Investments

3 Months Ended

Mar. 31, 2012

Investments

Investments

8.  Investments

The Company earns income on cash balances and investments, as well as on premium trust balances that Aon maintains for premiums collected from insureds but not yet remitted to insurance companies, and funds held under the terms of certain outsourcing agreements to pay certain obligations on behalf of clients.  Premium trust asset balances and a corresponding liability are included in Fiduciary assets and Fiduciary liabilities in the accompanying Condensed Consolidated Statements of Financial Position.

The Company’s interest-bearing assets and other investments are included in the following categories in the Condensed Consolidated Statements of Financial Position (in millions):

	March 31,		December 31,
	2012		2011
Cash and cash equivalents	$	323	$	272
Short-term investments	510		785
Fiduciary assets (1)	4,354		4,190
Investments	211		239
	$	5,398	$	5,486

(1) Fiduciary assets includes funds held on behalf of clients but does not include fiduciary receivables.

The Company’s investments are as follows (in millions):

	March 31,		December 31,
	2012		2011
Equity method investments (2)	$	135	$	164
Other investments, at cost	61		60
Fixed-maturity securities	15		15
	$	211	$	239

(2) The reduction in equity method investments is primarily due to sales and redemptions.