Aon Co. (NYSE: AOC) has reported a net income of US$224 million during the fourth quarter of 2005, compared to US$81 million over the same period in 2004.
Fourth-quarter 2005 net income from continuing operations increased 97% – up to US$144 million, compared to US$73 million a year ago.
The company’s 2005 net income of US$737 million increased 35% over the prior year. For the full year, 2005 net income from continuing operations increased to US$642 million from US$545 million in 2004.
“Our fourth quarter operating results show strong underlying margin improvement,” Aon CEO Greg Case said in a press release. “Americas Brokerage, led by our U.S. and Latin America Retail businesses, showed very solid organic growth, continuing a trend which emerged previously in 2005. Our Affinity business continues to make an important contribution to organic revenue growth, and we continue to take steps to strengthen that business.
“For each of our operating segments, 2005 marked a year of good progress toward realizing the full potential of our tremendous portfolio of businesses.”
The company announced that its three-year restructuring plan “is currently expected to result in cumulative pretax charges of US$262 million, including employee termination and lease consolidation costs, asset impairments, and other costs associated with the restructuring. Annualized cost savings are now targeted at approximately US$180 million by 2008.”
Insurance underwriting revenue was US$756 million in the quarter, the company announced, with segment organic revenue growth – based on written premiums and fees – of 9%. In the warranty, credit and property and casualty business, organic revenue growth was 8% in the quarter.