NU Online News Service, Oct. 30, 2:57 p.m. EDT
Aon Corp. reported 2009 third-quarter net income attributable to Aon stockholders of $120 million, a 3 percent increase over 2008 third-quarter net income of $117 million. But the Chicago-based brokerage also saw revenue decline 2 percent in the quarter to $1.81 billion from $1.85 billion for the same period a year ago.
Aon said organic revenue declined 3 percent.
The brokerage said decline in revenue was "due to a 5 percent decline resulting from foreign currency translation and a 69 percent decline in investment income, partially offset by a 9 percent increase from acquisitions, primarily Benfield, net of dispositions."
Aon acquired the London-based reinsurance brokerage Benfield last year.
For the first nine months of 2009, net income attributable to Aon stockholders is down 63 percent to $549 million compared to $1.5 billion for the same period in 2008. Revenue is down 3 percent to $5.5 billion from $5.7 billion in 2008.
Greg Case, president and chief executive officer of Aon, said, "Our third-quarter results reflect solid operational discipline, as highlighted by a 140 basis point adjusted pretax margin improvement in our brokerage segment, despite difficult economic and industry conditions and a 69 percent decline in total investment income."
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