EX-99.1 2 a06-4422_1ex99d1.htm EXHIBIT 99.1

Exhibit 99.1

 

Aon Corporation

Consolidated Summary of Operations - Reclassified for Discontinued Operations

 

 

 

2005

 

(millions except per share data)

 

1st
Quarter

 

2nd
Quarter

 

3rd
Quarter

 

Nine
Months

 

Revenue

 

 

 

 

 

 

 

 

 

Brokerage commissions and fees

 

$

1,675

 

$

1,664

 

$

1,582

 

$

4,921

 

Premiums and other

 

698

 

718

 

732

 

2,148

 

Investment income

 

91

 

74

 

73

 

238

 

Total revenue

 

2,464

 

2,456

 

2,387

 

7,307

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

General expenses

 

1,659

 

1,711

 

1,695

 

5,065

 

Benefits to policyholders

 

393

 

381

 

402

 

1,176

 

Depreciation & amortization

 

67

 

62

 

80

 

209

 

Interest expense

 

34

 

31

 

29

 

94

 

Provision for New York and other state settlements

 

1

 

2

 

1

 

4

 

Total expenses

 

2,154

 

2,187

 

2,207

 

6,548

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before provision for income tax

 

310

 

269

 

180

 

759

 

Provision for income tax

 

112

 

89

 

60

 

261

 

Income from continuing operations

 

198

 

180

 

120

 

498

 

 

 

 

 

 

 

 

 

 

 

Discontinued operations

 

 

 

 

 

 

 

 

 

Income from discontinued operations

 

3

 

20

 

3

 

26

 

Income tax provision

 

1

 

9

 

1

 

11

 

Income from discontinued operations, net of tax

 

2

 

11

 

2

 

15

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

200

 

$

191

 

$

122

 

$

513

 

Preferred stock dividends

 

(1

)

—

 

(1

)

(2

)

Net income available for common stockholders

 

$

199

 

$

191

 

$

121

 

$

511

 

 

 

 

 

 

 

 

 

 

 

Basic net income per share:

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

0.61

 

$

0.56

 

$

0.36

 

$

1.54

 

Discontinued operations

 

0.01

 

0.03

 

0.01

 

0.05

 

Net income

 

$

0.62

 

$

0.59

 

$

0.37

 

$

1.59

 

 

 

 

 

 

 

 

 

 

 

Dilutive net income per share:

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

0.58

 

$

0.54

 

$

0.35

 

$

1.48

 

Discontinued operations

 

0.01

 

0.03

 

0.01

 

0.04

 

Net income

 

$

0.59

 

$

0.57

 

$

0.36

 

$

1.52

 

 

 

 

 

 

 

 

 

 

 

Dilutive average common and common equivalent shares outstanding

 

337.1

 

338.5

 

342.7

 

339.4

 

 


 

 

 

2004

 

(millions except per share data)

 

1st
Quarter

 

2nd
Quarter

 

3rd
Quarter

 

4th
Quarter

 

Full Year

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

Brokerage commissions and fees

 

$

1,739

 

$

1,691

 

$

1,601

 

$

1,791

 

$

6,822

 

Premiums and other

 

692

 

716

 

693

 

687

 

2,788

 

Investment income

 

80

 

69

 

50

 

122

 

321

 

Total revenue

 

2,511

 

2,476

 

2,344

 

2,600

 

9,931

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

General expenses

 

1,725

 

1,707

 

1,682

 

1,855

 

6,969

 

Benefits to policyholders

 

383

 

392

 

379

 

362

 

1,516

 

Depreciation & amortization

 

69

 

82

 

77

 

75

 

303

 

Interest expense

 

34

 

35

 

32

 

35

 

136

 

Provision for New York and other state settlements

 

—

 

—

 

—

 

180

 

180

 

Total expenses

 

2,211

 

2,216

 

2,170

 

2,507

 

9,104

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before provision for income tax

 

300

 

260

 

174

 

93

 

827

 

Provision for income tax

 

107

 

93

 

62

 

20

 

282

 

Income from continuing operations

 

193

 

167

 

112

 

73

 

545

 

 

 

 

 

 

 

 

 

 

 

 

 

Discontinued operations

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from discontinued operations

 

(28

)

12

 

13

 

13

 

10

 

Income tax provision (benefit)

 

(5

)

6

 

3

 

5

 

9

 

Income (loss) from discontinued operations, net of tax

 

(23

)

6

 

10

 

8

 

1

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

170

 

