NU Online News Service, Feb. 4, 2:58 p.m.EST

Aon Corp. said its fourth-quarter profit increased 17 percentover the previous year with positive organic growth coming in atthe highest rate in three years for its brokerage segment.

“This is a very positive quarter for our colleagues around theglobe, reflecting continued momentum across both segments and asolid finish to the year,” said Greg Case, president and chiefexecutive officer of the firm, during a conference call withfinancial analysts today.

The Chicago-based insurance broker reported that, for the 2010fourth quarter, net income attributable to shareholders rose $33million over the same period in 2009, to $231 million, or 67 centsa share. Revenues rose 40 percent, or $836 million, to $2.9 billionin the quarter.

For the year, net income declined 5 percent, or $41 million, to$706 million. Earnings per share dropped 20 cents to $2.37 a share.Revenues for the year increased 12 percent, or $917 million, to$8.5 billion.

Mr. Case noted that despite the continued pressures of the softmarket and difficulties presented by the economic downturn, Aon'sbrokerage segment produced fourth-quarter organic growth of 3percent. He said this was the highest rate of organic growth forthe segment in three years. The firm's human resource consultingdivision produced organic growth of 2 percent in the quarter. Bothsegments were flat for the year.

In regard to the soft market, Mr. Case said pricing is down inthe single-digit range generally, and the pricing environment isexpected to continue “for the foreseeable future.”

Aon said its revenue increase was due to a 41 percent increasein commissions and fees resulting from the acquisition of HewittAssociates, a human resource consulting and outsourcing solutionsfirm, that it completed in October.

Mr. Case said the firm experienced strong growth across allsegments of the industry, with Asia Pacific and the United Kingdomshowing organic growth of 7- and 6 percent, respectively. Hecredited a very high retention rate and growth in new business asdrivers for the firm's performance.

On the consulting side, the wind down of some contracts hasreduced earnings there, but this was expected, said Mr. Case.

“We are delivering solid progress against our core commitment toshareholders despite continued soft market conditions and a fragileglobal economy,” said Mr. Case.

In response to a question on the issue regarding the charging offees to insurers in the United Kingdom, Mr. Case said the firm isnot seeking to increase what it charges insurers for services.Instead, Aon's aim is to simplify its charges.

Traditionally, he explained, insurers have faced five to sevendifferent types of charges for work the firm does on their behalf.Aon, he said, instead of doing a series of separate charges, isseeking to charge insurers only once.

“It's as simple as that,” said Mr. Case.