EX-99.1 2 a04-12140_1ex99d1.htm EX-99.1

Exhibit 99.1

 

Aon Corporation

Consolidated Summary of Operations - Reclassified for Discontinued Operations

 

 

 

2004

 

(millions except per share data)

 

1st
Quarter

 

2nd
Quarter

 

Six
Months

 

Revenue

 

 

 

 

 

 

 

Brokerage commissions and fees

 

$

1,791

 

$

 1,759

 

$

 3,550

 

Premiums and other

 

692

 

716

 

1,408

 

Investment income

 

81

 

69

 

150

 

Total revenue

 

2,564

 

2,544

 

5,108

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

General expenses

 

1,834

 

1,821

 

3,655

 

Benefits to policyholders

 

383

 

392

 

775

 

Interest expense

 

34

 

35

 

69

 

Amortization of intangible assets

 

13

 

14

 

27

 

Total expenses

 

2,264

 

2,262

 

4,526

 

 

 

 

 

 

 

 

 

Income from continuing operations before income tax

 

300

 

282

 

582

 

Provision for income tax

 

108

 

102

 

210

 

Income from continuing operations

 

192

 

180

 

372

 

 

 

 

 

 

 

 

 

Discontinued operations

 

 

 

 

 

 

 

Loss from discontinued operations

 

(28

)

(10

)

(38

)

Income tax benefit

 

(6

)

(3

)

(9

)

Loss from discontinued operations, net of tax

 

(22

)

(7

)

(29

)

 

 

 

 

 

 

 

 

Net income

 

$

 170

 

$

 173

 

$

 343

 

Preferred stock dividends

 

(1

)

—

 

(1

)

Net income available for common stockholders

 

$

 169

 

$

 173

 

$

 342

 

 

 

 

 

 

 

 

 

Basic net income per share:

 

 

 

 

 

 

 

Income from continuing operations

 

$

 0.60

 

$

 0.56

 

$

 1.16

 

Discontinued operations

 

(0.07

)

(0.02

)

(0.09

)

Net income

 

$

 0.53

 

$

 0.54

 

$

 1.07

 

 

 

 

 

 

 

 

 

Dilutive net income per share:

 

 

 

 

 

 

 

Income from continuing operations

 

$

 0.60

 

$

 0.54

 

$

 1.13

 

Discontinued operations

 

(0.07

)

(0.02

)

(0.09

)

Net income

 

$

 0.53

 

$

 0.52

 

$

 1.04

 

 

 

 

 

 

 

 

 

Dilutive average common and common equivalent shares outstanding

 

321.3

 

337.1

 

329.2

 

 


 

 

 

2003

 

(millions except per share data)

 

1st
Quarter

 

2nd
Quarter

 

3rd
Quarter

 

4th
Quarter

 

Full Year

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

Brokerage commissions and fees

 

$

1,652

 

$

1,687

 

$

1,638

 

$

1,820

 

$

6,797

 

Premiums and other

 

632

 

635

 

673

 

669

 

2,609

 

Investment income

 

79

 

89

 

57

 

87

 

312

 

Total revenue

 

2,363

 

2,411

 

2,368

 

2,576

 

9,718

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

General expenses

 

1,671

 

1,775

 

1,718

 

1,849

 

7,013

 

Benefits to policyholders

 

345

 

325

 

367

 

390

 

1,427

 

Interest expense

 

28

 

27

 

24

 

22

 

101

 

Amortization of intangible assets

 

12

 

14

 

17

 

17

 

60

 

Unusual charges (credits) - World Trade Center

 

37

 

9

 

—

 

(60

)

(14

)

Total expenses

 

2,093

 

2,150

 

2,126

 

2,218

 

8,587

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before income tax and minority interest

 

270

 

261

 

242

 

358

 

1,131

 

Provision for income tax

 

100

 

96

 

90

 

133

 

419

 

Income from continuing operations before minority interest

 

170

 

165

 

152

 

225

 

712

 

Minority interest - 8.205% trust preferred capital securities

 

(9

)

(9

)

(9

)

(9

)

(36

)

Income from continuing operations

 

161

 

156

 

143

 

216

 

676

 

 

 

 

 

 

 

 

 

 

 

 

 

Discontinued operations

 

 

 

 

 

 

 

 

 

 

 

Loss from discontinued operations

 

(14

)

(16

)

(44

)

(2

)

(76

)

Income tax benefit

 

(5

)

(6

)

(16

)

(1

)

(28

)

Loss from discontinued operations, net of tax

 

(9

)

(10

)

