Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : TAVA Technologies (TAVA-NASDAQ) -- Ignore unavailable to you. Want to Upgrade?

To: Ken Salaets who wrote (5380)	11/4/1997 11:14:00 AM
From: Steve Rubakh	Read Replies (1) \| Respond to of 31646

CHICAGO--(BUSINESS WIRE)--November 4, 1997--Aon Corporation (Aon) today announced financial results for the quarter ended September 30, 1997. Third quarter revenue increased 54% to $1.45 billion in 1997 compared to $944 million in the same quarter in 1996, mainly due to acquisitions. Operating income per share, before realized investment gains increased 19% to $0.56 from $0.47 in 1996. Average shares outstanding increased to 170.8 million shares from 164.1 million in the third quarter of 1996, due principally to the conversion of the 6.25% Cumulative Convertible Exchangeable Preferred Stock in November 1996. Also during this quarter Aon announced the redemption of its 8% Cumulative Perpetual Preferred Stock outstanding as of November 3, 1997. Aon's insurance and consulting services segment reported third quarter revenue of $966.7 million, up from $471 million in the same quarter in 1996. The third quarter 1997 revenue includes Minet Group. Revenue in the underwriting segment experienced modest growth, increasing 3.6% to $459 million from $443 million in the same quarter last year. Income before tax in this group increased 2.7% to $72 million from $70 million. Within this segment, Combined Insurance Company of America recorded modest growth in both revenue and income. The extended warranty business continues to grow, with revenue up 23% to $142 million. Extended warranty profits suffered slightly due to an increase in loss experience in one line of the mechanical warranty business. The "Other" underwriting category continues to be profitable, although much of this business is in run off. The Corporate and other pre-tax charge of $17.4 million, compared to a credit of $1.9 million in the prior year, is due primarily to higher interest expense and amortization of intangibles, both of which are related to acquisition activity. Patrick G. Ryan, chairman and chief executive officer of Aon, commenting on the third quarter said: "We are pleased to report that the consolidation in the brokerage and consulting business is progressing substantially as expected. The management teams are in place and their focus is the delivery of comprehensive services to our clients on a global basis. At the same time, we have been able to achieve substantial operating efficiencies. "The underwriting segment is in the early stages of introducing new products in both the U.S. and internationally. Although development costs have had a slight impact on margins, the business is performing well." Aon Corporation is a holding company that comprises a family of insurance brokerage, consulting and insurance underwriting subsidiaries. Aon's common stock (AOC) is listed on the New York, Chicago and London stock exchanges. -0-