Investor Relations Disclaimer

You are about to review presentations, reports, filings and/or other materials regarding Aon plc (NYSE: AON) that contain time-sensitive information. The information contained therein is only current as of the date thereof. Aon expressly disclaims any obligation to review, update or correct these materials after the date thereof. Aon may update, amend, supplement or otherwise alter the information contained in any such materials by subsequent presentations, reports, filings, or other means without notice.

Certain statements made on this web site or in materials accessed in or through this section of our web site are “forward-looking statements,” which are subject to risks and uncertainties, and Aon's actual results may differ (possibly materially) from those indicated in such statements. See Legal Notice for further information regarding such statements and additional disclaimers with respect to the materials and sites that you may access through the Investors section of our Web site.

I Understand   |   Return Home

Aon Reports Second Quarter 2010 Results

07/30/2010

Second Quarter Highlights
- Total revenue increased 1% to $1.9 billion with a decline in organic revenue of 1%
- EPS from continuing operations was $0.63 and adjusted EPS from continuing operations, excluding certain items, increased 7% to $0.81
- Brokerage revenue increased 1% to $1.6 billion with a decline in organic revenue of 1%
- Brokerage operating margin was 19.2% and the adjusted operating margin, excluding certain items, increased 200 basis points to 21.0%
- Consulting revenue increased 6% to $317 million with an increase in organic revenue of 2%
- Consulting operating margin was 14.2% and the adjusted operating margin, excluding certain items, decreased 20 basis points to 14.8%
- Repurchased 1.2 million shares of common stock for $50 million
- Subsequent to close of the quarter, announced the merger of Hewitt Associates, Inc. with Aon Consulting, creating a global leader in human capital solutions

CHICAGO, July 30, 2010 /PRNewswire via COMTEX/ --

Aon Corporation (NYSE: AON) today reported results for the second quarter ended June 30, 2010.

 

Net income attributable to Aon stockholders was $153 million or $0.54 per share, compared to $149 million or $0.51 per share for the prior year quarter. Net income attributable to Aon stockholders from continuing operations increased 22% to $179 million or $0.63 per share, compared to $147 million or $0.50 per share for the prior year quarter. Net income per share attributable to Aon stockholders from continuing operations, excluding certain items, increased 7% to $0.81 compared to $0.76 for the prior year quarter. Certain items that impacted second quarter results and comparisons with the prior year quarter are detailed in the reconciliation of non-GAAP measures on page 12 of this press release.

"Our second quarter results reflect strong operational performance in Brokerage and Consulting. In Brokerage, our Americas business delivered a two percent increase in organic revenue highlighted by strong growth in Latin America and benefits related to the global risk insight platform. Consulting delivered a two percent increase in organic revenue highlighted by strong growth in international health and benefits and compensation consulting. On an adjusted basis, total operating margins increased 110 basis points, including a 200 basis point increase in Brokerage operating margins, and EPS from continuing operations increased seven percent," said Greg Case, president and chief executive officer. "Our GRIP platform, Aon Broking initiatives and restructuring programs are expected to deliver long-term growth and significant margin improvement in Brokerage. In addition, we continue to make substantial investments across our firm, including the recently announced merger of Hewitt with Aon, which upon close, will substantially strengthen our position as the preeminent global professional services firm focused on risk and human capital solutions."

SECOND QUARTER FINANCIAL SUMMARY

Totalrevenue increased 1% to $1.9 billion from the prior year quarter due to a 2% increase from acquisitions, primarily Allied North America, net of dispositions, and a 1% increase from foreign currency translation, partially offset by a 1% organic decline in commissions and fees and a 21% decline in fiduciary investment income.

Total operating expenses decreased 2% or $32 million to $1.6 billion due primarily to a $64 million decrease in restructuring related expenses and benefits related to the 2007 and Aon Benfield restructuring programs, partially offset by a non-cash charge to pension expense of $49 million and an estimated $10 million unfavorable impact from foreign currency translation.

Restructuring expenses were $31 million in the second quarter compared to $95 million in the prior year quarter. Including the second quarter expenses, the Company has incurred 96% of the $905 million of total costs necessary to deliver savings under the 2007 and Aon Benfield restructuring programs. An analysis of restructuring-related expenses by segment and type are detailed on page 13 of this release.

Restructuring savings in the second quarter related to the 2007 restructuring program are estimated at $113 million compared to $51 million in the prior year quarter. Of the estimated restructuring savings in the second quarter, $95 million were related to the Brokerage segment primarily from workforce reductions. Before any potential reinvestment of savings, the 2007 restructuring program is expected to deliver $536 million of annualized run-rate cost savings by the end of 2010.

Restructuring savings in the second quarter related to the Aon Benfield restructuring program are estimated at $24 million compared to $10 million in the prior year quarter. Before any potential reinvestment of savings, the Benfield restructuring program is expected to deliver cumulative cost savings of $90-100 million in 2010 and $122 million in 2011.

Currency fluctuations in the second quarter favorably impacted adjusted net income from continuing operations by $0.02 per diluted share when the Company translates prior year quarter results at current quarter foreign exchange rates.

Effective tax rate on net income from continuing operations was 24.5% in the second quarter. Excluding the impact of the 40% tax rate applied to the non-cash charge to pension expense of $49 million, the effective tax rate on net income from continuing operations in the second quarter was 27.5% compared to 27.1% in the prior year quarter. The company anticipates an underlying tax rate on continuing operations of 28% for 2010.

Average diluted shares outstanding decreased to 282.6 million in the second quarter compared to 292.7 million in the prior year quarter due primarily to the Company's share repurchase program. During the quarter, the Company repurchased 1.2 million shares of common stock for $50 million. The company has approximately $165 million remaining under the share repurchase program previously authorized in 2005 and $2 billion under the share repurchase program previously authorized in 2010.

Discontinued Operations after-tax loss of $26 million is primarily related to the settlement of legacy litigation previously disclosed in the Company's SEC filings. The prior year quarter after-tax income of $2 million includes results for the run-off property and casualty insurance operations.

SECOND QUARTER SEGMENT REVIEW

Certain noteworthy items impacted operating income and operating margins in the second quarter of 2010 and 2009. The second quarter segment reviews provided below include supplemental information related to organic revenue, adjusted operating income and operating margin which is described in detail on the "Reconciliation of Non-GAAP Measures - Organic Revenue" on page 11 and "Reconciliation of Non-GAAP Measures - Operating Income and Diluted Earnings Per Share" on page 12 of this press release.

