Summary
Aon Corporation's 2009 10-K filing reveals a company navigating a challenging economic landscape, with a slight increase in total revenue to $7.6 billion, largely due to the Benfield merger, but facing headwinds from a soft insurance market and economic pressures impacting client spending. Despite a 1% decline in organic revenue, Aon demonstrated expense discipline, maintaining operating expenses at prior-year levels. The company reported a 7% increase in diluted EPS from continuing operations to $2.19, driven by revenue growth and expense management, particularly a net pension curtailment gain. The Risk and Insurance Brokerage Services segment remains dominant, accounting for 83% of revenue, while the Consulting segment experienced a revenue decrease. Restructuring efforts from the Benfield merger and a prior global plan are ongoing, with significant cost savings anticipated. Financially, Aon maintained a strong balance sheet with total debt representing 27.2% of total capital. The company repurchased approximately $590 million of its common stock in 2009 and authorized a new $2 billion repurchase program, signaling confidence and a commitment to returning capital to shareholders. The company also highlighted its liquidity position, supported by operating cash flow and available credit facilities.
Financial Highlights
52 data points| Revenue | $7.59B |
| Operating Expenses | $6.57B |
| Operating Income | $1.02B |
| Interest Expense | $122.00M |
| Net Income | $747.00M |
| EPS (Basic) | $2.64 |
| EPS (Diluted) | $2.57 |
| Shares Outstanding (Basic) | 283.20M |
| Shares Outstanding (Diluted) | 291.10M |
Key Highlights
- 1Total revenue increased by 1% to $7.6 billion, primarily driven by the Benfield merger, offsetting a 1% decline in organic revenue due to challenging economic conditions.
- 2Diluted EPS from continuing operations rose by 7% to $2.19, reflecting effective expense management and a net pension curtailment gain.
- 3The Risk and Insurance Brokerage Services segment generated 83% of total revenue, with reinsurance brokerage revenue up 48% due to the Benfield acquisition.
- 4Operating expenses were stable year-over-year, with benefits from favorable foreign currency, restructuring savings, and lower E&O costs offsetting increased integration and restructuring charges.
- 5The company repurchased $590 million of common stock in 2009 and authorized a new $2 billion share repurchase program, demonstrating a commitment to shareholder returns.
- 6Restructuring plans, including the integration of Benfield and a prior global initiative, are in progress, with significant annualized savings projected by 2010-2011.
- 7The company maintained strong liquidity, with $639 million in cash and cash equivalents and short-term investments, and undrawn credit facilities of approximately $1.3 billion.