(28

)

(1

)

(48

)

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

0.67

 

$

2.12

 

Discontinued operations

 

(0.03

)

(0.03

)

(0.09

)

—

 

(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

 

$

0.67

 

$

2.12

 

Discontinued operations

 

(0.03

)

(0.03

)

(0.09

)

—

 

(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

 

$

1,420

 

$

1,483

 

$

1,527

 

$

1,667

 

$

6,097

 

Premiums and other

 

535

 

638

 

607

 

588

 

2,368

 

Investment income (loss)

 

109

 

(26

)

87

 

81

 

251

 

Total revenue

 

2,064

 

2,095

 

2,221

 

2,336

 

8,716

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

General expenses

 

1,430

 

1,636

 

1,616

 

1,673

 

6,355

 

Benefits to policyholders

 

314

 

391

 

350

 

320

 

1,375

 

Interest expense

 

29

 

30

 

32

 

33

 

124

 

Amortization of intangible assets

 

11

 

13

 

12

 

15

 

51

 

Unusual credits - World Trade Center

 

—

 

—

 

(18

)

(11

)

(29

)

Total expenses

 

1,784

 

2,070

 

1,992

 

2,030

 

7,876

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

1,273

 

$

1,334

 

$

1,284

 

$

1,499

 

$

5,390

 

Premiums and other

 

508

 

492

 

510

 

517

 

2,027

 

Investment income

 

21

 

78

 

105

 

7

 

211

 

Total revenue

 

1,802

 

1,904

 

1,899

 

2,023

 

7,628

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

General expenses

 

1,347

 

1,505

 

1,365

 

1,491

 

5,708

 

Benefits to policyholders

 

292

 

260

 

271

 

288

 

1,111

 

Interest expense

 

36

 

31

 

31

 

29

 

127

 

Amortization of intangible assets

 

39

 

38

 

40

 

40

 

157

 

Unusual charges - World Trade Center

 

—

 

—

 

53

 

105

 

158

 

Total expenses

 

1,714

 

1,834

 

1,760

 

1,953

 

7,261

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before income tax and minority interest

 

88

 

70

 

139

 

70

 

367

 

Provision for income tax

 

35

 

27

 

53

 

30

 

145

 

Income from continuing operations before minority interest

 

53

 

43

 

86

 

40

 

222

 

Minority interest - 8.205% trust preferred capital securities

 

(10

)

(10

)

(10

)

(10

)

(40

)

Income from continuing operations

 

43

 

33

 

76

 

30

 

182

 

 

 

 

 

 

 

 

 

 

 

 

 

Discontinued operations

 

 

 

 

 

 

 

 

 

 

 

Loss from discontinued operations

 

(40

)

(6

)

(6

)

(6

)

(58

)

Income tax benefit

 

(16

)

(2

)

(2

)

(3

)

(23

)

Loss from discontinued operations, net of tax

 

(24

)

(4

)

(4

)

(3

)

(35

)

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

1,191

 

$

1,190

 

$

1,164

 

$

1,349

 

$

4,894

 

Premiums and other

 

468

 

491

 

476

 

486

 

1,921

 

Investment income

 

136

 

124

 

132

 

112

 

504

 

Total revenue

 

1,795

 

1,805

 

1,772

 

1,947

 

7,319

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

General expenses

 

1,258

 

1,250

 

1,196

 

1,438

 

5,142

 

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

 

1,579

 

1,579

 

1,529

 

1,786

 

6,473

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before income tax and minority interest

 

216

 

226

 

243

 

161

 

846

 

Provision for income tax

 

84

 

88

 

95

 

63

 

330

 

Income from continuing operations before minority interest

 

132

 

138

 

148

 

98

 

516

 

Minority interest - 8.205% trust preferred capital securities

 

(10

)

(10

)

(10

)

(10

)

(40

)

Income from continuing operations

 

122

 

128

 

138

 

88

 

476

 

 

 

 

 

 

 

 

 

 

 

 

 

Discontinued operations

 

 

 

 

 

 

 

 

 

 

 

Income from discontinued operations

 

2

 

2

 

1

 

3

 

8

 

Income tax provision

 

1

 

1

 

—

 

1

 

3

 

Income from discontinued operations, net of tax

 

1

 

1

 

1

 

2

 

5

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

0.33

 

$

1.82

 

Discontinued operations

 

0.01

 

—

 

—

 

0.01

 

0.02

 

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

 

$

0.32

 

$

1.80

 

Discontinued operations

 

0.01

 

—

 

—

 

0.01

 

0.02

 

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