NU Online News Service, Feb. 3, 11:23 a.m.EST

Chicago-based insurance broker Aon Corp. says 2011fourth-quarter net income increased 20 percent as pricing in theinsurance marketplace showed signs of stabilization.

The firm reports increases in both the insurance-brokerage andhuman-resource segments with strong retention rates among clientson the insurance side. Greg Case, president and chief executiveofficer, adds that results were also helped by strong capitalmanagement.

Aon says 2011 fourth-quarter net income was $277 million, up $46million from 2010. Revenues rose 3 percent or $85 million to $2.99billion.

For the year, net income was up 39 percent from 2010, or $273million, to $979 million. Revenues rose 33 percent or $2.76 billionto $11.3 billion.

The firm reports organic-growth increases in both brokerage andhuman resources in the quarter, with overall corporate increases of3 percent for the quarter and 2 percent for the year.

During a conference call with financial analysts, Case says thequarter was both “challenging and exciting for our firm,” as theeconomic downturn and insurance-industry rates still pressuredearnings, but “at a lesser pace.”

He says the brokerage segment had a more than 90 percentretention rate in 2011 and won $280 million in new business acrossretail brokerage.

When asked about Europe, Case says growth was flat to up by lowsingle digits because of the economic headwinds, but he says “weare going to push against [those headwinds] and feel we are goingto do well.”

The difficulty in Europe was reflected in the organic-growthnumbers where the International segment came in at 1 percent helpedby strong growth in Asia, but that was not enough to offset issueswith the European economy. In contrast, theAmericasstood at 3percent organic growth. Aon says this was the result of newbusiness growth in both Latin America andCanada.

On the acquisition front, Christa Davis, Aon's chief financialofficer, says the firm does not see a “significant” transaction onthe horizon, but would continue to do deals in the $200 million to$250 million range.