Aon 'strong' despite December quarter profit fall
Aon ‘strong’ despite December quarter profit fall
6 February 2023
Broker Aon posted weaker December quarter profits but says it remains in a “position of strength” as organic growth performed robustly during the period.
Net profit for the December quarter slumped 24% to $US657 million ($950 million) from a year earlier.
However total revenue increased 2% to $US3.13 billion ($4.52 billion), including a 5% rise in organic income growth and a 1% favourable impact from fiduciary investment income.
Aon says the 5% increase was driven by ongoing strong retention, net new business generation, and management of the renewal book portfolio.
Its key Commercial Risk Solutions division booked a 4% improvement in organic revenue growth across most major geographies and Reinsurance Solutions enjoyed a 9% surge, the result of double-digit growth in both the Strategy and Technology Group and facultative placements.
“In the fourth quarter, our colleagues delivered 5% organic revenue growth, to finish a very strong year,” CEO Greg Case said.
“These results continue our long-term progress and demonstrate the success of our Aon United strategy as we enter 2023 in a position of strength to continue delivering results for clients, colleagues, and shareholders.”
Net profit for the full-year to December 31 rose to $US2.59 billion ($3.74 billion) from $US1.26 billion ($1.82 billion) in 2021 while overall revenue increased 2% to $US12.48 billion ($18.06 billion).
