The disputed reinsurance claim stems from the World Trade Center attack and relates to accidental death coverage for Aon employees. Aon said it continues to pursue the claim with reinsurers at Lloyd's.

In its Aug. 7 earnings release, Aon also said it had partially conceded the accounting of another item, relating to impaired investments, which coincidentally also amounted to $56 million, but on a pre-tax basis.

The SEC had commented that Aon should have recognized temporary impairments of certain securities sooner than it had. Aon described these as equities and certain fixed maturity securities below investment grade that had been trading below cost.

To respond to the SEC comment, Aon recorded a pre-tax non-cash $56 million adjustment (13 cents per share) to second-quarter 2002 earnings and agreed to recognize impairments on an earlier timetable in the future. At that time, however, there was an open question of whether the SEC would instead require Aon to restate income for prior periods. The restatement, for the same $56 million total amount, would have reduced 1999 pretax earnings by $27 million, 2000 by $24 million, and first quarter 2002 by $5 million.

That particular disclosure prompted several law firms to announce class actions filings against Aon and some of its directors for misstating prior income.

Yesterday, Aon said the SEC would accept the second-quarter adjustment and not require the company to restate prior periods "provided the adjustment is deemed immaterial to full year 2002 results," which Aon believes will be the case.

Aon stressed that none of the adjustments impacted its equity of $3.7 billion.

Aon's accounting for two other items?the sale of partnership income to a special purpose entity and business transformation charges?was cleared with the SEC as originally presented.