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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 7/10

vs
industry
vs
history
Cash to Debt 0.34
WSH's Cash to Debt is ranked lower than
61% of the 379 Companies
in the Global Insurance Brokers industry.

( Industry Median: 101.40 vs. WSH: 0.34 )
WSH' s 10-Year Cash to Debt Range
Min: 0.07   Max: 1.15
Current: 0.34

0.07
1.15
Equity to Asset 0.15
WSH's Equity to Asset is ranked lower than
55% of the 369 Companies
in the Global Insurance Brokers industry.

( Industry Median: 0.37 vs. WSH: 0.15 )
WSH' s 10-Year Equity to Asset Range
Min: 0.03   Max: 0.16
Current: 0.15

0.03
0.16
Interest Coverage 5.44
WSH's Interest Coverage is ranked higher than
55% of the 319 Companies
in the Global Insurance Brokers industry.

( Industry Median: 13.78 vs. WSH: 5.44 )
WSH' s 10-Year Interest Coverage Range
Min: 1.73   Max: 30.27
Current: 5.44

1.73
30.27
F-Score: 6
Z-Score: 0.92
M-Score: -2.38
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 7/10

vs
industry
vs
history
Operating margin (%) 18.74
WSH's Operating margin (%) is ranked higher than
68% of the 391 Companies
in the Global Insurance Brokers industry.

( Industry Median: 17.69 vs. WSH: 18.74 )
WSH' s 10-Year Operating margin (%) Range
Min: -6.01   Max: 29.87
Current: 18.74

-6.01
29.87
Net-margin (%) 9.99
WSH's Net-margin (%) is ranked higher than
64% of the 395 Companies
in the Global Insurance Brokers industry.

( Industry Median: 11.99 vs. WSH: 9.99 )
WSH' s 10-Year Net-margin (%) Range
Min: -12.82   Max: 19.94
Current: 9.99

-12.82
19.94
ROE (%) 16.48
WSH's ROE (%) is ranked higher than
90% of the 391 Companies
in the Global Insurance Brokers industry.

( Industry Median: 5.64 vs. WSH: 16.48 )
WSH' s 10-Year ROE (%) Range
Min: -26.25   Max: 31.27
Current: 16.48

-26.25
31.27
ROA (%) 2.47
WSH's ROA (%) is ranked higher than
76% of the 395 Companies
in the Global Insurance Brokers industry.

( Industry Median: 1.58 vs. WSH: 2.47 )
WSH' s 10-Year ROA (%) Range
Min: -2.95   Max: 3.78
Current: 2.47

-2.95
3.78
ROC (Joel Greenblatt) (%) 99.71
WSH's ROC (Joel Greenblatt) (%) is ranked higher than
70% of the 380 Companies
in the Global Insurance Brokers industry.

( Industry Median: 103.16 vs. WSH: 99.71 )
WSH' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -30.42   Max: 330.54
Current: 99.71

-30.42
330.54
Revenue Growth (%) 1.60
WSH's Revenue Growth (%) is ranked higher than
71% of the 297 Companies
in the Global Insurance Brokers industry.

( Industry Median: -1.60 vs. WSH: 1.60 )
WSH' s 10-Year Revenue Growth (%) Range
Min: 0.8   Max: 12.5
Current: 1.6

0.8
12.5
EBITDA Growth (%) -6.30
WSH's EBITDA Growth (%) is ranked higher than
71% of the 255 Companies
in the Global Insurance Brokers industry.

( Industry Median: -4.20 vs. WSH: -6.30 )
WSH' s 10-Year EBITDA Growth (%) Range
Min: -8.7   Max: 36.9
Current: -6.3

-8.7
36.9
EPS Growth (%) -8.50
WSH's EPS Growth (%) is ranked higher than
66% of the 253 Companies
in the Global Insurance Brokers industry.

