willis Group Holdings serves its clients through a global distribution network. The firm offers clients locally responsive service backed by broad international and service line expertise. The wide network Read more

Bulls Say

Through its worldwide network, Willis can offer its clients a global perspective on individual risk. Willis has experts in numerous specialized fields of insurance in order to provide its customers with the best service.

Willis assumes no underwriting risk, which puts it in a significantly less risky position than some of its competitors.

By acquiring HRH, Willis gains access to more small-market clients, a market it had not really penetrated before the acquisition. Read more

Bears Say

Willis' leverage is high relative to its peers'. It high debt load may force it to incur additional costs through refinancing.

Like many insurance brokers, Willis is the subject of federal investigations regarding contingent commissions paid by insurance companies to brokers. Willis has had to pay a settlement fee and can no longer accept these commissions, eliminating a source of revenue.

Historically, HRH's margins have been considerably lower than Willis'. Willis' margins may decrease as a consequence of this acquisition. Read more

Strategy

Willis seeks to be the go-to source for all its clients' risk management, insurance, and consulting needs. It offers localized service backed up by an international network of agents who work as a team. Read more

Management

We believe the executives and directors of Willis have been reasonably good stewards of shareholders' interests. The company has been led by chairman and CEO Joseph Plumeri since its initial public offering in 2001. Although we would prefer to see Plumeri's Read more

Profile

Willis Group Holdings is the world's third-largest insurance broker, with substantial operations around the globe. The firm collects commissions and fees from its corporate Read more

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