Good morning and thank you for holding. Welcome to Aon Corporations Second Quarter 2010 Earnings Conference. (Operator Instructions). It is important to note that some of the comments in today's call may constitute certain statements that are forward-looking in nature as defined by the Private Securities Reform Act of 1995. Such statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or those anticipated. Information concerning risk factors that could cause such differences are described in the press release covering our second quarter results, as well as having been posted on our website. In connection with the proposed transaction with Aon and Hewitt and as filed a registration statement on Form S-4 on July 26, 2010 which also constitutes a preliminary joint proxy statement for Aon and Hewitt and contains the preliminary prospects for Aon. Before making any boding or investment decision, investors and stockholders are argue to read carefully in its entirety, the definitive joint proxy statement, prospects regarding the proposed transaction and any other relevant documents filed by either Aon or Hewitt with the SEC when they became available. They will contain important information about this proposed transaction. Now, it is my pleasure to turn the call over to Greg Case, President, and CEO of Aon Corporation. Sir, you may begin.

Thanks a very much and good morning everyone and welcome to our second quarter 2010 conference call. Joining me here today is our CFO, Christa Davies. To begin, this was an incredibly exciting quarter. Highlighted by the recent announcement of our pending merger with Hewitt creating Aon Hewitt a global leader in human capital solutions and in addition to that the beginning of our four year partnership Manchester United which will substantially strengthen Aon brand recognition around the globe. Against this backdrop these great highlights our team is proud to deliver results, that represent a strong quarter a continued progress and momentum. As we have said before, irrespective of economic conditions, the soft market or other challenges outside our control we continue to execute our plans to substantially strength our firm, positioning Aon as the preeminent global professional services firm in the world focused on risk and human capital solutions. Consistent with our previous quarterly updates I would like cover three areas before turning the call over to Christa for further financial review. First is our performance against key commitments to shareholders, second is continued areas of investment across Aon including the brief update on the progress of Aon Hewitt and third is overall organic growth performance. On the first topic our performance versus commitments, each quarter we measure our performance against the three metrics we committed to shareholders to achieving over the course of the year. To grow organically expand margins and increase earnings per share. In the second quarter, organic revenue declined 1% and improvement from a negative 3% in the prior quarter as consulting delivered positive organic revenue for the first time since Q1 of 2009 and brokerage delivered significant improvement with organic growth coming from key areas such as Latin America, Asia Pacific and benefits from…

Thanks so much Greg and good morning everyone. As Greg noted our second quarter results reflect continued to progress to strengthen our industry leading positions and client serving capabilities across risk and human capital. With simultaneous improvement in each of our three key financial metric. The rate of organic revenue improved in both segments from the prior quarter. Strong expense discipline drove significant operating margin expansion and EPS from continuing operations showed solid growth. Now let me turn to the results from second quarter, GAAP EPS of continuing operations was $0.63 per share for the second quarter. Our core EPS performance reflected in an adjusted EPS of $0.81 per share for the second quarter up 7% compared to $0.76 in the prior year quarter. The difference between GAAP and our adjusted EPS is $31 million or $0.08 per share of restructuring charges and a non-cash charge to pension expense of 49 million or $0.10 per share which resulted from an adjustment for the market related value of planned asset to properly reflect the merger of two U.S. pension plan in 1999. This adjustment has no material impact on funded status of plans, pension expense or expected contribution for the year. Also included in the results foreign currency translation had a favorable impact of approximately $0.02 per share on adjusted EPS results. As we look at translation impact for the second half of 2010 we would anticipate a very modest unfavorable impact on EPS subject to movements in foreign currency. Now let me talk about each of the segments. In our brokerage segment against an organic revenue decline of 1% we delivered an adjusted operating margin of 21% up 200 basis points from the prior year quarter. Our performance for the quarter continues to demonstrate strong operation discipline and structural margin…

Thank you. (Operator Instructions). Our first question comes from Keith Walsh. Please state your company name.

Hi good morning everybody. It's Keith Walsh from Citi. First question I guess for Christa and/or Greg, around the expenses, listening to some of the other conference calls this quarter, it seems that the natural inflationary lifting comp is coming back again and maybe if you could talk to this issue a little and then thinking about it specially excluding your large cost saving program, what is the natural rate of organic growth really needed going forward to be margin neutral versus say the last two years?