    RISK AND INSURANCE BROKERAGE SERVICES
    -------------------------------------

                                          Less:

    (millions)          Second Quarter Ended
                        --------------------
    Commissions,      Jun 30,       Jun 30,         %
    Fees and Other        2010          2009     Change
    --------------        ----          ----     ------
    Retail              $1,214        $1,186           2%
    Reinsurance            359           372          (3)
    Subtotal            $1,573        $1,558           1%
                        ------        ------
    Investment
     Income                 14            19        (26)%
    Total Revenue       $1,587        $1,577           1%
                        ======        ======


    (millions)          Less:       Acquisitions,
    Commissions,      Currency      Divestitures,     Organic
    Fees and Other     Impact           Other         Revenue
    --------------     ------           -----         -------
    Retail                   1%                 2%         (1)%
    Reinsurance              1                 (1)          (3)
    Subtotal                 1                  1           (1)
    Investment
     Income
    Total Revenue


Risk and Insurance Brokerage Services total revenue increased 1% to $1.6 billion compared to the prior year quarter due to a 1% favorable impact from foreign currency translation on commissions and fees and a 1% increase from acquisitions, primarily Allied North America, net of dispositions, partially offset by a 1% organic decline in commissions and fees and a $5 million or 26% decline in fiduciary investment income.

Retail organic revenue declined 1% compared to the prior year quarter. By geographic region in Retail, the Americas organic revenue increased 2% due to strong growth in Latin America and benefits related to the global risk insight platform (GRIP), partially offset by the impact of soft pricing and lower exposure units on the renewal book portfolio in U.S. Retail. U.K. organic revenue decreased 6% due primarily to weak economic conditions and lower exposure units. EMEA organic revenue decreased 3% due to weak economic conditions and lower exposure units in Continental Europe and Ireland, partially offset by modest growth in emerging markets. APAC organic revenue increased 3% reflecting solid growth in Australia and New Zealand, partially offset by weak economic conditions in Japan and Thailand. Reinsurance organic revenue decreased 3% due primarily to higher cedent retentions and soft pricing globally in treaty placements, partially offset by an increase in revenue from capital markets transactions.

                                          Second Quarter Ended
                                          --------------------
    (millions)                          Jun 30,        Jun 30,         %
                                            2010           2009     Change
                                            ----           ----     ------
    Revenue                               $1,587         $1,577           1%
    Expenses
        Compensation and benefits            909            932          (2)
        Other expenses                       373            444         (16)
                                             ---            ---
    Total operating expenses               1,282          1,376          (7)
                                           -----          -----
                                            $305           $201          52%
    Operating income                        ====           ====
    Operating margin                        19.2%          12.7%

    Operating income - adjusted             $334           $300          11%
    Operating margin - adjusted             21.0%          19.0%



Compensation and benefits for the second quarter decreased 2% or $23 million compared to the prior year quarter due primarily to a $42 million decrease in restructuring related costs and benefits related to the restructuring programs, partially offset by the inclusion of operating expenses related to recent acquisitions and a $4 million unfavorable impact from foreign currency translation. Other expenses for the second quarter decreased 16% or $71 million from the prior year quarter due primarily to a $21 million decrease in restructuring related costs and benefits related to the restructuring programs, partially offset by a $3 million unfavorable impact from foreign currency translation and the inclusion of operating expenses related to recent acquisitions.

Second quarter operating income increased 52% to $305 million. Adjusting for certain items detailed on page 12 of this press release, operating income increased 11% or $34 million to $334 million and operating margin increased 200 basis points to 21.0% compared to the prior year quarter due primarily to benefits of the restructuring programs, partially offset by a decline in organic revenue and a $5 million or 26% decrease in investment income.

    CONSULTING
    ----------

    (millions)              Second Quarter Ended
                            --------------------
    Commissions,          Jun 30,        Jun 30,         %
    Fees and Other             2010          2009     Change
    --------------             ----          ----     ------
    Services                   $265          $251           6%
    Outsourcing                  51            49           4
    Subtotal                   $316          $300           5%
                               ----          ----
    Investment Income             1             -         N/A
    Total Revenue              $317          $300           6%
                               ====          ====


    (millions)            Less:            Less:
                                       Acquisitions,
    Commissions,        Currency       Divestitures,      Organic
    Fees and Other       Impact            Other          Revenue
    --------------       ------            -----          -------
    Services                   1%                  3%            2%
    Outsourcing                2                   3            (1)
    Subtotal                   1%                  2%            2%
    Investment Income
    Total Revenue


Consulting total revenue increased 6% to $317 million compared to the prior year quarter due primarily to a 2% organic increase in commissions and fees, 2% increase from acquisitions, primarily J.P. Morgan Compensation and Benefits Strategies, net of dispositions, and a 1% favorable impact from foreign currency translation. Organic revenue in Consulting Services increased 2% primarily reflecting strong growth in global compensation consulting and international health and benefits brokerage, partially offset by the impact of weak economic conditions on retirement consulting. Organic revenue in Outsourcing declined 1% due to lower payroll counts impacting certain employee benefits and retirement outsourcing contracts.

                                          Second Quarter Ended
                                          --------------------
    (millions)                          Jun 30,        Jun 30,         %
                                            2010           2009     Change
                                              --             --     ------
    Revenue                                 $317           $300           6%
    Expenses
        Compensation and benefits            194            184           5
        Other expenses                        78             75           4
                                             ---            ---
    Total operating expenses                 272            259           5
                                             ---            ---
                                             $45            $41          10%
    Operating income                         ===            ===
    Operating margin                        14.2%          13.7%

    Operating income - adjusted              $47            $45           4%
    Operating margin - adjusted             14.8%          15.0%



Compensation and benefits for the second quarter increased 5% or $10 million from the prior year quarter including a $4 million increase from the inclusion of operating expenses related to recent acquisitions. Other expenses increased 4% or $3 million from the prior year quarter including a $2 million increase from the inclusion of operating expenses related to recent acquisitions, partially offset by benefits related to the 2007 restructuring program.

Second quarter operating income increased 10% to $45 million. Adjusting for certain items detailed on page 12 of this press release, operating income increased 4% or $2 million to $47 million and operating margin decreased 20 basis points to 14.8% versus the prior year quarter.

