Aon Gains on Best Result in CEO Target Since 2009
Aon, the world’s largest insurance broker, jumped 2.9 percent to $53.84 at 4:04 p.m. in New York, the largest advance in the 24-company KBW Insurance index.
Third-quarter organic revenue, which excludes results from currency fluctuations and acquisitions, climbed 4 percent, compared with a 1 percent improvement a year earlier, the company said in a slide show today. The operating margin advanced to 17.5 percent from 17.2 percent. Operating earnings were 95 cents a share, exceeding last year’s result by 7 cents.
“Our third quarter reflects improvement in each of our three metrics for the first time since the beginning of 2009,” Chief Executive Officer Greg Case said in a conference call with analysts today.
The earnings beat the average estimate of 16 analysts surveyed by Bloomberg by 5 cents per share. Net income climbed to $204 million from $198 million.
Results were driven by “better than anticipated adjusted operating margin performance,” Sandler O’Neill & Partners LP analysts led by Paul Newsome wrote in a note today.
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