Exhibit 99.1
Aon Corporation
Consolidated Summary of Operations - Reclassified for Discontinued Operations
|
| 2004 |
| |||||||
(millions except per share data) |
| 1st |
| 2nd |
| Six |
| |||
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 |
| 2nd |
| 3rd |
| 4th |
| 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 |
| 2nd |
| 3rd |
| 4th |
| 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 |
| 2nd |
| 3rd |
| 4th |
| 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 |
| 2nd |
| 3rd |
| 4th |
| 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 |
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Dilutive net income per share: |
|
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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 |
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Dilutive average common and common equivalent shares outstanding |
| 260.5 |
| 261.7 |
| 262.8 |
| 267.0 |
| 263.0 |
|