UPDATE 1-Insurance broker Willis posts lower first-quarter net

(Adds revenue, outlook, Reuters Estimate)

NEW YORK, April 30 (Reuters) - Willis Group Holdings Ltd (WSH.N: Quote, Profile, Research), the world's third largest insurance broker, said on Wednesday that net income edged lower in the first quarter, after taking severance charges.

Willis, which is headquartered in Bermuda and has large operations in New York and London, said net income was $166 million, or $1.16 a share, down from $169 million or $1.10 a share in the year-earlier quarter.

Excluding severance costs and other items, Willis earned $1.32 per share, compared with average analyst forecasts of $1.17, according to Reuters Estimates.

Total revenue rose 8 percent to $795 million. Foreign currency translation boosted revenue by 5 percent.

The company affirmed its forecasts for adjusted earnings per share for the next three years. Willis expects earnings per share in the range of $2.85 to $2.95 in 2008, $3.30 to $3.40 in 2009, and $4.00 to $4.10 in 2010.

Insurance brokers help link buyers of insurance coverage, typically corporations, with insurers.

(Reporting by Lilla Zuill, editing by Phil Berlowitz)