Aon Sets Aside $50 Million for Settlements

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Aon Corp.'s top executives recently acknowledged the company could be liable for more than the $50 million set aside to settle state investigations into insurance broker practices, but they maintained no evidence has been found of bid-rigging or fraud.

A day after Aon's announcement concerning settlements, officials at the company said they expect the consequences of pending investigations to be far less severe than they were for bigger rival Marsh & McLennan Cos.

Aon's chief financial officer, David Bolger, acknowledged that the $50 million his company has designated for the settlements is an estimate that, like Marsh's, might increase. "It's what we think is the appropriate number at this time, but it could change because we don't have a settlement," he said on the company's conference call discussing fourth-quarter results.

Aon's fourth-quarter profits declined by 12 percent to $189 million, largely because of its decision to end contingency commissions. The company said it collected $15 million in contingent commissions in the quarter, down from $52 million in the same period of 2003.

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