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Aon Corp.'s (AOC) reported Friday that its first-quarter net income rose 28% amid an $83 million pension gain while the insurance company's brokerage and consulting operation each reported small organic-revenue growth.

The results fell short of analysts' expectations.

In general, as catastrophes continue to run below long-term averages, insurance brokerages have been grappling with how to price policies low enough to attract customers less concerned with risk. The resulting price wars have been taking a toll on insurers.

Aon has been undergoing major restructuring for more than a year, including job cuts and sales of some of its businesses. It also bought U.K. reinsurance broker Benfield Group Ltd. for $1.51 billion in November as part of its plan to boost the reach of its insurance group, marking a major consolidation in the reinsurance broker market, where intermediaries arrange cover for insurers for risks that are too big to keep on their own balance sheets.

Chief Executive Greg Case said the results reflected progress in the face of soft market conditions.

Aon, one of the world's largest insurance brokerages, posted net income of $280 million, or 97 cents a share, up from $218 million, or 68 cents a share, a year earlier. Excluding the pension gain and restructuring costs, earnings from continuing operations rose to 76 cents from 70 cents.

Revenue decreased 2.7% to $1.85 billion, with the stronger dollar cutting revenue by 10 percentage points. Also, there was a 44% decline in investment income.

Analysts surveyed by Thomson Reuters expected earnings of 88 cents on revenue of $2.08 billion.

Organic revenue, a closely watched indicator that excludes recent acquisitions and divestitures as well as currency fluctuations, rose 1%.

At Aon's largest unit, risk and insurance brokerage services, organic revenue rose 2%. The segment's pretax profit - the company didn't provide after-tax figures - rose 4% excluding items. Organic revenue in the consulting business also increased 2%, while pretax earnings fell 21% excluding items.

The company widened its estimate for how much it would save through its restructuring plan this year, saying it expects to save $240 million to $265 million this year and $370 million next year.

Aon's shares closed Thursday at $42.20 and haven't traded premarket.

-By Kerry E. Grace, Dow Jones Newswires; 201-938-5089; kerry.grace@dowjones.com