$

173

 

$

122

 

$

81

 

$

546

 

Preferred stock dividends

 

(1

)

—

 

(1

)

(1

)

(3

)

Net income available for common stockholders

 

$

169

 

$

173

 

$

121

 

$

80

 

$

543

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic net income per share:

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

0.60

 

$

0.52

 

$

0.35

 

$

0.23

 

$

1.70

 

Discontinued operations

 

(0.07

)

0.02

 

0.03

 

0.02

 

—

 

Net income

 

$

0.53

 

$

0.54

 

$

0.38

 

$

0.25

 

$

1.70

 

 

 

 

 

 

 

 

 

 

 

 

 

Dilutive net income per share:

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

0.58

 

$

0.50

 

$

0.33

 

$

0.22

 

$

1.63

 

Discontinued operations

 

(0.07

)

0.02

 

0.03

 

0.02

 

—

 

Net income

 

$

0.51

 

$

0.52

 

$

0.36

 

$

0.24

 

$

1.63

 

 

 

 

 

 

 

 

 

 

 

 

 

Dilutive average common and common equivalent shares outstanding

 

335.3

 

337.1

 

337.4

 

336.4

 

336.6

 

 


 

 

 

2003

 

(millions except per share data)

 

1st
Quarter

 

2nd
Quarter

 

3rd
Quarter

 

4th
Quarter

 

Full Year

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

Brokerage commissions and fees

 

$

1,600

 

$

1,618

 

$

1,574

 

$

1,753

 

$

6,545

 

Premiums and other

 

632

 

635

 

673

 

669

 

2,609

 

Investment income

 

79

 

89

 

55

 

87

 

310

 

Total revenue

 

2,311

 

2,342

 

2,302

 

2,509

 

9,464

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

General expenses

 

1,563

 

1,659

 

1,616

 

1,731

 

6,569

 

Benefits to policyholders

 

345

 

325

 

367

 

390

 

1,427

 

Depreciation & amortization

 

66

 

77

 

80

 

84

 

307

 

Interest expense

 

28

 

27

 

24

 

22

 

101

 

Unusual charges (credits) - World Trade Center

 

37

 

9

 

—

 

(60

)

(14

)

Total expenses

 

2,039

 

2,097

 

2,087

 

2,167

 

8,390

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before provision for income tax and minority interest

 

272

 

245

 

215

 

342

 

1,074

 

Provision for income tax

 

101

 

90

 

79

 

126

 

396

 

Income from continuing operations before minority interest

 

171

 

155

 

136

 

216

 

678

 

Minority interest - 8.205% trust preferred capital securities

 

(9

)

(9

)

(9

)

(9

)

(36

)

Income from continuing operations

 

162

 

146

 

127

 

207

 

642

 

 

 

 

 

 

 

 

 

 

 

 

 

Discontinued operations

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from discontinued operations

 

(16

)

—

 

(17

)

14

 

(19

)

Income tax provision (benefit)

 

(6

)

—

 

(5

)

6

 

(5

)

Income (loss) from discontinued operations, net of tax

 

(10

)

—

 

(12

)

8

 

(14

)

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

0.46

 

$

0.40

 

$

0.64

 

$

2.01

 

Discontinued operations

 

(0.03

)

—

 

(0.04

)

0.03

 

(0.04

)

Net income

 

$

0.48

 

$

0.46

 

$

0.36

 

$

0.67

 

$

1.97

 

 

 

 

 

 

 

 

 

 

 

 

 

Dilutive net income per share:

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

0.49

 

$

0.45

 

$

0.39

 

$

0.63

 

$

1.94

 

Discontinued operations

 

(0.03

)

—

 

(0.04

)

0.02

 

(0.04

)

Net income

 

$

0.46

 

$

0.45

 

$

0.35

 

$

0.65

 

$

1.90

 

 

 

 

 

 

 

 

 

 

 

 

 

Dilutive average common and common equivalent shares outstanding

 

329.2

 

332.2

 

332.6

 

333.3

 

331.8

 

 


 

 

 

2002

 

(millions except per share data)

 

1st
Quarter

 

2nd
Quarter

 

3rd
Quarter

 

4th
Quarter

 

Full Year

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

Brokerage commissions and fees

 

$

1,372

 

$

1,419

 

$

1,463

 

$

1,599

 

$

5,853

 

Premiums and other

 

535

 

638

 

607

 

588

 

2,368

 

Investment income (loss)

 

108

 

(28

)

86

 

