Aon Corporation: SWOT Analysis & Company Profile by BusinessReview


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									Aon Corporation


Aon Corporation: SWOT Analysis &
Company Profile

Reference code: BRFS093CP10-Q4

Published: Apr 2010

Business Review
John Carpenter House
7 Carmelite Street
London EC4Y 0BS
United Kingdom
Tel: +44 (0) 20 7936 6400
Fax: +44 (0) 20 7336 6813


Aon Corporation - SWOT Profile                                                      Page 1
Aon Corporation


Aon Corporation - Company Overview

Aon Corporation (Aon) is a one of the leading global providers of risk management services, insurance and reinsurance
brokerage, and human capital consulting services. The company provides its services to insurance companies,
corporations, governments, businesses, independent agents and brokers, professional organizations and other entities. It
operates through two reportable business segments, namely, Risk and Insurance Brokerage Services, and Consulting.
The company acts as an advisor and insurance broker, supporting the clients in managing their risks. The consulting
services are offered to the clientele from different sectors such as retirement, health and benefits, compensation, strategic
human capital, and human resource outsourcing. It has a wide network of 500 offices in more than 120 countries. Aon
conducts its operations mainly in Middle East and Africa, the UK, Asia-Pacific, Europe and the US. Aon is headquartered
at Chicago in Illinois, US.

Financial Performance

The company reported revenues of (U.S. Dollars) USD 7,595.00 million during the fiscal year ended December 2009, an
increase of 0.89% over 2008. The operating profit of the company was USD 1,021.00 million during the fiscal year 2009,
an increase of 8.62% over 2008. The net profit of the company was USD 747.00 million during the fiscal year 2009, a
decrease of 48.91% from 2008.

Aon Corporation - Key Facts

Aon Corporation, Key Facts

                                  200 E. Randolph Street,
                                  Chicago, Illinois (IL), 60601,    Ticker Symbol, Stock           AON (New York Stock
Corporate Address:                                                                                 Exchange)
                                  United States

Telephone                         + 1 312 3811000                   No. of Employees               36,200

Fax                               N/A                               Financial Year End             December

URL                                            Revenue (in USD Million)       7,595.00

Industry                          Financial Services

                                  Australia, China, Fiji, Georgia, Guam, Hong Kong Special Administrative Region of China, India,
                                  Japan, Kazakhstan, Malaysia, New Zealand, Papua New Guinea, Philippines, Republic of Korea,
                                  Singapore, Taiwan, Thailand, Vanuatu, Vietnam, Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech
                                  Republic, Denmark, Estonia, Finland, France, Germany, Gibraltar, Greece, Hungary, Ireland, Isle of
                                  Man, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania,
                                  Russian Federation, Serbia, Slovakia, Slovenia, Spain, Sweden, Switzerland, Turkey, Ukraine,
Locations                         United Kingdom, Angola, Bahrain, Botswana, Egypt, Ghana, Israel, Jordan, Kenya, Lebanon,
                                  Lesotho, Malawi, Mauritius, Mozambique, Oman, Qatar, South Africa, Swaziland, Tunisia, Uganda,
                                  United Arab Emirates, United Republic Of Tanzania, Yemen, Zambia, Zimbabwe, Canada, United
                                  States, Antigua and Barbuda, Argentina, Aruba, Bahamas, Barbados, Belize, Bermuda, Bolivia,
                                  Brazil, British Virgin Islands, Cayman Islands, Chile, Colombia, Costa Rica, Ecuador, El Salvador,
                                  Grenada, Guatemala, Guyana, Haiti, Honduras, Jamaica, Mexico, Nicaragua, Panama, Peru, Puerto
                                  Rico, Suriname, Trinidad and Tobago, Turks and Caicos Islands, Uruguay, Venezuela
Source: Annual Report, Company Website, Primary and Secondary Research


Aon Corporation - SWOT Profile                                                                                             Page 2
Aon Corporation


Aon Corporation - Business Description

Aon Corporation (Aon), through its subsidiaries, offers a range of products and services including human capital
consulting, insurance, specialty insurance underwriting, reinsurance brokerage services and management consulting. Its
customer base includes corporations and businesses, insurance companies, professional organizations, independent
agents and brokers, governments and other entities. The company also serves individuals through personal lines, affinity
groups, and certain specialty operations.

The company conducts its business activities through two reportable business segments, namely, Risk and Insurance
Brokerage Services, and Consulting.

Risk and Insurance Brokerage Services segment includes two sub-segments: Risk and Insurance Brokerage, and
Reinsurance Brokerage and Related Services. The Risk and Insurance Brokerage sub-segment of the company provides
retail brokerage services, which include advisory services to media, entertainment, financial institutions, aviation, marine,
construction, healthcare, and energy industries; and risk management solutions such as general liability, property,
directors’ and officers’ liability, and workers’ compensation risks. It also provides affinity products for professional liability,
life, disability income, and personal lines for individuals, associations, and businesses; and premium finance services for
small, mid-sized, and large companies, besides general underwriting, placement, and captive management services.

Aon operates as a broker and offers a range of reinsurance services including advice; placement of reinsurance and
alternative risk transfer arrangements with capital markets, actuarial, financial, and regulatory consulting; portfolio
analysis; catastrophe modeling; and claims services to insurance and reinsurance companies, and other risk assumption
entities, as well as investment banking products and services, and premium financing. The risk and insurance brokerage,
and related services are provided through its indirect subsidiaries namely, Aon Risk Services Companies, Inc., Aon
Holdings International BV, Aon Re Global, Inc., and Aon Limited (U.K.). During the fiscal year 2009, the company
generated revenues of USD 6,305 million from Risk and Insurance Brokerage Services segment, an increase of 1.74%
over 2008.

The company, through the Consulting segment, provides a range of consulting services through its subsidiary, Aon
Consulting Worldwide, Inc. These services are provided through two sub-segments: Consulting Services and
Outsourcing. The Consulting Services sub-segment includes health and benefits, retirement, compensation, strategic
human capital divisions. The Health and Benefits division advises clients regarding the structuring, funding, and
administering of employee benefit programs and its Benefits consulting business consists of health and welfare, workforce
strategies and productivity, executive benefits, benefits administration, absence management, data-driven health,
compliance, employee commitment, investment advisory, and elective benefits services. The Retirement division offers
global actuarial services, investment consulting, defined contribution consulting, tax and ERISA consulting, and pension
administration services.

The Compensation division focuses on compensation advisory, which includes compensation planning design, salary
survey and benchmarking, executive reward strategies, market share studies and sales force effectiveness, with special
expertise in the financial services and technology industries. The Strategic human capital division offers advice to global
organizations on talent, change and organizational effectiveness issues, which include talent strategy and acquisition,
performance management, executive on-boarding, communication strategy, leadership assessment and development,
workforce training and change management. The Outsourcing sub-segment includes human resource outsourcing
solutions such as performance improvement, employment processing, benefits administration and other employment-
related services. During the fiscal year 2009, the company generated revenues of USD 1,267 million from Consulting
segment, down 6.56%
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