Aon third quarter profits down, but revenue rises

CHICAGO—Aon Corp. has reported lower net income in the third quarter of 2006, although revenues from insurance brokers were said to have increased over the same period in 2005.

The company also announced changes to its employee pension plans in the United States and the United Kingdom, to reduce costs and maintain "competitive" benefit plans.

The Chicago-based insurance broker posted third quarter 2006 net income of $106 million, compared with $122 million for the prior year quarter. The company also reported that third quarter revenue for risk and insurance brokerage services increased 5% to $1.3 billion, with organic revenue growth of 3%, led by reinsurance organic revenue growth of 8%.

"The third quarter is evidence of good progress in each of our three key metrics: earnings growth, margin expansion and organic revenue growth," said Greg Case, Aon president and chief executive officer.