Archive for February, 2009
Conseco Announces Annual Meeting Date - Posted by Steven Wevodau
Source: Conseco, Inc.
Posted by Steven Wevodau
Triple-S Management Corporation Reschedules Fourth Quarter and 2008 Earnings Release and Webcast - Posted by Steven Wevodau
About Triple-S Management Corporation
Triple-S Management Corporation is an independent licensee of the Blue Cross/Blue Shield Association. It is the largest managed care company in Puerto Rico, serving approximately 1.2 million members, or about 30% of the population, and has the exclusive right to use the Blue Shield name and mark throughout the country. With more than 50 years of experience in the industry, Triple-S Management offers a broad portfolio of managed care and related products in the commercial, Medicare, and Reform markets under the Blue Shield brand. In addition to its managed care business, Triple-S Management provides non-Blue Shield branded life and property and casualty insurance in Puerto Rico. The Company is the largest provider of life, accident, and health insurance and the fourth largest provider of property and casualty insurance in its market.
For more information about Triple-S Management, visit http://www.triplesmanagement.com or email waller_kathleen@yahoo.com.
Source: Triple-S Management Corporation
Posted by Steven Wevodau
Eastern Insurance Holdings, Inc. Announces Fourth Quarter 2008 Results
Posted by Steven Wevodau
Eckert added, “We again experienced investment declines as indicated by after-tax net realized losses of $5.0 million for the three months ended December 31, 2008, the majority of which relates to other-than-temporary impairments on our equity portfolio. We also recorded an after-tax loss on our limited partnership portfolio of $1.4 million, which was not recorded as an other-than-temporary decline, but rather in accordance with an accounting convention that requires changes in the market value of limited partnership investments be recorded in the statement of operations.”
Eckert continued, “The most significant disappointment, which occurred not only in the fourth quarter, but throughout 2008, was the performance of our run-off specialty reinsurance segment, which was placed in run-off at mid-year. The reserves for losses and loss adjustment expenses in this segment were increased by $13.9 million during the fourth quarter of 2008 due to claim issues identified during the annual audit of the ceding company’s claim records, which was conducted in January 2009. The poor results in our run-off specialty reinsurance segment were exacerbated by the write-off of its deferred tax asset due to the lack of projected future taxable income in this segment to utilize current net operating losses. We have already begun to identify future tax planning strategies to utilize the net operating losses in future periods; however, we expect that any recognition of these tax benefits would occur over a significant period of time.”
Consolidated highlights for the fourth quarter include:
- Revenue for the fourth quarter of 2008 decreased $8.0 million to $30.1 million, compared to $38.1 million for the same period in 2007. The decrease in revenue is due primarily to a decrease in net investment income and an increase in net realized investment losses and losses from limited partnerships, partially offset by an increase in earned premium. Net premiums earned increased during the fourth quarter despite a $2.8 million earned premium reduction from the fourth quarter of 2007 compared to the same period in 2008 in the run-off specialty reinsurance segment;
- Net premiums earned increased $2.1 million to $36.4 million in the fourth quarter of 2008 from $34.3 million during the same period in 2007. Consolidated net premiums earned increased 6.1 percent due primarily to the organic growth in workers’ compensation premium and the acquisition of Employers Security Insurance Company partially offset by the termination of the reinsurance treaty effective July 1, 2008 that comprised the run-off specialty reinsurance segment;
- Net investment income decreased $600,000 to $2.2 million ($1.6 million after-tax) for the three months ended December 31, 2008, compared to $2.8 million ($2.0 million after-tax) for the same period in 2007. The decrease in net investment income is due primarily to a decrease in overall invested assets;
- The change in equity interest in other long-term investments decreased $2.3 million to a loss of $2.0 million ($1.4 million after-tax) for the three months ended December 31, 2008, compared to income of $346,000 ($225,000 after-tax) for the same period in 2007;
- Net realized investment losses increased $7.5 million to $6.9 million ($5.0 million after-tax) for the three months ended December 31, 2008, compared to net realized investment gains of $567,000 ($417,000 after-tax) for the same period in 2007. Net realized investment losses for 2008 include $6.0 million ($4.4 million after-tax) of other-than-temporary impairments, primarily on equity securities;
- No favorable loss reserve development on prior accident years was recorded in the workers’ compensation insurance segment for the three months ended December 31, 2008, compared to $3.9 million ($2.5 million after-tax) for the same period in 2007;
- The reserves for losses and loss adjustment expense in the run-off specialty reinsurance segment were increased $13.9 million ($13.9 million after-tax) during the fourth quarter of 2008 due to claim issues identified during the annual audit of the ceding company’s claim records. During its January 2009 ceding company claims audit, EIHI identified that the recent unfavorable loss reserve development on its underground storage tank business was primarily the result of states requiring quicker and more extensive remediation of sites in order to better preserve the environment, increased construction costs in the ceding company’s underwriting territories and in litigated cases, the courts appear to be ruling more in favor of environmental protection than enforcing coverage issues under the ceding company’s insurance policies. The claim audit results were communicated to and corroborated by the ceding company. The $13.9 million increase in the reserves for losses and loss adjustment expenses represents the estimated impact that the aforementioned identified issues may have on the remaining claim inventory;
- After-tax intangible asset amortization expense of $253,000 was recorded for the three months ended December 31, 2008, compared to $283,000 for the fourth quarter of 2007; and
- The net deferred tax asset in the run-off specialty reinsurance segment was reduced to zero, which negatively impacted results by $2.1 million. The run-off specialty reinsurance business resides at Eastern Re Ltd., SPC, a foreign corporation, and the deferred tax asset primarily relates to net operating loss carryforwards. Foreign net operating loss carryforwards cannot be used to offset income generated by United States corporations. Accordingly, the run-off specialty reinsurance business must demonstrate that it can generate sufficient future foreign income in the foreseeable future to utilize the foreign net operating losses. Considering recent historical losses, management believes it is unlikely Eastern Re will generate sufficient taxable income in the foreseeable future, which is generally defined as within the next year. We have already begun to identify future tax planning strategies that may permit us to utilize the net operating losses in future periods.
Weighted average fully diluted shares considered outstanding used to calculate diluted earnings per share for the three months ended December 31, 2008 and 2007 consisted of the following:
2008 2007
Shares from stock offering, net of
ESOP shares 6,727,500 6,727,500
Shares issued to EHC shareholders 3,876,048 3,876,048
Weighted average ESOP shares 180,934 105,981
Weighted average restricted stock
shares (1) 49,335 38,213
Weighted average treasury shares
purchased (2,069,000) (951,811)
Stock warrants(1) - 306,099
Total 8,764,818 10,102,030
(1) Stock warrants of 306,099 and restricted stock of 11,099 were
anti-dilutive to diluted earnings per share and, accordingly,
were excluded from the calculation.
Segment Operating Results
Workers’ Compensation Insurance
EIHI’s workers’ compensation insurance segment reported net income of $356,000 for the fourth quarter of 2008, compared to $5.9 million for the fourth quarter of 2007. Highlights for the fourth quarter include:
- The combined ratio was 81.3 percent for the fourth quarter of 2008, compared to 51.3 percent for the same period last year;
- Direct written premiums increased to $18.8 million for the three months ended December 31, 2008, compared to $13.1 million for the same period in 2007, an increase of 43.5 percent;
- Net premiums earned increased to $20.0 million for the fourth quarter of 2008, compared with $15.4 million for the fourth quarter of 2007, an increase of 29.9 percent;
- Audit premium, which results from an examination of the policyholders’ payroll and other records, resulted in the Company recording additional premium of $475,000 for the fourth quarter of 2008, compared to $495,000 for the same period in 2007;
- Net investment income was $1.0 million for the fourth quarter of 2008, compared to $1.1 million for the same period in 2007;
- The change in equity interest in other long-term investments decreased $1.3 million to a loss of $1.1 million for the three months ended December 31, 2008, compared to income of $202,000 for the same period in 2007;
- After-tax net realized investment losses of $2.2 million were recorded for the three months ended December 31, 2008, compared to after-tax net realized investment gains of $34,000 for the same period in 2007;
- The accident year loss and LAE ratio was 60.0 percent for the three months ended December 31, 2008 and 2007. For the three months ended December 31, 2008, no favorable loss reserve development on prior accident years was recorded, compared to favorable loss reserve development on prior accident years of $3.9 million in the fourth quarter of 2007, which decreased the 2007 loss ratio by 25.3 percentage points; and
- The expense ratio was 20.8 percent for the three months ended December 31, 2008, compared to 14.5 percent for the same period in 2007. The increase in the expense ratio is primarily due to start-up costs associated with EIHI’s expansion into the Southeast and the Company’s state licensing initiatives. Furthermore, EIHI did not receive an assessment from the Pennsylvania Workers’ Compensation Security Fund in 2007, which lowered the 2007 workers’ compensation expense ratio by 6.0 points.
Segregated Portfolio Cell Reinsurance
The segregated portfolio cell reinsurance segment added two new programs for the year ended December 31, 2008, bringing the total number of active programs to fifteen. Activity in this segment has increased despite current economic trends, largely as a result of our expansion into the Southeast and Midwest markets.