    INCOME FROM CONTINUING OPERATIONS
    ---------------------------------
                                           Second Quarter Ended
                                           --------------------
    (millions)                            Jun 30,       Jun 30,      %
                                              2010          2009  Change
                                              ----          ----  ------
    Risk and Insurance Brokerage Services     $305          $201       52%
    Consulting                                  45            41       10
    Unallocated revenue                          -            11     (100)
    Unallocated expenses                       (82)          (33)     148
    Operating income from continuing
     operations before tax                    $268          $220       22%
                                              ----          ----
    Interest income                              4             2      100
    Interest expense                           (33)          (26)      27
    Other income (expense)                       5            14      (64)
    Income from continuing operations
     before tax                               $244          $210       16%
                                              ====          ====



Unallocated revenue declined $11 million compared to the prior year quarter. The prior year quarter reflected revenue related to the Company's equity ownership in certain insurance investment funds acquired with Benfield. Unallocated expenses increased $49 million to $82 million due primarily to a non-cash charge to pension expense of $49 million, which resulted from an adjustment to the market-related value of plan assets to properly reflect the merger of two U.S. pension plans in 1999. Interest expense increased $7 million to $33 million due to an increase in the average rate on outstanding debt. Other income was $5 million in the second quarter compared to $14 million in the prior year quarter. The prior year quarter primarily included the recognition of a $5 million gain on the extinguishment of a portion of the Company's trust preferred securities and gains related to the sales of certain businesses.

Conference Call and Webcast Details

The Company will host a conference call on Friday, June 30, 2010 at 7:30 a.m. central time. Interested parties can listen to the conference call via a live audio webcast at www.aon.com.

About Aon

Aon Corporation (NYSE: AON) is a leading global provider of risk management services, insurance and reinsurance brokerage, and human capital consulting. Through its more than 36,000 colleagues worldwide, Aon delivers distinctive client value via innovative and effective risk management and workforce productivity solutions. Aon's industry-leading global resources and technical expertise are delivered locally through more than 500 offices in more than 120 countries. Named the world's best broker by Euromoney magazine's 2008, 2009 and 2010 Insurance Survey, Aon also ranked highest on Business Insurance's listing of the world's largest insurance brokers based on commercial retail, wholesale, reinsurance and personal lines brokerage revenues in 2008 and 2009. A.M. Best deemed Aon the number one insurance broker based on brokerage revenues in 2007, 2008 and 2009, and Aon was voted best insurance intermediary, best reinsurance intermediary and best employee benefits consulting firm in 2007, 2008 and 2009 by the readers of Business Insurance. Visit http://www.aon.com for more information on Aon and http://www.aon.com/unitedin2010 to learn about Aon's global partnership and shirt sponsorship with Manchester United.

Safe Harbor Statement

This communication contains certain statements related to future results, or states our intentions, beliefs and expectations or predictions for the future which are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from either historical or anticipated results depending on a variety of factors. Potential factors that could impact results include: the possibility that the expected efficiencies and cost savings from the proposed transaction will not be realized, or will not be realized within the expected time period; the ability to obtain governmental approvals of the merger on the proposed terms and schedule contemplated by the parties; the failure of stockholders of Hewitt Associates, Inc. ("Hewitt") to approve the proposal to adopt the merger agreement; the failure of the stockholders of Aon Corporation ("Aon") to approve the proposal to approve the issuance of shares of Aon common stock to Hewitt stockholders in the merger; the loss of key Aon or Hewitt employees following the merger; the risk that the Aon and Hewitt businesses will not be integrated successfully; disruption from the proposed transaction making it more difficult to maintain business and operational relationships with customers, partners and others; the possibility that the proposed transaction does not close, including, but not limited to, due to the failure to satisfy the closing conditions; general economic conditions in different countries in which Aon and Hewitt do business around the world; changes in global equity and fixed income markets that could affect the return on invested assets; fluctuations in exchange and interest rates that could impact revenue and expense; rating agency actions that could affect Aon's ability to borrow funds; changes in the funding status of Aon's various defined benefit pension plans and the impact of any increased pension funding resulting from those changes; Aon's ability to implement restructuring initiatives and other initiatives intended to yield cost savings, and the ability to achieve those cost savings; the impact on risk and insurance services commission revenues of changes in the availability of, and the premium insurance carriers charge for, insurance and reinsurance products, including the impact on premium rates and market capacity attributable to catastrophic events; the outcome of inquiries from regulators and investigations related to compliance with the U.S. Foreign Corrupt Practices Act and non-U.S. anti-corruption laws; the impact of investigations brought by U.S. state attorneys general, U.S. state insurance regulators, U.S. federal prosecutors, U.S. federal regulators, and regulatory authorities in the U.K. and other countries; the impact of class actions and individual lawsuits including client class actions, securities class actions, derivative actions and ERISA class actions; the cost of resolution of other contingent liabilities and loss contingencies, including potential liabilities arising from error and omissions claims against Aon or Hewitt; the extent to which Aon and Hewitt retain existing clients and attract new businesses; the extent to which Aon and Hewitt manage certain risks created in connection with the various services, including fiduciary and advisory services, among others, that Aon and Hewitt currently provide, or will provide in the future, to clients; the impact of, and potential challenges in complying with, legislation and regulation in the jurisdictions in which Aon and Hewitt operate, particularly given the global scope of Aon's and Hewitt's businesses and the possibility of conflicting regulatory requirements across jurisdictions in which Aon and Hewitt do business; and the ability to realize the anticipated benefits to Aon of the Benfield merger. Further information concerning Aon, Hewitt, and their business, including factors that potentially could materially affect Aon's and Hewitt's financial results, is contained in Aon's and Hewitt's filings with the Securities and Exchange Commission (the "SEC"). See Aon's and Hewitt's Annual Reports on Form 10-K and Annual Reports to Stockholders for the fiscal years ended December 31, 2009 and September 30, 2009, respectively, and other public filings with the SEC for a further discussion of these and other risks and uncertainties applicable to our businesses. Neither Aon nor Hewitt undertakes, and each of them expressly disclaims, any duty to update any forward-looking statement whether as a result of new information, future events or changes in their respective expectations, except as required by law.

Additional Information

This communication does not constitute an offer to sell or the solicitation of an offer to buy our securities or the solicitation of any vote or approval. This communication is being made in respect of the proposed transaction involving Aon and Hewitt. In connection with the proposed merger, Aon filed with the SEC a registration statement on Form S-4 that included a preliminary joint proxy statement of Aon and Hewitt that also constitutes a preliminary prospectus of Aon, and each of the companies may be filing with the SEC other documents regarding the proposed transaction. At the appropriate time, Aon and Hewitt will mail the definitive joint proxy statement/prospectus regarding the proposed merger to their respective stockholders. Before making any voting or investment decision, investors and stockholders are urged to read carefully in their entirety the definitive joint proxy statement/prospectus regarding the proposed transaction and any other relevant documents filed by either Aon or Hewitt with the SEC when they become available because they will contain important information about the proposed transaction. You may obtain copies of all documents filed with the SEC regarding this transaction, free of charge, at the SEC's website ( www.sec.gov ), by accessing Aon's website at www.aon.com under the heading "Investor Relations" and then under the link "SEC Filings" and from Aon by directing a request to Aon at Aon Corporation, 200 E. Randolph Street, Chicago, Illinois 60601, Attention: Investor Relations, and by accessing Hewitt's website at www.hewitt.com under the heading "Investor Relations" and then under the link "Reports & SEC Filings" and from Hewitt by directing a request to Hewitt at Hewitt Associates, Inc., 100 Half Day Road, Lincolnshire, Illinois 60069, Attention: Investor Relations.

