Earlier this month, HRH revised its revenue guidance and earnings per share for 2003. It said organic growth would fall in the 5 to 7 percent range instead of 9 to 11 percent it had previously stated.

"We were surprised and disappointed by the third quarter results," said Martin L. "Mell" Vaughan III, chairman and chief executive officer in a statement.

He blamed the firm's performance on "industry trends, including lower than expected premium increases, particularly in complex property insurance, program redesigns induces by client economic pressures, and legislative uncertainties in executive benefits." He added that there was an "unexpected productivity lull" at one of its acquired firms, Hobbs, which contributed to the results.

He said the firm remains committed to sustaining 15 to 20 percent growth in annual operating earnings per share.

For the nine months, net income rose 14 percent, or $6.67 million, from $48.9 million to $55.55 million. Net income per share remained unchanged at $1.53. Revenues rose 30 percent, or $96.84 million, going from $324.1 million to $420.9 million.

Robert B. Lockhart, HRH's president and chief operating officer said the firm's new sales strategy is being introduced throughout the company and the firm is "excited about the future growth benefits of this proven sales process."