Aon reports growth in reinsurance solutions division
Aon, a professional services firm with a strong presence in reinsurance, reported strong third-quarter results and said it was upbeat about the fourth quarter.
The company reported third -quarter revenue of $291 million in its reinsurance solutions division and said organic revenue growth of 5 percent was driven by double-digit growth globally in facultative placements and continued net new business generation globally in treaty, partially offset by a modest decline in capital markets transactions. Market impact was modestly positive to results in the third quarter.
Revenue was much higher, at $788 million, in the first quarter, when there are more renewals.
Company-wide, third-quarter total revenue increased 1 percent to $2.4 billion, with organic revenue growth of 5 percent.
“Our third quarter results reflect continued progress resulting from our Aon United initiatives, highlighted by strong organic revenue growth of 5 percent and substantial operating margin improvement of 350 basis points. We are building momentum year-to-date as reflected in a 200 basis point acceleration of organic revenue growth to 6 percent, translating into double-digit free cash flow growth,” said Greg Case, chief executive.
He added: “We continue to strategically invest in content and capability while taking progressive steps to consistently deliver the best of our global firm to clients, strengthening our ability to deliver innovation and improved financial performance that we believe will unlock significant shareholder value creation. Looking ahead, we expect strong performance in the fourth quarter to close out the year with continued progress against our goal of mid-single digit organic revenue growth or greater over the long-term.”
Among other things, Aon is a global captive insurance solutions provider; managing more than 1,100 insurance entities worldwide including captives, protected segregated and incorporated cell facilities, as well as entities that support Insurance Linked Securities and specialist insurance and reinsurance companies.
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