Posted on 02 May 2011
Aon Corporation reported on Friday results for the first quarter ended March 31, 2011, with total revenue increasing 45% to $2.8 billion from the prior year quarter. This was due to a 42% increase in commissions and fees resulting from acquisitions, primarily Hewitt, a 2% increase in organic revenue and a 1% increase from foreign currency translation.
Total operating expenses increased 45%, or $732 million, to $2.4 billion due primarily to the inclusion of operating expenses related to the merger with Hewitt, an increase in intangible asset amortization expense and an estimated $24 million unfavorable impact from foreign currency translation, partially offset by a $46 million decrease in restructuring related costs and benefits related to the restructuring programs.
Risk Solutions total revenue increased 4% to $1.6 billion compared to the prior year quarter due to 2% organic growth in commissions and fees, a 1% favorable impact from foreign currency translation and a 1% favorable impact from acquisitions and divestitures, partially offset by a decline in investment income.
Retail organic revenue increased 3% reflecting solid organic revenue growth both in the Americas and International businesses. Americas organic revenue increased 4% due primarily to strong growth in Affinity products and Latin America and modest growth in U.S. retail. International organic revenue increased 3% driven by strong growth in Asia and New Zealand and modest growth in EMEA. Reinsurance organic revenue was flat as growth in facultative placements was offset primarily by soft pricing in the U.S. for treaty placements.