Group Benefits Insurance
EIHI’s group benefits insurance segment reported a net loss of $1.0 million for the three months ended December 31, 2008, compared to net income of $1.6 million for the same period in 2007. Highlights for the fourth quarter include:
- The combined ratio was 93.7 percent for the fourth quarter of 2008, compared to 86.8 percent for the same period last year;
- Net premiums earned were $9.2 million for the fourth quarter of 2008, compared to $9.3 million in 2007;
- Net investment income was $554,000 for the fourth quarter of 2008, compared to $763,000 for the fourth quarter of 2007. The decrease in net investment income is due primarily to a decrease in the invested asset base;
- The change in equity interest of other long-term investments decreased $600,000 to a loss of $567,000 for the three months ended December 31, 2008, compared to income of $111,000 for the same period in 2007;
- After-tax net realized investment losses of $1.4 million were recorded for the three months ended December 31, 2008, compared to after-tax net realized investment gains of $120,000 for the same period in 2007;
- The calendar year loss and LAE ratio was 62.5 percent for the three months ended December 31, 2008, compared to 59.8 percent for the same period in 2007; and
- The expense ratio was 31.2 percent for the three months ended December 31, 2008, compared to 26.9 percent for the same period in 2007.
Run-Off Specialty Reinsurance
Prior to July 1, 2008, business in the run-off specialty reinsurance segment was assumed through participation in a reinsurance treaty with an unaffiliated ceding company related to an underground storage tank insurance program, referred to as “EnviroGuard,” and a non-hazardous waste transportation product, referred to as “EIA Liability.” Effective July 1, 2008, EIHI terminated the reinsurance treaty that comprised the run-off specialty reinsurance segment.
EIHI’s run-off specialty reinsurance segment reported a net loss of $16.6 million for the fourth quarter of 2008, compared to net income of $271,000 for the same period last year. Highlights for the fourth quarter include:
- Net premiums earned were $932,000 for the fourth quarter of 2008, compared to $3.7 million in 2007. The decrease in net premiums earned is due to the July 1, 2008 termination of the reinsurance treaty that comprised the run-off specialty reinsurance segment;
- Net investment income was $308,000 for the three months ended December 31, 2008, compared to $372,000 for the same period last year;
- The change in equity interest of other long-term investments decreased $368,000 to a loss of $335,000 for the three months ended December 31, 2008, compared to income of $33,000 for the same period in 2007; and
- After-tax net realized investment losses of $473,000 were recorded for the three months ended December 31, 2008, compared to net realized investment gains of $12,000 for the same period in 2007.
Corporate and Other
The corporate and other segment primarily includes corporate expenses and EIHI’s third party administration business. The corporate and other segment recorded a net loss of $1.2 million for the three months ended December 31, 2008, compared to a net loss of $117,000 for the same period in 2007. The 2007 net loss included a tax-related purchase accounting adjustment of $836,000, which decreased the net loss in 2007.
Financial Condition
Total assets were $377.3 million as of December 31, 2008. Shareholders’ equity was $138.1 million as of December 31, 2008. During the fourth quarter of 2008, the Company repurchased 39,203 common shares at a total cost of $347,553, representing a weighted average price of $8.87 per share. As of December 31, 2008, EIHI’s book value per share and diluted book value per share were $14.52 and $14.13, respectively. Outstanding shares used to calculate book value per share and diluted book value per share were 9,512,366 and 10,467,653, respectively, as of December 31, 2008. The basic book value per share calculation includes the impact of restricted stock awards of 251,675 shares. The diluted book value per share calculation includes the additional impact of warrants to purchase 306,099 common shares, which have an exercise price of $1.63 per share and stock options to purchase 649,188 common shares, which have a weighted average exercise price of $14.36.
Conference Call with Investors
EIHI will hold a conference call with investors beginning at 10:00 a.m. Eastern Time on Friday, February 13, 2009 to review the Company’s 2008 fourth quarter results. The conference call will be available via a live webcast accessed through the Investor Relations section of www.easterninsuranceholdings.com. The dial-in numbers for the conference call are as follows:
Live Call
---------
800-860-2442 (Domestic)
412-858-4600 (International)
A replay of the conference call will be available through February 23, 2009, at 877-344-7529 (domestic) and 412-317-0088 (international). The replay passcode for the conference call is 427503. An online archive of the webcast will be available on the Investor Relations section of www.easterninsuranceholdings.com for one year following the call.
Consolidated Financial Results
Set forth in the tables below are the unaudited consolidated balance sheets as of December 31, 2008 and December 31, 2007 and unaudited results of operations for the three months and years ended December 31, 2008 and 2007.
EASTERN INSURANCE HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands, except share and per share data)
December 31, December 31,
2008 2007
ASSETS
Investments:
Fixed income securities, at estimated fair
value (amortized cost, $180,102; $202,039) $183,136 $205,785
Convertible bonds, at estimated fair value
(amortized cost, $13,783; $14,232) 12,346 15,478
Equity securities, at estimated fair value
(cost, $22,287; $19,578) 17,162 20,541
Other long-term investments at estimated
fair value (cost, $10,586; $10,386) 9,519 11,317
Total investments 222,163 253,121
Cash and cash equivalents 52,875 45,940
Accrued investment income 2,058 2,290
Premiums receivable (net of allowance, $581;
$558) 29,615 26,846
Reinsurance recoverable on paid and unpaid
losses and loss adjustment expenses 29,637 26,303
Deferred acquisition costs 5,760 6,257
Deferred income taxes, net 6,281 1,229
Federal income taxes recoverable 16 846
Intangible assets 9,179 6,372
Goodwill 10,752 7,992
Other assets 8,975 8,322
Total assets $377,311 $385,518
LIABILITIES
Reserves for unpaid losses and loss
adjustment expenses $159,117 $129,788
Unearned premium reserves 42,365 39,826
Advance premium 1,594 1,380
Accounts payable and accrued expenses 13,136 8,422
Ceded reinsurance balances payable 6,886 6,762
Benefit plan liabilities 497 334
Segregated portfolio cell dividend payable 13,140 13,168
Loan payable 2,439 -
Junior subordinated debentures - 8,007
Total liabilities 239,174 207,687
Commitments and contingencies
SHAREHOLDERS' EQUITY
Series A preferred stock, par value $0,
auth. shares-5,000,000; no shares issued
and outstanding - -
Common capital stock, par value $0, auth.
shares-20,000,000; issued-11,602,723 and
11,597,723, respectively;
outstanding-9,512,366 and 10,580,858,
respectively - -
Unearned ESOP compensation (5,606) (6,354)
Additional paid in capital 111,772 110,166
Treasury stock, at cost (2,090,357 and
1,016,865 shares, respectively) (32,655) (15,589)
Retained earnings 66,492 86,363
Accumulated other comprehensive (loss)
income, net (1,866) 3,245
Total shareholders' equity 138,137 177,831
Total liabilities and shareholders' equity $377,311 $385,518
EASTERN INSURANCE HOLDINGS, INC. AND SUBSIDIARIES
UNAUDITED STATEMENTS OF INCOME
(Unaudited, in thousands, except share and per share data)
Three Months Ended Years Ended
December 31, December 31, December 31, December 31,
2008 2007 2008 2007
Revenue:
Net premiums
earned $36,444 $34,269 $135,807 $129,495
Net investment
income 2,224 2,755 9,631 11,669
Change in equity
interest in
other long-term
investments (2,005) 346 (3,970) 759
Net realized
investment
(losses) gains (6,904) 567 (11,117) 2,888
Other revenue 331 166 853 683
Total revenue 30,090 38,103 131,204 145,494
Expenses:
Losses and loss
adjustment
expenses
incurred 36,258 15,620 99,188 73,588
Acquisition and
other
underwriting
expenses 4,694 3,809 18,918 17,056
Other expenses 6,225 5,805 25,338 21,801
Amortization of
intangible
assets 389 435 1,373 1,738
Policyholder
dividends 298 194 551 543
Segregated
portfolio
dividend expense (447) 2,250 2,155 ` 4,423
Total expenses 47,417 28,113 147,523 119,149
(Loss) income
before income
taxes (17,327) 9,990 (16,319) 26,345
Income tax
expense 1,044 2,333 1,064 7,662
Net (loss) income $(18,371) $7,657 $(17,383) $18,683
Earnings per
share (EPS):
Basic shares
outstanding 8,764,818 9,757,718 8,954,097 10,264,369
Basis EPS $(2.10) $0.78 $(1.94) $1.82
Diluted shares
outstanding 8,764,818 10,102,030 8,954,097 10,604,349
Diluted EPS $(2.10) $0.76 $(1.94) $1.76
Cautionary Statement
Some of the statements contained in this press release are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expect,” “project,” “plan,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential” or “continue,” the negative of these terms or other terminology. Forward-looking statements are based on the opinions and estimates of management at the time the statements are made and are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements, therefore no assurance can be given that management’s expectations, beliefs or projections will occur or be achieved or accomplished. Factors that could affect the Company’s actual results include, among others, the fact that our loss reserves are based on estimates and may be inadequate to cover our actual losses; the uncertain effects of emerging claim and coverage issues on our business; the geographic concentration of our business; an inability to obtain or collect on our reinsurance protection; a downgrade in the A.M. Best rating of our insurance subsidiaries; the impact of extensive regulation of the insurance industry and legislative and regulatory changes; a failure to realize our investment objectives; the effects of intense competition; the loss of one or more principal employees; the inability to acquire additional capital on favorable terms; a failure of independent insurance brokers to adequately market our products; and the effects of acts of terrorism or war. More information about these and other factors that potentially could affect our financial results is included in our Form S-1 Registration Statement, filed with the U.S. Securities and Exchange Commission and in our other public filings with the U.S. Securities and Exchange Commission. Readers are cautioned not to place undue reliance upon these forward-looking statements, which speak only as of the date of this release. The Company undertakes no obligation to update any forward-looking statements. This press release also does not constitute an offer to sell, or a solicitation of an offer to buy, EIHI securities. Such an offer will be made only by means of a prospectus.
