Aon’s profit declines in 2010 Q1

Aon Corporation has reported profit of $178 million for 2010 Q1, down from $280 million in 2009 Q1. Aon’s 2009 Q1 included an $83-million pre-tax gain related to the U.S. pension curtailment and a $43-million after-tax gain on the sale of Automobile Insurance Specialists (AIS), the company reported. Total operating expenses increased 10% (to $1.6 billion), primarily because of an estimated $92-million increase due to foreign currency translation and a $33-million increase in restructuring related expenses. This was partially offset by benefits related to the 2007 and Aon Benfield restructuring programs, the company said. “Our first quarter results reflect solid operational performance across both the brokerage and consulting segments,” Greg Case, president and CEO of Aon, said in a release.”Despite difficult economic and soft market conditions and a 48% decline in investment income, on an adjusted basis, we held total operating margins constant and increased EPS from continuing operations by 11%.” “Our restructuring programs are expected to deliver additional cost savings and margin improvement, while the substantial investments across our organization in areas such as construction, professional liability and retirement consulting continue to strengthen our client-serving capability,” Case added.