(Bloomberg) ? Aon Corp., the world?s second-biggest insurance brokerage, said third-quarter net income fell ten percent, led by declines in brokering and consulting. The company plans to sell an auto-loan servicing unit as it attempts to shed its least profitable businesses.

Net income dropped to $115 million, or 36 cents per share, from $128 million, or 46 cents, a year earlier. Shares of the Chicago-based company declined 5.3 percent.

Aon has benefited less than peers from surging commercial insurance rates. The company spent three years trying to restructure its business, prompting brokers to leave and morale to sink, said Adam Klauber, an analyst with Cochran Caronia Securities LLC. Aon?s brokerage profit margin was about half that of Marsh & McLennan Cos., its biggest competitor.

?We?re a little disappointed,? said Richard Pzena, who helps manage $1.3 billion at Pzena Investment Management, including 5.4 million Aon shares as of June. ?We?ve been hoping for a long time that they?d focus on margins and try to bring them up to the level of Marsh & McLennan.?

Aon?s stock dropped $1.17 to $20.97 in New York Stock Exchange composite trading.

The company halted new sales at the auto loan servicing business in early 2001 and decided to sell it in the third quarter. It?s the second Aon unit up for sale. The company has been looking for months for a buyer for some or all of its insurance claims services business.

Chief executive officer Patrick Ryan said the third-quarter drop in profits happened because managers failed to focus on earnings.

?Discipline will be more fully indoctrinated in every corner of our organisation,? Ryan said on a conference call. ?Managers that under-perform will be dealt with appropriately.?

Revenue at the US brokerage increased 4 percent, less than the company?s target of double-digit growth. The pretax margin in Aon?s insurance brokerage narrowed to 13.6 percent from 16.8 percent. The margin at the company?s consulting business dropped to 7 percent from 9.7 percent.

?We had lower than expected revenue growth and income in the quarter in our brokerage business,? Ryan said.

The company is probably losing market share to Marsh and Willis Group Holdings Ltd., Klauber and Pzena said. Profit increased at Aon?s insurance underwriting companies, which sell product warranty, accident and health policies. The units will likely start paying dividends to the parent company next year, Ryan said. Aon resolved a dispute over its corporate losses from the World Trade Center attacks. Aon, which had offices in the destroyed buildings, will receive about $92 million from its insurers in addition to the $108 million already collected under terms of the settlement. The payments will be reflected in fourth- quarter earnings, the company said.