Profit Up 20 Percent at Aon Corp.
Feb. 11, 2004
CHICAGO (AP) _ Insurance-broker Aon Corp. said fourth-quarter earnings climbed 20 percent due to settlements from the World Trade Center attacks and favorable foreign-exchange rates.
Tuesday, after the financial markets closed, the Chicago-based insurance broker reported net income of $215 million, or 67 cents a share, compared with $178 million, or 59 cents a share, in the same quarter a year earlier.
World Trade Center credits were 12 cents per share in the latest quarter and 2 cents per share in the fourth quarter of 2002. Aon, which had offices in the World Trade Center, lost 175 employees in the Sept. 11, 2001, terrorist attacks.
Analysts surveyed by Thomson First Call had expected earnings, excluding items, of 55 cents a share in the latest quarter.
Aon reported income from continuing operations of $215 million, or 67 cents a share, for the latest quarter. A year earlier, the company reported income from continuing operations of $186 million, or 62 cents a share.
Revenue climbed 10 percent to $2.6 billion in the latest quarter from $2.36 billion a year earlier. Solid demand for Aon's services and products drove the increases, along with the positive influence of foreign-exchange rates, the company said.
For the full year, Aon reported net income of $628 million, or $1.97 a share, compared with $466 million, or $1.64 a share, a year earlier.
Aon reported full-year 2003 income from continuing operations of $663 million, or $2.08 a share, compared with $486 million, $1.71 a share, in 2002.
World Trade Center credits were 3 cents per share for 2003 and 6 cents per share for 2002.
Analysts surveyed by Thomson First Call had expected earnings, excluding items, of $1.85 a share.
Revenue climbed 11 percent to $9.81 billion in the latest full year from $8.81 billion in 2002.
Aon said risk and insurance-brokerage services' fourth-quarter revenue grew 11 percent to $1.5 billion. Consulting revenue rose 9 percent to $331 million. Insurance-underwriting revenue increased 8 percent to $740 million.
In morning trading, shares of Aon inched up 6 cents, or 0.2 percent, to $24.98 on the New York Stock Exchange.