Fitch Ratings has revised the Aon Corp. Rating Outlook to stable from negative and affirmed the financial strength rating of the firm's insurance subsidiary Combined Insurance Company of America at "A-minus." The outlook for the insurer was revised from negative to positive.
Fitch said it believes Aon's year-to-date financial results are supportive of the current ratings, despite the permanent loss of contingent commission revenue and a softening rate environment that has moderated after this year's insurer hurricane losses.
It also credited the firm with developing a new business model that is less reliant on contingent commission income, improved financial flexibility and positive financial trends.
Fitch also noted a lack of any additional broker market turmoil in the wake of regulators actions over improper fee activity.
The rating firm said Aon has also been able to retain clients and grow new business, and has benefited from restructuring its debt.
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