( Industry Median: 0.70 vs. WSH: -8.50 )
WSH' s 10-Year EPS Growth (%) Range
Min: -17.4   Max: 523.2
Current: -8.5

-17.4
523.2
» WSH's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q2 2013

WSH Guru Trades in Q2 2013

Diamond Hill Capital 1,343,285 sh (New)
HOTCHKIS & WILEY 1,765,617 sh (New)
Steven Cohen 5,225 sh (New)
Richard Pzena 4,881,373 sh (+11.85%)
Jeff Ubben 18,214,700 sh (+10.39%)
Charles Brandes 183,848 sh (+7.14%)
David Herro 10,184,000 sh (+5.86%)
Jean-Marie Eveillard 6,241,083 sh (+2.34%)
Pioneer Investments 851,010 sh (+1%)
Brian Rogers 3,000,000 sh (unchged)
Wallace Weitz 100,000 sh (unchged)
Chuck Royce 116,800 sh (unchged)
Bill Gates Sold Out
PRIMECAP Management 4,325,085 sh (-0.48%)
Private Capital 542,238 sh (-1.56%)
Francisco Garcia Parames 1,217,034 sh (-1.69%)
Westport Asset Management 1,347,520 sh (-6.91%)
NWQ Managers 854,800 sh (-7.93%)
RS Investment Management 1,496,270 sh (-8%)
James Barrow 2,955,128 sh (-10.8%)
» More
Q3 2013

WSH Guru Trades in Q3 2013

Ray Dalio 16,300 sh (New)
HOTCHKIS & WILEY 2,790,114 sh (+58.02%)
David Herro 12,505,000 sh (+22.79%)
Diamond Hill Capital 1,648,850 sh (+22.75%)
James Barrow 3,325,726 sh (+12.54%)
Charles Brandes 192,078 sh (+4.48%)
Jean-Marie Eveillard 6,326,416 sh (+1.37%)
Wallace Weitz 100,000 sh (unchged)
Jeff Ubben 18,214,700 sh (unchged)
Chuck Royce 116,800 sh (unchged)
Westport Asset Management 1,347,520 sh (unchged)
Steven Cohen Sold Out
PRIMECAP Management 4,225,585 sh (-2.3%)
Richard Pzena 4,758,913 sh (-2.51%)
Private Capital 520,937 sh (-3.93%)
NWQ Managers 795,808 sh (-6.9%)
Francisco Garcia Parames 1,095,565 sh (-9.98%)
Brian Rogers 2,500,000 sh (-16.67%)
RS Investment Management 1,067,112 sh (-28.68%)
Pioneer Investments 571,210 sh (-32.88%)
» More
Q4 2013

WSH Guru Trades in Q4 2013

Jim Simons 14,305 sh (New)
Steven Cohen 10,304 sh (New)
Diamond Hill Capital 2,524,386 sh (+53.1%)
Ray Dalio 20,800 sh (+27.61%)
HOTCHKIS & WILEY 2,938,225 sh (+5.31%)
Charles Brandes 199,653 sh (+3.94%)
David Herro 12,786,000 sh (+2.25%)
NWQ Managers 806,453 sh (+1.34%)
Chuck Royce 116,800 sh (unchged)
Wallace Weitz 100,000 sh (unchged)
Jeff Ubben 18,214,700 sh (unchged)
Jean-Marie Eveillard 6,268,616 sh (-0.91%)
PRIMECAP Management 4,172,951 sh (-1.25%)
Francisco Garcia Parames 1,075,894 sh (-1.8%)
Richard Pzena 4,671,514 sh (-1.84%)
Westport Asset Management 1,247,520 sh (-7.42%)
RS Investment Management 937,941 sh (-12.1%)
James Barrow 2,684,770 sh (-19.27%)
Brian Rogers 2,000,000 sh (-20%)
Pioneer Investments 456,216 sh (-20.13%)
Private Capital 240,445 sh (-53.84%)
» More
Q1 2014

