Insurance broker Aon plc says second quarter net income was down1 percent compared to the prior year's results despite a 3 percentincrease in revenue as it continues to absorb restructuringcosts.

Net income for 2Q stands at $252 million, off by $2 million fromthe same period last year. Revenues grew 3 percent to $2.9 billion.For the first six months of this year, net income is up 4 percentto $524 million and revenues increased 3 percent to $5.81billion.

Impacting the quarter's results was $40 million increase inrestructuring expense from the prior year to $53 million. Theexpense comes from Aon's acquisition of the human resourceconsulting firm Hewitt in 2010 as it continues to reduce headcountand consolidate locations. The company also incurred a 25 percentdecline in investment income and 1 percent unfavorable impact fromforeign currency translation.

During a conference call with financial analysts, President andCEO Greg Case and Chief Financial Officer Christa Davies emphasizedthat the company's expense charges continue to position Aon forfuture long term growth through savings. Davies says restructuringcharges should end by the end of this year.

Aon reports organic growth of 3 percent in the quarter, withpositive contributions from risk solutions and human resourceconsulting. The firm's Americas segment in risk solutions organicgrowth increased by 5 percent while reinsurance was the weakest atup 2 percent.

Case says insurance brokerage produced solid, but modest results“against market and economic headwinds.” He says reinsurancenumbers are weak because abundant capacity is dampening rates andcedents are retaining more risk “driving unfavorable market impactin the quarter.”

The major focus of discussion during the conference call wasAon's Healthcare Exchange. Case says the exchange is poised to seesignificant new clients in the coming year along with new carriersjoining the program.

“It has been a very positive enrollment cycle this time and wehave a pipeline that is even more substantial for the coming year,”says Case.