Aon 'watch' continues in broker battle. (second quarter 1996 financial results for Aon Corp., Marsh and McLennan Companies Inc.)

National Underwriter Property & Casualty-Risk & Benefits Management, August, 1996 by Lonkevich, Dan

Few brokers turned in anything resembling an impressive second quarter as pressure continued to build for an industry shakeout, with all eyes trained on Aon to see who the cash-rich brokerage might acquire, according to several analysts. Fierce competition in the U.S. and international markets and soft property-casualty insurance market pricing have done much of the spadework necessary to bury all but the strongest players, analysts say.

On a more positive note, however, analysts said a trend among brokers toward a fee-for-service structure instead of commission dependency holds promise for reducing earnings volatility. Analysts generally agreed that Marsh & McLennan turned in respectable numbers for the second quarter, although they noted even its earnings...

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