Aon profits increase 7.6 percent
NEW YORK (Bloomberg) — Aon Corp., the world’s second-largest insurance brokerage, said first-quarter profit rose 7.6 percent on higher revenue from fees and commissions.Net income climbed to $213 million, or 66 cents a share, from $198 million, or 57 cents, a year earlier, Chicago-based Aon said in a statement yesterday.
Revenue from brokering insurance increased 5.5 percent to $1.46 billion.
That “organic” growth rate compared with first-quarter declines at smaller rivals including Hilb Rogal & Hobbs Co. and Brown & Brown Inc.
Insurance brokers help companies find coverage. Aon increased organic brokerage revenue two percent last year, while Marsh & McLennan Cos., the largest brokerage, posted no growth. Marsh & McLennan will report its first-quarter results on May 8.
Shares of Aon rose 52 cents, or 1.3 percent, to $40.02 in regular trading on the New York Stock Exchange.
The stock has fallen 5.5 percent in the past 12 months, compared with the 13 percent rise in the KBW Insurance Index.
Aon’s brokerage revenue lagged only Marsh & McLennan’s in 2005, according to a ranking by Business Insurance magazine.
