Chicago-based insurance broker Aon Corp. reported net incomejumped 372 percent on the sale of its two insurance company unitsto ACE Ltd. and Munich Re Group.

Aon sold Combined Insurance Company of America to ACE, andSterling Life Insurance Company to Munich Re; the two deals werevalued at close to $3 billion. The deals were completed at thebeginning of April.

Aon reported net income rose $893 million to $1.13 billion forthe second quarter of this year compared to the same period lastyear. Net income per share rose $3.10 to $3.91 a share. Revenuesrose 6 percent, or $114 million, to close to $2 billion.

For the six months, net income rose 198 percent, or $898million, to $1.4 billion. Earnings per share for the first half ofthe year increased $3.02 to $4.55 a share. Revenues increased 7percent, or $248 million, to $3.9 billion.

Despite reporting such net income gains, there were signs thefirm is suffering from the same challenges other insurance brokershave reported.

Greg Case, Aon's president and chief executive officer saidduring an analyst's conference call that the firm is seeing theimpact on its clients of the distressed economy, especially withprivate equity and construction business.

"We see our clients suffering, frankly," said Mr. Case. "Itimpacts us and will continue to impact us."

Income from continuing operations dropped 8 percent, or $15million, to $168 million in the quarter, and for the first half wasalmost flat, dropping $1 million to $347 million.

He said the good news for the firm is that it is a globaloperation which is a hedge against the downturn in the UnitedStates economy.

The firm reported overall organic growth of 2 percent for thequarter and first half of the year. Organic growth in the Americaswas off 1 percent in the quarter and flat for the first half of theyear, while other sectors increased. Europe, Middle East and Africashowed the largest gain at 7 percent for the quarter and 5 percentfor the first half of the year.

Restructuring expense increased to $53 million in the quartercompared to $25 million for the same period last year. Therestructuring is primarily related to workforce reductions, thefirm said.

Mr. Case called the results "a quarter of continued progressagainst our goals. Despite soft market conditions globally, andeconomic conditions in the U.S., we are in a position ofstrength."

He also noted that today is the last day for Aon's founderPatrick G. Ryan as executive chairman of the firm. Mr. Ryan retiresafter 41 years at the helm of the brokerage firm. Mr. Case saidthat despite Mr. Ryan's retirement "he will always be there tohelp" in some capacity with the firm.