Aon Corporation reported first quarter dilutive earnings per share of $0.37 compared with $0.07 in the year ago period. Excluding special charges, unusual World Trade Center (WTC) items, and a favorable one-time tax related item, first quarter earnings per share were $0.47 and $0.23 for 2002 and 2001, respectively.
First quarter 2002 reported net income was $104 million compared with $19 million in the year ago period. As previously reported, first quarter 2002 earnings included the establishment of a $90 million pretax ($0.20 per share) allowance for a potentially uncollectible WTC reinsurance receivable that was partially offset by a favorable one-time tax related item of $48 million pretax, or $0.11 per share.
Patrick G. Ryan, chairman and CEO of Aon Corporation, said, “Our brokerage segment posted significantly improved organic revenue growth of 13% for the quarter, due in part to better performance in U.S. retail new business production, and continued strong performance in international, reinsurance and wholesale brokerage. Most of our businesses are performing well and we are implementing steps to improve bottom line results in our U.S. retail and managing underwriting group within brokerage.”
Consolidated revenue of $2.088 billion in the first quarter increased 15% from $1.811 billion in the prior year. Operating segment revenue growth was principally driven by strong organic revenue growth in the Insurance Brokerage and Other Services segment. Improved equity investment results and the receipt of a one-time tax related item contributed to the year-over-year increase in non-operating Corporate and Other segment revenue.