Aon reports lower revenue but profits up in Q2

Aon reported declining revenues for the second quarter of 2016 while net income increased.

Total revenue decreased 1 percent to $2.8 billion compared to the prior year quarter driven primarily by a 2 percent unfavourable impact from foreign currency translation and a 2 percent decrease in commissions and fees related to net divestitures, partially offset by 3 percent organic revenue growth.

Net income attributable to Aon shareholders was $272 million compared to $178 million in the same quarter of 2015.

"Overall, we delivered positive performance across each of our key metrics in the second quarter, highlighted by four percent organic revenue growth in Retail Brokerage, 70 basis points of adjusted operating margin improvement in Risk Solutions, and substantial free cash flow growth of 51 percent for the first six months of the year," said Greg Case, president and chief executive officer.

"Although we expect continued volatility in the macroeconomic environment, we anticipate improved organic growth and operational performance in the second half of 2016. Our industry-leading platform and innovative investments across data and analytics continue to position the firm for long-term growth, increased operating leverage and significant free cash flow generation towards our near-term goal of $2.4 billion for the full year 2017."