WSH Guru Trades in Q1 2014

Brian Rogers 2,000,000 sh (unchged)
» More
» Details

Insider Trades

Latest Guru Trades with WSH

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Ray Dalio 2013-12-31 Add 27.61%$42.21 - $46.13 $ 42.25-5%20800
Ray Dalio 2013-09-30 New Buy0.01%$40.66 - $44.93 $ 42.25-1%16300
Jeff Ubben 2013-06-30 Add 10.39%0.72%$38.27 - $42 $ 42.256%18214700
Jeff Ubben 2013-03-31 Add 46.2%2.34%$33.53 - $39.49 $ 42.2516%16500000
Mason Hawkins 2013-03-31 Sold Out 0.8%$33.53 - $39.49 $ 42.2516%0
Charles Brandes 2013-03-31 Reduce -33.43%0.03%$33.53 - $39.49 $ 42.2516%171593
Jean-Marie Eveillard 2012-12-31 Add 33.54%0.18%$33.22 - $37.32 $ 42.2522%6029983
Mason Hawkins 2012-09-30 Reduce -38.96%0.55%$34.33 - $37.88 $ 42.2516%5521200
Wallace Weitz 2012-09-30 Reduce -50%0.17%$34.33 - $37.88 $ 42.2516%100000
Meridian Funds 2012-06-30 Sold Out 1.7%$34.37 - $36.65 $ 42.2519%0
PRIMECAP Management 2012-06-30 New Buy0.28%$34.37 - $36.65 $ 42.2519%4619759
Ruane Cunniff 2012-06-30 Sold Out 0.17%$34.37 - $36.65 $ 42.2519%0
Steve Mandel 2012-03-31 Sold Out 0.98%$34.1 - $39.51 $ 42.2522%0
Mason Hawkins 2012-03-31 Reduce -26.34%0.58%$34.1 - $39.51 $ 42.2522%9333622
Steve Mandel 2011-12-31 New Buy0.98%$33.63 - $40.67 $ 42.2515%3529442
Wallace Weitz 2011-12-31 Reduce -63.75%0.59%$33.63 - $40.67 $ 42.2515%200000
Charles Brandes 2011-12-31 Reduce -38.53%0.06%$33.63 - $40.67 $ 42.2515%286392
George Soros 2011-06-30 Sold Out $39.52 - $42.21 $ 42.254%0
Meridian Funds 2011-03-31 Add 6.58%0.19%$34.57 - $39.98 $ 42.2512%2541213
George Soros 2011-03-31 Reduce -55.5%$34.57 - $39.98 $ 42.2512%8500
Mario Gabelli 2011-03-31 Sold Out $34.57 - $39.98 $ 42.2512%0
Premium More recent guru trades are included for Premium Members only!!
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Guru Investment Theses on Willis Group Holdings PLC

Westport Asset Management Comments on Willis Group Holdings - Aug 08, 2013

The second largest contributor to first half performance was Willis Group Holdings plc (WSH), the international insurance broker. The shares rose over 21% and added 204 basis points to performance. The company's business turnaround continues and could be accelerated by actions expected to be announced this quarter by the new CEO.

From Westport Asset Management's second quarter 2013 letter.


Check out Westport Asset Management latest stock trades

RS Investments Comments on Willis Group Holdings - Jul 18, 2012

From RS Investments Value Fund's second-quarter commentary:

Willis Group Holdings (WSH) is the world's third largest insurance broker, in an industry where 78% of the market share is held by the top six players. The company operates as an intermediary in placing both insurance and reinsurance coverage. Approximately 70% of company revenues are generated through commissions and over 93% is recurring. Willis Group's is the world's largest reinsurance broker and more than half of its cash flows are generated outside the US. The company holds minority interests in Gras Savoye (31%), a French brokerage firm, and Al-Futtain (49%), a Dubai brokerage firm. CEO Joe Plumeri was the primary architect responsible for transforming the company after it was acquired by KKR Holdings in the late 1990s.

We believe that Willis Group is very well positioned to benefit from a sustained increase in property and casualty insurance pricing, which should reverse a multi-year downturn that has significantly reduced returns for underwriters. We believe that improved pricing is inevitable because: (1) the insurance industry is now cash flow negative on an underwriting basis, with paid losses now outpacing paid losses + changes to overall reserves; (2) Investment yields have declined dramatically due to low interest rates. New money yields now average 2.75%, compared to five years ago when they exceeded 5%. Given the industry's dependence on investment income and the underwriters' use of leverage, returns have declined materially; (3) The industry has been living off of reserve redundancies for the last several years, such that now reserves are developing adversely, which is putting additional pressure on balance sheets and capital positions; and (4) 2011 was the third worst catastrophe loss year on record, which led to over $100 billion in insured losses.

