Aon sees dip in Q3 profits
Broker Aon has seen a dip in its net income for the third quarter of 2015 to $295 million, compared with $309 million for the prior year quarter.
Total revenue for the quarter was $2.7 billion, a decrease of 5 percent compared with the same period a year earlier. It said this was partly due to the unfavourable impact of foreign currency translation but helped by organic revenue growth of 2 percent.
The firm’s Risk Solutions business saw its total revenue decrease by 8 percent to $1.7 billion compared with the prior year quarter due to an 8 percent unfavourable impact from foreign currency translation and a 1 percent decrease in commissions and fees related to acquisitions, net of divestitures, partially offset by 1 percent organic growth in commissions and fees.
"In our seasonally weakest quarter, our results reflect organic revenue growth and operating margin expansion across both segments, effective capital management and significant free cash flow generation, despite the impact of unfavourable foreign currency translation and macroeconomic challenges," said Greg Case, president and chief executive officer, Aon Benfield.
"Driven by our industry-leading portfolio and investments across data and analytics, we expect a strong fourth quarter and finish to the year across each of our key metrics, further positioning the firm for free cash flow generation and shareholder value creation."
