According to the Q2 release from Aon, the brokerage giant’s total revenue fell by 4% to US$2.5 billion (around AU$3.47 billion) while organic revenue declined by 1%. However, net income from continuing operations attributable to Aon shareholders came in at US$397 million (around AU$522.2 million), or US$1.70 per share, versus US$277 million (around AU$385.3 million), or US$1.14 per share, in the same period last year.
Other key figures were also positive. Aon’s operating margin saw a jump to 23.8%, and operating margin adjusted for certain items rose 240 basis points to 26.8%, indicating an increase in profitability. Meanwhile, earnings per share (EPS) increased to US$1.70, and EPS adjusted for certain items likewise jumped, by 5% to US$1.96. Finally, Aon reports that for the first six months of 2020, cash flows from operations increased from US$858 million to US$1,219 million, and free cash flow increased from US$875 million to US$1,130 million.
Several lines of business saw organic growth, including commercial risk solutions (by 1%) and reinsurance solutions (by 9%), while retirement solutions and health solutions saw declines in organic revenue, by 1% and 18% respectively. Aon’s data and analytic services also saw organic revenue decline (of 8%) due to a decrease in the travel and events practice globally.
“Our second quarter results reflect the resiliency of our business, the efficiency of our operations and the dedicated client service of our 50,000 colleagues around the world,” said Greg Case, Aon’s chief executive officer, highlighting the impacts that the coronavirus pandemic is having on economies around the world. “We are living in a time of increasing economic and geopolitical volatility – as evidenced by the COVID-19 pandemic and broader social injustice and unrest – which demands action within our firm and on behalf of clients.”
He added that Aon’s United strategy “has proven essential to delivering more relevant solutions today, and our combination with Willis Towers Watson will accelerate innovation and strengthen capability to meet the evolving, long-term challenges our clients will face in the future.”
Nonetheless, positive full-year results for 2020 are not a sure fire thing, just because the results so far have been positive, primarily “in light of the continuing effect of and uncertainty in connection with the COVID-19 pandemic,” noted Aon.