Aon’s Case delighted at organic growth in 2018 results
Aon’s annual results revealed its strongest organic growth since 2006 despite implementing new reporting standards that slashed millions off the total revenue.
The broker’s revenue grew by $772 million to reach $10.8 billion in 2018. This was an increase of 8 percent, including 5 percent organic growth, from $9.9 billion in 2017. Last year’s growth would have been higher, at $785 million, but the report said the implementation of new standards from the Financial Accounting Standards Board cut total revenues by $13 million.
Net income in 2018 dropped slightly to $1.1 billion compared with $1.2 billion in 2017.
The Q4 results gave different pictures depending on which reporting metrics were used. Under the US GAAP, total revenues fell by 5 percent to $2.8 billion, which included a decrease of $225 million related to the FASB's new standard. But using metrics comparable to Pro Forma Financials and Highlights, Q4 figures showed an increase in total revenues of 3 percent to $2.8 billion, which included 6 percent organic revenue growth.
Aon’s CEO Greg Case was pleased with the Q4 results. He said: "Our results for the quarter reflect both a strong operational and financial performance to finish the year, highlighted by organic revenue growth of 6 percent, with growth across every solution line, and substantial operating improvement reflected in +280 basis points of margin expansion and 19 percent growth in adjusted earnings per share.
“For the full year, we delivered our strongest level of organic revenue growth since 2006 and achieved $8.16 of adjusted earnings per share, fully delivering on our near-term target to exceed $7.97 per share in 2018.
"Our strong performance reflects initial success from the strategic actions we have progressively taken to drive Aon United, while also absorbing significant investments to support long-term growth initiatives.
“Our team is excited about the momentum we have heading into 2019 and the firm's outlook for substantial long-term client and shareholder value creation."
