Hewitt acquisition boosts Aon's half time results

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Aon’s net profit rose 52% to $504m in the first half of 2011, after revenues surged 47% to $5.6bn.

However, much of the increase can be attributed to the group’s acquisition last year of HR consultancy Hewitt.

HR solutions commissions and fees more than tripled to $2.2bn in the first half of 2011 from $638m in the same period of 2010.

The risk solutions division, on the other hand, showed more modest growth commissions and fees growth of 7% to $3.4bn from $3.1bn. Organic risk solutions growth was 2%, while HR solutions organic growth was 1%.

In the second quarter alone, Aon’s net profit increased 69% to $258m from $153m, and revenues increased 48% to $2.8bn from $1.9bn.

Risk and insurance revenue in the second quarter grew 9% to $1.7bn from $1.6bn, with retail business accounting for $1.3bn and reinsurance $367m.

"We delivered solid organic revenue growth in our retail brokerage business while delivering on the synergy savings related to Aon Hewitt," said Greg Case, president and chief executive officer.

"While macro conditions remain challenging globally, we are firmly on track to deliver growth in 2011, our restructuring programs are delivering cost savings and we have solid financial flexibility that will continue to drive increased shareholder value, as highlighted by the repurchase of $303m of common stock in the quarter."