Aon 2006 Q3 profit down; organic revenue growth up

Aon Corporation (NYSE: AOC) has reported a 2006 Q3 net income of US$106 million, compared to $122 million during the same period last year.
The company’s risk and insurance brokerage services revenue increased 5%, to US$1.3 billion, with organic revenue growth of 3%. The company’s overall organic growth was led by the reinsurance division’s organic revenue growth of 8%.
Total revenue increased 7%, to US$2.2 billion, with organic revenue growth of 6%.
“The third quarter is evidence of good progress in each of our three key metrics: earnings growth, margin expansion and organic revenue growth,” said Greg Case, Aon president and CEO. “Adjusted pretax income increased by 33% with meaningfully higher margins in both brokerage and consulting.
“Investments we have made for our future, coupled with our commitment to distinctive client value, produced consolidated organic revenue growth of 6%, the highest rate of growth since 2003.”
Insurance underwriting revenue increased to US$519 million during 2006 Q3, led by an organic revenue growth of 13% in the accident, health and life insurance division.
“Due to pending dispositions, Aon Warranty Group and Construction Program Group have been placed into discontinued operations,” Aon announced in a press release. “All remaining property and casualty (P&C) business has been placed in run-off.”
Third-quarter 2006 net income includes the effect of US$102 million related to property and casualty reserve strengthening