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Three years ago, the future of Willis Group Holdings Ltd. was up in the air.
While it avoided being acquired by a competitor with its 1998 leveraged buyout arrangement with Kohlberg Kravis Roberts & Co., the London-based broker was heavily burdened with debt, revenues were marginal, and there was no common focus or goal within the company.
Now, under the helm of Joseph J. Plumeri, Willis has emerged a stronger company, with a new sense of optimism and energy. Brokerage revenues were up more than 22%, to $1.74 billion in 2002, while profits soared to $210 million from just $2 million in 2001.
Willis' strong earnings and cash flow position has enabled it to substantially reduce its long-term debt. At the end of 2002, total long-term debt was down 28% to $567 million over the prior year and by March 31 of this year, Willis further reduced its debt to $499 million.
The broker's turnaround also has enabled it to recruit more than 300 new associates over the past year, many of whom were lured away from competitors.
And the world's third-largest broker is just beginning, according to its chairman and chief executive officer.
"We've done well...but the road to success is still under construction," said Mr. Plumeri, who describes the broker has having "175 years of experience with the energy of a 3-year-old."
Success so far is attributable to a common vision and its new business model, which focuses on growth and its shareholders, according to Mr. Plumeri.
The biggest difference between today and three years ago is there's a vision within the company, and "our vision is to be the greatest insurance broker in the world," he said. "Every dollar goes into being a very good broker."
Driven by that commitment, Willis maintains a focus on its No. 1 priority, its shareholders.
"Shareholders come first" and clients are No. 2, he said. "Ultimately, we do the best job for the client, but we can't...