Giant insurance broker Aon Corp. reported that second quarter net income skyrocketed 372 percent largely from its sale of business units including Combined Insurance Companies of America.
Net income increased to $1.1 billion compared to $240 million for the prior year quarter, including a $1.0 billion after-tax gain on the sales of CICA and another division, Sterling.
Net income from continuing operations decreased 8 percent to $168 million, compared to $183 million for the prior year quarter.
“Our core assets are now strategically aligned as we completed the sales of our remaining insurance underwriting businesses,” Case said.
He said a 2007 restructuring program is on-track and beginning to deliver benefits. Restructuring expense was $53 million in the second quarter compared to $25 million in the prior year quarter.
Some second quarter highlights:
Total revenue increased 6 percent to $2.0 billion with organic revenue growth of 2 percent.
Total operating expenses increased 9 percent or $145 million to $1.7 billion, including a $77 million unfavorable impact from foreign currency translation, $28 million increase in restructuring expense and $20 million of legacy litigation accruals.
Risk and Insurance Brokerage Services revenue grew 8 percent with organic growth of 2 percent. Americas organic revenue decreased 1 percent reflecting a slowdown in private equity and commercial construction activity in U.S. Retail and soft market conditions, partially offset by strong growth in Latin America. U.K. organic revenue increased 1 percent due primarily to growth in affinity products.