Aon revenues fall flat on slowing organic growth despite gaining profit back
Aon has turned around previous year’s $0.9 billion Q3 loss into a profit but its overall results are flat amid slowing organic growth compared to prior quarters, as well as rivals, despite strong retention and net new business generation.
For the third quarter of 2022, the broker’s total revenue was flat at $2.7 billion over the prior year period, with organic revenue growth of 5%.
Aon said the growth was offset by a 5% unfavorable impact from foreign currency translation and a 1% unfavorable impact from acquisitions, divestitures, and other.
Net profit attributable to Aon shareholders increased to $408 million in Q3, turning around from the net loss of $900 million seen in the prior year period.
The company’s Reinsurance Solutions business saw the highest organic revenue growth of 7%, largely driven by treaty. Both Commercial Risk Solutions and Health Solutions’ organic revenue rose 5% and Wealth Solutions grew by 2%.
“In the third quarter, our team continued to deliver strong top and bottom-line results, highlighted by 5% organic revenue growth and 16% adjusted EPS growth, and contributing to strong year-to-date progress on our key financial metrics, including 7% organic revenue growth year-to-date, adjusted operating margin expansion of 80 basis points, and strong free cash flow growth,” said Greg Case (Pictured), Aon’s chief executive officer.
“These results demonstrate the importance of our Aon United strategy in helping clients navigate growing volatility and make better decisions that protect and grow their business.”
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