Willis Group produces consistent cash flow generation and, therefore, its stock price is less volatile during pricing downturns. The company enjoys long-term relationships with its clients, which range from small businesses to global Fortune 500 companies, and these revenue streams are very sticky (93+% persistency). Property and casualty insurance is a necessity for business customers and requires that they return to their broker at least once a year; and the broker collects the same commission regardless of whether it is for new business or renewal. Even during cyclical downturns, most brokers are able to increase the amount of insurance a business receives by changing terms and conditions so as to keep absolute pricing relatively flat. Despite the recent soft pricing environment and the global credit crisis, organic growth for the industry has remained positive for each of the past 12 years. For these reasons, we remain confident in our belief that our investment in Willis Group provides our investors with a compelling investment opportunity with ample downside protection.

Check out RS Investment Management latest stock trades

Top Ranked Articles about Willis Group Holdings PLC

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Westport Asset Management Comments on Willis Group Holdings
The second largest contributor to first half performance was Willis Group Holdings plc (WSH), the international insurance broker. The shares rose over 21% and added 204 basis points to performance. The company's business turnaround continues and could be accelerated by actions expected to be announced this quarter by the new CEO. Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 20.50
WSH's P/E(ttm) is ranked higher than
62% of the 322 Companies
in the Global Insurance Brokers industry.

( Industry Median: 20.30 vs. WSH: 20.50 )
WSH' s 10-Year P/E(ttm) Range
Min: 9.14   Max: 33.84
Current: 20.5

9.14
33.84
P/B 3.30
WSH's P/B is ranked lower than
64% of the 357 Companies
in the Global Insurance Brokers industry.

( Industry Median: 1.36 vs. WSH: 3.30 )
WSH' s 10-Year P/B Range
Min: 1.6   Max: 5.55
Current: 3.3

1.6
5.55
P/S 2.10
WSH's P/S is ranked higher than
67% of the 393 Companies
in the Global Insurance Brokers industry.

( Industry Median: 3.01 vs. WSH: 2.10 )
WSH' s 10-Year P/S Range
Min: 1.02   Max: 3.1
Current: 2.1

1.02
3.1
PFCF 17.00
WSH's PFCF is ranked higher than
51% of the 207 Companies
in the Global Insurance Brokers industry.

( Industry Median: 11.72 vs. WSH: 17.00 )
WSH' s 10-Year PFCF Range
Min: 11.69   Max: 288.63
Current: 17

11.69
288.63
EV-to-EBIT 13.50
WSH's EV-to-EBIT is ranked higher than
67% of the 297 Companies
in the Global Insurance Brokers industry.

( Industry Median: 15.72 vs. WSH: 13.50 )
WSH' s 10-Year EV-to-EBIT Range
Min: 8.1   Max: 15.9
Current: 13.5

8.1
15.9
Shiller P/E 29.50
WSH's Shiller P/E is ranked lower than
55% of the 196 Companies
in the Global Insurance Brokers industry.

( Industry Median: 17.84 vs. WSH: 29.50 )
WSH' s 10-Year Shiller P/E Range
Min: 7.43   Max: 31.44
Current: 29.5

7.43
31.44

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 2.70
WSH's Dividend Yield is ranked higher than
60% of the 299 Companies
in the Global Insurance Brokers industry.

( Industry Median: 2.50 vs. WSH: 2.70 )
WSH' s 10-Year Dividend Yield Range
Min: 0.76   Max: 5.36
Current: 2.7

0.76
5.36
Dividend Payout 0.55
WSH's Dividend Payout is ranked higher than
55% of the 263 Companies
in the Global Insurance Brokers industry.

( Industry Median: 0.43 vs. WSH: 0.55 )
WSH' s 10-Year Dividend Payout Range
Min: 0.27   Max: 0.9
Current: 0.55

0.27
0.9
Dividend growth (3y) 2.50
WSH's Dividend growth (3y) is ranked higher than
77% of the 169 Companies
in the Global Insurance Brokers industry.

( Industry Median: 0.50 vs. WSH: 2.50 )
WSH' s 10-Year Dividend growth (3y) Range
Min: 0   Max: 17.8
Current: 2.5

0
17.8
Yield on cost (5-Year) 2.97
WSH's Yield on cost (5-Year) is ranked higher than
62% of the 305 Companies
in the Global Insurance Brokers industry.

