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 Agencies Profit Loss Aon
Was this article valuable?
Here are more articles you may enjoy.
Old Republic to Acquire Small Farmowner Insurer Everett Cash Mutual 
Suspects in Louvre Heist in Custody After Week-Long Manhunt 
Rotting Apple: Berkley Explains Property Market, Company Appetite 
GEICO Sues Medical Firms in Florida, NY Over Alleged No-Fault Auto Fraud 