Yeah, so if you think about out expense cycle, you will see a very large portion of our expenses Keith our people and if you think about the fundamental sort of inflationary pressure on that, it's probably around 2%. So if you think about sort of the neutralizing, which I think is the old sort of question, it would be 2% and obviously we've said that we think have sort of growth rate longer term is a couple of hundred basis points above GDP. So that gives us substantial operating leverage over that base.

Okay and the second question for Greg. You guys are the best our there given the professional liability advice to your clients. But with all due respect, you don't seem to be taking that advice for your own business and I guess the question would be, where do you stand on this issue of liability caps and why haven't we seen a much more aggressive policy towards implementing them like your rival Marsh has done? Thanks.

Keith thanks for the questions. We have obviously though a lot about the limitation liability point that you're raising and from our standpoint as we always knew we said it a lot of time with our clients talking about it during their views, reflections of perspectives on it and as we continue to evaluate it we want to make sure we are always giving the best solution for them possible but in the context of that obviously we have got in the folds of time make sure we are mindful of the risk that Aon takes from a balance sheet standpoint and we are not in a position as you are highlighting to take balance sheet risk, that's just not the business we are in. We are in a wide space business and so you can look for us in the second half of the year. They will be taking a more proactive stance on this as we think about serving our clients as effectively we can but also protecting the Aon balance sheet in the context of what we do. Those were great question.

So, I would assume just from your answer that you have been in discussions on this and you do have potentially some things to talk about with respect to this going forward.

That's absolutely correct and you can look for us in the second half of the year. We will be taking a much stronger stance on this and doing so in a way that we want to try to be as client adapted and client friendly as possible but also at the same time again making sure we are mindful of our balance sheet and what we do and again as you are really highlighting we are in advice business not balance sheet business and we are going to make sure we are going to make sure we protect against the liabilities that come with that.

Great thanks a lot.

Thank you. Our next question comes from Jay Cohen. Your line is open and please state your company name. Jay Cohen - Bank of America/Merrill Lynch: Bank of America/Merrill Lynch, Greg I was wondering in your consulting business are you seeing any increased demand yet due to the healthcare reform that has been put in place.

Jay we are really just starting to see the grasp on that. From our standpoint if you step back and think about sort of what the implications of this could be overtime we do believe there is going to be, there is real opportunity here. As we said before you take a step back and say is there going to be healthcare, yes. Is there going to be some version of employer coverage of that, some way, shape or form, we believe that's going to be yes certainly for the foreseeable future and the context of that is that healthcare bill get some clarity and still there is some lack in clarity and exactly if you look like our clients are very, very interested in understanding how they can actually get themselves prepared for that. As an example we have been holding webcast over the course of last six, seven months. We have held six webcast, over 6000 folks join that, employees that and it's actually very, very positive. Ten seminars, 115 participants come to that specific client is very, very positive. In the context of what we have done we think there is a lot of opportunity, we are just beginning to see the tip of that and obviously we feel strongly about this opportunity given some of the other announcements we made recently in the context of what we are trying to do. Jay Cohen - Bank of America/Merrill Lynch: Got it.

It's not showing up in the quarter right now. We are just starting to see this break a bit. Jay Cohen - Bank of America/Merrill Lynch: Got it and then second question, Greg, I am wondering if you can talk about the reaction you have gotten from your clients in regard to the announcement you made on contingent compensation.

Well Jay as we have done very, very carefully much of the same conversation we had on the whole conversation of limited liability. I have really spent time to talking to clients quite extensively. Steve McGill and our entire team on the retail side I think they have done an exceptional job and they have spent really many months spending time with clients on how they think about this, how they go through it, prospectus it and et cetera, and we have actually had a very muted reaction at this point in terms of sort of what we were going to announce. Remember it's not that surprising, if you think about how we think about compensation and for us this is not about contingent it is very much around value to price. We have essentially said to clients we will be the highest value in the industry. We will absolutely pursue a set of capabilities that will deliver value. We may cost a dollar but we'll deliver $2. The client, somebody else, another competitor might be much cheaper, say $0.50 but they're going to deliver $0.52 as an example and our clients really understand that and really appreciate sort of the value approach we take. In terms of the forms of remuneration, as we've said before, the key part of this is really transparency, making sure they understand the value they receive and the price they pay for it and we led the industry around transparency. And back in July 2008 Steve McGill testified on the context of continued commissions and we said at the time, look there is not -- this is not an irreconcilable conflict. Transparency is the absolute key to this. And as we've talked to clients about it they fully understand it. I'd also just remind you again, if you think about sort of the history of continued commissions, they've never been a huge thing for Aon. If you go back to the last time they were really reported in business insurance and look at the top 20 takes of contingent commissions, on the top 20 we were very much at the tail, 19 or 20 on the ranking list. Some other prominent folks out there were much, much higher on the list at time like number one, number two, number three and they just have never been a huge part of what we've done. What we essentially said is look, they are out there, they are available and as we talk to clients and markets, if it makes sense we'll take them, if it doesn't we wont. But again it's not an overwriting factor for us either way. It's very much around value of the price and how we deliver that for clients. Jay Cohen - Bank of America/Merrill Lynch: Got it, thanks for the response.