( Industry Median: 2.53 vs. WSH: 2.97 )
WSH' s 10-Year Yield on cost (5-Year) Range
Min: 0.83   Max: 5.89
Current: 2.97

0.83
5.89
Share Buyback Rate -1.50
WSH's Share Buyback Rate is ranked higher than
68% of the 285 Companies
in the Global Insurance Brokers industry.

( Industry Median: -1.10 vs. WSH: -1.50 )
WSH' s 10-Year Share Buyback Rate Range
Min: 4   Max: -11.5
Current: -1.5

Valuation & Return

vs
industry
vs
history
Price/DCF (Projected) 1.50
WSH's Price/DCF (Projected) is ranked lower than
53% of the 196 Companies
in the Global Insurance Brokers industry.

( Industry Median: 0.90 vs. WSH: 1.50 )
WSH' s 10-Year Price/DCF (Projected) Range
Min: 1.19   Max: 1.7
Current: 1.5

1.19
1.7
Price/Median PS Value 1.00
WSH's Price/Median PS Value is ranked higher than
68% of the 362 Companies
in the Global Insurance Brokers industry.

( Industry Median: 1.10 vs. WSH: 1.00 )
WSH' s 10-Year Price/Median PS Value Range
Min: 0.63   Max: 1.45
Current: 1

0.63
1.45
Earnings Yield (Greenblatt) 7.40
WSH's Earnings Yield (Greenblatt) is ranked higher than
69% of the 338 Companies
in the Global Insurance Brokers industry.

( Industry Median: 6.30 vs. WSH: 7.40 )
WSH' s 10-Year Earnings Yield (Greenblatt) Range
Min: 6.3   Max: 12.3
Current: 7.4

6.3
12.3
Forward Rate of Return (Yacktman) 3.80
WSH's Forward Rate of Return (Yacktman) is ranked higher than
74% of the 273 Companies
in the Global Insurance Brokers industry.

( Industry Median: 3.80 vs. WSH: 3.80 )
WSH' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 0.9   Max: 29.1
Current: 3.8

0.9
29.1

Business Description

Industry: Brokers & Exchanges » Insurance Brokers
Compare:BRO, AON, MMC, ERIE, NFP » details
Traded in other countries:WGK.Germany
Willis Group Holdings PLC was incorporated in Bermuda. The Company provides insurance brokerage, reinsurance and risk management consulting services to its worldwide clients. It has significant market positions in the United States, in the United Kingdom and, directly and through its associates, in many other countries. It provides both specialized risk management advisory and consulting services to clients worldwide in specific industrial and commercial activities, and services to small, medium and major corporates through its retail operations. The Company organizes its business into three segments: North America and International, which together comprise its main retail operations, and Global. Its Global business provides specialist brokerage and consulting services to clients worldwide for the risks arising from specific industrial and commercial activities. In these operations, it has specialized experience handling diverse lines of coverage, including complex insurance programs, and acting as an intermediary between retail brokers and insurers. It provides consulting services on risk management with the objective of assisting clients to reduce the overall cost of risk. Its Global business serves clients in around 150 countries, mainly from offices in the United Kingdom, although it also serves clients from offices in the United States, Continental Europe and Asia. The Global business is divided into Global Specialties; Willis Re; and Faber & Dumas. Global Specialties has strong global positions in Aerospace, Energy, Marine, Construction, Financial and Executive Risks and several niche businesses. The Company's North America and International retail operations provide services to small, medium and major corporate clients, accessing Global's specialist expertise when required. Its North America business provides risk management, insurance brokerage, related risk services, and employee benefits brokerage and consulting to an array of industry and client segments in the United States and Canada. The Company's International unit consists of its retail operations in Eastern and Western Europe, the United Kingdom and Ireland, Asia/Pacific, Russia, the Middle East, South Africa and Latin America. It competes with Marsh & McLennan and Aon as well as with numerous regional and local firms. The Company's business activities are subject to legal requirements and governmental and quasi-governmental regulatory supervision in virtually all countries in which it operates.

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