Aon Rallies on Profit Increase, Share Buybacks
Aon Plc (AON), the second-largest insurance broker by market value, had the biggest gain in the 81-company Standard & Poor’s 500 Financials Index after posting higher third-quarter profit and accelerating share repurchases.
The broker advanced 3.7 percent to $78.38 at 10:20 a.m. in New York, extending its increase this year to 41 percent.
Net income jumped 25 percent to $256 million as revenue climbed at both the risk-solutions brokerage segment and the human-resources division, according to a statement today from the London-based company. Aon, which was previously based in Chicago, said it repurchased about $500 million of stock in the quarter, compared with $225 million in the prior three months.
“Risk-solutions results were strong and slightly better than our estimates,” Dan Farrell, an analyst at Sterne Agee & Leach Inc., said in a note to investors today. The share “buyback of $500 million was well above our $200 million forecast.”
Marsh & McLennan Cos., the largest broker by market value, advanced 1.1 percent. The New York-based company gained 35 percent since Dec. 31.
To contact the editor responsible for this story: Dan Kraut at firstname.lastname@example.org