EX-99.1 2 a04-6847_1ex99d1.htm EX-99.1

Exhibit 99.1

 

Aon Corporation

Consolidated Summary of Operations - Reclassified for Discontinued Operations

 

 

 

2003

 

(millions except per share data)

 

1st
Quarter

 

2nd
Quarter

 

3rd
Quarter

 

4th
Quarter

 

Full Year

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

Brokerage commissions and fees

 

$

1,658

 

$

1,695

 

$

1,646

 

$

1,831

 

$

6,830

 

Premiums and other

 

632

 

635

 

673

 

669

 

2,609

 

Investment income

 

79

 

89

 

57

 

88

 

313

 

Total revenue

 

2,369

 

2,419

 

2,376

 

2,588

 

9,752

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

General expenses

 

1,678

 

1,783

 

1,725

 

1,857

 

7,043

 

Benefits to policyholders

 

345

 

325

 

367

 

390

 

1,427

 

Interest expense

 

28

 

27

 

24

 

22

 

101

 

Amortization of intangible assets

 

13

 

15

 

18

 

17

 

63

 

Unusual charges (credits) - World Trade Center

 

37

 

9

 

—

 

(60

)

(14

)

Total expenses

 

2,101

 

2,159

 

2,134

 

2,226

 

8,620

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before income tax and minority interest

 

268

 

260

 

242

 

362

 

1,132

 

Provision for income tax

 

99

 

96

 

90

 

134

 

419

 

Income from continuing operations before minority interest

 

169

 

164

 

152

 

228

 

713

 

Minority interest - 8.205% trust preferred capital securities

 

(9

)

(9

)

(9

)

(9

)

(36

)

Income from continuing operations

 

160

 

155

 

143

 

219

 

677

 

 

 

 

 

 

 

 

 

 

 

 

 

Discontinued operations

 

 

 

 

 

 

 

 

 

 

 

Loss from discontinued operations

 

(12

)

(15

)

(44

)

(6

)

(77

)

Income tax benefit

 

(4

)

(6

)

(16

)

(2

)

(28

)

Loss from discontinued operations, net of tax

 

(8

)

(9

)

(28

)

(4

)

(49

)

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

152

 

$

146

 

$

115

 

$

215

 

$

628

 

Preferred stock dividends

 

(1

)

—

 

(1

)

(1

)

(3

)

Net income available for common stockholders

 

$

151

 

$

146

 

$

114

 

$

214

 

$

625

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic net income per share:

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

0.51

 

$

0.49

 

$

0.45

 

$

0.68

 

$

2.12

 

Discontinued operations

 

(0.03

)

(0.03

)

(0.09

)

(0.01

)

(0.15

)

Net income

 

$

0.48

 

$

0.46

 

$

0.36

 

$

0.67

 

$

1.97

 

 

 

 

 

 

 

 

 

 

 

 

 

Dilutive net income per share:

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

0.51

 

$

0.49

 

$

0.45

 

$

0.68

 

$

2.12

 

Discontinued operations

 

(0.03

)

(0.03

)

(0.09

)

(0.01

)

(0.15

)

Net income

 

$

0.48

 

$

0.46

 

$

0.36

 

$

0.67

 

$

1.97

 

 

 

 

 

 

 

 

 

 

 

 

 

Dilutive average common and common equivalent shares outstanding

 

315.2

 

318.2

 

318.6

 

319.3

 

317.8

 

 

 

 

 

2002

 

(millions except per share data)

 

1st
Quarter

 

2nd
Quarter

 

3rd
Quarter

 

4th
Quarter

 

Full Year

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

Brokerage commissions and fees

 

$

1,425

 

$

1,491

 

$

1,532

 

$

1,678

 

$

6,126

 

Premiums and other

 

535

 

638

 

607

 

588

 

2,368

 

Investment income (loss)

 

109

 

(26

)

88

 

81

 

252

 

Total revenue

 

2,069

 

2,103

 

2,227

 

2,347

 

8,746

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

General expenses

 

1,435

 

1,643

 

1,621

 

1,683

 

6,382

 

Benefits to policyholders

 

314

 

391

 

350

 

320

 

1,375

 

Interest expense

 

29

 

30

 

32

 

33

 

124

 

Amortization of intangible assets

 

11

 

14

 

13

 

16

 

54

 

Unusual credits - World Trade Center

 

—

 

—

 

(18

)

(11

)