Source: Eastern Insurance Holdings, Inc.
Assurant President and CEO Robert B. Pollock to Present at Merrill Lynch Insurance Investor Conference on Feb. 24 - Posted by Steven Wevodau
Access to Mr. Pollock’s presentation will be available through Assurant’s Web site at www.assurant.com. After connecting to the home page, click on Investor Relations, then Events, to access the Merrill Lynch Insurance Investor Conference webcast. Slides of the presentation will be posted on the company’s Web site for viewing shortly before the presentation begins. The webcast presentation will be archived for 14 days.
Assurant is a premier provider of specialized insurance products and related services in North America and selected international markets. Its four key businesses — Assurant Solutions, Assurant Specialty Property, Assurant Health, and Assurant Employee Benefits — have partnered with clients who are leaders in their industries and have built leadership positions in a number of specialty insurance market segments worldwide.
Assurant, a Fortune 500 company and a member of the S&P 500, is traded on the New York Stock Exchange under the symbol AIZ. Assurant has over $24 billion in assets and $8 billion in annual revenue. www.assurant.com
Source: Assurant, Inc.
Obama signs children’s healthcare bill
Posted by Steven Wevodau
By Donna Smith
WASHINGTON (Reuters) - President Barack Obama on Wednesday signed a law expanding a health program to include 3.5 million uninsured children, advancing an overhaul of the U.S. healthcare system despite the embarrassing withdrawal of his nominee to lead the initiative.
Obama signed the legislation at a White House ceremony just hours after the U.S. House of Representatives voted 290-135 for the $32.8 billion expansion of the State Children’s Health Insurance Program, or SCHIP, which was approved by the Senate last week.
“In a decent society, there are certain obligations that are not subject to trade-offs or negotiations — healthcare for our children is one of those obligations,” Obama said.
The bill was “a downpayment on my commitment to cover every single American,” he added.
President George W. Bush twice vetoed similar bills, arguing it would raise taxes and encourage businesses and families to drop private insurance and switch to the program.
The bill signed by Obama aims to increase the number of children covered by SCHIP to 11 million from the 7.4 million currently enrolled.
The expansion is being paid for by raising the federal tax on cigarettes to $1 per pack from the current 39 cent-per-pack tax. Taxes on cigars and other tobacco products will also rise.
The signing ceremony provided a lift for Obama a day after he acknowledged mistakes in his handling of the nomination of Tom Daschle, a former Senate majority leader, to lead a broad overhaul of the $2.3 trillion U.S. healthcare industry.
Daschle withdrew his name from consideration as secretary of health and human services because of income tax problems.
Obama pledged in his campaign to expand healthcare coverage to an estimated 46 million uninsured Americans and to control medical costs. Healthcare advocates said the SCHIP bill would help him meet that goal.
“We see this as an important small downpayment in our quest to insure everybody in the United States,” Dennis Rivera, who heads the Service Employees International Union’s healthcare division, said in an interview.
Others said the bill would help achieve another important healthcare goal — discouraging smoking.
“By using a tax on tobacco, we are not only keeping kids healthier now, but also protecting their long-term health by discouraging smoking — a habit that causes deadly, costly and largely preventable diseases,” said Bill Novelli, chief executive of the AARP, an advocacy group for people over 50.
The SCHIP program is designed to help working families who cannot afford private health insurance but earn too much to qualify for Medicaid healthcare coverage for the poor.
Republicans had criticized provisions in the bill that allowed states like New Jersey and New York to provide coverage for higher-income families, some earning as much as $88,000.
They also criticized a provision backed by Democrats that ended a ban on legal immigrants enrolling in the program until they had lived in the United States for at least five years.
Republicans had argued that lawmakers could have achieved their goal of providing healthcare for more low-income children for less money. Despite those concerns, 40 House Republicans joined the Democratic majority in backing the legislation.
(Additional reporting by David Alexander; Editing by David Storey)
© Thomson Reuters 2009 All rights reserved
Health Savings Accounts Emerge As Top Tool for Controlling Healthcare Costs - Posted by Steven Wevodau
Business Benefits Insurance’s Edholm Says Innovative Plan Design Is the Key
The best emerging way for employers to control healthcare costs is the health savings account (HSA), says Jim Edholm, president of Business Benefits Insurance in Andover, Mass.
An HSA, which is offered in combination with a high-deductible health plan, lets employees set aside tax-free savings to pay out-of-pocket medical expenses.
An HSA helps control costs two ways, he says. First, it lowers premiums because of the higher deductible.
An employer can save up to 40 percent versus a standard plan, but that would mean scaling back coverage drastically. However, the employer can choose a smaller deductib le and save a more modest amount—a rarity today, Edholm says—and share the savings and incentives for a healthier lifestyle with employees.
Second, the HSA lo wers long-term costs because it strengthens the employees’ involvement with healthcare costs and lets them share in the saving s resulting from smarter healthcare shopping.
Employees who are used to first-dollar coverage may at look askance at an HSA, but there are ways to sweeten the deal, he says, by reimbursing their out-of-pocket costs.
For instance, the employer can offer a dual (high/low) plan and base the employer’s share on the lower-benefit plan.
“This lets employees choose,” Edholm says. “They can pay more for the richer plan or to reduce their premium by choosing the higher deductible HSA plan.”
Edholm says there are good HSA alternatives in almost every industry, from professional services to manufacturing, for employers of all sizes.
Business Benefits Insurance (www.bbibenefits.com) is an employee benefits planning firm. Edholm’s benefits blog can be read a t http://www.group-insurance- guide.com/Group-Insurance-blog.html. ;
Contact: Henry Stimpson, Stimpson Communication s, 508-647-0705, Henry@StimpsonCommunications.com
Jim Edholm, Business Benefits Insurance, 978-474-4730, jedholm@bbibenefits.com
Aflac Incorporated Provides Added Detail on Perpetual Debenture Holdings
Posted by Steven Wevodau
COLUMBUS, Ga., Feb. 6 /PRNewswire-FirstCall/ — Aflac Incorporated announced today that it is providing expanded detail on its holdings of perpetual debenture securities at aflac.com.
The company has elevated additional information to its web site on each Upper Tier 2 and Tier 1 perpetual debenture, including CUSIP numbers for each security, book and market values, ratings and more. The company has also prepared and elevated a frequently asked questions (FAQ) document on the perpetual debentures. Both the security detail and the FAQs are available in the Financials section of the Investors page on aflac.com.
For more than 50 years, Aflac products have given policyholders the opportunity to direct cash where it is needed most when a life-interrupting medical event causes financial challenges. As the number one provider of guaranteed-renewable insurance in the United States and the number one insurance company in terms of individual insurance policies in force in Japan, Aflac insurance products provide protection to more than 40 million people worldwide. Aflac has been recognized by Ethisphere magazine as one of the World’s Most Ethical Companies for two consecutive years and was also named by the Reputation Institute as the Most Respected Company in the Global Insurance Industry in 2008. In 2009 Fortune magazine recognized Aflac as one of the 100 Best Companies to Work For in America for the eleventh consecutive year. Aflac appears on Hispanic Enterprise magazine’s list of the 50 Best Companies for Supplier Diversity and on Black Enterprise magazine’s list of the 40 Best Companies for Diversity. Aflac was also named by Forbes magazine as America’s Best-Managed Company in the Insurance category. Aflac Incorporated is a Fortune 500 company listed on the New York Stock Exchange under the symbol AFL. To find out more about Aflac, visit aflac.com.
(Logo: http://www.newscom.com/cgi-bin/prnh/20041202/CLTH019LOGO )
Analyst and investor contact - Kenneth S. Janke Jr., 800.235.2667 - option 3, FAX: 706.324.6330, or kjanke@aflac.com
Media contact - Laura Kane, 706.596.3493, FAX: 706.320.2288, or lkane@aflac.com
Aon Pleases Investors - Posted by Steven Wevodau
- Friday February 6, 2009, 5:35 pm EST
Aon Corp. (AOC) reported a 95% drop in quarterly profit, hurt by restructuring and acquisition costs, but shares gained as much as 12% as the world’s biggest insurance broker still managed to beat Wall Street expectations.
In the latest fourth quarter, Aon’s net income was $10 million, or 3 cents a share. The recently acquired Benfield added $38 million to the company’s revenue during the period, but also took a penny off quarterly profit on account of related expenses. Excluding items, Aon’s quarterly earnings of 81 cents was better than the consensus estimate of 76 cents.
Chief Executive Greg Case claimed that the company’s solid results despite the soft market and tough price wars among insurance brokerages should reassure investors of Aon’s comfortable position in 2009. During the latest fourth quarter, Aon grew its organic revenue by 2%.
Aon was trading up 11% to $40.53 at midday on the New York Stock Exchange.
