Chicago (August 9, 2002) --Aon Corp., parent company of the administrator of the American Institute of CPAs' professional liability insurance program, disclosed that it is in discussions with the Securities and Exchange Commission over possible accounting irregularities.The Chicago-based parent company of AICPA program manager Aon Insurance Services, on Thursday said that it has been in discussions with the SEC over a Form 10 filing earlier this year for a proposed business spin-off, and a comment letter regarding its 2001 Form 10-K and first-quarter 2002 Form 10-Q .financial filings. The company said that its reporting complies with Generally Accepted Accounting Principals, but also said that based on the SEC talks, it concluded, "certain non-cash other than temporary losses should have been recorded in prior periods."
Published reports say that Aon may have to restate its earnings for 1999, 2000, and the first quarter of 2002.
The announcement about the SEC discussions was part of Aon's second quarter financial report, which showed break-even results for the second quarter this year, compared to an 11 cents-per-share gain for the same period in 2001. In July, Aon denied reports about an SEC probe.
Aon, a holding company comprised of several brokerage, consulting, and underwriting services, manages the AICPA insurance program, but does not write that insurance. That coverage is provided by CNA Insurance Cos., also in Chicago.
John M. Covaleski
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