WASHINGTON, D.C. 20549
FORM 10-Q
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) |
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FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2005 |
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OR |
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TRANSITION REPORT PURSUANT TO SECTION 13 OR
15(d) |
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Commission file number 1-7933 |
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Aon Corporation
(Exact Name of Registrant as Specified in Its Charter)
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DELAWARE |
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36-3051915 |
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(State or Other Jurisdiction of |
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(I.R.S. Employer |
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200 E. RANDOLPH STREET, CHICAGO, ILLINOIS |
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60601 |
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(Address of Principal Executive Offices) |
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(Zip Code) |
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(312) 381-1000 |
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(Registrant’s Telephone Number, |
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Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES ý NO o
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule12b-2 of the Exchange Act). YES ý NO o
Number of shares of common stock outstanding:
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Class |
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No. Outstanding |
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$1.00 par value Common |
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317,816,108 |
Part 1
Financial Information
Aon
Corporation
Condensed Consolidated Statements of Financial Position
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As of |
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(millions) |
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Mar. 31, 2005 |
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Dec. 31, 2004 |
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(Unaudited) |
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ASSETS |
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Investments |
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Fixed maturities at fair value |
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$ |
3,783 |
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$ |
3,482 |
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Equity securities at fair value |
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38 |
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40 |
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Short-term investments |
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4,798 |
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4,448 |
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Other investments |
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507 |
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483 |
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Total investments |
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9,126 |
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8,453 |
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Cash |
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526 |
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570 |
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Receivables |
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Risk and insurance brokerage services and consulting |
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8,029 |
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8,235 |
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Other receivables |
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1,601 |
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1,645 |
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Total receivables |
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9,630 |
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9,880 |
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Deferred Policy Acquisition Costs |
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1,135 |
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1,137 |
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Goodwill |
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4,644 |
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4,705 |
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Other Intangible Assets |
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134 |
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133 |
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Property and Equipment, net |
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622 |
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660 |
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Other Assets |
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2,748 |
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2,791 |
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TOTAL ASSETS |
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$ |
28,565 |
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$ |
28,329 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Insurance Premiums Payable |
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$ |
10,209 |
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$ |
9,775 |
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Policy Liabilities |
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Future policy benefits |
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1,528 |
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1,542 |
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Policy and contract claims |
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1,892 |
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1,854 |
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Unearned and advance premiums and contract fees |
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2,972 |
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2,979 |
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Other policyholder funds |
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18 |
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18 |
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Total Policy Liabilities |
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6,410 |
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6,393 |
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General Liabilities |
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General expenses |
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1,436 |
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1,557 |
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Short-term borrowings |
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2 |
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2 |
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Notes payable |
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2,085 |
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2,115 |
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Pension, post-employment and post-retirement liabilities |
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1,560 |
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1,528 |
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Other liabilities |
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1,669 |
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1,806 |
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TOTAL LIABILITIES |
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23,371 |
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23,176 |
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Commitments and Contingent Liabilities |
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Redeemable Preferred Stock |
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50 |
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50 |
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Stockholders’ Equity |
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Common stock - $1 par value |
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340 |
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339 |
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Paid-in additional capital |
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2,448 |
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2,386 |
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Accumulated other comprehensive loss |
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(816 |
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(681 |
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Retained earnings |
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4,182 |
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4,031 |
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Less - |
Treasury stock at cost |
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(783 |
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(783 |
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Deferred compensation |
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(227 |
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(189 |
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TOTAL STOCKHOLDERS’ EQUITY |
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5,144 |
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5,103 |
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TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
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$ |
28,565 |
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$ |
28,329 |
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See the accompanying notes to the condensed consolidated financial statements.
2
Aon Corporation
Condensed Consolidated Statements of Income
(Unaudited)
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First Quarter Ended |
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(millions except per share data) |
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March 31, |
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March 31, |
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Revenue |
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Brokerage commissions and fees |
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$ |
1,720 |
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$ |
1,791 |
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Premiums and other |
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698 |
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692 |
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Investment income |
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93 |
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81 |
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Total revenue |
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2,511 |
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2,564 |
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Expenses |
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General expenses |
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1,702 |
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1,777 |
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Benefits to policyholders |
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393 |
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383 |
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Depreciation and amortization |
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68 |
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70 |
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Interest expense |
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34 |
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34 |
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Provision for New York and other state settlements |
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1 |
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— |
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Total expenses |
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2,198 |
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2,264 |
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