Aon 3rd-quarter profit rises 92 percent |
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Wed, 31 Oct 2007 22:29
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CHICAGO (AP) - Insurer Aon Corp. said Wednesday its third-quarter profits rose 92 percent, while also announcing a global restructuring plan that will cost $360 million.Third-quarter net income increased to $204 million, or 64 cents per share, from $106 million, or 32 cents per share, during the same quarter a year ago.Aon's total revenue rose to $2.41 billion in the third quarter, an 11 percent increase from $2.17 billion during the comparable period a year ago.Analysts polled by Thomson Financial, on average, forecast earnings of 59 cents per share for the quarter on revenue of $2.26 billion.Risk and insurance brokerage services provided the bulk of quarterly revenue. The division's revenue increased to $1.44 billion, from $1.34 billion during the same quarter last year. Within the division, revenue in England increased 15 percent to $207 million. The rest of Europe, the Middle East and Africa provided $275 million in revenue, a 14 percent increase from the year-ago quarter.Risk and insurance brokerage services in the Americas totaled $582 million, a 3 percent gain from the prior year. The majority of that growth came through the retail channel.Pretax income for the division, Aon's largest, increased 24 percent, to $236 million, from $190 million during the third quarter last year.Consulting pretax income more than doubled to $38 million, while insurance underwriting income swung to a profit of $63 million.As part of a new restructuring plan, Aon will cut 2,700 jobs. It will also consolidate human resources, finance and information technology divisions as it aims to reduce future expense growth and better serve clients.Aon said the restructuring will provide $240 million in cost savings annually by 2010.Shares of Aon rose 10 cents to $45.32 in Wednesday trading.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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