Insurance broker Aon posts strong 1Q revenue growth

Insurance brokerage giant Aon Corp. said Thursday its first-quarter profit rose 2 percent on strong growth in its consulting business.

The Chicago-based company's net income rose to $218 million, or 68 cents per share in the first three months of the year, up from $213 million, or 66 cents per share, for the same period last year.

Net income from continuing operations rose 8 percent to $179 million, or 56 cents per share, compared with $165 million, or 51 cents per share, for the prior-year quarter, the company said.

Net income from continuing operations per share, excluding certain items, increased 25 percent to 71 cents compared with 57 cents for the prior-year quarter.

The company was expected to make 61 cents a share, according to the average estimate of 12 analysts in a FactSet survey.

Aon's recent sale of Combined Insurance Co. of America and Sterling Life Insurance generated $2.7 billion of after-tax proceeds, the company said. Total revenue increased 7 percent to $1.9 billion with organic revenue growth of 2 percent.

The company expects savings of $50 million to $70 million in 2008 from its corporate restructuring. Savings in 2009 will be approximately $175 million to $200 million, and 2010 savings will be $240 million.

Shares of Aon closed up 3.1 percent Thursday at $46.79 and were flat in after-hours activity.