Slide 1: Willis Group Holdings Fact Book, quarter ended September 30, 2011
WILLIS GROUP HOLDINGS FACT BOOK For the quarter ended September 30, 2011
Slide 2: Willis snapshot
2 Leading global insurance broker Broad range of professional insurance, reinsurance, risk management, financial and human resource consulting and actuarial services Global distribution capabilities to meet risk management needs of large multinational and middle market clients More than 400 offices
Slide 3: Group financial summary - 3Q 2011
3 Group financial summary - 3Q 2011 4% reported and 2% organic growth in commissions and fees (C&F) - driven by net new business 5% organic growth in International, 9% organic growth in Global, and 4% organic decline in North America, decline primarily driven by one business - Loan Protector 13.8% a
Slide 4: Group financial summary - 3Q YTD 2011
4 Group financial summary - 3Q YTD 2011 5% reported and 3% organic growth in commissions and fees (C&F) - solid new business generation and improved client retention 6% organic growth in International, 6% organic growth in Global, and 2% organic decline in North America 23.6% adjusted operating marg
Slide 5: Organic growth in commissions and fees exceeds peers
5 Organic growth in commissions and fees exceeds peers Average 2006 - 2010 Willis 4% Peers 0% Note: Peer averages are based on Willis estimates using public information from AJG, AON, BRO, MMC 2005 2006 2007 2008 2009 2010 3QYTD 2011 Willis 0.05 0.08 0.03 0.04 0.02 0.04 0.03 Peer Average 0 0.03 0 -0
Slide 6: Growth driven by strong new business production
6 Growth driven by strong new business production % Organic growth in commissions and fees 6% average net new underlying business 2006 - 2010 2005 2006 2007 2008 2009 2010 3Q YTD 2011 Net new underlying business 0.06 0.08 0.04 0.06 0.05 0.06 0.04 Changes in rate and other market factors -0.01 0 -0.0
Slide 7: Strong adjusted operating margins
7 2005 2006 2007 2008 2009 2010 3Q YTD 2011 Willis 0.21 0.23 0.24 0.21 0.22 0.23 0.236 Peer Average 0.19 0.21 0.19 0.19 0.21 0.21 0.208 Strong adjusted operating margins Average 2006 - 2010 Willis 23% Peers 20% Note: Peer averages are based on Willis estimates using public information from AJG, AON,
Slide 8: Segment highlights - 3Q 2011
8 Segment highlights - 3Q 2011 NORTH AMERICA INTERNATIONAL Organic C&F down 4%; primarily driven by lower Loan Protector revenues Excluding Loan Protector, organic C&F is flat Employee Benefits flat and construction up low single digits Good growth in the South and Atlantic regions Tech and Telecom
Slide 9: Willis North America overview
9 Willis North America overview Segment overview 2010 commissions and fees Extensive retail platform with leading positions in major markets Able to leverage industry and specialty practice group expertise across network Major practice groups include: Employee Benefits (approximately 24 percent of 2
Slide 10: Willis International overview
10 Segment overview 2010 commissions and fees Willis International overview Retail operations outside North America Network of subsidiaries, affiliates and correspondents in more than 100 countries; leading positions in UK, France, Scandinavia, China and Russia Offices designed to grow business loca
Slide 11: Willis Global overview - Reinsurance
11 Category 1 Reinsurance 0.45 Other 0.05 Aerospace / Inspace 0.1 Marine 0.08 Construction 0.04 Energy 0.05 Finex 0.06 Faber & Dumas 0.08 Global Markets International 0.09 Segment overview 2010 commissions and fees Willis Global overview Reinsurance Willis Re One of only three global reinsurance bro
Slide 12: Willis Global overview (continued)
12 Segment overview 2010 commissions and fees Willis Global overview (continued) Global Specialties Strong global positions in Aerospace/Inspace FINEX and Financial Solutions - political risks and UK financial institutions Marine Energy Construction London Market Wholesale includes Faber & Dumas - w
Slide 13: Strong cash flow from operations
13 ($ millions) Strong cash flow from operations 2005 2006 2007 2008 2009 2010 LTM 3Q11 Willis 328 147 275 253 419 489 513 Ongoing cash generation
Slide 14: Improved debt and maturity profile
14 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Willis 195 27 114 191 372 300 600 300 500 March 2011 Issued $300 million of 5 year, 4.125% Senior Notes and $500 million of 10 year, 5.75% Senior Notes Redeemed and/or repurchased $500 million of 12.875% Senior Notes (1) Total debt of $2