Aon and Hewitt and their respective directors and executive officers and certain other members of management and employees may be deemed to be participants in the solicitation of proxies in respect of the proposed transaction. You can find information about Aon's directors and executive officers in its definitive proxy statement filed with the SEC on April 7, 2010. You can find information about Hewitt's directors and executive officers in its definitive proxy statement filed with the SEC on December 16, 2009. Other information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the joint proxy statement/prospectus and other relevant materials to be filed with the SEC when they become available. You can obtain free copies of these documents from Aon and Hewitt using the contact information above.

Explanation of Non-GAAP Measures

This communication includes supplemental information related to organic revenue and several additional measures including expenses, margins and income per share, that exclude the effects of restructuring charges and certain other noteworthy items that affected results for the comparable periods. Organic revenue excludes from reported revenues the impact of foreign exchange, acquisitions, divestitures, transfers between business units, reimbursable expenses and unusual items. The impact of foreign exchange is determined by translating last year's revenue, expense or net income at this year's foreign exchange rates. Reconciliations are provided in the attached schedules. Supplemental organic revenue information and additional measures that exclude the effects of the restructuring charges and certain other items do not affect net income or any other GAAP reported amounts. Management believes that these measures are important to make meaningful period-to-period comparisons and that this supplemental information is helpful to investors. They should be viewed in addition to, not in lieu of, the Company's Consolidated Statements of Income. Industry peers provide similar supplemental information regarding their performance, although they may not make identical adjustments.

    Investor Contact:                 Media Contact:
    Scott Malchow                     David Prosperi
    Vice President, Investor           Vice President, Global Public
     Relations                         Relations
    312-381-3983                      312-381-2485


    Aon Corporation
    Consolidated Statements of Income (Unaudited)


                                             Second Quarter Ended
                                             --------------------
                                            June 30,   June 30,    Percent
    (millions except per share data)           2010       2009      Change
                                            ---------  ---------  --------
    Revenue
    -------
      Commissions, fees and other              $1,883     $1,863   1 %
      Fiduciary investment income                  15         19  (21)
                                                  ---        ---  ---
        Total revenue                           1,898      1,882    1
                                                -----      -----  ---

    Expenses
    --------
      Compensation and benefits                 1,169      1,134    3

      Other general expenses                      461        528  (13)
                                                  ---        ---  ---
        Total operating expenses                1,630      1,662   (2)
                                                -----      -----  ---
    Operating income                              268        220   22

      Interest income                               4          2  100
      Interest expense                            (33)       (26)  27
      Other income                                  5         14  (64)
                                                  ---        ---  ---
    Income from continuing operations
     before income taxes                          244        210   16
      Income taxes (1)                             60         57    5
                                                  ---        ---  ---
    Income from continuing operations             184        153   20
                                                  ---        ---  ---

    Income (loss) from discontinued
     operations before income taxes               (41)         2  N/A
      Income taxes (2)                            (15)         -  N/A
                                                  ---        ---   --
    Income (loss) from discontinued
     operations                                   (26)         2  N/A
                                                  ---        ---  ---

     Net income                                   158        155    2
      Less:  Net income attributable to the
       noncontrolling interests                     5          6  (17)
                                                  ---        ---  ---
    Net income attributable to Aon
     stockholders                                $153       $149   3 %
                                                 ====       ====  ===

    Net income (loss) attributable to Aon
     stockholders:
      Income from continuing operations          $179       $147  22 %
      Income (loss) from discontinued
       operations                                 (26)         2  N/A
                                                                  ---
      Net income                                 $153       $149   3 %
                                                 ====       ====  ===
    Basic net income (loss) per share
     attributable to Aon stockholders:
      Income from continuing operations         $0.64      $0.52  23 %
      Income (loss) from discontinued
       operations                               (0.09)         -  N/A
      Net income                                $0.55      $0.52   6 %
                                                =====      =====  ===

    Diluted net income (loss) per share
     attributable to Aon stockholders:
      Income from continuing operations         $0.63      $0.50  26 %
      Income (loss) from discontinued
       operations                               (0.09)      0.01  N/A
      Net income                                $0.54      $0.51   6 %
                                                =====      =====  ===

    Weighted average common shares
     outstanding -diluted                       282.6      292.7  (3)%
                                                =====      =====  ===





                                                 Six Months Ended
                                                 ----------------
                                            June 30,   June 30,     Percent
    (millions except per share data)           2010       2009       Change
                                            ---------  ---------   --------
    Revenue
    -------
      Commissions, fees and other              $3,774     $3,684    2 %
      Fiduciary investment income                  28         44   (36)
                                                  ---        ---   ---
        Total revenue                           3,802      3,728     2
                                                -----      -----   ---

    Expenses
    --------
      Compensation and benefits                 2,332      2,148     9

      Other general expenses                      929        994    (7)
                                                  ---        ---   ---
        Total operating expenses                3,261      3,142     4
                                                -----      -----   ---
    Operating income                              541        586    (8)

      Interest income                               5          9   (44)
      Interest expense                            (67)       (55)   22
      Other income                                 12         13    (8)
                                                  ---        ---   ---
    Income from continuing operations
     before income taxes                          491        553   (11)
      Income taxes (1)                            121        165   (27)
                                                  ---        ---   ---
    Income from continuing operations             370        388    (5)
                                                  ---        ---   ---

    Income (loss) from discontinued
     operations before income taxes               (39)        93   N/A
      Income taxes (2)                            (13)        41   N/A
                                                  ---        ---    --
    Income (loss) from discontinued
     operations                                   (26)        52   N/A
                                                  ---        ---   ---

     Net income                                   344        440   (22)
      Less:  Net income attributable to the
       noncontrolling interests                    13         11    18
                                                  ---        ---   ---
    Net income attributable to Aon
     stockholders                                $331       $429  (23)%
                                                 ====       ====  ====

    Net income (loss) attributable to Aon
     stockholders:
      Income from continuing operations          $357       $377   (5)%
      Income (loss) from discontinued
       operations                                 (26)        52   N/A
                                                  ---        ---   ---
      Net income                                 $331       $429  (23)%
                                                 ====       ====  ====
    Basic net income (loss) per share
     attributable to Aon stockholders:
      Income from continuing operations         $1.29      $1.32   (2)%
      Income (loss) from discontinued
       operations                               (0.10)      0.19   N/A
      Net income                                $1.19      $1.51  (21)%
                                                =====      =====  ====

    Diluted net income (loss) per share
     attributable to Aon stockholders:
      Income from continuing operations         $1.27      $1.29   (2)%
      Income (loss) from discontinued
       operations                               (0.09)      0.18   N/A
      Net income                                $1.18      $1.47  (20)%
                                                =====      =====  ====

    Weighted average common shares
     outstanding -diluted                       281.7      292.2   (4)%
                                                =====      =====   ===





    (1)  Tax rate for continuing operations is 24.5% and 27.1% for the
    second quarters ended June 30, 2010 and 2009, respectively, and
    24.7% and 29.8% for the six months ended June 30, 2010 and 2009,
    respectively.  The underlying tax rate on continuing operations for
    2010 is approximately 28%.

