NET INCOME AT AON FALLS ON LOSSES FROM DISCONTINUED OPS

Chicago-based broker/consultant Aon Corp has closed the first half of the year with net income of $331m, a decline of 23% that reflected a 2% increase in commissions and fees to $3.77bn and a 4% increase in operating expenses to $3.26bn. Results also reflected a swing to $26m in losses from discontinued operations from a year-earlier gain of $52m. For Q2, net income rose 3% to $153m on commissions and fees of $1.88bn, up 1%. Strong growth in Latin America was partially offset by the impact of soft pricing and lower exposure units. Organic revenue in the UK fell by 6%, mainly because of weak economic conditions. Organic revenue in Europe, Middle East & Africa fell 3% in Q2 compared with the same period last year, although modest growth was achieved in emerging markets. Reinsurance organic revenue for the quarter was down 3% year on year "due primarily to higher cedent retentions and soft pricing globally in treaty placements". Speaking later in a conference call, CEO Greg Case said that "fragile economic conditions will continue to make results across the entire region lumpy on a quarterly basis, but we would expect modest improvement in the second half of the year".