Asked when the repurchase might be completed, he responded that there are "no details about that, as it depends upon market conditions."

Greg Case, Aon president and chief executive officer, said in a statement, "The increased share repurchase program is an indication of the board's belief in the underlying strength of the business and is an effective use of capital to maximize long-term shareholder value."

Aon said the shares will be purchased in the open market or in privately negotiated transactions. Timing will be dependent on prevailing market conditions, alternative uses of capital and other factors.

Bear Stearns said in a report that it anticipates Aon, second among the top-tier insurance brokerage players, is part of an overall trend for such firms that will continue over the next few years.

Willis Group Holdings, in fact, announced Thursday that it would repurchase 3.8 million shares of its common stock from an affiliate of Lehman Brothers Inc. in an accelerated stock repurchase program. (See NU Online News Service, Nov. 17.)

Bear Stearns said that insurance brokers are "significant cash flow generators, and profitable growth opportunities are becoming more challenging to find as the commercial lines marketplace softens."

For the larger brokers, Bear Stearns continued, it seems that "during this soft cycle, share repurchases will replace acquisitions as a primary driver of EPS growth."