Aon's 2Q profit leaps 24 percent |
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Tue, 31 Jul 2007 22:24
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NEW YORK (AP) - Aon Corp.'s profit leaped 24 percent in the second quarter as the insurance brokerage won new business overseas, the company said Tuesday.Aon reported second-quarter net income of $240 million, or 81 cents per share, compared with earnings of $193 million, or 60 cents per share, in the second quarter of 2006.Analysts polled by Thomson Financial forecast profit of 67 cents per share.Revenue rose 13 percent to $2.49 billion from $2.21 billion. Wall Street expected revenue of $2.34 billion.Aon is an insurance brokerage, meaning it collects fees for bringing clients to insurers. This market has been soft for the past year because insurers are competing for clients by slashing prices, leading to lower commissions.The company offset a soft insurance market in the U.S. in part by winning new business in other countries. Brokerage commissions rose 6 percent in the U.S., slower than growth in the U.K., Africa, the Middle East, Europe and Asia.Aon, which claims to be the biggest insurance brokerage in the world, said brokerage commissions overall rose 9 percent to $1.52 billion.Revenue in the consulting division, which helps clients figure out how to shield themselves from risk, climbed 5 percent to $325 million.The company's insurance underwriting division collected $610 million in premiums and fees, a 21 percent increase.Aon's stock gained 59 cents to $40.63 in after-hours trading Tuesday. The stock closed at $40.04 in regular trading, up 14.7 percent for the year.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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