Aon has reported net income for the fourth quarter of $224m or $0.68 per share, compared to $224m or $0.65 per share for the prior year quarter.
Net income from continuing operations was $189m or $0.58 per share, compared to $102m or $0.30 per share for the prior year quarter. However the results still missed analyst estimates.
Restructuring expense was $86m in the fourth quarter compared to $123m for the prior year. The previously announced three-year restructuring plan is now anticipated to result in cumulative pretax charges of $365m.
Total revenue for 2006 increased 5% to $9bn with organic revenue growth of 5%.
Net income for 2006 was $721m or $2.13 per share, compared to $737m or $2.17 per share for the prior year.
“Our fourth quarter results continued to deliver operational improvement as the adjusted pretax margin increased 270 basis points to 13.9%, with meaningful increases across all operating segments, even as we make significant investments for the future in new markets, talent and technology,” said Greg Case, president and chief executive officer.
“Our 2006 performance is fully on track with the first year of our three-year improvement plan, as we made measurable progress on all three of our key operating metrics. Organic revenue growth was 5%, and on an adjusted basis, pretax margin improved in each operating segment and net income per share from continuing operations increased 22%.
"We concluded the sale of Warranty and certain specialty property & casualty businesses generating approximately $800m of cash proceeds. Our balance sheet is strong and we repurchased more than $1bn of stock in 2006, highlighting our belief in the underlying strength of Aon and the positive outlook for 2007 and beyond.”
