Here are the numbers for Aon’s quarterly performance:
|
Metric |
Q3 2021 result |
Q3 2020 result |
|
Revenue |
US$2.7 billion |
US$2.4 billion |
|
Operating expenses |
US$3.5 billion |
US$1.9 billion |
|
Operating income/(loss) |
US$(801 million) |
US$441 million |
|
Income/(loss) before income taxes |
US$(868 million) |
US$364 million |
|
Net income/(loss) |
US$(891 million) |
US$282 million |
|
Net income/(loss) attributable to Aon shareholders |
US$(900 million) |
US$275 million |
According to Aon, the 80% surge in expenses in the three months ended September 30 was due primarily to the US$1.3 billion (approx. SG$1.75 billion) increase in charges related to cancelling the WTW merger and related costs. As previously announced, Aon had to pay WTW a US$1 billion termination fee for the unsuccessful deal.
“As part of the terminated combination with WTW, certain transaction costs have been incurred by the company through the third quarter of 2021,” noted Aon when it released its financial results.
“These costs may include advisory, legal, accounting, valuation, and other professional or consulting fees related to the combination, including planned divestitures that have been terminated, as well as certain compensation expenses and expenses related to further steps on our Aon United operating model as a result of the termination.”
Highlighting the positives, Aon chief executive Greg Case pointed out the group’s growth in revenue. In the period, Aon’s revenue grew in all four segments – commercial risk solutions, reinsurance solutions, health solutions, and wealth solutions.
Commenting on the Q3 figures, Case stated: “In the third quarter, our team delivered outstanding results, including 12% organic revenue growth translating into 14% growth in adjusted earnings per share. This performance is driven by great execution of our Aon United Blueprint and the work our colleagues do every day to ensure clients are better informed, better advised, and able to make better decisions to protect and grow their businesses.
“Our focus on unmet client needs related to new forms of volatility, workforce resiliency, and access to capital make us more relevant to current clients and more capable of addressing a broader marketplace, positioning Aon to deliver substantial ongoing value to clients and shareholders.”
