Continuing to employ a "slow and steady wins the race" approach, London-based Willis Group Holdings Ltd. spent the last year focused on organic growth and a gradual expansion of its global footprint.

While state attorneys general have approved supplemental compensation developed by some insurers to replace contingent commissions, Willis in April announced that it would reject the incentive payments. Willis, like its rival large brokers, ceased accepting contingent commissions amid then-New York Attorney General Eliot Spitzer's industry probe.

"I just don't think that it's right...and so, we're not going to take them," Willis Chief Executive Officer Joe Plumeri said of supplemental commissions. "In my mind, I believe it's the same as a contingent--it's a conflict."

Last year was a good one for Willis financially. Willis' 2006 brokerage revenues rose 6.7% $2.34 billion, making it the world's third-largest broker.

One area that Willis has identified as a key growth target, employee benefits, saw revenues rise 21.2% to $247.6 million in 2006. Other areas of growth included reinsurance brokerage, where revenues rose 7.7% to $563.0 million, and personal lines revenue, up 34.5% to $31.8 million.

Looking to expand its global footprint, Willis intends to acquire all of French broker Gras Savoye & Cie., in which it holds a minority stake. "We own 38% of that company and probably about 2010, we will buy the rest," said Mr. Plumeri. Gras Savoye recorded brokerage revenues of $569.2 million in 2006.

In 2006, Willis spent $98 million on acquisitions. In addition to the $25 million it spent to purchase an additional 5% ownership in Gras Savoye, it completed eight acquisitions of companies--in Chile, Norway, South Africa, Sweden and the United States--with annual revenues of about $30 million for a total price tag of $73 million.

One blockbuster deal that would have marked a major departure from Willis' acquisition strategy failed to materialize, however. In October of 2006, a market source confirmed that Willis had made informal bid earlier in the year to acquire its much larger rival Marsh & McLennan Cos. Inc. (BI, Oct. 23, 2006). Willis declined to comment.

For his part, Mr. Plumeri insists the company's key growth will always be organic: "That's what we do here, we build internally," he said.

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