Revenue up, including 4% rise in commission and fees

Aon reported Q1 total revenue up 3%, with commission and fee income up 4% but its operating income fell 25% and its net income fell 35%.

Financial highlights $m (2009 in brackets)

  • Commissions, fees and other 1,891 ($1,821)
  • Fiduciary investment income 13 (25) (48)
  • Total revenue 1,904 (1,846)
  • Compensation and benefits Expenses 1,163 (1,014)
  • Other general expenses 468 (466)
  • Total operating expenses 1,631 (1,480)
  • Operating income 273 (366)
  • Income from continuing operations 186 (235)
  • Net income 186 (285)

Greg Case, president and chief executive officer, said: “Our first quarter results reflect solid operational performance across both the Brokerage and Consulting segments. Despite difficult economic and soft market conditions and a 48% decline in investment income, on an adjusted basis, we held total operating margins constant and increased EPS from continuing operations 11%.

"Our restructuring programs are expected to deliver additional cost savings and margin improvement, while the substantial investments across our organization in areas such as construction, professional liability and retirement consulting continue to strengthen our client serving capability. “Finally, our balance sheet and strong cash flow provide significant financial flexibility to create long-term shareholder value, as highlighted by the repurchase of an additional $50m of stock during the quarter."

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