Aon sees small growth in Q1 revenue

Aon Corporation (NYSE: AOC) reported a 2008 Q1 profit of US$218 million, marking a 2% increase over the same period of last year.
The company’s Risk and Insurance Brokerage Services revenue increased 9% compared to the prior-year quarter, according to a company statement.
The Americas division saw a 1% increase in organic revenue, “reflecting strong growth in Latin America, partially offset by soft market conditions and a slowdown in private equity and commercial construction activity in U.S. retail.”
Reinsurance organic revenue increased 1% to US$264 million, primarily due to growth in the global facultative and treaty placements, partially offset by soft market conditions and higher cedent retentions, the company said in its statement.
Aon’s consulting services sector saw a 4% increase in revenue, to US$343 million, over 2007 Q1.
“Our first quarter results demonstrate continued progress and momentum in each of our three key operating metrics despite soft market conditions globally,” said Aon Corporation president and CEO Greg Case. “During the quarter, we continued to invest significantly in areas such as construction, environmental and integrated capital solutions in reinsurance.”
He also noted the company has recently completed the sale of its capital-intensive insurance underwriting business.