But reinsurance sector grew by half as much again
AON announced a 3% decline in organic revenue to just under $1.5bn and a 69% fall in investment income in its Q3 results. Reinsurance was up 50%.
Financial highlights (Q3 2008 in brackets)
- Total Revenue $1,489m ($1,473m)
- Investment income $18m ($48m)
- Pretax income $188m ($192m)
- Pretax income - adjusted $274m ($251m)
Revenue by sector
- UK $167m ($182m)
- EMEA $273m ($314m)
- Asia Pacific $111m $120m
- Reinsurance $379m ($252m)
"Our third quarter results reflect solid operational discipline, as highlighted by a 140 basis point adjusted pretax margin improvement in our Brokerage segment, despite difficult economic and industry conditions and a 69% decline in total investment income," said Greg Case, president and chief executive officer.
"We continue to make substantial investments across our businesses with the rollout of our Global Risk Insight Platform and the introduction of Inpoint, our insurance carrier consulting business, as well as the addition of key talent in Consulting.
Savings not yet realised
“As we invest in future growth opportunities, our 2007 and Aon Benfield restructuring programs will continue to deliver additional cost savings as we have achieved less than 40% thus far, of the total $589m of estimated annual savings under these two programs.
“Lastly, our balance sheet and strong cash flow provide significant financial flexibility to create shareholder value, as highlighted by the repurchase of an additional $125 million of stock during the quarter."
