Aon Announces First Quarter Results.CHICAGO--(BUSINESS WIRE)--May 5, 1998--Aon Corporation (Aon) today announced financial results for the quarter ended March 31, 1998. Net income per share for the quarter was $0.80, up 54% from $0.52 before special charges a year earlier. Total revenue for the quarter was $1.6 billion, up 15% from $1.4 billion a year earlier. Net income in the quarter was $138 million, up 52% compared to $91 million reported in the first quarter of 1997 before special charges. Patrick G. Ryan Ryan may refer to: Places
"Revenues in the Insurance Brokerage BROKERAGE, contracts. The trade or occupation of a broker; the commissions paid to a broker for his services. and Consulting Services Noun 1. consulting service - service provided by a professional advisor (e.g., a lawyer or doctor or CPA etc.) service - work done by one person or group that benefits another; "budget separately for goods and services" segment continue to grow due to a combination of organic growth and acquisitions. Margins in this segment increased as well, reflecting improved operating efficiencies resulting from the consolidation of businesses acquired last year. "Insurance Underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. growth was led primarily by extended warranty An assurance, promise, or guaranty by one party that a particular statement of fact is true and may be relied upon by the other party. Warranties are used in a variety of commercial situations. In many instances a business may voluntarily make a warranty. underwriting. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. was flat, reflecting start-up Start-up The earliest stage of a new business venture. costs in the worksite marketing initiative and the continuing run-off run-off n (in contest, election) → desempate m (= extra race); carrera de desempate run-off n (in contest, election) → of the specialty A contract under seal. A specialty is a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt. property and casualty and North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. credit underwriting lines. "The consolidation of recent brokerage acquisitions is on target and initiatives to develop new products and services are well under way. Cash flow remains strong. Trailing twelve-month EBITA EBITA Earnings Before Interest Taxes Amortization (earnings before special charges, interest, taxes and amortization of intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. ) was $986 million. "We are confident of our position, our vision and our ability to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. the changing fundamentals in the global market. Our commitment to delivering high quality products and services everywhere in the world will continue to make us stronger." Aon Corporation is a holding company that comprises a family of insurance brokerage, consulting and insurance underwriting subsidiaries. Aon's common stock (AOC AOC, n an acronym for the Aromatherapy Organizations Council. ) is listed on the New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , Chicago Chicago, city, United States Chicago (shĭkä`gō, shĭkô`gō), city (1990 pop. 2,783,726), seat of Cook co., NE Ill., on Lake Michigan; inc. 1837. and London stock exchanges London Stock Exchange London marketplace for securities. It was formed in 1773 by a group of stockbrokers who had been doing business informally in local coffeehouses. . -0-
Aon Corporation
Consolidated Summary of Operations
First Quarter Ended
-------------------------------
March 31, March 31, Percent
1998 1997 Change
(millions except per share data) -------- -------- ------
Revenue
Brokerage commissions and fees $ 996.2 $ 841.7 18.4%
Premiums and other 416.8 394.4 5.7
Investment income 148.5 118.2 25.6
-------- -------- ------
Total revenue (1) 1,561.5 1,354.3 15.3
-------- -------- ------
Expenses
General expenses 1,068.3 957.6 11.6
Benefits to policyholders 225.9 205.2 10.1
Amortization of intangible assets 29.5 31.3 (5.8)
-------- -------- ------
Total expenses (1) 1,323.7 1,194.1 10.9
-------- -------- ------
Income Before Special Charges 237.8 160.2 48.4
Special charges - 145.0 -
-------- -------- ------
Income Before Income Tax
and Minority Interest 237.8 15.2 +500
Provision for income tax 89.2 5.7 +500
-------- -------- ------
Income Before Minority Interest 148.6 9.5 +500
Minority interest - 8.205% trust
preferred capital securities (10.3) (8.8) N/A
-------- -------- ------
Net Income $ 138.3 $ 0.7 +500%
======== ======== ======
Preferred stock dividends (0.6) (3.4) N/A
-------- -------- ------
Net Income (Loss) Available
for Common Stockholders $ 137.7 $ (2.7) N/A%
======== ========= ======
Net Income (Loss) Per Share:
Basic net income (loss) per share $ 0.82 $ (0.02) N/A%
======= ======== ======
Dilutive net income (loss) per share:
Net income excluding special charges $ 0.80 $ 0.52 53.8%
Special charges - (0.54) -
------- -------- --------
Dilutive net income (loss)
per share $ 0.80 $ (0.02) N/A%
======= ======== ========
Average common and common
equivalent shares outstanding (2) 171.4 167.1
------- --------
(1) Prior period revenue and expenses have been restated to conform
to the 1998 presentation.
(2) Represents the dilutive average common and common stock
equivalent shares outstanding.
-0-
Aon Corporation
Major Lines of Business
First Quarter Ended
----------------------------------
March 31, March 31, Percent
1998 1997 Change
(millions except per share data) --------- --------- ---------
Revenue
-------
Insurance brokerage
and consulting services:
Insurance and other services $ 890.1 $ 751.6 18.4%
Consulting 150.1 129.1 16.3
-------- -------- -------
Total revenue (1) 1,040.2 880.7 18.1
-------- -------- -------
Insurance underwriting:
Direct sales - life,
accident and health 257.7 254.7 1.2
Extended warranty 159.4 129.4 23.2
Other 57.9 61.3 (5.5)
-------- -------- -------
Total revenue 475.0 445.4 6.6
-------- -------- -------
Corporate and other 46.3 28.2 64.2
-------- -------- -------
Total revenue $1,561.5 $1,354.3 15.3%
======== ======== =======
Income Before Income Tax
------------------------
Insurance brokerage
and consulting services $ 183.3 $ 108.6 68.8%
Special charges - (145.0) -
-------- -------- -------
Including special charges 183.3 (36.4) N/A
Insurance underwriting 64.5 64.8 (0.5)
Corporate and other (10.0) (13.2) N/A
-------- -------- -------
Total income before income tax $ 237.8 $ 15.2 +500%
======== ======== =======
(1) Includes investment income, primarily relating to fiduciary
funds, of $44 million and $39 million for the first quarter ended
March 31, 1998 and 1997, respectively.
CONTACT: John F. Roskopf Vice President-Financial Relations 312/701-3983 |
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