Aon Corp.AOC

Morningstar Rating

Stock Research and Analysis

by Bill Bergman

Aon has produced very good returns for its shareholders in recent years, after facing a Securities and Exchange Commission review of its accounting in 2002, the loss of much of its contingent commission revenue in 2004, and sluggish performance in several business lines and associated restructuring costs in 2005-06. Read more

Bulls Say

Aon is taking steps to control its costs and focus on its most-profitable businesses.

After years of weak and declining margins, Aon has made significant strides in improving the value it delivers to customers.

Aon is well-positioned to deliver service for clients interested in gaining access to a single broker for a range of coverage around the world, a relatively rapidly growing element of insurance demand. Read more

Bears Say

Aon's market share gains in recent years are likely to prove transient, as resurgent competition from the likes of Marsh & McLennan MMC proves what goes around, comes around.

Aon is trying to stem its sagging profitability by using technology to eliminate redundant processes and by reducing staff. Lower morale and other side effects could jeopardize the ultimate payoff. Read more

Strategy

Aon provides a wide range of risk management and human resource consulting services around the world. It couples the development of a broad perspective on risk management with locally delivered, customer-specific solutions. Read more

Management

Aon is improving its fidelity to shareholders' interests. Our Stewardship Grade is a C. Greg Case was hired in 2005 as Aon's new president and CEO. Pat Ryan, Aon's chairman and CEO from 1990 to 2005, remains executive chairman, and we view the new split in the chairman and CEO roles as a positive. Read more

Profile

Aon's three business segments provide services relating to insurance and human resources management. The insurance brokerage business helps corporate and institutional clients find appropriate insurance and provides related services. Read more

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