Aon's UK revenue slid 11% as megabroker struggled in economic conditions
Aon's UK broking business recorded a 11% drop in commission and fees in the third quarter of 2010 to $148m (Q3 2009: $167m). Organic revenue fell 8%.
Aon said theUK result was "due primarily to weak economic conditions and soft pricing".
Aon’s group net profit dipped 14% to $491m from $574m in the first nine months of 2010.
The drop came despite a 1.44% increase in total revenue to $5.60bn from $5.52bn for the same period.
Total operating expenses decreased 4% in the third quarter to $1.5 billion, which Aon reported is due primarily to a $91 million decrease in restructuring related expenses, benefits related to the 2007 and Aon Benfield restructuring programs and an estimated $30 million favourable impact from foreign currency translation.
This was partially offset by the inclusion of operating expenses which Aon said related to recent acquisitions and $19 million of costs associated with the merger of Hewitt with Aon Consulting.
Greg Case, president and chief executive officer said: "Our third quarter results reflect solid operational performance against a challenging global economy. We delivered four percent organic revenue growth and a 150 basis point increase in margin in our Consulting segment and continued to improve the run-rate of organic revenue in our retail Brokerage business."
"Our GRIP platform, Aon Broking initiatives and benefits related to the restructuring programs are expected to deliver long-term growth and significant margin improvement in our Brokerage segment. We also are excited about the recently completed merger of Hewitt with Aon Consulting, which substantially strengthens our position as the preeminent global professional services firm focused on risk and people. Aon Hewitt's senior leadership team is fully in place, the integration is well underway and support from clients around the globe has been exceptional," Case added.