Aon Reports Fourth Quarter and Full Year 2008 Results - Posted by Steven Wevodau
Total Revenue was $1.9 billion with Organic Growth in Commissions and Fees of 2% - EPS from Continuing Operations was $0.43 Fourth Quarter Highlights - EPS from continuing operations excluding certain items, increased 19% to $0.81 - Brokerage revenue declined 3% due to an 8% decline from foreign currency translation; Organic growth in commissions and fees of 2% - Brokerage pretax margin was 13.7% and the adjusted pretax margin, excluding certain items, increased 150 basis points to 19.9% - Consulting revenue declined 8% due to a 9% decline from foreign currency translation; Organic growth in commissions and fees of 3% - Consulting pretax margin was 16.1% and the adjusted pretax margin, excluding certain items, increased 180 basis points to 19.0% - Increased total annual savings related to the 2007 restructuring program by $70 million to $370 million, and costs necessary to achieve savings by $100 million to $550 million - Completed merger with Benfield Group, creating an unparalleled reinsurance franchise
- Friday February 6, 2009, 6:30 am EST
CHICAGO, Feb. 6 /PRNewswire-FirstCall/ — Aon Corporation (NYSE: AOC - News) today reported results for the fourth quarter and full year ended December 31, 2008.
Net income decreased 95% to $10 million or $0.03 per share, compared to $207 million or $0.64 per share for the prior year quarter, primarily due to an expected $116 million after-tax loss on the disposition of the remaining property and casualty insurance businesses that are now included in discontinued operations, an increase in restructuring-related costs, and costs related to the Benfield merger. Net income from continuing operations decreased 35% to $123 million or $0.43 per share, compared to $188 million or $0.58 per share for the prior year quarter. Net income from continuing operations per share, excluding certain items, increased 19% to $0.81 compared to $0.68 for the prior year quarter. Certain items that impacted fourth 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.
“In the fourth quarter, we achieved solid results despite a soft market and very challenging economic environment. These results reflect the strength of our industry-leading network of global resources and capabilities, and continued progress in each of our key operating metrics. Organic growth was two percent, adjusted pretax margin increased 120 basis points and adjusted earnings per share from continuing operations increased 19%,” said Greg Case, president and chief executive officer, Aon Corporation. “We begin 2009 in a position of strength, with a core product portfolio that is now aligned around risk advice and human capital solutions. Our expense initiatives and restructuring programs are delivering meaningful margin improvement, while concurrently funding significant investments in value-added services and capabilities to support our clients. Our balance sheet has remained strong, which has provided us with financial flexibility to effectively allocate capital, as is highlighted by the recent merger with Benfield. All of these actions support our belief in the underlying strength of Aon and our on-going commitment to delivering long-term shareholder value.”
FOURTH QUARTER FINANCIAL SUMMARY
Total revenue decreased 4% to $1.9 billion due to an 8% decline from foreign currency translation, a 2% increase from acquisitions net of dispositions and organic revenue growth in commissions and fees of 2%. Total expenses increased 1% or $16 million to $1.8 billion, including a $155 million favorable impact from foreign currency translation, partially offset by a $53 million increase in restructuring costs, $46 million of Benfield transaction costs and $42 million of other Benfield expenses.
The fourth quarter includes the operating results of Benfield since the close of the merger on November 28, and reflects $38 million of revenue and $42 million of expenses. The results of Benfield decreased net income by $0.01 per share in the fourth quarter.
Restructuring expense was $87 million in the fourth quarter compared to $34 million in the prior year quarter. An analysis of restructuring-related expenses by segment and type for both the 2007 and Benfield restructuring programs are detailed on page 13 of this release.
Restructuring savings in the fourth quarter related to the 2007 restructuring program are estimated at $32 million compared to no material savings in the prior year quarter. Of the estimated restructuring savings in the fourth quarter, $27 million were related to the Brokerage segment primarily for workforce reduction. The 2007 restructuring program achieved approximately $78 million of cumulative savings in 2008. Before any potential reinvestment of savings, the 2007 restructuring program is now expected to deliver cumulative run-rate cost savings of approximately $240-265 million in 2009 and $370 million in 2010, primarily as a result of additional cost savings opportunities to streamline support functions globally.
Although the recently announced Benfield restructuring program is expected to realize significant savings over the next three years, the Company realized no savings from the program in the fourth quarter. The Company expects the restructuring plan to result in cumulative pretax costs of approximately $185 million over a three-year period, a portion of which will be included in the purchase price allocation. Before any potential reinvestment of savings, the Benfield restructuring program is expected to deliver cumulative cost savings of $33-41 million in 2009, $84-94 million in 2010 and $122 million in 2011.
Foreign currency translation decreased net income by $0.01 per share compared to the prior year quarter due primarily to fluctuations in the U.S. dollar against most major currencies.
Effective tax rate on continuing operations declined to 28.9% for the fourth quarter compared to 30.6% for the prior year quarter due primarily to reductions in certain statutory tax rates and changes in the geographical distribution of income.
Average diluted shares outstanding were 288 million in the fourth quarter compared to 324 million in the prior year quarter, due primarily to the Company’s share repurchase program.
Discontinued Operations after-tax loss was $113 million or $0.40 per share compared to after-tax income of $19 million or $0.06 per share for the prior year quarter. Subsequent to the fourth quarter, the Company entered into an agreement to dispose of its property and casualty insurance operations, and the results were classified as held-for-sale and placed into discontinued operations for the quarter. The after-tax loss in the quarter is primarily due to an expected $116 million loss on disposal of these operations. Discontinued operations also include the results of Automobile Insurance Specialists (AIS), and for the prior year quarter, include the results of AIS, Combined Insurance Company of America and Sterling Life Insurance.
FOURTH QUARTER SEGMENT REVIEW
Certain noteworthy items impacted revenue, pretax income and pretax margins in the fourth quarter of 2008 and 2007. The fourth quarter segment reviews provided below include supplemental information related to adjusted pretax income and pretax margin which is described in detail on the “Reconciliation of the Impact of Non-GAAP Measures on Segments and Diluted Earnings Per Share” on page 12 of this press release.
RISK AND INSURANCE BROKERAGE SERVICES
-------------------------------------
(millions) Fourth Quarter Ended
Less:
------------------------- Less: Acquisitions, Organic
Commissions, Dec 31, Dec 31, % Currency Divestitures, Revenue
Fees, Other 2008 2007 Change Impact Other Growth
------------ ------- ------- ------ -------- ------------- -------
Americas $642 $650 (1)% (4)% -% 3%
U.K. 196 223 (12) (14) 1 1
EMEA 333 353 (6) (9) 2 1
Asia Pacific 119 140 (15) (16) (2) 3
Reinsurance 247 210 18 (5) 21 2
------- ------- ------- -------- ------------- -------
Sub-Total $1,537 $1,576 (2)% (8)% 4% 2%
------- ------- ------- -------- ------------- -------
Investment Income $44 $51 (14)%
------- ------- -------
Total Revenue $1,581 $1,627 (3)%
======= ======= =======
Risk and Insurance Brokerage Services total revenue decreased 3% to $1.6 billion compared to the prior year quarter due to an 8% unfavorable impact from foreign currency translation and a 14% decline in investment income, partially offset by a 4% increase from acquisitions net of dispositions and 2% organic revenue growth in commissions and fees. Americas organic revenue increased 3% reflecting solid growth in U.S. Retail and strong growth in Latin America. U.K. organic revenue increased 1% due primarily to growth in Captives business. EMEA organic revenue increased 1% due to growth in continental Europe and emerging markets. Asia Pacific organic revenue increased 3% reflecting solid growth in most Asian markets, partially offset by the impact of certain regulatory changes in Japan. Reinsurance organic revenue increased 2% due primarily to growth in global facultative and treaty placements, partially offset by soft market conditions.
Fourth Quarter Ended
------------------------
(millions) Dec 31, Dec 31, %
2008 2007 Change
-------- -------- -------
Revenue $1,581 $1,627 (3)%
Expenses
Compensation and benefits 934 923 1
Other expenses 426 434 (2)
-------- -------- -------
Total operating expenses 1,360 1,357 -
Operating income 221 270 (18)%
Other (income) expense 4 (6) N/A
-------- -------- -------
Pretax income $217 $276 (21)%
======== ======== =======
Pretax margin 13.7% 17.0%
Pretax income - adjusted $314 $300 5%
Pretax margin - adjusted 19.9% 18.4%
Total operating expenses for the fourth quarter increased $3 million from the prior year quarter. The $3 million increase includes a $48 million increase in restructuring costs, $40 million of Benfield operating expenses and $11 million for the previously disclosed reviews under the Foreign Corrupt Practices Act (FCPA) and similar laws in other countries and related compliance initiatives, primarily offset by a $124 million favorable impact from foreign currency translation, $27 million of benefits related to the 2007 restructuring program, and a $33 million benefit due primarily to an increase in U.S. dollar commissions and fees receivable in the U.K. This benefit currently reflects a more favorable ongoing relationship between U.S. dollar revenue and British pound expense, for business placed into the U.K. market.
Fourth quarter pretax income decreased 21% to $217 million. Adjusting for certain items detailed on page 12 of this press release, pretax income increased 5% or $14 million to $314 million and pretax margin increased 150 basis points to 19.9% versus the prior year quarter due primarily to benefits of the 2007 restructuring program and other operational improvements, partially offset by a $21 million unfavorable impact related to conforming adjustments in certain European countries and a $7 million decline in investment income.
Brokerage results for the fourth quarter include $38 million of revenue and a $2 million pretax loss for Benfield. Benfield operating results had an unfavorable impact of 60 basis points on adjusted Brokerage pretax margin.
