Aon Plc (AON:US), the world’s largest insurance broker, gained the most since August as revenue excluding currency fluctuations and acquisitions climbed.
Aon climbed 5.7 percent (AON:US) to $49.15 at 10:19 a.m. in New York. So-called organic revenue jumped 4 percent in the second quarter from a year earlier, the London-based broker, which has its Americas headquarters in Chicago, said today in a statement.
Aon, led by Chief Executive Officer Greg Case, stands to gain as insurers boost prices they charge businesses for coverage, since the broker earns a commission on policies sold. Property-casualty insurers increased rates by 4 percent in the second quarter from a year earlier, according to MarketScout data compiled by Bloomberg. Natural disaster losses and low interest rates on investments led underwriters to charge higher prices in 2011, reversing six years of declines.
“Aon remains well positioned for strong earnings growth as commercial lines pricing improves,” Meyer Shields, an analyst at Stifel Nicolaus & Co., said in a report to clients today.
To contact the reporter on this story: Noah Buhayar in New York at email@example.com.
To contact the editor responsible for this story: Dan Kraut at firstname.lastname@example.org