Aon has reported total revenue of $1.9bn in the first quarter of 2010, an increase of 3% compared to the same period last year, due to a 6% increase from foreign currency translation and a 1% increase from acquisitions, primarily allied North America, net of dispositions, partially offset by a 3% organic revenue decline in commissions and fees and a $12m or 48% decline in investment income.
For the quarter ended March 31, 2010, net income attributable to Aon stockholders was $178m or $0.63 per share, compared to $280m or $0.96 per share for the prior year quarter.
Total operating expenses increased 10% or $151m to $1.6bn due to an estimated $92m impact from foreign currency translation, an $33m increase in restructuring related expenses, partially offset by benefits related to the 2007 and Aon Benfield restructuring programs. The prior year quarter expenses included an $83 million pension curtailment gain.
The risk and insurance brokerage services revenue increased 3% to $1.59bn and consulting total revenue increased 4% to $322m.
Greg Case, president and chief executive officer of Aon, said: “Our first quarter results reflect solid operational performance across both the Brokerage and Consulting segments. Despite difficult economic and soft market conditions and a 48% decline in investment income, on an adjusted basis, we held total operating margins constant and increased EPS from continuing operations 11%.
Our restructuring programs are expected to deliver additional cost savings and margin improvement, while the substantial investments across our organization in areas such as construction, professional liability and retirement consulting continue to strengthen our client-serving capability.