WSH Continues to Face Headwinds in the UK and Ireland
Analysts at SunTrust Robinson Humphrey maintained their "buy" rating on Willis Group Holdings Ltd (NYSE: WSH). The target price for WSH is set to $36.00.
SunTrust Robinson Humphrey believes that the demand and pricing trends for WSH would not change in Q4, enabling it to post superior organic revenue performance as compared to its peers. WSH is likely to deliver healthy revenues and profit growth in 2010, irrespective of the trends in the insurance sector, SunTrust Robinson Humphrey says.
According to SunTrust Robinson Humphrey, global rates in the Reinsurance segment, which accounts for roughly 15% of the overall Willis Group Holdings revenues, may either be flat or decline marginally at the 1/1 renewals on account of low catastrophe losses in 2009 and improving capital markets. SunTrust Robinson Humphrey says that WSH continues to face headwinds in the UK and Ireland, due to which the company's International growth in the recent quarter was affected.
