Aon’s revenues rose to $6.41bn in the first half and net income to $1.33bn. This includes a 16% revenue jump in the second quarter to $2.89bn, when net income actually fell 4% to $393m.
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The second quarter saw Aon achieve organic revenue growth of 11%, its strongest in over a decade. Organic growth is 8% over the first six months.
Commercial Risk Solutions has performed particularly well with revenues up 20% in Q2 to $1.35bn and 16% in H1 to $2.64bn. This equates to organic growth of 14% in the second quarter and 12% in the first half.
Reinsurance Solutions’ revenue increased 12% in Q2 to $500m and by 10% in the first half to $1.42bn.
Aon’s operating expenses rose by 16% in the second quarter to $2.21bn, but this didn’t include the $1bn termination fee the broker will now pay WTW after their merger plans went up in smoke. The deal went south in the third quarter and will therefore be reflected in those numbers. The second quarter operating expenses include a $20m increase in transaction costs related to the terminated combination with WTW, said Aon.
CEO Greg Case, who is under pressure after the collapsed deal for WTW, despite since having his contract extended, said the results demonstrate the “incredible resilience” of his staff.
“We are moving forward at an accelerated pace, with a proven leadership team and an enduring strategy. Our ability to innovate on behalf of clients remains unrivalled and continues to translate into significant progress against key financial metrics and shareholder value creation,” he said, in a call to try and calm investors that Aon remains on the right track and under the right leadership.
Source: Commercialriskonline
