Aon Corp. reported a profit jump for the third quarter ended Sept. 30, 2011. Net income increased 38 percent to $198 million, compared to $144 million for the prior year quarter.
Total corporate revenue increased 51 percent to $2.7 billion from the prior year quarter due to a 46 percent increase in commissions and fees resulting from acquisitions— primarily Hewitt. Aon bought HR specialist Hewitt Associates Inc. last year for $4.9 billion.
However costs related to the Hewitt acquisition offset much of the increase in revenues.
Total operating expenses increased 55 percent, or $844 million, to $2.4 billion due primarily to the inclusion of Hewitt operating expenses, an estimated $72 million unfavorable impact from foreign currency translation, a $61 million increase in intangible asset amortization expense, and an $18 million increase in restructuring related costs, partially offset by benefits related to a restructuring programs.
Revues in its overall Risk Solutions unit increased 9 percent to $1.6 billion compared to the prior year quarter.
Retail brokerage organic revenue increased 4 percent, which the company said reflected solid organic revenue growth both in the Americas and international businesses. Americas organic revenue increased 4 percent as a result of strong renewals in Latin America and U.S. retail and solid growth in new business in Canada. International organic revenue increased 4 percent driven by strong growth in Asia and New Zealand and modest growth in Africa and Australia. Reinsurance organic revenue decreased 1 percent due primarily to a decline in global facultative placements.
Topics Trends Profit Loss Agencies Aon
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