83

 

249

 

Total revenue

 

2,015

 

2,029

 

2,156

 

2,270

 

8,470

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

General expenses

 

1,342

 

1,539

 

1,525

 

1,553

 

5,959

 

Benefits to policyholders

 

314

 

391

 

350

 

320

 

1,375

 

Depreciation & amortization

 

57

 

66

 

59

 

72

 

254

 

Interest expense

 

29

 

30

 

32

 

33

 

124

 

Unusual credits - World Trade Center

 

—

 

—

 

(18

)

(11

)

(29

)

Total expenses

 

1,742

 

2,026

 

1,948

 

1,967

 

7,683

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before provision for income tax and minority interest

 

273

 

3

 

208

 

303

 

787

 

Provision for income tax

 

101

 

—

 

76

 

112

 

289

 

Income from continuing operations before minority interest

 

172

 

3

 

132

 

191

 

498

 

Minority interest - 8.205% trust preferred capital securities

 

(10

)

(10

)

(10

)

(4

)

(34

)

Income (loss) from continuing operations

 

162

 

(7

)

122

 

187

 

464

 

 

 

 

 

 

 

 

 

 

 

 

 

Discontinued operations

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from discontinued operations

 

(2

)

13

 

9

 

(14

)

6

 

Income tax provision (benefit)

 

—

 

6

 

3

 

(5

)

4

 

Income (loss) from discontinued operations, net of tax

 

(2

)

7

 

6

 

(9

)

2

 

 

 

 

 

 

 

 

 

 

 

 

 

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 (loss) from continuing operations

 

$

0.59

 

$

(0.03

)

$

0.44

 

$

0.62

 

$

1.64

 

Discontinued operations

 

(0.01

)

0.03

 

0.02

 

(0.03

)

0.01

 

Net income

 

$

0.58

 

$

—

 

$

0.46

 

$

0.59

 

$

1.65

 

 

 

 

 

 

 

 

 

 

 

 

 

Dilutive net income per share:

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations

 

$

0.58

 

$

(0.03

)

$

0.44

 

$

0.62

 

$

1.63

 

Discontinued operations

 

(0.01

)

0.03

 

0.02

 

(0.03

)

0.01

 

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

 

$

1,234

 

$

1,286

 

$

1,234

 

$

1,439

 

$

5,193

 

Premiums and other

 

508

 

492

 

510

 

517

 

2,027

 

Investment income

 

20

 

76

 

104

 

6

 

206

 

Total revenue

 

1,762

 

1,854

 

1,848

 

1,962

 

7,426

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

General expenses

 

1,271

 

1,425

 

1,287

 

1,406

 

5,389

 

Benefits to policyholders

 

292

 

260

 

271

 

288

 

1,111

 

Depreciation & amortization

 

83

 

83

 

83

 

86

 

335

 

Interest expense

 

36

 

31

 

31

 

29

 

127

 

Unusual charges - World Trade Center

 

—

 

—

 

53

 

105

 

158

 

Total expenses

 

1,682

 

1,799

 

1,725

 

1,914

 

7,120

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before provision for income tax and minority interest

 

80

 

55

 

123

 

48

 

306

 

Provision for income tax

 

32

 

21

 

47

 

20

 

120

 

Income from continuing operations before minority interest

 

48

 

34

 

76

 

28

 

186

 

Minority interest - 8.205% trust preferred capital securities

 

(10

)

(10

)

(10

)

(10

)

(40

)

Income from continuing operations

 

38

 

24

 

66

 

18

 

146

 

 

 

 

 

 

 

 

 

 

 

 

 

Discontinued operations

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from discontinued operations

 

(32

)

9

 

10

 

16

 

3

 

Income tax provision (benefit)

 

(13

)

4

 

4

 

7

 

2

 

Income (loss) from discontinued operations, net of tax

 

(19

)

5

 

6

 

9

 

1

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

0.14

 

$

0.09

 

$

0.24

 

$

0.07

 

$

0.54

 

Discontinued operations

 

(0.07

)

0.02

 

0.02

 

0.03

 

—

 

Net income

 

$

0.07

 

$

0.11

 

$

0.26

 

$

0.10

 

$

0.54

 

 

 

 

 

 

 

 

 

 

 

 

 

Dilutive net income per share:

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

0.14

 

$

0.09

 

$

0.24

 

$

0.07

 

$

0.53

 

Discontinued operations

 

(0.07

)

0.02

 

0.02

 

0.03

 

—

 

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