Sure.

Thank you. Our next question comes from Meyer Shields. Your line is open and please state your company name.

Thanks good morning, its Stifel Nicolaus.

Hey Meyer.

Good morning all. I'm sorry. In the press release Greg you made mention of the benefits coming from the GRIP platform. I feel some of that is commission leakage. I was hoping you could sort of expand on that a little bit.

Yeah, I think really, as we're really talking about here, if you take a step back and think about all the initiatives we've been driving around, that's really the category of Aon Broking. Efforts to really think about our broad based approach and as we think and talk to clients and we talk to markets, just making it absolutely clear that in the context as we deliver value to clients and place premiums that we get the delivery on the market front that markets have agreed to. So its essentially a way to think about reduction of leakage and leakage again for us is defined as, if a market has promised 10% and they pay us less than that its just really trying to reconcile the difference between the two and we've made a number of investments in the context of Aon Broking around that, both in sort of how we understand our system, which is really what the Global Risk Insight Platform is about. It really is just understanding every trade we make in the system globally everyday in a real time basis. This has been a multi year investment. It's given us tremendous capability that we didn't have before and lets us be able to evaluate leakage, it helps us really monitor and manage the Broking. It gives us market insights. It helps us understand the kind of penetration we're having with clients and how we think about that. So it's really a whole range of things we've done really across our overall system. For us the GRIP is really a, the Risk Insight Platform is really an engine. It gives us a very unique use of view on data and we don't think anybody else has. It provides an opportunity for us to both talk to clients around greater benchmarking than they've ever seen before. It also gives us the opportunity to talk to markets and create a fee based offering to the extent it can help markets understand situations and their strategy better. So it really gives us a full range of things we can do and we've now got it implemented in 20 countries around the world, roughly $33 billion of premium flow rented in the system. As I mentioned in my opening comments 500,000 trades have been placed or monitored and its really, for us its an overall sort of efforts that have begun, just beginning to kind of really pay dividends across the Aon Broking Platform.

Okay, and second if you change direction a little bit, there have been some news reports about Aon trying to retain a business that has historically since third party wholesalers and I was hoping you could to that a little bit.

Yeah for us this is really a back kick. It really relates to the previous question you had and it was really around the concept of how we actually think about our overall business. From our stand point we have what we believe a really -- the most unique set of capabilities in the world in what we do and how we place products and how we approach that everyday and what we've essentially said is we want to absolutely make sure we protect our clients and give them the best insight and the best available placing capability around the world and we also in the context when we just described around Aon broking created a set of opportunities that really helps us measure, manage and monitor the over all process which the Risk Insight Platform does and all we really did was just highlight that we were going to do that more and more on behalf of our clients and as such kind of restrict to what we do outside of that over all network because we think it's in the best interest of our clients.

Okay thanks so much.

Thank you, our next question comes from Jay Gelb; your line is open and please state your company name.

Jay Gelb from Barclays Capital thanks. Greg or Christa, two questions for you. First, can you talk about the timeframe of which to achieve the 25% margin in brokerage? That's the first one and then second is, I now Aon is starting off with a very low base or maybe nothing currently at contingent commissions, but I think investors are really interested in having a sense of how much you feel you can collect over what sort of time frame? Thanks.

