Aon Benfield’s revenues drop in Q2 results
Aon Benfield’s revenues dropped in the second quarter of 2014 on the back of what it called an unfavourable market impact on treaty business and a decline in its facultative placements.
This was partly offset by growth in its capital markets unit and its advisory business.
Aon’s reinsurance unit’s revenues declined by 4 percent in the period to $360 million compared with $376 million in the same period the year before.
This was “due primarily to an unfavorable market impact in treaty and a decline in facultative placements, partially offset by growth in capital markets transactions and advisory business and net new business growth in treaty placements globally,” the company said.
The Aon group as a whole posted a solid set of results for the quarter with both its overall revenues and its net profits growing.
The company’s overall revenues increased by 1 percent to $2.9 billion in the quarter driven by a 2 percent growth in organic revenues, partially offset by a 1 percent unfavourable impact from acquisitions.
Its net profit was $304 million compared with $241 million in the prior year quarter.
"Our second quarter results reflect strong earnings per share growth of 13 percent, including organic growth in each segment, underlying operational improvement and effective capital management, despite challenges from both foreign currency translation and market impact," said Greg Case, president and chief executive officer.
"Looking forward, we are well on track to deliver continued organic growth across each segment and operational improvement through returns on investments in GRIP and healthcare exchanges. We continue to effectively manage capital for shareholders, as highlighted by the return of $1.4 billion of capital through the first six months of 2014."
