AON releases 2006 financial results

AON Corporation (NYSE: AOC) has reported a 2006 Q4 profit of US$224 million, compared with a 2005 Q4 net income of US$224 million.
Throughout all of 2006, AON reported a net income of US$721 million, compared to a reported net income $737 million for 2005.
According to an AON release, risk and insurance brokerage services revenue increased 7% to $1.5 billion in the fourth quarter of 2006, and insurance underwriting revenue increased 9% to $527 million during this time frame.
Total expenses increased 3% to US$2.2 billion, due primarily to an unfavourable impact from foreign exchange of US$82 million and a US$34 million increase in benefits to policyholders, partially offset by a US$37 million decrease in restructuring expense and an incremental US$33 million of estimated restructuring savings.
“Our 2006 performance is fully on track with the first year of our three-year improvement plan, as we made measurable progress on all three of our key operating metrics,” Greg Case, president and chief executive officer of AON, said in a statement.
“We concluded the sale of warranty and certain specialty property and casualty businesses generating approximately US$800 million of cash proceeds.”