CONSULTING
----------
(millions) Fourth Quarter
Ended Less:
----------------- Less: Acquisitions, Organic
Commissions, Dec 31, Dec 31, % Currency Divestitures, Revenue
Fees, Other 2008 2007 Change Impact Other Growth
----------- ------- ------- ------ -------- -------------- -------
Services $289 $313 (8)% (9)% (3)% 4%
Outsourcing 52 59 (12) (10) 2 (4)
------- ------- ------ -------- -------------- -------
Sub-Total $341 $372 (8)% (9)% (2)% 3%
------- ------- ------ -------- -------------- -------
Investment Income $1 $1 -%
------- ------- ------
Total Revenue $342 $373 (8)%
======= ======= ======
Consulting total revenue decreased 8% to $342 million compared to the prior year quarter due to a 9% unfavorable impact from foreign currency translation, a 2% decrease from acquisitions net of dispositions, partially offset by 3% organic revenue growth in commissions and fees. Organic revenue in Services increased 4% reflecting growth in retirement and health and benefits consulting. Organic revenue in Outsourcing declined 4% due to the previously announced termination of a significant outsourcing contract, partially offset by modest growth in benefits outsourcing.
Fourth Quarter Ended
------------------------
(millions) Dec 31, Dec 31, %
2008 2007 Change
-------- -------- ------
Revenue $342 $373 (8)%
Expenses
Compensation and benefits 203 219 (7)
Other expenses 84 94 (11)
-------- -------- ------
Total operating expenses 287 313 (8)
Operating income 55 60 (8)%
Other (income) expense - - -
-------- -------- ------
Pretax income $55 $60 (8)%
======== ======== ======
Pretax margin 16.1% 16.1%
Pretax income - adjusted $65 $64 2%
Pretax margin - adjusted 19.0% 17.2%
Compensation and benefits for the fourth quarter decreased 7% or $16 million from the prior year quarter including an $18 million favorable impact from foreign currency translation and benefits related to the 2007 restructuring program, partially offset by a $4 million increase in restructuring costs. Other expenses decreased 11% or $10 million compared to the prior year quarter including a $7 million favorable impact from foreign currency translation and benefits related to the 2007 restructuring program.
Fourth quarter pretax income decreased 8% to $55 million due to an $8 million decline from foreign currency translation. Pretax margin was 16.1%, similar to the prior year quarter. Adjusting for certain items detailed on page 12, pretax income increased 2% to $65 million and the pretax margin increased 180 basis points to 19.0%.
UNALLOCATED INCOME AND EXPENSE
------------------------------
Fourth Quarter Ended
-----------------------
(millions) Dec 31, Dec 31, %
2008 2007 Change
------- ------- ------
Operating segment income
before tax $272 $336 (19)%
Unallocated investment income 6 11 (45)
Unallocated expenses (75) (40) 88
Interest expense (30) (36) (17)
------- ------- ------
Income from continuing
operations before tax $173 $271 (36)%
======= ======= ======
Unallocated investment income for the fourth quarter decreased $5 million to $6 million compared to the prior year quarter due primarily to the timing of distributions in certain private equity holdings. Unallocated expenses increased $35 million to $75 million versus the prior year quarter due primarily to $44 million of hedging costs related to the Benfield transaction. Interest expense decreased $6 million to $30 million from the prior year quarter due to fluctuations in foreign currency and a decline in average interest rates on outstanding debt.
2008 FULL YEAR SUMMARY
Total revenue for 2008 increased 4% to $7.6 billion with organic revenue growth of 2%. Risk and Insurance Brokerage Services total revenue increased 5% to $6.2 billion with organic revenue growth in commissions and fees of 2%. Consulting total revenue was similar to the prior year with organic revenue growth in commissions and fees of 3%.
Net income for 2008 increased 71% to $1.5 billion compared to $864 million for the prior year. Net income from continuing operations decreased 6% to $621 million compared to $662 million for the prior year.
EPS for 2008 increased 83% to $4.91 per share compared to $2.69 per share for the prior year. EPS from continuing operations was $2.06 compared to $2.07 for the prior year. EPS from continuing operations, excluding certain items, increased 24% to $2.90 compared to $2.33 for the prior year. Certain items that impacted full year results and comparisons against the prior year are detailed in the reconciliations of the impact of non-GAAP measures on page 12.
During 2008, the Company repurchased approximately 42.6 million shares of common stock for $1.9 billion at an average price of $45.08 per share. As of December 31, 2008, the Company had approximately $850 million of remaining share repurchase authorization.
Conference Call and Webcast Details
The Company will host a conference call on Friday, February 6, 2009 at 7:30 a.m. central time. Interested parties can listen to the conference call via a live audio webcast at http://www.aon.com.
About Aon
Aon Corporation (NYSE: AOC - News) is the leading global provider of risk management services, insurance and reinsurance brokerage, and human capital consulting. With over 37,000 colleagues worldwide, Aon readily delivers distinctive client value via innovative and effective risk management and workforce productivity solutions. Our industry-leading global resources and technical expertise are delivered locally through more than 500 offices in over 120 countries. Named the world’s best broker by Euromoney magazine’s 2008 Insurance Survey, Aon also ranked highest on the Business Insurance listing of the world’s largest insurance brokers based on commercial retail, wholesale, reinsurance and personal lines brokerage revenues in 2008. A.M. Best deemed Aon the number one insurance broker based on brokerage revenues in 2007 and 2008, and Aon was voted best insurance intermediary, best reinsurance intermediary, and best employee benefits consulting firm in 2007 and 2008 by the readers of Business Insurance. For more information on Aon, log onto http://www.aon.com.
Safe Harbor Statement
This press release 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: general economic conditions in different countries in which we 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 influence revenue and expense, rating agency actions that could affect our ability to borrow funds, funding of our various pension plans, changes in the competitive environment, our ability to implement restructuring initiatives and other initiatives intended to yield cost savings, changes in commercial property and casualty markets and commercial premium rates that could impact revenues, 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, ERISA class actions, the cost of resolution of other contingent liabilities and loss contingencies, our ability to integrate Benfield successfully and to realize the anticipated benefits of the Benfield merger. Further information concerning the Company and its business, including factors that potentially could materially affect the Company’s financial results, is contained in the Company’s filings with the Securities and Exchange Commission.
This press release includes supplemental information related to organic revenue growth 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 growth excludes from reported revenues the impact of foreign exchange, acquisitions, divestitures, transfers between business units, investment income, reimbursable expenses and unusual items. Reconciliation is provided in the attached schedules. Supplemental organic revenue growth 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 Summary of Operations. 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, Vice President,
Investor Relations Global Public Relations
312-381-3983 312-381-2485
Aon Corporation
Consolidated Summary of Operations (Unaudited)
Fourth Quarter Ended Twelve Months Ended
--------------------------------------------------------
(millions except Dec. 31, Dec. 31, Percent Dec. 31, Dec. 31, Percent
per share data) 2008 2007 Change 2008 2007 Change
-------- -------- --------- --------- --------- --------
Revenue
-------
Commissions,
fees and
other $1,873 $1,943 (4)% $7,366 $7,066 4%
Investment
income 51 63 (19) 265 293 (10)
-------- -------- --------- --------- --------- --------
Total
revenue 1,924 2,006 (4) 7,631 7,359 4
-------- -------- --------- --------- --------- --------
Expenses
--------
Compensation
and benefits 1,153 1,157 - 4,581 4,341 6
Other general
expenses 455 496 (8) 1,800 1,712 5
Depreciation
and
amortization 65 52 25 222 193 15
-------- -------- --------- --------- --------- --------
Total
operating
expenses 1,673 1,705 (2) 6,603 6,246 6
-------- -------- --------- --------- --------- --------
Operating income 251 301 (17) 1,028 1,113 (8)
Interest
expense 30 36 (17) 126 138 (9)
Other
(income)
expense 48 (6) N/A 39 (35) N/A
-------- -------- --------- --------- --------- --------
Income from
continuing
operations
before
provision
for income tax 173 271 (36) 863 1,010 (15)
Provision for
income tax (1) 50 83 (40) 242 348 (30)
-------- -------- --------- --------- --------- --------
Income from
continuing
operations 123 188 (35) 621 662 (6)
Discontinued
operations
Income (loss)
from
discontinued
operations (184) 77 N/A 1,256 330 281
Provision for
(benefit from)
income tax (2) (71) 58 N/A 399 128 212
-------- -------- --------- --------- --------- --------
Income
(loss) from
discontinued
operations (113) 19 N/A 857 202 324
-------- -------- --------- --------- --------- --------
Net income $10 $207 (95)% $1,478 $864 71%
======== ======== ========= ========= ========= ========
Basic net income
(loss) per share:
Continuing
operations $0.45 $0.62 (27)% $2.18 $2.23 (2)%
Discontinued
operations (0.41) 0.07 N/A 3.00 0.67 348
-------- -------- --------- --------- --------- --------
Net income $0.04 $0.69 (94)% $5.18 $2.90 79%
======== ======== ========= ========= ========= ========
Diluted net income
(loss) per share:
Continuing
operations $0.43 $0.58 (26)% $2.06 $2.07 -%
Discontinued
operations (0.40) 0.06 N/A 2.85 0.62 360
-------- -------- --------- --------- --------- --------
Net income $0.03 $0.64 (95)% $4.91 $2.69 83%
======== ======== ========= ========= ========= ========
Weighted average
common shares
outstanding -
diluted 288.1 324.1 (11)% 300.9 323.0 (7)%
======== ======== ========= ========= ========= ========
(1) Tax rate from continuing operations is 28.9% and 30.6% for the fourth
quarters ended December 31, 2008 and 2007, respectively, and 28.0% and
34.5% for the twelve months ended December 31, 2008 and 2007,
respectively.
