Aon boss on Q1 results: "We are fortunate to operate from a position of strength"

Numbers from continuing operations show all-around progress

Aon boss on Q1 results: "We are fortunate to operate from a position of strength"

Insurance News

By Terry Gangcuangco

Aon Plc, the now Irish-domiciled broking giant set to become even bigger when its purchase of Willis Towers Watson completes next year, has released its financial results for the first quarter of 2020.

The company, which kept its operating headquarters in London, reported a higher net income from continuing operations attributable to Aon shareholders. From 2019’s US$659 million (around SG$934.3 million) the figure improved to US$773 million (around SG$1.09 billion) this time around.

In the period, Aon’s total revenue grew 2% to US$3.2 billion (around SG$4.53 billion). Organic revenue growth stood at 5%. Broken down into segments, here’s how Aon performed in the first quarter in terms of revenue:

  • Commercial risk solutions – US$1.15 billion (around SG$1.63 billion)
  • Reinsurance solutions – US$848 million (around SG$1.20 billion)
  • Retirement solutions – US$397 million (around SG$562.8 million)
  • Health solutions – US$502 million (around SG$711.6 million)
  • Data & analytic services – US$331 million (around SG$469.3 million)

Meanwhile cash flows provided by operations for the quarter increased to US$338 million (around SG$479.2 million). As for Aon’s operating income in the three-month span, the figure rose 18% to US$1.03 billion (around SG$1.46 billion).

“We are fortunate to operate from a position of strength, as demonstrated by the strong results our team delivered in the first quarter, including 5% organic revenue growth and substantial operating margin expansion of 200 basis points,” stated Aon chief executive Greg Case.

“I want to thank our 50,000 colleagues around the world for their remarkable support of each other and our clients as we navigate through this humanitarian and economic crisis. Our Aon United Strategy and pending combination with Willis Towers Watson are more important than ever as we focus on accelerating innovation to bring the best of our firm to clients during this time of unprecedented volatility.”

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