AON Reports Growth in Second Quarter

August 6, 2001

Aon Corporation reported second quarter dilutive earnings per share, before special charges and non-operating corporate segment revenue, of $0.47, up seven percent from $0.44 in the second quarter 2000 on a comparable basis. According to the company, this increase was driven by total operating segment reported revenue growth of seven percent.

Aon reported that second quarter 2001 net income and dilutive earnings per share were $29 million and $0.11, respectively, compared with $129 million and $0.49 in the year ago period. Excluding special charges related to the previously announced business transformation plan of $0.33 per share, second quarter 2001 earnings were $0.44 per share versus $0.49 per share in second quarter 2000. The year-over-year decline in second quarter non-operating corporate segment revenue was $36 million ($0.08 per share) to a negative $0.03 per share from a positive $0.05 per share in second quarter 2000.

Aon’s operating segments — insurance brokerage and other services, consulting and insurance underwriting — recorded second quarter pretax income before special charges of $304 million, up seven percent from $284 million in second quarter 2000. For the six months, operating segment pretax income before special charges grew eight percent to $593 million, up from $550 million in 2000. Adjusted for foreign currency translation, second quarter total operating segment revenues increased 10 percent.

Second quarter total operating segment investment income decreased $11 million or 11 percent, to $92 million from $103 million in second quarter 2000 due mostly to declining interest rates.

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