(2) Tax rate from discontinued operations is 38.6% and 75.3% for the
fourth quarters ended December 31, 2008 and 2007, respectively, and
31.8% and 38.8% for the twelve months ended December 31, 2008 and
2007, respectively.
Aon Corporation
Revenue from Continuing Operations (Unaudited)
Fourth Quarter Ended
----------------------------------------------------------
Less:
Less: Acquisitions, Organic
Dec. 31, Dec. 31, Percent Currency Divestitures Revenue
(millions) 2008 2007 Change Impact & Other Growth (1)
-------- ------- ------ -------- ------------ ------------
Commissions,
Fees and Other
---------------
Risk and
Insurance
Brokerage
Services:
Americas $642 $650 (1)% (4)% -% 3%
United
Kingdom 196 223 (12) (14) 1 1
Europe,
Middle
East &
Africa 333 353 (6) (9) 2 1
Asia Pacific 119 140 (15) (16) (2) 3
Reinsurance
brokerage
and
related
services 247 210 18 (5) 21 2
-------- ------- ------ -------- ------------ ------------
Total Risk
and
Insurance
Brokerage
Services 1,537 1,576 (2) (8) 4 2
-------- ------- ------ -------- ------------ ------------
Consulting:
Consulting
services 289 313 (8) (9) (3) 4
Outsourcing 52 59 (12) (10) 2 (4)
-------- ------- ------ -------- ------------ ------------
Total
Consulting 341 372 (8) (9) (2) 3
-------- ------- ------ -------- ------------ ------------
Total
Operating
Segments $1,878 $1,948 (4)% (8)% 2% 2%
======== ======= ====== ======== ============ ============
Investment
Income
----------
Risk and
Insurance
Brokerage
Services $44 $51 (14)%
Consulting 1 1 -
-------- ------- ------
Total
Operating
Segments $45 $52 (13)%
======== ======= ======
Total Revenue
-------------
Risk and
Insurance
Brokerage
Services $1,581 $1,627 (3)%
Consulting 342 373 (8)
Unallocated 6 11 (45)
Intersegment (5) (5) -
-------- ------- ------
Total $1,924 $2,006 (4)%
======== ======= ======
(1) Organic revenue growth excludes the impact of foreign exchange,
acquisitions, divestitures, transfers, reimbursable expenses and
unusual items.
Aon Corporation
Revenue from Continuing Operations (Unaudited)
Twelve Months Ended
-----------------------------------------------------------
Less:
Less: Acquisitions, Organic
Dec. 31, Dec. 31, Percent Currency Divestitures Revenue
(millions) 2008 2007 Change Impact & Other Growth (1)
-------- ------- ------ -------- ------------ -----------
Commissions,
Fees and Other
---------------
Risk and
Insurance
Brokerage
Services:
Americas $2,280 $2,259 1% -% -% 1%
United
Kingdom 742 768 (3) (4) 1 -
Europe,
Middle
East &
Africa 1,521 1,341 13 7 2 4
Asia
Pacific 492 483 2 1 (1) 2
Reinsurance
brokerage
and
related
services 1,003 901 11 3 7 1
-------- ------- ------ -------- ------------ -----------
Total
Risk and
Insurance
Brokerage
Services 6,038 5,752 5 2 1 2
-------- ------- ------ -------- ------------ -----------
Consulting:
Consulting
services 1,139 1,107 3 - (2) 5
Outsourcing 214 236 (9) (2) - (7)
-------- ------- ------ -------- ------------ -----------
Total
Consulting 1,353 1,343 1 - (2) 3
-------- ------- ------ -------- ------------ -----------
Total
Operating
Segments $7,391 $7,095 4% 1% 1% 2%
======== ======= ====== ======== ============ ===========
Investment
Income
----------
Risk and
Insurance
Brokerage
Services $192 $205 (6)%
Consulting 5 9 (44)
-------- ------- ------
Total
Operating
Segments $197 $214 (8)%
======== ======= ======
Total Revenue
-------------
Risk and
Insurance
Brokerage
Services $6,230 $5,957 5%
Consulting 1,358 1,352 -
Unallocated 68 79 (14)
Intersegment (25) (29) (14)
-------- ------- ------
Total $7,631 $7,359 4%
======== ======= ======
(1) Organic revenue growth excludes the impact of foreign exchange,
acquisitions, divestitures, transfers, reimbursable expenses and
unusual items.
Aon Corporation - Segments (Unaudited)
Risk and Insurance Brokerage Services - Continuing Operations
-------------------------------------------------------------
Fourth Quarter Ended Twelve Months Ended
--------------------------- -----------------------------
Dec. 31, Dec. 31, Percent Dec. 31, Dec. 31, Percent
(millions) 2008 2007 Change 2008 2007 Change
-------- --------- -------- --------- --------- --------
Revenue
-------
Commissions,
fees and
other $1,537 $1,576 (2)% $6,038 $5,752 5%
Investment
income 44 51 (14) 192 205 (6)
-------- --------- -------- --------- --------- --------
Total
revenue 1,581 1,627 (3) 6,230 5,957 5
-------- --------- -------- --------- --------- --------
Expenses
--------
Compensation
and
benefits 934 923 1 3,707 3,457 7
Other general
expenses 426 434 (2) 1,659 1,525 9
-------- --------- -------- --------- --------- --------
Total
operating
expenses 1,360 1,357 - 5,366 4,982 8
-------- --------- -------- --------- --------- --------
Operating
income 221 270 (18) 864 975 (11)
Other
(income)
expense 4 (6) N/A (10) (35) (71)
-------- --------- -------- --------- --------- --------
Income before
provision
for income
tax $217 $276 (21)% $874 $1,010 (13)%
======== ========= ======== ========= ========= ========
Pretax income
margin 13.7% 17.0% 14.0% 17.0%
Consulting -
Continuing
Operations Fourth Quarter Ended Twelve Months Ended
------------ --------------------------- -----------------------------
Dec. 31, Dec. 31, Percent Dec. 31, Dec. 31, Percent
(millions) 2008 2007 Change 2008 2007 Change
-------- --------- -------- --------- --------- --------
Revenue
-------
Commissions,
fees and
other $341 $372 (8)% $1,353 $1,343 1%
Investment
income 1 1 - 5 9 (44)
-------- --------- -------- --------- --------- --------
Total
revenue 342 373 (8) 1,358 1,352 -
-------- --------- -------- --------- --------- --------
Expenses
--------
Compensation
and benefits 203 219 (7) 815 823 (1)
Other general
expenses 84 94 (11) 331 340 (3)
-------- --------- -------- --------- --------- --------
Total
operating
expenses 287 313 (8) 1,146 1,163 (1)
-------- --------- -------- --------- --------- --------
Operating
income 55 60 (8) 212 189 12
Other
(income)
expense - - - (1) - N/A
-------- --------- -------- --------- --------- --------
Income before
provision
for income
tax $55 $60 (8)% $213 $189 13%
======== ========= ======== ========= ========= =========
Pretax income
margin 16.1% 16.1% 15.7% 14.0%
Reconciliation of segment income before
provision for income tax to income from
continuing operations before provision
for income tax:
Fourth Quarter Ended Twelve Months Ended
--------------------------- -----------------------------
Dec. 31, Dec. 31, Percent Dec. 31, Dec. 31, Percent
(millions) 2008 2007 Change 2008 2007 Change
-------- --------- -------- --------- --------- --------
Segment income
before
provision for
income tax
Risk and
Insurance
Brokerage
Services $217 $276 (21)% $874 $1,010 (13)%
Consulting 55 60 (8) 213 189 13
-------- --------- -------- --------- --------- --------
Total
segment
income
before
provision
for income
tax 272 336 (19) 1,087 1,199 (9)
Unallocated
investment
income 6 11 (45) 68 79 (14)
Unallocated
expenses (75) (40) 88 (166) (130) 28
Interest
expense (30) (36) (17) (126) (138) (9)
-------- --------- -------- --------- --------- --------
Income from
continuing
operations
before
provision
for income
tax $173 $271 (36)% $863 $1,010 (15)%
======== ========= ======== ========= ========= ========
Pretax
income
margin 9.0% 13.5% 11.3% 13.7%
Aon Corporation
Reconciliation of the Impact of Non-GAAP Measures on Segments and Diluted
Earnings Per Share (Unaudited) (1)
Fourth Quarter Ended Twelve Months Ended
December 31, 2008 December 31, 2008
(millions------------------------------- -------------------------------
except Risk and Unallo- Risk and Unallo-
per Insurance cated Insurance cated
share Brokerage Cons- Income & Brokerage Cons- Income &
data) Services ulting Expense Total Services ulting Expense Total
Revenue --------- ------- ------- ------ --------- ------- ------- -----
as
reported $1,581 $342 $1 $1,924 $6,230 $1,358 $43 $7,631
========= ======= ======= ====== ========= ======= ======= =====
Income
(loss)
from
continuing
operations
before
provision
for income
tax - as
reported $217 $55 $(99) $173 $874 $213 $(224) $863
Restruc-
turing
charges
(2005
and
2007
plans) 78 9 - 87 237 17 - 254
Pension
curtailment 6 1 1 8 6 1 1 8
Anti-
bribery
and
compliance
initia-
tives 11 - - 11 42 - - 42
Benfield
costs 2 - 44 46 2 - 50 52
Gain on
sale
of
land - - - - (5) - - (5)
--------- ------- ------- ------ --------- ------- ------- -----
Income
(loss)
from
continuing
operations
before
provision
for income
tax - as
adjusted $314 $65 $(54) 325 $1,156 $231 $(173) 1,214
========= ======= ======= ========= ======= =======
Provision
for income
taxes (2) 93 340
------ -----
Income from
continuing
operations -
as adjusted $232 $874
====== =====
Diluted
earnings
per share
from
continuing
operations -
as
adjusted $0.81 $2.90
====== =====
Weighted
average
common
shares
outstanding -
diluted 288.1 300.9
====== =====
Pretax
income
margins -
as
adjusted 19.9% 19.0% N/A 16.9% 18.6% 17.0% N/A 15.9%
========= ======= ======= ====== ========= ======= ======= =====
Fourth Quarter Ended Twelve Months Ended
December 31, 2007 December 31, 2007
(millions------------------------------- -------------------------------
except Risk and Unallo- Risk and Unallo-
per Insurance cated Insurance cated
share Brokerage Cons- Income & Brokerage Cons- Income &
data) Services ulting Expense Total Services ulting Expense Total
Revenue --------- ------- ------- ------ --------- ------- ------- -----
as
reported $1,627 $373 $6 $2,006 $5,957 $1,352 $50 $7,359
========= ======= ======= ====== ========= ======= ======= =====
Income
(loss)
from
continuing
operations
before
provision
for income
tax - as
reported $276 $60 $(65) $271 $1,010 $189 $(189) $1,010
Restruc-
turing
charges
(2005
and
2007
plans) 30 4 - 34 74 11 - 85
Gain on
sale of
businesses (6) - - (6) (36) - - (36)
Resolution
of U.K.
