What’s New: In Brief (August 01, 2008)

Aon Corporation (NYSE: AOC)’s 2008 Q2 profit increased 372%, to US$1.1 billion, compared to US$240 million over the same period last year.
“Our second-quarter results reflect a 25% increase in adjusted earnings per share from continuing operations, highlighted by 2% organic revenue growth and a 30-basis-point increase in adjusted pretax margin from our brokerage segment, despite unusually high legacy litigation accruals,” Aon Corporation president and CEO Greg Case said in a press release.
“Our core assets are now strategically aligned as we completed the sales of our remaining insurance underwriting businesses.”
Aon’s property and casualty loss declined US$1 million compared to the prior year quarter. All property and casualty business was placed into run-off in 2006 Q4.
Aon’s risk and insurance brokerage services revenue increased 8% compared to the prior-year quarter, based on a 2% increase in organic revenue.
“Americas organic revenue decreased 1%, reflecting a slowdown in private equity and commercial construction activity in the United States,” the company observed.

Willis Group Holdings Limited (NYSE: WSH), a global insurance broker, saw its 2008 Q2 profits dip to US$39 million from US$78 million over the same period last year.
“The results for the second quarter 2008 were significantly impacted by pre-tax charges totalling [US]$62 million for contract buyouts, severance and other costs,” Willis announced in a press release.
The company noted its results reflected an overall 7% growth in reported commissions and fees, as well as a 3% organic growth in commissions and fees despite a soft insurance market.
The brokerage’s North American segment reported negative organic growth (-1%) compared with second quarter 2007, the result of the soft insurance market.
“Overall, we’re very pleased with our first-half performance,” Willis chairman and CEO Joe Plumeri said in a press release, emphasizing the brokerage’s organic growth figures. “We’re building a solid platform for future profitable growth at Willis, both with the Shaping our Future strategy and with our pending acquisition of Hilb Rogal & Hobbs, which will double the size and footprint of our North America business.”