Aon Corp. 4Q profit rises 20 percent

CHICAGO (AP) -- Aon's fourth-quarter earnings rose 20 percent reflecting healthy sales growth at the insurance broker s two main business segments, as well as new cost savings from its 2010 acquisition of Hewitt Associates.

Net income for the final three months of last year rose to $277 million, or 82 cents per share, up from $231 million, or 67 cents per share, in the previous year's fourth quarter.

Excluding one-time items, Aon reported net income from continuing operations of 97 cents per share, edging out by a penny the consensus estimates of analysts, according to a poll by FactSet had expected 96 cents per share.

Revenue rose 3 percent to $2.99 billion from $2.91 billion, though operating expenses grew by an equal percentage, $2.56 billion.

Revenue at Aon's human resources solutions segment increased 3 percent to $1.18 billion. That unit grew in late 2010 with Aon's $4.9 billion acquisition of Hewitt Associates, the human resources firm, which was integrated into Aon's consulting and outsourcing operations in a new subsidiary called Aon Hewitt.

Aon's risk solutions business reported a 3 percent revenue increase, to nearly $1.8 billion.

Aon President and CEO Greg Case said the company continued to see savings from efficiency improvements as a result of the Hewitt acquisition. Aon also continued to report savings from a 2007 restructuring program, and said it has completed all restructuring activities.

For the full year, Aon reported net income of $979 million, or $2.92 per share, up 39 percent from 2010. Revenue rose 33 percent to $11.3 billion, in part because of the Hewitt acquisition.

Aon repurchased $828 million of its common stock last year. On Jan. 13, the company announced plans to move its corporate headquarters from Chicago to London to improve its access to emerging markets and increase its financial flexibility. The company already has a big presence in the United Kingdom.

Aon Corp. reported results before markets opened and its shares rose slightly in electronic trading. It shares closed at $49.37 on Thursday. The stock is up from a 52-week low of $39.68 reached in September. Shares traded as high as $54.59 in April.