balance
sheet
reconcil-
iation
difference - - 15 15 - - 15 15
Reinsur-
ance
litiga-
tion - - - - 21 - - 21
--------- ------- ------- ------ --------- ------- ------- -----
Income (loss)
from
continuing
operations
before
provision
for income
tax - as
adjusted $300 $64 $(50) 314 $1,069 $200 $(174) 1,095
========= ======= ======= ========= ======= =======
Provision
for income
taxes (2) 93 348
------ -----
Income from
continuing
operations -
as adjusted $221 $747
====== =====
Diluted
earnings per
share from
continuing
operations -
as adjusted $0.68 $2.33
====== =====
Weighted average
common shares
outstanding -
diluted 324.1 323.0
====== =====
Pretax
income
margins -
as
adjusted 18.4% 17.2% N/A 15.7% 17.9% 14.8% N/A 14.9%
========= ======= ======= ====== ========= ======= ======= =====
(1) Certain noteworthy items impacting revenue and pretax income in 2008
and 2007 are described in this schedule. The revenue, income (loss)
from continuing operations before provision for income tax, diluted
earnings per share from continuing operations and related margins
shown with the caption "as adjusted" are non-GAAP measures.
(2) Tax rate from continuing operations is 28.6% and 29.6% for the fourth
quarters ended December 31, 2008 and 2007, respectively, and 28.0% and
31.8% for the twelve months ended December 31, 2008 and 2007,
respectively.
Aon Corporation
2007 Restructuring Plan (Unaudited)
By Type: Actual Estimated
----------------------------------------- ---------
Nine 4th Full Total
Months Quarter Year Incurred
(millions) 2007 2008 2008 2008 to Date Total
----------------------------------------- ---------
Workforce reduction
(Compensation and
benefits) $17 $118 $48 $166 $183 $330
Lease consolidation
(Other general
expenses) 22 25 13 38 60 134
Asset impairments
(Depreciation and
amortization) 4 13 5 18 22 45
Other costs
associated with
restructuring
(Other general
expenses) 3 9 20 29 32 41
----------------------------------------- ---------
Total restructuring
and related
expenses $46 $165 $86 $251 $297 $550
========================================= =========
By Segment: Actual Estimated
----------------------------------------- ---------
Nine 4th Full Total
Months Quarter Year Incurred
(millions) 2007 2008 2008 2008 to Date Total
----------------------------------------- ---------
Risk and Insurance
Brokerage Services $41 $157 $77 $234 $275 $503
Consulting 5 8 9 17 22 47
----------------------------------------- ---------
Total restructuring
and related
expenses $46 $165 $86 $251 $297 $550
========================================= =========
Benfield Restructuring
Plan (Unaudited)
By Type: Estimated
------------------------
Non-
Purchase
Purchase Account-
(millions) Accounting ing Total
------------------------
Workforce reduction
(Compensation and
benefits) $74 $52 $126
Lease consolidation
(Other general
expenses) 28 21 49
Asset impairments
(Depreciation and
amortization) - 8 8
Other costs
associated with
restructuring
(Other general
expenses) 2 - 2
------------------------
Total restructuring
and related
expenses $104 $81 $185
========================
Aon Corporation
Consolidated Summary of Operations - Reclassified for Discontinued
Operations (Unaudited)
2007 2008
-------------------------------- ---------------------------------
(millions
except
per 1st 2nd 3rd 4th 1st 2nd 3rd 4th
share Quar- Quar- Quar- Quar- Full Quar- Quar- Quar- Quar- Full
data) ter ter ter ter Year ter ter ter ter Year
------ ------ ------ ------ ------ ------ ------ ------ ------ -----
Revenue
-------
Comm-
issions,
fees
and
oth-
er $1,702 $1,750 $1,671 $1,943 $7,066 $1,848 $1,889 $1,756 $1,873 $7,366
Invest-
ment
income 67 88 75 63 293 57 67 90 51 265
------ ------ ------ ------ ------ ------ ------ ------ ------ -----
Total
reve-
nue 1,769 1,838 1,746 2,006 7,359 1,905 1,956 1,846 1,924 7,631
------ ------ ------ ------ ------ ------ ------ ------ ------ -----
Expenses
--------
Compen-
sation
and
bene-
fits 1,040 1,097 1,047 1,157 4,341 1,154 1,143 1,131 1,153 4,581
Other
general
expen-
ses 413 413 390 496 1,712 419 503 423 455 1,800
Deprecia-
tion
and
amorti-
zation 47 46 48 52 193 50 58 49 65 222
------ ------ ------ ------ ------ ------ ------ ------ ------ -----
Total
opera-
ting
expen-
ses 1,500 1,556 1,485 1,705 6,246 1,623 1,704 1,603 1,673 6,603
------ ------ ------ ------ ------ ------ ------ ------ ------ -----
Operating
income 269 282 261 301 1,113 282 252 243 251 1,028
Interest
expense 35 34 33 36 138 33 31 32 30 126
Other
(income)
expense - (29) - (6) (35) (4) (2) (3) 48 39
------ ------ ------ ------ ------ ------ ------ ------ ------ -----
Income
from
continuing
operations
before
provision
for
income
tax 234 277 228 271 1,010 253 223 214 173 863
Provision
for
income
tax 73 97 95 83 348 76 57 59 50 242
------ ------ ------ ------ ------ ------ ------ ------ ------ -----
Income
from
continuing
opera-
tions 161 180 133 188 662 177 166 155 123 621
Discontinued
operations
Income
(loss)
from
discon-
tinued
opera-
tions 79 91 83 77 330 66 1,431 (57) (184) 1,256
Provision
for
(benefit
from)
income
tax 27 31 12 58 128 25 464 (19) (71) 399
------ ------ ------ ------ ------ ------ ------ ------ ------ -----
Income
(loss)
from
discont-
inued
opera-
tions 52 60 71 19 202 41 967 (38) (113) 857
------ ------ ------ ------ ------ ------ ------ ------ ------ -----
Net
income $213 $240 $204 $207 $864 $218 $1,133 $117 $10 $1,478
====== ====== ====== ====== ====== ====== ====== ====== ====== =====
Basic
net
income
(loss)
per
share:
Continu-
ing
operat-
ions $0.54 $0.61 $0.45 $0.62 $2.23 $0.58 $0.57 $0.57 $0.45 $2.18
Discont-
inued
operat
ions 0.17 0.20 0.24 0.07 0.67 0.14 3.34 (0.14) (0.41) 3.00
------ ------ ------ ------ ------ ------ ------ ------ ------ -----
Net
in-
come $0.71 $0.81 $0.69 $0.69 $2.90 $0.72 $3.91 $0.43 $0.04 $5.18
====== ====== ====== ====== ====== ====== ====== ====== ====== =====
Dilutive
net
income
(loss)
per
share:
Contin-
uing
operat-
ions $0.50 $0.57 $0.42 $0.58 $2.07 $0.55 $0.54 $0.53 $0.43 $2.06
Discont-
inued
opera-
tions 0.16 0.18 0.22 0.06 0.62 0.13 3.17 (0.13) (0.40) 2.85
------ ------ ------ ------ ------ ------ ------ ------ ------ -----
Net
in-
come $0.66 $0.75 $0.64 $0.64 $2.69 $0.68 $3.71 $0.40 $0.03 $4.91
====== ====== ====== ====== ====== ====== ====== ====== ====== =====
Weighted
average
common
shares
out-
standing -
di-
luted 324.4 321.9 321.5 324.1 323.0 319.8 305.3 290.3 288.1 300.9
====== ====== ====== ====== ====== ====== ====== ====== ====== =====
Aon Corporation
Segments - Reclassification for Discontinued Operations (Unaudited)
2007 2008
---------------------------------- ---------------------------
1st 2nd 3rd 4th 1st 2nd 3rd
Quar- Quar- Quar- Quar- Full Quar- Quar- Quar- Nine
(millions) ter ter ter ter Year ter ter ter Months
------ ------ ------ ------ ------ ------ ------ ------ ------
Revenue
-------
Risk and
insurance
brokerage
services $1,429 $1,490 $1,411 $1,627 $5,957 $1,566 $1,610 $1,473 $4,649
Consulting 329 325 325 373 1,352 343 336 337 1,016
Unallocated
As reported 23 32 21 13 89 7 18 41 66
Less:
reclass-
ification
to
discont-
inued
opera-
tions (2) (3) (3) (2) (10) (2) (1) (1) (4)
------ ------ ------ ------ ------ ------ ------ ------ ------
As
reclass-
ified 21 29 18 11 79 5 17 40 62
Inter-
segment (10) (6) (8) (5) (29) (9) (7) (4) (20)
------ ------ ------ ------ ------ ------ ------ ------ ------
Total $1,769 $1,838 $1,746 $2,006 $7,359 $1,905 $1,956 $1,846 $5,707