Slide 15: Looking ahead
15 Looking ahead
Slide 16: The Willis Cause
16 See important disclosures regarding forward-looking statements on page 22 We thoroughly understand our clients' needs and their industries We develop client solutions with the best markets, price and terms We relentlessly deliver quality client service We get claims paid quickly .... WITH INTEGRI
Slide 17: Delivering the Willis Cause
17 Delivering the Willis Cause See important disclosures regarding forward-looking statements on page 22 Realigning our business model to further grow the Company and deliver the Willis Cause - our value proposition to clients - more consistently and efficiently. For example, current and targeted in
Slide 18: Delivering the Willis Cause - example initiatives
18 Delivering the Willis Cause - example initiatives CLIENT UNDERSTANDING SERVICE QUALITY CLAIMS PAID Segments Specialization Sales 2.0 Global Solutions Willis Research Network Analytics Willis Quality Index Global Placement Programs, Panels & Facilities Willis Capital Markets & Advisory Target Oper
Slide 19: Operational review rationale
19 Operational review rationale See important disclosures regarding forward-looking statements on page 22 Challenging external environment Soft rate environment Slow pace of economic recovery in major western economies To support our growth strategy and delivery of the Willis Cause in 2011 and beyon
Slide 20: Wrap up
20 Wrap up 3% organic growth YTD, driven by International and Global segments North America pressured by Loan Protector performance Completed 2011 Operational Review Recorded $130 million YTD of 2011 operational review charge Further efficiency opportunities increase anticipated 2011 charge to $160
Slide 21: Appendix
Appendix Willis
Slide 22: Important disclosures regarding forward-looking statements
22 Important disclosures regarding forward-looking statements This presentation contains certain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934, which are intended to be covered by the safe harbors
Slide 23: Non-GAAP financial measures
23 This presentation contains references to "non-GAAP financial measures" as defined in Regulation G of SEC rules. We present these measures because we believe they are of interest to the investment community and they provide additional meaningful methods of evaluating certain aspects of the Company
Slide 24: Operating Income to Adjusted Operating Income
24 Important disclosures regarding Non-GAAP measures (continued) See related footnotes on page 28 Operating Income to Adjusted Operating Income
Slide 25: Operating Income to Adjusted Operating Income (continued)
25 Important disclosures regarding Non-GAAP measures (continued) Operating Income to Adjusted Operating Income See related footnotes on page 28
Slide 26: Net Income to Adjusted Net Income
26 Important disclosures regarding Non-GAAP measures (continued) Net Income to Adjusted Net Income See related footnotes on page 28
Slide 27: Net Income to Adjusted Net Income (continued)
27 Important disclosures regarding Non-GAAP measures (continued) Net Income to Adjusted Net Income See related footnotes on page 28
Slide 28: Notes to the non-GAAP reconciliations
28 Important disclosures regarding Non-GAAP measures (continued) Notes to the Operating Income to Adjusted Operating Income reconciliation and Net Income from Continuing Operations to Adjusted Net Income from Continuing Operations reconciliation $15 million pre-tax charge in 3Q11 ($130 million in 3Q
Slide 29: Commissions and Fees Analysis
29 Commissions and Fees Analysis (a) Important disclosures regarding Non-GAAP measures (continued) (a) Effective January 1, 2011, the Company's internal reporting structure has changed. The primary changes are: Global Markets International, previously reported within the International segment, is no
Slide 30: Commissions and Fees Analysis (continued)
30 Effective January 1, 2011, the Company's internal reporting structure has changed. The primary changes are: Global Markets International, previously reported within the International segment, is now reported in the Global segment. In addition, Mexico Retail, which was previously reported within t
Slide 31: Willis Group Holdings Fact Book, quarter ended September 30, 2011
WILLIS GROUP HOLDINGS FACT BOOK For the quarter ended September 30, 2011