Aon has reported total revenue of $2.1bn, an increase of 9% compared to the same period last year, due to a 6% increase from foreign currency translation and a 5% increase from acquisitions, net of dispositions, partially offset by a $24m or 63% decline in investment income.
For the quarter ended December 31, 2009, net income attributable to Aon stockholders was $198m or $0.69 per share, compared to a loss of $6m or $0.02 per share for the prior year quarter.
Total operating expenses increased 10% or $162m to $1.8bn due to an estimated $96m impact from foreign currency translation, an $88m increase in restructuring related expenses.
The risk and insurance brokerage services revenue increased 8% to $1.7bn and consulting total revenue increased 2% to $350m.
For full year 2009, total revenue was up by 1% to $7.6 billion due to a 7% increase from acquisitions, primarily Benfield, net of dispositions, primarily offset by a 4% unfavorable impact from foreign currency translation and a $97m or 57% decline in investment income.
Greg Case, president and chief executive officer of Aon, said: Recent investments across our organization in construction, professional liability, claims consulting and key talent continue to strengthen our client-serving capability, while our restructuring programs continue to deliver additional cost savings and margin improvement.
“With the achievement of a 20% adjusted pretax margin in brokerage for 2009, we are establishing a new long-term pretax margin target of 25% for the brokerage segment. Finally, our balance sheet and strong cash flow provide significant financial flexibility to create shareholder value, as highlighted by the repurchase of an additional $340m of stock during the quarter, and the authorization of a new two billion dollar share repurchase program subsequent to the close of 2009.