NU Online News Service, July 29, 2:20 p.m.EDT

Aon says net income increased 69 percent due to new business andthe integration of Hewitt into its consulting business.

The Chicago-based insurance brokerage firm says second-quarternet income increased by $105 million to $258 million compared tothe same period last year. Revenues rose 48 percent, or $913million, to $2.8 billion.

For the 2011 first half, net income rose 52 percent, or $173million, to $504 million, while revenues were up 47 percent, or$1.8 billion, to $5.6 billion.

During a conference call with financial analysts, Greg Case,president and CEO, says Aon was able to achieve growth despite“soft pricing, excess capital and fragile economic conditionsglobally.”

He credits the firm's performance with its willingness to investin long-term growth and a retention rate in both its risk andconsulting businesses in excess of 90 percent.

The brokerage captured more than $240 million in business duringthe period, and Case notes growth in China, Africa, Australia,Italy, Denmark and U.S. retail.

Aon, as a whole, reports organic growth of 1 percent. Itsrisk-solutions business, which includes retail brokerage andreinsurance brokerage, records organic growth of 2 percent. Retailbrokerage reports organic growth of 3 percent, while reinsurancebrokerage came in at minus-2 percent.

Case says reinsurance brokerage, under Aon Benfield, isperforming better than expected, despite the pressures from othermajor reinsurance brokerage firms.

Despite the soft market, Case says America's retail is seeingstrong growth, especially in Latin America. He notes thatconstruction continues to show weakness, but Aon will continue toinvest in that area to be ready when the market improves.

Internationally, rates are flat to modestly down, but there isfirming for catastrophe-exposed risks. Case also notes that thefirm is experiencing growth in new business activity.

Regarding the integration of Hewitt into its consulting business, Aon spent $31 millionunder its restructuring program on lease consolidation andworkforce reduction.

The workforce reduction is expected to eliminate a total of around 1,500 jobs.