Aon posts 2008 results

by David Masters

Story link: Aon posts 2008 results

The world’s biggest insurance broker, Aon Corporation, has reported its 2008 results with net income up 71%.

Net income for the year was $1.48 billion, or $4.91 per diluted share, compared to $864 million, or $2.69 per diluted share, in 2007.

Revenues increased 4% on year to $7.63 billion.

The results came despite a 95% drop in fourth quarter net income.

Net income for the three months ending December 31 was $10 million, or $0.03 per diluted share, compared to $207 million, or $0.64 per diluted share, in the year ago period.

This fall in income was blamed on an expected $116 million after-tax loss on the disposition of discontinued property and casualty insurance businesses, on an increase in restructuring costs, and on costs related to the Benfield merger.

Aon acquired London-based Benfield in August 2008.

Net income from continuing operations dropped 35% in the fourth quarter to $123 million, or $0.43 per diluted share, compared to $188 million, or $0.58 per diluted share, for the same period in 2007.

Greg Case, chief executive, said: “In the fourth quarter, we achieved solid results despite a soft market and very challenging economic environment.

“These results reflect the strength of our industry-leading network of global resources and capabilities, and continued progress in each of our key operating metrics.”