Good Jay, in terms of our 25% brokerage margin, obviously we are very committed to that margin and very much in the same way we were committed to the 20% margin and we put it out there as long term goal. We have not given a timeframe around that goal, what we have said is that there are five key drivers to get to that goal. The first three are within our control and they are, number one sort of operating improvements of which we still have substantial savings for our restructuring and program, yet to flow through, in fact a168 million of saving yet to flow through in brokerage. The second one is the continued roll out of the revenue engine, particularly in APAC and EMEA, which is driving substantial improvements in revenue both improve retention rates and expended new business. The third one is Aon broking which as Greg has described is sort of quiet holistic around the way we think about sort of market and developing capabilities to better match, ensure appetite for risk and client needs. We believe that we can make substantial progress on just those three initiatives within under our control and in addition there are two sort of initiatives that really are based on market improvements and sort of the head wins we are currently facing, the first and most significant one is GDP and improved short term interest rates as you know a hundred basis points improvement in interest rate it's 35 million dollars top line and bottom line and then the last one is insurance pricing and we have continued to say, we do not need insurance pricing to turn around to get to the 25% margin long term. We are incredibly committed to delivering that margin long term.

And so I think, Jay what you see in the contest is the three things under our control that Christa just described is really is our blueprint to kind of march towards 25% and we are going to do that. The other two, we don't think -- it can get much worst, we'll see, they could potentially could I guess. But we think potentially could be real tail wins to the extent they would be kick in either in the economy or insurance pricing either one, other wise the former, the economy is much more powerful than insurance pricing just for reference. :

Thanks and then on the margin, if at some point if you can even just give us a range whether it's three years or five years or longer in terms when to get there I think it will be helpful.

We understand.

Thank you. Our next question comes from Dan Johnson. Your line is open and please state your company name.

Citadel, thanks for taking the questions. Good morning. Just a couple please, good morning. Can we talk a little bit about the North American brokerage performance maybe couple of things, can you touch on how things are going in the sort of new loss retention sort of pipeline front and anything specific you can add on maybe the U.S. side of the North American franchise and then I do have one follow up.

Yeah Dan thanks for the question. Obviously, we felt very good sort of continued progress there on the overall Americas front up 2% for the quarter, slightly improvement over the prior quarters and part of this by the way is really which to the development of the programs we put in place in North America and the Americas. We just feel better and better about this, whether it is a revenue engine, what's been put in place or all the stuff we're doing around in Broking put in place. We started with the U.S. and now we are rolling out for the rest of the world. We think this actually bodes very well for what's happening and happened across the world. But the overall story really for us is as you think about our ability to improve share, increased share and grow the business ultimately, hold exactly as we said over the last number of quarters. First from a new business standpoint we continue to do exceptionally well. We are winning in a two to one pace. We continue to win on a two to one pace in the first half of '10 and as we look at the larger situation 669 opportunities give or take. We on 456 or about 68 or 69, 70% of those, that's holding very, very well for us Dan, we are exceptionally feel very, very good about sort of the new business win opportunities. I described new business generation across the globe but I just described was really more U.S. based if you look at across the growth in the globe, new business generation was around 200 million in the retail brokerage business up mid-single digits. I am really -- markets around the world but really from a new business standpoint we feel very, very good about what we put in place and what we are doing. We are in fact doing exceptionally well on a new business front and then you could say well that's new business what's happening in the retain book and as we have said before retention rates are 90% or better in the U.S. in particular, the highest retention rates ever at 93% and the pressure we are feeling is really on insured value that's really, it's really taking it's toll on the economy even more than insurance pricing. So, from our standpoint we think the underlying trends here if you classify kind of those performance versus health, performance was fine, good, you know good improvement but the underlying health we feel exceptionally strong about. The underlying health means we are getting new business, we are driving that, we are retaining business at unprecedented levels and then now as the economy moves around or turns around in any which way we think it gives us a lots of upside potential but the underlying fundamentals, are we winning business, yes; Are we retaining business, yes, are very strong for us.

Greg is the organic in the U.S. book, has it gotten above positive yet?

It's been relatively flat, it is certainly improving on par with everything else but it has been relatively flat but I would say again. If you think about the U.S. business and in the context of what our colleagues in U.S are doing, it's actually very, very strong underlying performance. I understand we may have achieved that performance at a time when construction which as you know is a very large sector for us and even an increasing sector for us, it's been under tremendous, tremendous pressure and that pipeline is now starting to look more promising. I think you know that since Q1. Obviously M&A and PE activity, also a very, very strong sector for us across the U.S. Those two sectors were basically way down, to say it most positively and variables actually move across and through those sort of head wins to actually perform in a very solid way and again I come back to the health of the underlying U.S business with what our leadership has put in place is exceptionally strong.

