Aon has released its results for the first quarter of 2007, reporting an 8% rise in net income to $213m, compared to $198m for the prior year quarter. Net income from continuing operations increased 23% to $212m.
Greg Case, Aon president and chief executive, highlighted the important role played by growth achieved in the US. He said: "Our first quarter results reflect a strong start to the year highlighted by organic revenue growth of 8% in Brokerage Americas, excluding contingent commissions, despite soft market conditions.”
Case added: “Our balance sheet is strong and we repurchased $345m of stock during the quarter, highlighting our commitment to creating long-term shareholder value and a belief in the underlying strength of Aon."
Total revenue increased 10% to $2.4bn with organic revenue growth of 5%. Total expenses increased 9% or $171m to $2.1bn due primarily to a $69m increase in benefits to policyholders, a $61m unfavorable impact from foreign exchange and a $21m settlement of litigation for acquired employees in the reinsurance business, partially offset by a $23m decrease in restructuring expense.
Restructuring expense was $10m compared to $33m for the prior year quarter. The previously announced three-year restructuring plan is anticipated to result in cumulative pretax charges of $365m and annualized cost savings of approximately $235m in 2007 and $280m in 2008, on track with previous estimates. Restructuring savings realized in the first quarter are estimated at $46m compared to $18m in the prior year quarter. Of the estimated restructuring savings in the first quarter, $35m was related to the Brokerage segment, primarily for workforce reduction.
Hosted by comedian and actor Tom Allen, 34 Gold, 23 Silver and 22 Bronze awards were handed out across an amazing 34 categories recognising brilliance and innovation right across the breadth of UK general insurance.
