Insurance brokerage services provider Aon Corp. (AON) Friday reported 2.7% increase in the second-quarter profit, driven by acquisitions, foreign currency effects and lower operating costs. Adjusted earnings per share and revenue came in above analysts' estimates.
Second-quarter net income attributable to Aon stockholders was $153 million or $0.54 per share, compared with $149 million or $0.51 per share in the prior-year quarter. In the first quarter, the Chicago, Illinois-based company's net income attributable to its stockholders was $178 million or $0.63 per share.
Income from continuing operations reached $184 million, a 20% rise from $153 million in the same quarter last year.
Excluding certain items, earnings from continuing operations attributable to Aon stockholders improved to $230 million $0.81 per share from $221 million or $0.76 per share a year ago.
On average, 15 analysts polled by Thomson Reuters expected earnings of $0.75 per share for the quarter. Analysts' estimate typically excludes one-time items.
Total revenues edged up 1% to $1.9 billion from $1.88 billion last year, driven by a 2% increase from acquisitions, primarily Allied North America, net of dispositions, and a 1% rise from foreign currency translation. These increases were offset in part a 1% organic decline in commissions and fees and a 21% decline in fiduciary investment income. Total organic revenue dropped 1%.
Wall Street analysts estimated revenues of $1.87 billion for the quarter. The company's revenue for the first quarter was $1.90 billion.
Commissions, fees and other revenue grew 1% in the second quarter to $1.88 billion, whereas fiduciary investment income declined 21% to $15 million.
Risk and Insurance Brokerage Services' revenue rose 1% in the quarter to $1.59 billion from $1.58 billion in the prior-year quarter. Organic revenue was down 1%.
Consulting revenue was $317 million, up 6% from $300 million a year ago, with organic revenue rising 2%. The company said that a 2% organic increase in commissions and fees, a 2% growth from acquisitions, primarily J.P. Morgan Compensation and Benefits Strategies, net of dispositions, and a 1% favorable impact from foreign currency translation accounted for the revenue growth.
Commenting on the results, Greg Case, president and chief executive officer of Aon Corp. said, "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."
Aon's rival, Arthur J. Gallagher & Co. (AJG) reported a modest increase in its second-quarter profit to $44.0 million or $0.42 per share, as revenues rose 1.3% to $459.5 million on commissions and fees, partly offset by higher expenses.
Willis Group Holdings plc (WSH), in its first quarter, reported a net income of $204 million, up from $193 million in the year ago quarter. Total reported revenues were $972 million, compared with $930 million a year ago.
Another peer, Marsh & McLennan Companies, Inc. (MMC) is set to announce its results on August 3. Wall Street analysts are of the view that the New York-based insurance broker will earn $0.44 per share on revenues of $2.71 billion.
AON closed Thursday's trading at $36.63, up $0.13, on a volume of 5.05 million shares.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.