    (2)  Tax rate for discontinued operations is 34.6% and 34.9% for the
    second quarters ended June 30, 2010 and 2009, respectively, and
    33.0% and 44.6% for the six months ended June 30, 2010 and 2009,
    respectively.


    Aon Corporation
    Revenue from Continuing Operations (Unaudited)


                                      Second Quarter Ended
                                      --------------------
    (millions)                   June 30, June 30,   Percent    Organic
                                                                Revenue
                                     2010     2009   Change             (1)
                                     ----     ----   ------     --------
    Commissions, Fees and Other
    ---------------------------
    Risk and Insurance Brokerage
     Services                      $1,573   $1,558    1 %    (1)%
    Consulting                        316      300     5       2
                                      ---      ---
        Total Operating Segments   $1,889   $1,858    2 %    (1)%
                                   ======   ======

    Fiduciary Investment Income
    ---------------------------
    Risk and Insurance Brokerage
     Services                         $14      $19  (26)%
    Consulting                          1        -   N/A
                                      ---      ---
        Total Operating Segments      $15      $19  (21)%
                                      ===      ===

    Total Revenue
    -------------
    Risk and Insurance Brokerage
     Services                      $1,587   $1,577    1 %
    Consulting                        317      300     6
    Unallocated                         -       11  (100)
    Intersegment                       (6)      (6)    -
                                      ---      ---
        Total                      $1,898   $1,882    1 %
                                   ======   ======




                                          Six Months Ended
                                          ----------------
    (millions)                   June 30, June 30,    Percent    Organic
                                                                 Revenue
                                     2010     2009     Change            (1)
                                     ----     ----     ------    --------
    Commissions, Fees and Other
    ---------------------------
    Risk and Insurance Brokerage
     Services                      $3,147   $3,077     2 %    (2)%
    Consulting                        638      608      5       -
                                      ---      ---
        Total Operating Segments   $3,785   $3,685     3 %    (2)%
                                   ======   ======

    Fiduciary Investment Income
    ---------------------------
    Risk and Insurance Brokerage
     Services                         $27      $43   (37)%
    Consulting                          1        1      -
                                      ---      ---
        Total Operating Segments      $28      $44   (36)%
                                      ===      ===

    Total Revenue
    -------------
    Risk and Insurance Brokerage
     Services                      $3,174   $3,120     2 %
    Consulting                        639      609      5
    Unallocated                         -       11  (100)
    Intersegment                      (11)     (12)    (8)
                                      ---      ---
        Total                      $3,802   $3,728     2 %
                                   ======   ======




    (1)  Organic revenue excludes the impact of foreign exchange,
    acquisitions, divestitures, transfers, reimbursable expenses and
    unusual items.  Change in organic revenue, a non-GAAP measure, is
    reconciled to the corresponding U.S. GAAP percent change in revenue on
    page 11 of this release.


    Aon Corporation
    Segments (Unaudited)



    Risk and Insurance Brokerage
     Services                                Second Quarter Ended
                                             --------------------
    (millions)                    June 30,           June 30,       Percent
                                        2010              2009       Change
    Revenue
    -------
      Commissions, fees and other     $1,573            $1,558        1 %

      Fiduciary investment income         14                19       (26)
                                         ---               ---
        Total revenue                  1,587             1,577         1
                                       -----             -----

    Expenses
    --------
      Compensation and benefits          909               932        (2)

      Other general expenses             373               444       (16)
                                         ---               ---
        Total operating expenses       1,282             1,376        (7)
                                       -----             -----

    Operating income                    $305              $201       52 %
                                        ====              ====

    Operating margin                    19.2%             12.7%

    Consulting                            Second Quarter Ended
                                          --------------------
    (millions)                    June 30,           June 30,     Percent
                                        2010              2009     Change
                                        ----              ----     ------
    Revenue
    -------
      Commissions, fees and other       $316              $300         5%

      Fiduciary investment income          1                 -       N/A
                                         ---               ---
        Total revenue                    317               300         6
                                         ---               ---

    Expenses
    --------
      Compensation and benefits          194               184         5

      Other general expenses              78                75         4
                                         ---               ---
        Total operating expenses         272               259         5
                                         ---               ---

    Operating income                     $45               $41        10%
                                         ===               ===

    Operating margin                    14.2%             13.7%

    Total Operating Income                Second Quarter Ended
                                          --------------------
    (millions)                    June 30,           June 30,     Percent
                                        2010              2009     Change
                                        ----              ----     ------
    Risk and Insurance Brokerage
     Services                           $305              $201       52 %
    Consulting                            45                41        10
    Unallocated revenue                    -                11      (100)
    Unallocated expenses                 (82)              (33)      148
                                         ---               ---
       Total operating income           $268              $220        22%
                                        ====              ====

    Total operating margin              14.1%             11.7%


    Risk and Insurance Brokerage
     Services                                   Six Months Ended
                                                ----------------
    (millions)                    June 30,        June 30,         Percent
                                       2010            2009         Change
                                       ----            ----         ------
    Revenue
    -------
      Commissions, fees and other    $3,147          $3,077          2 %

      Fiduciary investment income        27              43         (37)
                                        ---             ---
        Total revenue                 3,174           3,120           2
                                      -----           -----

    Expenses
    --------
      Compensation and benefits       1,860           1,769           5

      Other general expenses            752             827          (9)
                                        ---             ---
        Total operating expenses      2,612           2,596           1
                                      -----           -----

    Operating income                   $562            $524          7 %
                                       ====            ====

    Operating margin                   17.7%           16.8%

    Consulting                               Six Months Ended
                                             ----------------
    (millions)                    June 30,        June 30,       Percent
                                       2010            2009       Change
                                       ----            ----       ------
    Revenue
    -------
      Commissions, fees and other      $638            $608          5 %

      Fiduciary investment income         1               1           -
                                        ---             ---
        Total revenue                   639             609           5
                                        ---             ---

    Expenses
    --------
      Compensation and benefits         390             346          13