====== ====== ====== ====== ====== ====== ====== ====== ======
Income
(loss)
before
income
tax
-------
Risk
and
insurance
brokerage
services $234 $272 $228 $276 $1,010 $238 $231 $188 $657
Consulting 47 44 38 60 189 63 43 52 158
Unallocated
As reported (48) (41) (43) (68) (200) (50) (52) (28) (130)
Less:
reclass-
ification
to
dis-
continued
opera-
tions 1 2 5 3 11 2 1 2 5
------ ------ ------ ------ ------ ------ ------ ------ ------
As
reclass-
ified (47) (39) (38) (65) (189) (48) (51) (26) (125)
------ ------ ------ ------ ------ ------ ------ ------ ------
Total $234 $277 $228 $271 $1,010 $253 $223 $214 $690
====== ====== ====== ====== ====== ====== ====== ====== ======
Income
from
continuing
operations
before
income
tax -
margins
--------
Risk and
insurance
brokerage
services 16.4% 18.3% 16.2% 17.0% 17.0% 15.2% 14.3% 12.8% 14.1%
Consulting 14.3% 13.5% 11.7% 16.1% 14.0% 18.4% 12.8% 15.4% 15.6%
Total
As
reported 13.2% 14.9% 12.8% 13.3% 13.6% 13.2% 11.3% 11.5% 12.0%
As
reclass-
ified 13.2% 15.1% 13.1% 13.5% 13.7% 13.3% 11.4% 11.6% 12.1%
Aon Corporation
Property and Casualty Run-off Insurance Operations (Unaudited)
2007
----------------------------------------
1st 2nd 3rd 4th Full
(millions except per share data) Quarter Quarter Quarter Quarter Year
------- ------- ------- -------- -------
Revenue
-------
Commissions, fees and other $- $1 $1 $1 $3
Investment income 2 2 2 1 7
------- ------- ------- -------- -------
Total revenue 2 3 3 2 10
------- ------- ------- -------- -------
Expenses
--------
Compensation and benefits 2 1 1 2 6
Other general expenses 1 4 7 3 15
------- ------- ------- -------- -------
Total operating expenses 3 5 8 5 21
------- ------- ------- -------- -------
Operating loss (1) (2) (5) (3) (11)
Other expense - - - - -
------- ------- ------- -------- -------
Loss before benefit from income
tax (1) (2) (5) (3) (11)
Benefit from income tax - (1) (2) (1) (4)
------- ------- ------- -------- -------
Net loss $(1) $(1) $(3) $(2) $(7)
======= ======= ======= ======== =======
Basic net loss per share $(0.01) $(0.01) $(0.01) $(0.01) $(0.02)
======= ======= ======= ======== =======
Dilutive net loss per share $- $- $(0.01) $- $(0.02)
======= ======= ======= ======== =======
Weighted average common shares
outstanding - diluted 324.4 321.9 321.5 324.1 323.0
======= ======= ======= ======== =======
2008
---------------------------------------
1st 2nd 3rd 4th Full
(millions except per share data) Quarter Quarter Quarter Quarter Year
-------- ------- ------- -------- -----
Revenue
Commissions, fees and other $- $- $- $1 $1
Investment income 2 1 1 1 5
-------- ------- ------- -------- -----
Total revenue 2 1 1 2 6
-------- ------- ------- -------- -----
Expenses
Compensation and benefits 1 2 1 - 4
Other general expenses 3 - 2 (3) 2
-------- ------- ------- -------- -----
Total operating expenses 4 2 3 (3) 6
-------- ------- ------- -------- -----
Operating income (loss) (2) (1) (2) 5 -
Other expense - - - 191 191
-------- ------- ------- -------- -----
Loss before benefit from income
tax (2) (1) (2) (186) (191)
Benefit from income tax (1) - - (73) (74)
-------- ------- ------- -------- -----
Net loss $(1) $(1) $(2) $(113) $(117)
======== ======= ======= ======== =====
Basic net loss per share $(0.01) $- $(0.01) $(0.41) $(0.41)
======== ======= ======= ======== =====
Dilutive net loss per share $- $- $(0.01) $(0.39) $(0.39)
======== ======= ======= ======== =====
Weighted average common shares
outstanding - diluted 319.8 305.3 290.3 288.1 300.9
======== ======= ======= ======== =====
Aon Corporation
Condensed Consolidated Statements of Financial Position
As of
----------------------------------
(millions) Dec. 31, 2008 Dec. 31, 2007 (2)
---------- -------------- ------------------
(Unaudited)
ASSETS
------
CURRENT ASSETS
Cash $657 $584
Short-term investments 579 1,120
Receivables 1,992 1,993
Fiduciary assets (1) 10,678 9,498
Other current assets 480 276
Assets held for sale 237 4,601
-------------- ------------------
Total Current Assets 14,623 18,072
Goodwill 5,637 4,915
Other intangible assets 779 204
Fixed assets, net 451 497
Long-term investments 342 332
Other non-current assets 1,340 914
-------------- ------------------
TOTAL ASSETS $23,172 $24,934
============== ==================
LIABILITIES AND STOCKHOLDERS'
EQUITY
------------------------------
CURRENT LIABILITIES
Fiduciary liabilities $10,678 $9,498
Short-term debt 105 252
Accounts payable and accrued
liabilities 1,536 1,413
Other current liabilities 438 293
Liabilities held for sale 142 3,172
-------------- ------------------
Total Current Liabilities 12,899 14,628
Long-term debt 1,872 1,893
Pension, post employment and post
retirement liabilities 1,694 1,251
Other non-current liabilities 1,393 941
-------------- ------------------
TOTAL LIABILITIES 17,858 18,713
TOTAL STOCKHOLDERS' EQUITY 5,314 6,221
-------------- ------------------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $23,172 $24,934
============== ==================
(1) Includes short-term investments: 2008 - $3,204; 2007 - $3,122.
(2) Certain amounts have been reclassified to conform to the 2008
presentation.
Statement by Aon on New York Insurance Department Draft Rules on Producer Transparency and Compensation - Posted by Steven Wevodau
CHICAGO, Feb. 5 /PRNewswire-FirstCall/ — Aon today issued the following statement from Greg Case, president and CEO:
“Aon strongly supports Superintendent Eric Dinallo’s efforts to introduce more transparency into the insurance sector and to establish consistent rules for all producers who operate in New York. As Steve McGill, chairman and CEO of Aon Risk Services, testified at the hearings in July, we believe that all brokers and agents should, at a minimum, be willing to tell their clients who will pay them, how much they’ll make and the quotes insurers provide. This is the basic information every client deserves. The draft rules are clearly a step in the right direction, and we look forward to working with the superintendent on providing increased transparency for all market participants.”
About Aon
Aon Corporation (NYSE: AOC - News) is the leading global provider of risk management services, insurance and reinsurance brokerage, and human capital consulting. Through its 36,000 colleagues worldwide, Aon readily delivers distinctive client value via innovative and effective risk management and workforce productivity solutions. Our industry-leading global resources, technical expertise and industry knowledge are delivered locally through more than 500 offices in more than 120 countries. Aon was named the world’s best broker by Euromoney magazine’s 2008 Insurance Survey. In 2008, Aon ranked highest on the Business Insurance ranking of the world’s largest insurance brokers based on commercial retail, wholesale, reinsurance and personal lines brokerage revenues. Aon also was ranked by A.M. Best as the number one insurance broker based on brokerage revenues in 2007 and 2008, and was voted best insurance intermediary, best reinsurance intermediary, and best employee benefits consulting firm in 2007 and 2008 by the readers of Business Insurance. Sign up to receive Aon news alerts by email or RSS feed at: http://aon.mediaroom.com/index.php?s=58.
Media Contact
David Prosperi
312.381.2485
david_prosperi@aon.com
(Logo: http://www.newscom.com/cgi-bin/prnh/20041215/CGW049LOGO)
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