(29

)

Total expenses

 

1,789

 

2,078

 

1,998

 

2,041

 

7,906

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before income tax and minority interest

 

280

 

25

 

229

 

306

 

840

 

Provision for income tax

 

104

 

9

 

84

 

113

 

310

 

Income from continuing operations before minority interest

 

176

 

16

 

145

 

193

 

530

 

Minority interest - 8.205% trust preferred capital securities

 

(10

)

(10

)

(10

)

(4

)

(34

)

Income from continuing operations

 

166

 

6

 

135

 

189

 

496

 

 

 

 

 

 

 

 

 

 

 

 

 

Discontinued operations

 

 

 

 

 

 

 

 

 

 

 

Loss from discontinued operations

 

(9

)

(9

)

(12

)

(17

)

(47

)

Income tax benefit

 

(3

)

(3

)

(5

)

(6

)

(17

)

Loss from discontinued operations, net of tax

 

(6

)

(6

)

(7

)

(11

)

(30

)

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

160

 

$

—

 

$

128

 

$

178

 

$

466

 

Preferred stock dividends

 

(1

)

—

 

(1

)

(1

)

(3

)

Net income available for common stockholders

 

$

159

 

$

—

 

$

127

 

$

177

 

$

463

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic net income per share:

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

0.60

 

$

0.02

 

$

0.49

 

$

0.63

 

$

1.76

 

Discontinued operations

 

(0.02

)

(0.02

)

(0.03

)

(0.04

)

(0.11

)

Net income

 

$

0.58

 

$

—

 

$

0.46

 

$

0.59

 

$

1.65

 

 

 

 

 

 

 

 

 

 

 

 

 

Dilutive net income per share:

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

0.59

 

$

0.02

 

$

0.49

 

$

0.63

 

$

1.75

 

Discontinued operations

 

(0.02

)

(0.02

)

(0.03

)

(0.04

)

(0.11

)

Net income

 

$

0.57

 

$

—

 

$

0.46

 

$

0.59

 

$

1.64

 

 

 

 

 

 

 

 

 

 

 

 

 

Dilutive average common and common equivalent shares outstanding

 

276.6

 

278.0

 

277.1

 

299.0

 

282.6

 

 

 

 

 

2001

 

(millions except per share data)

 

1st
Quarter

 

2nd
Quarter

 

3rd
Quarter

 

4th
Quarter

 

Full Year

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

Brokerage commissions and fees

 

$

1,277

 

$

1,336

 

$

1,289

 

$

1,504

 

$

5,406

 

Premiums and other

 

508

 

492

 

510

 

517

 

2,027

 

Investment income

 

22

 

78

 

105

 

8

 

213

 

Total revenue

 

1,807

 

1,906

 

1,904

 

2,029

 

7,646

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

General expenses

 

1,351

 

1,507

 

1,369

 

1,496

 

5,723

 

Benefits to policyholders

 

292

 

260

 

271

 

288

 

1,111

 

Interest expense

 

36

 

31

 

31

 

29

 

127

 

Amortization of intangible assets

 

39

 

39

 

40

 

40

 

158

 

Unusual charges -World Trade Center

 

—

 

—

 

53

 

105

 

158

 

Total expenses

 

1,718

 

1,837

 

1,764

 

1,958

 

7,277

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before income tax and minority interest

 

89

 

69

 

140

 

71

 

369

 

Provision for income tax

 

35

 

27

 

54

 

30

 

146

 

Income from continuing operations before minority interest

 

54

 

42

 

86

 

41

 

223

 

Minority interest - 8.205% trust preferred capital securities

 

(10

)

(10

)

(10

)

(10

)

(40

)

Income from continuing operations

 

44

 

32

 

76

 

31

 

183

 

 

 

 

 

 

 

 

 

 

 

 

 

Discontinued operations

 

 

 

 

 

 

 

 

 

 

 

Loss from discontinued operations

 

(41

)

(5

)

(7

)

(7

)

(60

)

Income tax benefit

 

(16

)

(2

)

(3

)

(3

)

(24

)

Loss from discontinued operations, net of tax

 

(25

)

(3

)

(4

)

(4

)

(36

)

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

19

 

$

29

 

$

72

 

$

27

 

$

147

 

Preferred stock dividends

 

(1

)

—

 

(1

)

(1

)

(3

)

Net income available for common stockholders

 

$

18

 

$

29

 