      Other general expenses            155             152           2
                                        ---             ---
        Total operating expenses        545             498           9
                                        ---             ---

    Operating income                    $94            $111        (15)%
                                        ===            ====

    Operating margin                   14.7%           18.2%

    Total Operating Income                   Six Months Ended
                                             ----------------
    (millions)                    June 30,        June 30,       Percent
                                       2010            2009       Change
                                       ----            ----       ------
    Risk and Insurance Brokerage
     Services                          $562            $524          7 %
    Consulting                           94             111         (15)
    Unallocated revenue                   -              11        (100)
    Unallocated expenses               (115)            (60)         92
                                       ----             ---
       Total operating income          $541            $586         (8)%
                                       ====            ====

    Total operating margin             14.2%           15.7%


    Aon Corporation
    Reconciliation of Non-GAAP Measures - Organic Revenue (Unaudited)



                                      Second Quarter Ended
                                      --------------------
    (millions)         June 30,  June 30,          Percent         Less:
                            2010      2009          Change       Currency
                            ----      ----          ------      Impact (1)
                                                                ----------
     Commissions,
     Fees and
     Other
     ------------
    Risk and
     Insurance
     Brokerage
     Services
     Segment:
      Retail
       brokerage
        Americas            $616      $574       7 %          3 %
        United
         Kingdom             167       181      (8)           (1)
        Europe,
         Middle
         East &
         Africa              291       308      (6)           (4)
        Asia
         Pacific             140       123       14           10
                             ---       ---
           Total
            Retail
            brokerage      1,214     1,186        2            1
      Reinsurance
       brokerage             359       372      (3)            1
                             ---       ---
           Total Risk
            and
            Insurance
            Brokerage
            Services       1,573  1,558     1       1
                           -----     -----
    Consulting
     Segment:
        Consulting
         services            265       251        6            1
        Outsourcing           51        49        4            2
                             ---       ---
           Total
            Consulting       316       300        5            1
                             ---       ---
    Total
     Operating
     Segments             $1,889    $1,858       2 %          1 %
                          ======    ======


                                   Six Months Ended
                                   ----------------
    (millions)         June 30,  June 30,        Percent      Less:
                            2010      2009        Change    Currency
                            ----      ----        ------   Impact (1)
                                                           ----------
     Commissions,
     Fees and
     Other
     ------------
    Risk and
     Insurance
     Brokerage
     Services
     Segment:
      Retail
       brokerage
        Americas          $1,103    $1,051       5 %           3%
        United
         Kingdom             288       297      (3)            2
        Europe,
         Middle
         East &
         Africa              768       755        2            3
        Asia
         Pacific             241       207       16           14
                             ---       ---
          Total
           Retail
           Brokerage       2,400     2,310        4            4
      Reinsurance
       brokerage             747       767      (3)            3
                             ---       ---
           Total Risk
            and
            Insurance
            Brokerage
            Services       3,147  3,077     2       3
                           -----     -----
    Consulting
     Segment:
        Consulting
         services            540       514        5            3
        Outsourcing           98        94        4            4
                             ---       ---
           Total
            Consulting       638       608        5            3
                             ---       ---
    Total
     Operating
     Segments             $3,785    $3,685       3 %           3%
                          ======    ======




                                       Second Quarter Ended
                                       --------------------
    (millions)                           Less:               Organic
                                                             Revenue
                                     Acquisitions,                    (2)
                                     Divestitures &        --------
                                         Other
                                         -----
    Commissions, Fees and Other
    ---------------------------
    Risk and Insurance Brokerage
     Services Segment:
      Retail brokerage
        Americas                        2 %              2 %
        United Kingdom                  (1)              (6)
        Europe, Middle East & Africa     1               (3)
        Asia Pacific                     1                3
           Total Retail brokerage        2               (1)
      Reinsurance brokerage             (1)              (3)
           Total Risk and Insurance
            Brokerage Services           1               (1)
    Consulting Segment:
        Consulting services              3                2
        Outsourcing                      3               (1)
           Total Consulting              2                2
    Total Operating Segments            2 %             (1)%


                                      Six Months Ended
                                      ----------------
    (millions)                         Less:            Organic
                                                          Revenue
                                     Acquisitions,                   (2)
                                     Divestitures &        --------
                                       Other
                                       -----
    Commissions, Fees and Other
    ---------------------------
    Risk and Insurance Brokerage
     Services Segment:
      Retail brokerage
        Americas                        3 %             (1)%
        United Kingdom                  (1)              (4)
        Europe, Middle East & Africa     2               (3)
        Asia Pacific                     -                2
          Total Retail Brokerage         2               (2)
      Reinsurance brokerage             (2)              (4)
           Total Risk and Insurance
            Brokerage Services           1               (2)
    Consulting Segment:
        Consulting services              1                1
        Outsourcing                      2               (2)
           Total Consulting              2                -
    Total Operating Segments            2 %             (2)%




    (1)  Currency impact is determined by translating last year's revenue
    at this year's foreign exchange rates.

    (2)  Organic revenue excludes the impact of foreign exchange,
    acquisitions, divestitures, transfers, reimbursable expenses and
    unusual items.


    Aon Corporation
    Reconciliation of Non-GAAP Measures - Operating Income and Diluted
    Earnings Per Share (Unaudited) (1)



                                  Second Quarter Ended June 30, 2010
                                  ----------------------------------
    (millions)          Risk and       Consulting       Unallocated  Total
                       Insurance       ----------        Income &    -----
                       Brokerage                          Expense
                        Services                          -------
                        --------
    Revenue                $1,587            $317               $(6)  $1,898
                           ======            ====               ===   ======

    Operating income
     (loss) -as
     reported                $305             $45              $(82)    $268
      Restructuring
       charges                 29               2                 -       31
      Pension
       adjustment               -               -                49       49
                              ---             ---               ---      ---
    Operating income
     (loss) -as
     adjusted                $334             $47              $(33)    $348
                             ====             ===              ====     ====

    Operating
     margins -as
     adjusted                21.0%           14.8%              N/A     18.3%
                             ====            ====               ===     ====

                                 Second Quarter Ended June 30, 2009
                                 ----------------------------------
    (millions)          Risk and       Consulting       Unallocated  Total
                       Insurance       ----------        Income &    -----
                       Brokerage                          Expense
                        Services                          -------
                        --------
    Revenue                $1,577            $300                $5   $1,882
                           ======            ====               ===   ======

    Operating income
     (loss) -as
     reported                $201             $41              $(22)    $220
      Restructuring
       charges                 92               3                 -       95
      Pension
       curtailment              4               1                 -        5
      Benfield
       integration
       costs                    2               -                 -        2
      Anti-bribery
       and compliance
       initiatives              1               -                 -        1
                              ---             ---               ---      ---
    Operating income
     (loss) -as
     adjusted                $300             $45              $(22)    $323
                             ====             ===              ====     ====

