Aon reveals Q3 2021 financials

Aon reveals Q3 2021 financials | Insurance Business America

Aon reveals Q3 2021 financials

It’s the turn of broking titan Aon Plc – whose business combination agreement with fellow broking giant Willis Towers Watson (WTW) was terminated in July due to regulatory hurdles – to reveal how it fared in the third quarter of 2021.

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 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.

Read more: Aon’s Greg Case lifts the lid on collapsed mega merger

“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.”