$

71

 

$

26

 

$

144

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic net income per share:

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

0.16

 

$

0.12

 

$

0.27

 

$

0.11

 

$

0.67

 

Discontinued operations

 

(0.09

)

(0.01

)

(0.01

)

(0.01

)

(0.13

)

Net income

 

$

0.07

 

$

0.11

 

$

0.26

 

$

0.10

 

$

0.54

 

 

 

 

 

 

 

 

 

 

 

 

 

Dilutive net income per share:

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

0.16

 

$

0.12

 

$

0.27

 

$

0.11

 

$

0.66

 

Discontinued operations

 

(0.09

)

(0.01

)

(0.01

)

(0.01

)

(0.13

)

Net income

 

$

0.07

 

$

0.11

 

$

0.26

 

$

0.10

 

$

0.53

 

 

 

 

 

 

 

 

 

 

 

 

 

Dilutive average common and common equivalent shares outstanding

 

267.9

 

270.2

 

275.4

 

276.9

 

272.4

 

 

 

 

 

2000

 

(millions except per share data)

 

1st
Quarter

 

2nd
Quarter

 

3rd
Quarter

 

4th
Quarter

 

Full Year

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

Brokerage commissions and fees

 

$

1,193

 

$

1,193

 

$

1,167

 

$

1,352

 

$

4,905

 

Premiums and other

 

468

 

491

 

476

 

486

 

1,921

 

Investment income

 

137

 

125

 

133

 

113

 

508

 

Total revenue

 

1,798

 

1,809

 

1,776

 

1,951

 

7,334

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

General expenses

 

1,261

 

1,253

 

1,199

 

1,440

 

5,153

 

Benefits to policyholders

 

252

 

257

 

257

 

271

 

1,037

 

Interest expense

 

31

 

33

 

38

 

38

 

140

 

Amortization of intangible assets

 

38

 

39

 

38

 

39

 

154

 

Total expenses

 

1,582

 

1,582

 

1,532

 

1,788

 

6,484

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before income tax and minority interest

 

216

 

227

 

244

 

163

 

850

 

Provision for income tax

 

84

 

89

 

95

 

63

 

331

 

Income from continuing operations before minority interest

 

132

 

138

 

149

 

100

 

519

 

Minority interest - 8.205% trust preferred capital securities

 

(10

)

(10

)

(10

)

(10

)

(40

)

Income from continuing operations

 

122

 

128

 

139

 

90

 

479

 

 

 

 

 

 

 

 

 

 

 

 

 

Discontinued operations

 

 

 

 

 

 

 

 

 

 

 

Income from discontinued operations

 

2

 

1

 

—

 

1

 

4

 

Income tax provision

 

1

 

—

 

—

 

1

 

2

 

Income from discontinued operations, net of tax

 

1

 

1

 

—

 

—

 

2

 

 

 

 

 

 

 

 

 

 

 

 

 

Cumulative effect of change in accounting principle, net of tax

 

(7

)

—

 

—

 

—

 

(7

)

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

116

 

$

129

 

$

139

 

$

90

 

$

474

 

Preferred stock dividends

 

(1

)

—

 

(1

)

(1

)

(3

)

Net income available for common stockholders

 

$

115

 

$

129

 

$

138

 

$

89

 

$

471

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic net income per share:

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

0.46

 

$

0.50

 

$

0.53

 

$

0.34

 

$

1.83

 

Discontinued operations

 

0.01

 

—

 

—

 

—

 

0.01

 

Cumulative effect of change in accounting principle

 

(0.03

)

—

 

—

 

—

 

(0.03

)

Net income

 

$

0.44

 

$

0.50

 

$

0.53

 

$

0.34

 

$

1.81

 

 

 

 

 

 

 

 

 

 

 

 

 

Dilutive net income per share:

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

0.46

 

$

0.49

 

$

0.53

 

$

0.33

 

$

1.81

 

Discontinued operations

 

0.01

 

—

 

—

 

—

 

0.01

 

Cumulative effect of change in accounting principle

 

(0.03

)

—

 

—

 

—

 

(0.03

)

Net income

 

$

0.44

 

$

0.49

 

$

0.53

 

$

0.33

 

$

1.79

 

 

 

 

 

 

 

 

 

 

 

 

 

Dilutive average common and common equivalent shares outstanding

 

260.5

 

261.7

 

262.8

 

267.0

 

263.0