GLOBAL - Aon Corporation made cash contributions of $463m to its principal pension plans during 2005, including a $200m contribution to the US pension plan in the fourth quarter.
Aon’s consulting revenue declined by 1% to US$336m in the fourth quarter of 2005 (end 31 December), down from $341m in Q4 2004.
Net income for the full year increased by 35% to $737and net income in Q4 2005 was $224m.
The firm said it expected its three-year restructuring plan to result in cumulative pretax charges of $262m. Annualised cost savings for the re-structure were targeted at approximately $180m by 2008.
Approximately 94% of its investment portfolio at quarter end was reported to be in short-term and fixed maturities, with 98% of the fixed income securities rated investment grade.
President and CEO Greg Case said: For each of our operating segments, 2005 marked a year of good progress.”
Meanwhile Watson Wyatt Worldwide has reported its financial results for the second quarter of fiscal 2006, which ended December 31, 2005.
Revenues were $315.8m for the quarter, up from $175.8m for the second quarter of fiscal 2005.
Watson Wyatt said this revenue increase was mainly driven by the acquisition of its European-based consulting affiliate in July 2005, as well as growth in revenues for benefits, technology and human capital consulting.
Benefits group revenues, which it said represented 53% of second-quarter revenues, were $167.7m for the second quarter of fiscal 2006, up from $95.1m in the prior-year second quarter.
The company said its retirement consulting revenues had grown because of increased demand from existing clients with regards to plan design and administration, as well as revenues from new clients.
John Haley, president and chief executive officer, said: Various factors have prompted the most widespread reassessment of defined benefit plans in decades. In the United States, we remain hopeful that Congress will pass meaningful pension reform to provide some certainty for plan sponsors.”
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