Aon announced today that its exposure to the World Trade Center (WTC) amounted to $68m, as it reported total revenue for 2000 was up 4% to $7.4bn.
Analysts viewed Aon's overall 2001 results as an "curate¹s egg" with highs and lows across the business. Income before tax fell sharply from $854m in 2000 to $399m in 2001, due to September 11 losses. Aon however benefited
from the hard market by reporting that brokerage commissions and fees rose 7% to $4.9bn, and premiums increased 4% in 2000.
The world's largest broker also saw net income for 2000 rise to $474m compared to $352m in 1999. In 2001 the underwriting business invested $227m into the new P&C insurance and reinsurance company Endurance. Revenues in the
underwriting division were up 4% to $2.3bn in 2001. Organic revenue growth growth was 6% in 2001.
Aon said reinsurers had disputed liability of approximately $90m of reinsurance recoveries under a business travel accident policy issued by Aon's Combined Insurance Company of America (CICA) to cover US-based employees of Aon's subsidiaries killed in the WTC tragedy. Legal proceedings
have been filed by both parties.
Additional WTC related costs are expected in 2002, the company said.
