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Aon's Profits Up 20%

Source: WSJ

Posted on 03 Feb 2012

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Aon Corp.'s fourth-quarter profit rose 20% as the insurance brokerage and consulting firm again logged solid results in its human-resources business and benefited from restructuring.

Aon reported a profit of $277 million, or 82 cents a share, up from $231 million, or 67 cents, a year earlier. Earnings from continuing operations rose to 97 cents a share, topping the 96 cents expected by analysts surveyed by Thomson Reuters. Total revenue edged up 2.9% to $3 billion, matching analyst expectations.

Aon has posted higher revenue in recent quarters following its $4.9 billion acquisition of human-resources firm Hewitt Associates. Friday, the company reported its HR solutions unit registered a revenue increase of 2.7% in the latest period to $1.18 billion. Operating profit rose 55%.

Aon also attributed gains in the latest quarter to savings from a restructuring plan launched in 2007. The company on Friday estimated those efforts led to $134 million in savings during the latest quarter, the bulk of which were in its risk-services business.

Aon last month revealed plans to move its corporate headquarters from Chicago to London, a location it said will give it greater access to emerging markets and closer proximity to the Lloyd's of London insurance market.