    Operating
     margins -as
     adjusted                19.0%           15.0%              N/A     17.2%
                             ====            ====               ===     ====

                         Second Quarter Ended
                               June 30,
                               --------
    (millions except
     per share data)         2010            2009
                             ----            ----
    Operating income
     -as adjusted            $348            $323
      Interest income           4               2
      Interest expense        (33)            (26)
      Other income              5              14
                              ---             ---

    Income from
     continuing
     operations
     before income
     taxes -as
     adjusted                 324          313
      Income taxes (2)         89              86
                              ---             ---
    Income from
     continuing
     operations -as
     adjusted                 235             227
      Less:  Net
       income
       attributable to
       noncontrolling
       interests                5            6
                              ---             ---

    Income from
     continuing
     operations
     attributable to
     Aon
     stockholders -
     as adjusted             $230         $221
                             ====            ====


    Diluted earnings
     per share from
     continuing
     operations -as
     adjusted               $0.81        $0.76
                            =====           =====

    Weighted average
     common shares
     outstanding -
     diluted                282.6           292.7
                            =====           =====



                                      Six Months Ended June 30, 2010
                                      ------------------------------
    (millions)          Risk and       Consulting       Unallocated  Total
                       Insurance       ----------        Income &    -----
                       Brokerage                          Expense
                        Services                          -------
                        --------
    Revenue                $3,174            $639              $(11)  $3,802
                           ======            ====              ====   ======

    Operating income
     (loss) -as
     reported                $562             $94             $(115)    $541
      Restructuring
       charges                 98               9                 -      107
      Pension
       adjustment               -               -                49       49
                              ---             ---               ---      ---
    Operating income
     (loss) -as
     adjusted                $660            $103              $(66)    $697
                             ====            ====              ====     ====

    Operating
     margins -as
     adjusted                20.8%           16.1%              N/A     18.3%
                             ====            ====               ===     ====

                                   Six Months Ended June 30, 2009
                                   ------------------------------
    (millions)          Risk and       Consulting       Unallocated  Total
                       Insurance       ----------        Income &    -----
                       Brokerage                          Expense
                        Services                          -------
                        --------
    Revenue                $3,120            $609               $(1)  $3,728
                           ======            ====               ===   ======

    Operating income
     (loss) -as
     reported                $524            $111              $(49)    $586
      Restructuring
       charges                132               6                 -      138
      Pension
       curtailment            (54)            (20)               (4)     (78)
      Benfield
       integration
       costs                   12               -                 -       12
      Anti-bribery
       and compliance
       initiatives              2               -                 -        2
                              ---             ---               ---      ---
    Operating income
     (loss) -as
     adjusted                $616             $97              $(53)    $660
                             ====             ===              ====     ====

    Operating
     margins -as
     adjusted                19.7%           15.9%              N/A     17.7%
                             ====            ====               ===     ====

                           Six Months Ended
                               June 30,
                               --------
    (millions except
     per share data)         2010            2009
                             ----            ----
    Operating income
     -as adjusted            $697            $660
      Interest income           5               9
      Interest expense        (67)            (55)
      Other income             12              13
                              ---             ---

    Income from
     continuing
     operations
     before income
     taxes -as
     adjusted                 647          627
      Income taxes (2)        169             176
                              ---             ---
    Income from
     continuing
     operations -as
     adjusted                 478             451
      Less:  Net
       income
       attributable to
       noncontrolling
       interests               13           11
                              ---             ---

    Income from
     continuing
     operations
     attributable to
     Aon
     stockholders -
     as adjusted             $465         $440
                             ====            ====


    Diluted earnings
     per share from
     continuing
     operations -as
     adjusted               $1.65        $1.51
                            =====           =====

    Weighted average
     common shares
     outstanding -
     diluted                281.7           292.2
                            =====           =====



    (1)  Certain noteworthy items impacting operating income in 2010 and
    2009 are described in this schedule.  The items shown with the
    caption "as adjusted" are non-GAAP measures.
    (2)  The effective tax rate for continuing operations is 24.5% and
    27.1% for the second quarters ended June 30, 2010 and 2009,
    respectively, and 24.7% and 29.8% for the six months ended June 30,
    2010 and 2009, respectively (U.S. GAAP).  Reconciling items are
    generally taxed at the effective tax rate.  However, the second
    quarter and six months 2010 U.S. GAAP effective tax rate was
    adjusted to 27.5% and 26.1%, respectively, to exclude the impact of
    the 40% tax rate applied to the $49 million U.S. pension expense
    adjustment for prior years.   In addition, the six months 2009 U.S.
    GAAP effective tax rate was adjusted to 28.0% to exclude the impact
    of the 40% tax rate applied to the $83 million U.S. pension
    curtailment gain.


    Aon Corporation
    Restructuring Plans (Unaudited) (1)

    2007 Restructuring Plan



    By Type:                                 Actual
                                             ------
    (millions)                      Full         Full             Full
                                    Year         Year             Year
                                       2007         2008             2009
                                       ----         ----             ----
    Workforce reduction                 $17         $166             $251
    Lease consolidation                  22           38               78
    Asset impairments                     4           18               15
    Other costs associated with
     restructuring                        3           29               13
                                        ---          ---              ---
    Total restructuring and
     related expenses                   $46         $251             $357
                                        ===         ====             ====

    By Segment:

    Risk and Insurance
     Brokerage Services                 $41         $234             $322
    Consulting                            5           17               35
                                        ---          ---              ---
    Total restructuring and
     related expenses                   $46         $251             $357
                                        ===         ====             ====


    Benfield Restructuring Plan

    By Type:                                                  Operations
                                                              ----------
    (millions)                                 Purchase           Full
                                                Price             Year
                                              Allocation
                                                   (2)               2009
                                             -----------             ----
    Workforce reduction                              $32              $38
    Lease consolidation                               22               14
    Asset impairments                                  -                2
    Other costs associated with
     restructuring                                     1                1
                                                     ---
    Total restructuring and
     related expenses                                $55              $55
                                                     ===              ===



    By Type:                                     Actual
                                                 ------
    (millions)                     Second        Six        Total
                                   Quarter     Months         to
                                       2010        2010      Date
                                       ----        ----      ----
    Workforce reduction                 $16         $73         $507
    Lease consolidation                   7          13          151
    Asset impairments                     1           2           39
    Other costs associated with
     restructuring                        1           4           49
                                        ---         ---          ---
    Total restructuring and
     related expenses                   $25         $92         $746
                                        ===         ===         ====

    By Segment:

