Aon Q3 Results Top Estimates

(RTTNews) - UK-based risk and insurance brokerage service provider Aon Corp. (AON) Friday said profit for the third quarter increased from the prior year, supported by higher revenues. Both earnings and revenues in the company's seasonally weakest quarter topped Wall Street expectations.

Net income attributable to Aon shareholders grew to $309 million or $1.04 per share from $256 million or $0.82 per share for the prior year quarter.

Adjusted earnings were $1.29, while it was $1.13 last year. On average, 23 analysts polled by Thomson Reuters expected earnings of $1.12 per share for the quarter. Analysts' estimates typically exclude special items.

Revenue increased 3 percent to $2.88 billion from $2.79 billion, driven entirely by organic growth. Analysts expected revenues of $2.85 billion.

Revenue from Commissions, fees and other grew 3 percent to $2.87 billion, while Fiduciary investment income fell to $7 million from $8 million.

In the Risk Solutions segment, total revenue grew 1 percent to $1.836 billion, amid 1 percent organic growth in commissions and fees.

Within the business, Retail organic revenue increased 2 percent reflecting revenue growth in both the Americas and International businesses.

Meanwhile, Reinsurance organic revenue decreased 4 percent due primarily to an unfavorable market impact in treaty, a decline in capital markets and transaction advisory business, and a $3 million unfavorable impact from the timing of certain revenue.

HR Solutions total revenue increased 8 percent to $1.057 billion, driven by 7 percent organic growth in commissions and fees and a 1 percent favorable impact from foreign currency translation.

Organic revenue in Consulting Services increased 14 percent amid strong growth in investment consulting and for project work in retirement consulting.

Organic revenue in Outsourcing increased 3 percent due primarily to growth driven by new client wins and project related revenue in benefits administration.

"Our third quarter results reflect double-digit earnings growth of fourteen percent in our seasonally weakest quarter driven by underlying operational performance and effective capital management," said Greg Case, president and chief executive officer.

AON closed up 0.6 percent on Thursday at $83.09.