Aon posts solid 2017 results as revenues reach $10bn
Aon enjoyed solid growth in 2017 with total revenues increasing by 6 percent to $10 billion compared to the prior year period driven by 4 percent organic revenue growth and a 2 percent increase related to acquisitions, net of divestitures.
At the same time, net income attributable to Aon shareholders declined 12 percent year on year to $1.23 billion in 2017. During 2017, the company repurchased approximately 18.0 million Class A Ordinary Shares for a record $2.4 billion.
The broker enjoyed an especially good fourth quarter when revenues grew by 10 percent to $2.9 billion compared to the prior year period driven primarily by 6 percent organic revenue growth, a 2 percent increase related to acquisitions, net of divestitures, and a 2 percent favorable impact if the company were to hold foreign currency exchange rates constant.
"Our fourth quarter results reflect a strong finish to a solid year, highlighted by 6% organic growth, substantial operational improvement driven by our Aon United operating model initiative, and effective capital management, highlighted by the return of a record amount of capital to shareholders in 2017," said Greg Case, CEO.
However, net income from continuing operations attributable to Aon shareholders in the fourth quarter declined to $10 million from $377 million in the prior year period. The results were impacted by a loss on the sale of certain businesses and an unfavourable impact of exchange rates on the remeasurement of assets and liabilities in non-functional currencies, the firm noted.
"The long-term growth profile of our firm is increasing, driven by an unmatched level of investment and an industry-leading portfolio focused around our highest value solutions and our clients' greatest needs. Combined with core operational performance and savings from the Aon United operating model, we believe we are on track to exceed $7.97 of adjusted earnings per share in 2018, and deliver double-digit free cash flow growth over the long-term."
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