Under the accounting formula detailed in the firm's 10-K filing, Aon noted that the deductions were being taken under the Accounting Principals Board Opinion. The company has not yet discounted the first payment, but has discounted already the payment stream associated with the settlement in its year-end report for 2004.

In making the settlement payments under the agreement, Aon cannot seek indemnity through any insurance policy or other reimbursement.

The firm said it has received subpoenas or requests for information from departments of insurance or attorneys generals in “approximately” 25 states, including those it has reached agreements with. That firm said it continues to cooperate in the investigations.

Aon noted a number of civil suits filed against the broker. Most notable is a nationwide $40 million class-action settlement reached last week at the Federal Circuit Court of Cook County in Illinois, which gave its preliminary approval. The company said it had reserved for the settlement in the fourth quarter of 2004.

There are also a number of other actions pending in state courts in California and Illinois, and in federal courts in Florida, South Carolina and New Jersey, Aon noted.

In February, Aon received a subpoena from the U.S. Department of Labor concerning compensation arrangements related to placement of employee benefit plans. The broker said it is cooperating in the inquiry.

Broker says $190 million to be repaid to clients in Spitzer deal will be fully tax deductible.