Hilb Rogal & Hobbs Company, an insurance and risk management intermediary, has reported that its total revenues for the 2007 fourth quarter were $205.9 million, up 17.3% compared with $175.5 million in the 2006 fourth quarter.
The 2007 fourth quarter revenue growth reflected acquisitions, new business and amounts recorded under supplemental commission agreements with certain underwriters, offset by the effects of continued sharp declines in property and casualty premium rates.
Net income for the quarter decreased 48.3% to $11.1 million, or $0.30 per share compared with $21.4 million, or $0.59 per share for the same period in 2006. Likewise, operating net income decreased 43.6% to $13 million, or $0.35 per share compared with $23 million, or $0.63 per share for the 2006 fourth quarter.
The operating margin for the 2007 fourth quarter declined to 20.2% from 26.6% during the comparable period of 2006.
For the year ended December 31, 2007, total revenues rose 12.5% to $799.7 million from $710.8 million a year ago. Net income was $78.1 million, or $2.11 per share compared with $87 million, or $2.39 per share for 2006, a decrease of 10.2%.
Operating net income for the period was $75.3 million, or $2.03 per share compared with $86.7 million, or $2.38 per share a year ago, a decrease of 13.2%. For the year, the operating margin was 22.8% compared with 25.5% in 2006.
Michael Crowley, president of Hilb Rogal & Hobbs, said: In our domestic retail business segment, we had a record year in writing new business, which generated 1.5% and flat organic growth in the fourth quarter and total year, respectively, despite the extremely soft rate environment.
This implies that once again we have improved our market share. We expect 2008 to reflect continued and increasing market share gains from our domestic retail segment, where over 25% of the revenues now come from employee benefits.