Aon’s reinsurance unit drives growth in Q3 results
Aon’s Reinsurance Solutions unit posted impressive growth in its organic revenues of 13 percent in the third quarter of 2020, driven by double-digit growth across treaty, facultative, and capital markets transactions, reflecting continued net new business generation.
The reinsurance unit posted revenue of $321 million in Q3 2020, compared with $291 million for the same period last year, a 10 percent increase but reflecting organic growth of 13 percent, the company said.
The reinsurance segment was also the broker’s best performing division. Its Commercial Risk Solutions unit posted revenues of just over $1 billion, a small decline on the same period a year earlier.
Aon’s total revenue remained flat at $2.4 billion, including flat organic revenue. Its net income did, however, increase to $274 million in Q3 2020, compared with $223 million for the same period in the prior year.
The broker said this segment saw particular strength in Asia, driven by strong retention and management of the renewal book portfolio.
Revenues in its Retirement Solutions unit fell by 3 percent to reach $468 million. Its Health Solutions revenues were fairly flat at $282 million versus $279 million previously, including organic revenue growth of 1%.
Greg Case, Aon’s chief executive officer, said: "Our third quarter results demonstrate the resiliency of our firm and our colleagues. Year-to-date, we delivered strong operational performance with 170 basis points of operating margin expansion and free cash flow of $1.9 billion, up $908 million from last year.
"Over the past decade, we have evolved to better address client need by making their voice core to our Aon United growth strategy. Taking a complete client view – instead of a traditional product view – is fundamental to delivering the next generation of solutions they have told us they need. In an increasingly volatile world, our pending combination with Willis Towers Watson will accelerate this proven strategy and establish the combined firm as a preeminent partner to help clients navigate today's most pressing issues and the long-tail risks we will face in the future."
