Aon Profitability Announced

by Stewart Douglas

Story link: Aon Profitability Announced

Insurance broker Aon Corporation has today announced strong results over the last quarter, highlighting increasing profitability in its business operations in recent terms. Amongst the strong profitability the company suggested that despite its growth strategy it still intends to save significantly on its main cost centres.

The company today reported revenues of $2.4 billion, an increase of 11% of which 6% is thought to be as a result of natural expansion over the period, giving a yield per share of just under $0.60. Aon also managed to buy back equity over the period, spending $100 million to writedown issued capital.

Additionally, profit margins for the broker operations were up to 12.0% from their rate of 7.5% previously, underlining the dual-pronged approach of increasing revenues whilst cutting costs and restructuring to eliminate inefficiencies.

The firm also announced it would be strengthening its senior management team in order to provide greater driving force in its bid to increase the size and reach of its operation over the coming twelve months, with several appointments announced particularly within its financial division.

Christa Davies will join the firm as the executive Vice President of Global Finance, looking out for the entire financial side of the Aon business, along with other widespread appointments throughout the organisation.

Revenues overall were up to $2.4 billion with and increase of 11% compared to an increase in expenses of just 3%, despite devaluation in certain investments and transactions as a result of currency fluctuations showing the success of the programme pursued to reduce the company’s expenses.

Additionally their ongoing restructure is designed to save in excess of $240 million in expenses to increase profitability for the benefit of the company’s shareholders, whilst the company continues to pursue its aggressive growth strategy.