    Risk and Insurance
     Brokerage Services                 $23         $83         $680
    Consulting                            2           9           66
                                        ---         ---          ---
    Total restructuring and
     related expenses                   $25         $92         $746
                                        ===         ===         ====


    Benfield Restructuring Plan

    By Type:                     Operations
                                 ----------
    (millions)                     Second        Six        Total
                                   Quarter     Months         to
                                       2010        2010      Date
                                       ----        ----      ----
    Workforce reduction                  $3          $8          $78
    Lease consolidation                   2           5           41
    Asset impairments                     1           1            3
    Other costs associated with
     restructuring                        -           1            3
                                                                 ---
    Total restructuring and
     related expenses                    $6         $15         $125
                                        ===         ===         ====



    By Type:
    (millions)                    Estimated
                                    Total
                                    -----
    Workforce reduction                 $509
    Lease consolidation                  152
    Asset impairments                     39
    Other costs associated with
     restructuring                        50
                                         ---
    Total restructuring and
     related expenses                   $750
                                        ====

    By Segment:

    Risk and Insurance
     Brokerage Services                 $684
    Consulting                            66
                                         ---
    Total restructuring and
     related expenses                   $750
                                        ====


    Benfield Restructuring Plan

    By Type:
    (millions)                    Estimated
                                    Total
                                    -----
    Workforce reduction                  $96
    Lease consolidation                   49
    Asset impairments                      6
    Other costs associated with
     restructuring                         4
    Total restructuring and
     related expenses                   $155
                                        ====



    (1)  In the Consolidated Statements of Income, workforce reductions
    are included in "Compensation and benefits";  lease consolidations,
    asset impairments, and other costs associated with restructuring are
    included in "Other general expenses".
    (2)  Represents costs associated with the execution of restructuring
    activity identified at the acquisition date (November 30, 2008).


    Aon Corporation
     Condensed Consolidated Statements of Financial Position


                                                              As of
                                                              -----
                                                                     December
     (millions)                                    June 30,             31,
                                                         2010             2009
                                                         ----             ----
                                                 (Unaudited)
     ASSETS
     ------
       Current Assets
       Cash and cash equivalents                         $260             $217
       Short-term investments                             474              422
       Receivables, net                                 1,994            2,052
       Fiduciary assets (1)                            12,226           10,835
       Other current assets                               543              463
                                                          ---              ---
         Total Current Assets                          15,497           13,989
       Goodwill                                         5,710            6,078
       Intangible assets, net                             753              791
       Fixed assets, net                                  450              461
       Investments                                        301              319
       Other non-current assets                         1,245            1,320
                                                        -----            -----
       Total Assets                                   $23,956          $22,958
                                                      =======          =======

     LIABILITIES AND EQUITY
     ----------------------
       Current Liabilities
       Fiduciary liabilities                          $12,226          $10,835
       Short-term debt and current portion of
        long-term debt                                    370               10
       Accounts payable and accrued liabilities         1,192            1,535
       Other current liabilities                          350              260
                                                          ---              ---
         Total Current Liabilities                     14,138           12,640
       Long-term debt                                   1,601            1,998
       Pension and other post employment
        liabilities                                     1,716            1,889
       Other non-current liabilities                    1,023            1,000
                                                        -----            -----
       Total Liabilities                               18,478           17,527
                                                       ------           ------
       Total Aon Stockholders' Equity                   5,428            5,379
       Noncontrolling interests                            50               52
                                                          ---              ---
       Total Equity                                     5,478            5,431
       Total Liabilities and Equity                   $23,956          $22,958
                                                      =======          =======

     (1) Includes short-term investments:  2010 - $3,805, 2009 - $3,329.


    Aon Corporation
     Condensed Consolidated Statements of Cash Flows (Unaudited)

                                                          Six Months Ended
                                                          ----------------
     (millions)                                       June 30,      June 30,
                                                          2010          2009
                                                          ----          ----
     CASH FLOWS FROM OPERATING ACTIVITIES
       Net income                                         $344          $440
       Adjustments to reconcile net income to cash
        provided by operating activities:
         (Gains) losses from sales of businesses, net       33           (94)
         Depreciation of fixed assets                       62            73
         Amortization of intangible assets                  56            45
         Stock compensation expense                        123            95
         Deferred income taxes                             (16)            3
       Change in assets and liabilities:
         Change in funds held on behalf of clients         633           113
         Receivables, net                                    2           138
         Accounts payable and accrued liabilities         (343)         (305)
         Restructuring reserves                            (18)           (3)
         Current income taxes                               46            75
         Pension and other post employment
          liabilities                                      (41)         (320)
         Other assets and liabilities                       (9)         (163)
                                                           ---          ----
           Cash Provided by Operating Activities           872            97
                                                           ---           ---

     CASH FLOWS FROM INVESTING ACTIVITIES
       Sales of long-term investments                       77            16
       Purchase of long-term investments                   (15)          (17)
       Net (purchases) sales of short-term
        investments - non-fiduciary                        (79)          116
       Net purchases of short-term investments -
        funds held on behalf of clients                   (633)         (113)
       Acquisition of businesses, net of cash
        acquired                                           (65)          (40)
       Proceeds from sale of businesses                     10           138
       Capital expenditures                                (71)          (53)
                                                           ---           ---
           Cash Provided by (Used for) Investing
            Activities                                    (776)           47
                                                          ----           ---

     CASH FLOWS FROM FINANCING ACTIVITIES
       Purchase of treasury stock                         (100)         (125)
       Issuance of stock for employee benefit plans         81            89
       Repayments of debt                                   (2)          (31)
       Cash dividends to stockholders                      (82)          (83)
                                                           ---           ---
           Cash Used for Financing Activities             (103)         (150)
                                                          ----          ----

     Effect of Exchange Rate Changes on Cash and
      Cash Equivalents                                      50           (39)
                                                           ---           ---
     Net Increase (Decrease) in Cash and Cash
      Equivalents                                           43           (45)
     Cash and Cash Equivalents at Beginning of
      Period                                               217           582
                                                           ---           ---
     Cash and Cash Equivalents at End of Period           $260          $537
                                                          ====          ====


SOURCE Aon Corporation

Stock Quote: NYSE

Price 282.78

Change -1.54

Volume 813,696

% Change -0.54%

Intraday High 284.49

52 Week High 341.98

Intraday Low 280.05

52 Week Low 246.21

Today's Open 281.78

Previous Close 284.32

Oct 05, 2022 04:03 PM Pricing delayed 20 minutes
Latest Annual Report

Email Alerts

Email Address *
Mailing Lists *





 
Enter the code shown above.

Contact Information

200 East Randolph
Chicago, IL 60601
Phone: (312) 381-3310

Email