Insurance broker?s profit up amid slight rise in revenue
CHICAGO (Dow Jones/AP) ? Insurance broker Aon Corp.?s second-quarter net income rose 19 percent amid a slight increase in revenue.
Late Wednesday, the Chicago-based company said net income increased to $173 million, or 52 cents a share, meeting the average estimate in a Thomson First Call survey of analysts.
Last year?s second-quarter earnings were $146 million, or 46 cents a share.
Net income from continuing operations rose 16 percent to $180 million, or 54 cents a share, up from $155 million, or 49 cents a share, last year. Total revenue rose 6 percent to $2.55 billion from $2.41 billion. Revenue from risk and insurance-brokerage services grew 2.1 percent to $1.43 billion. Consulting revenue rose 4.5 percent to $305 million, while insurance-underwriting revenue increased 16 percent to $805 million. Corporate and other segment revenue slid 55 percent to $18 million compared to $40 million last year. Net income for the first six months of the year increased to $342 million from $297 million, as first-half revenue increased to $5.1 billion from $4.8 billion.
Patrick G. Ryan, chairman and CEO of Aon, said the company remains comfortable it can meet or exceed its full-year forecast of earnings of $2.20 per share from continuing operations.
Wall Street currently expects Aon to earn $2.23 a share in 2004, according to First Call. In 2003, the company earned $628 million, or $1.97 a share, on revenue of $9.81 billion. Income from continuing operations was $2.08 a share.
