Bloomberg News

Aon Gains on Best Result in CEO Target Since 2009

October 26, 2012

Aon Plc (AON:US), the insurance broker that moved its headquarters to London from Chicago, rallied after gaining in each of the company’s priority metrics for the first time in three years.

Aon, the world’s largest insurance broker, jumped 2.9 percent to $53.84 at 4:04 p.m. in New York, the largest advance in the 24-company KBW Insurance index.

Third-quarter organic revenue, which excludes results from currency fluctuations and acquisitions, climbed 4 percent, compared with a 1 percent improvement a year earlier, the company said in a slide show today. The operating margin advanced to 17.5 percent from 17.2 percent. Operating earnings were 95 cents a share, exceeding last year’s result by 7 cents.

“Our third quarter reflects improvement in each of our three metrics for the first time since the beginning of 2009,” Chief Executive Officer Greg Case said in a conference call with analysts today.

The earnings beat the average estimate (AON:US) of 16 analysts surveyed by Bloomberg by 5 cents per share. Net income climbed to $204 million from $198 million.

Results were driven by “better than anticipated adjusted operating margin performance,” Sandler O’Neill & Partners LP analysts led by Paul Newsome wrote in a note today.

To contact the reporter on this story: Dan Kraut in Chicago at dkraut2@bloomberg.net

To contact the editor responsible for this story: Dan Kraut at dkraut@bloomberg.net


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Companies Mentioned

  • AON
    (Aon PLC)
    • $84.36 USD
    • -1.73
    • -2.05%
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