Aon Plc has released its earnings report for the three months ended March 31, and the results show the insurance broking giant posting growth all-round.
Here are the numbers for Aon in the first quarter:
|
Metric |
Q1 2023 |
Q1 2022 |
|---|---|---|
|
Revenue from commercial risk |
US$1.78 billion |
US$1.72 billion |
|
Revenue from reinsurance |
US$1.08 billion |
US$976 million |
|
Revenue from health |
US$671 million |
US$638 million |
|
Revenue from wealth |
US$350 million |
US$345 million |
|
Total revenue |
US$3.87 billion |
US$3.67 billion |
|
Operating income |
US$1.47 billion |
US$1.37 billion |
|
Net income attributable to Aon shareholders |
US$1.05 billion |
US$1.02 billion |
As indicated above, all segments – commercial risk solutions, reinsurance solutions, health solutions, and wealth solutions – contributed improved revenues.
Lifting the lid on the higher figures, Aon said: “Total revenue increased US$201 million, or 5%, to US$3,871 million, compared to the prior year period, with organic revenue growth of 7%, driven by ongoing strong retention, net new business generation, and management of the renewal book portfolio, and a 1% favourable impact from fiduciary investment income, partially offset by a 3% unfavourable impact from foreign currency translation.”
In terms of the commercial risk segment, the company had this to say: “Growth in retail brokerage was highlighted by double-digit growth in EMEA (Europe, the Middle East, and Africa), Latin America, and the Pacific driven by continued strength in core P&C (property and casualty). The US grew modestly after growing double-digits in the prior year period and reflecting the impact of the external M&A (mergers and acquisitions) and IPO (initial public offering) markets on M&A services.”
Meanwhile, the rise in operating income was attributed to organic revenue growth and increased fiduciary investment income.
“In the first quarter, our team built momentum for 2023 by delivering strong operational performance, highlighted by 7% organic revenue growth and 70 basis points of adjusted operating margin improvement,” noted Aon chief executive Greg Case. “As we move past the pandemic, our clients are telling us there are two primary areas where they are urgently looking for competitive advantage: risk and people.
“As these results demonstrate, our Aon United strategy has established the firm as uniquely capable of helping clients go on offense and make better decisions that mitigate risk to their business and maximize the impact of their people.”
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