Aon announces 7% revenue growth in Q2

Aon announces 7% revenue growth in Q2 | Insurance Business Canada

Insurance News

Aon announces 7% revenue growth in Q2

Reinsurance arm saw double-digit growth

Insurance News

By
Gia Snape

Aon has reported its financials for the second quarter ended June 30, 2023. The global broking giant saw a total revenue increase of 7% to $3.2 billion, including organic revenue growth of 6%.

Net income attributable to Aon shareholders increased 12% year-on year to $560 million, or $2.71 per share.

Total operating expenses for the group in the second quarter rose 2% to $2.3 billion compared to the same period prior year due primarily to increased expenses associated with organic revenue growth and investments in long-term growth, the company said.

Aon’s commercial risk solutions arm posted a 5% revenue increase to $1.77 billion. Organic revenue growth for this segment was 5%, with strong growth across major geographies driven by strong retention, management of the renewal book, and net new business generation.

Asia-Pacific notably showed double-digit growth driven by the continued strength of core property & casualty business. The US grew modestly, driven by strength in core businesses, partially offset by the impact of external M&A and IPO markets on M&A services, Aon said.

Globally, exposures and pricing were positive, the company said, resulting in a modestly positive market impact.

Reinsurance solutions, meanwhile, saw revenue surge by 13% to $607 million, compared with $537 million the same period last year. The segment reported 9% organic revenue growth, reflecting double-digit growth in facultative placements and investment banking.

Health solutions reported an 8% revenue rise to $447 million, from $414 million in the same period last year. Wealth solutions saw a modest 3% revenue increase to $352 million.

“Our global team delivered strong operating results in the second quarter, including 6% organic revenue growth and 110 basis points of adjusted operating margin improvement, demonstrating the strength of our Aon United strategy and ongoing progress against our financial goals,” said Aon CEO Greg Case.

“By aligning solution development around risk capital and human capital, we’re accelerating innovation in our core business and more effectively leveraging our Aon business services platform to address growing client demand for analytical tools that will help them make better decisions on risk and people challenges and opportunities.”

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