Great, thanks. And then my follow up question is on the foreign exchange front. Sometimes it's hard to tell but can you give a little or maybe some exact color on what foreign exchange impact was to the brokerage and consulting margins this quarter?

Yeah, its was slightly positive impact on brokerage margins. So 40 basis points favorable and a slightly negative increase, a negative impact on consulting margins.

Great, thank you very much.

Sure Dan.

Thank you. Our final question comes from Mathew Himerman. Your line is open and please state your company name.

Hi, JPMorgan, good morning. A couple of questions. Just with respect to consulting, once the Hewitt deal gets done, when you think about the platform that you've got, should we think about that being kind of the, the kind of end state platform you want to have on consulting or should we expect you to continue to have an appetite to other practice areas over time.

Well Mathew, from our standpoint as we think about sort of the overall structure of Aon we feel very good about it post close, in fact very, very good about it. We end up with the partnership with Hewitt in we believe an exceptionally strong position. Hewitt brings to us an opportunity to really substantially strengthen our strategic position on the consulting front and even capital solutions give us opportunity to do a lot of cross sell which by the way we have not valued at all, in the partnership at all and just strengthens our ability, kind of in a different client, team level. That puts us in an exceptionally strong position. Also with Hewitt, as you know, it creates significant value, as we've said publicly $1.5 billion of shareholder value in a way that we think is very manageable execution risk and exceptionally strong cash generating capability, really absolutely substantially increases our cash sharing capability that we can invest back into buy back, back in the risk and other places but overall and by the way we've done that in a way that we've actually completely maintained our ratings in the context of what we try to do. So we feel very good about how that comes together and that leaves us with a structure that we think has actually positioned us quite, quite well and I wouldn't look for substantial changes beyond what we've got and the context of what we are. We really, for us it isn't about size. It's about content capability but it does leave us in a position where we are number one in risk, number one in reinsurance and number one in people. We think that's a good solid platform and what we want to do then is invest to build that platform and feel very good about that.

Okay, so no real upside to extend into some of the other management consulting areas then?

Not at all. In fact if you think about what we've done, it's a little bit, for us we've really focused our effort really around people and risk and on the people front it's very focused around the elements that we are in and we don't see us looking to do anything broader than that. This is really around human capital and people, not management consulting, not areas such that, purely around human capital and we want to be as I said at the beginning of the call, the preeminent firm in the world focused on risk and people and that by the way, again back to our track record for the last five years, we've in fact focused our efforts. We're out of different areas of underwriting in multiple places to really focus the firm on risking people and we don't plan on broadening that view one bit post close.

Would people focus ultimately encompass something like in the assets, a 401(k) advisory or anything like that, not necessarily the custody of potentially announced at gathering business as well which some of the peers -- which some of the competitors on actually do.

I think more on the -- it's more of the investment management side. If you think about Hewitt who also just announced acquisition of Ennis Knupp, great capability by the way. We're very exited about that and what Hewitt's been able to bring into the fold, a world class provider in that context. But again we see this in a very, very combined way. We will not be a balance sheet company though. We're all about professional services, doing in away again capital like advisory business, high return of invested capital in the contact that we're doing high cash flow, very much a round advice.

And then just, what if -- taking contingent commissions, what does that mean if anything for producer compensation?

Well look, in the end we thought about overall compensation, it all fits into the overall packaging from our stand point. We're really focused on this from a client view point and it really doesn't impact -- it's not going to impact producer comp one way or the other. This is really around how we think about making sure what we're delivering to clients is clear, absolutely transparent. They understand the value that we're providing in every single way and doing it in a way that manages any kind of conflicts, whether perceived or real which we will absolutely manage through and really, fundamentally as we thought about performance and pay-per-performance, its really around long term performance based competition approaches which again -- contingence for us, there are lots to be made out of them but for us that's a very, very minor, minor, minor part of how we think about delivering value to clients and getting paid for it. It has been historically and will be in the future.

Alright, thanks.

Thanks very much.

Thank you this concludes today's conference call, Mr. Case do you have any final remarks?

I don't other than to say again to all who joined today, we very much appreciate you being part of this and look forward to our next discussion. Thanks very much.