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Global brokers doing better

The world’s leading brokers are reporting improved results for the first half of 2007. Aon, for example, has beaten analysts’ predictions with a bullish second-quarter result, posting a 24% increase in earnings helped by cost savings and strong organic growth.

Aon reported net profit of $US240 million ($279 million), or earnings per share of US75 cents (87 cents), for the second quarter, up $US47 million ($54 million) from the previous corresponding quarter on earnings of $US2.49 billion ($2.9 billion).

Earnings were up 13% on the corresponding period last year.

The better than expected quarter comes as Aon considers a sale or spin-off for its Combined Insurance unit, an 80-year-old insurer that sells accident, health and life cover in the US, Canada, Europe, Asia and Australia.

No 3 global broker Willis Group Holdings saw second-quarter earnings rise 8%, with CEO Joe Plumeri saying the top line is growing nicely, despite very soft market conditions.

Net earnings were $US78 million ($91 million), with the international unit registering a 7% growth in fees and commissions.

JLT CEO Dominic Burke says his group has lodged a “satisfactory improvement” in earnings, lifting half-year profit by nearly 10%.

Despite a soft international market and weak US dollar, JLT’s underlying profit rose 9.7% to £40.4 million ($96.5 million) on increased revenue of £244.7 million ($584.5 million).