Aon outlook steady after Q2 gains
Aon has reaffirmed its full-year guidance after delivering a “strong” second-quarter result that included an 11% increase in revenue.
Net income attributable to shareholders rose 10% to $US579 million ($881 million) as revenue hit $US4.16 billion ($6.3 billion).
“This performance reflects the growing demand for our advice and solutions, driven by an increasingly complex environment and the need to unlock new sources of capital,” president and CEO Greg Case said.
Commercial risk solutions organic revenue growth of 6% reflects gains across all major geographies, driven by net new business and strong retention, while the market impact is described as “modestly positive”.
In reinsurance, organic revenue also grew 6%, reflecting double-digit increases in insurance-linked securities and facultative placements, plus treaty business growth, with the company reporting a “modest unfavourable” market impact.
Aon says strong free cash flow is supporting debt reduction, disciplined middle market merger and acquisition activity, and capital returns to shareholders.
Total revenue in the first half gained 13% to $US8.88 billion ($13.52 billion).
Full-year guidance includes organic revenue growth of “mid single digits or greater”, and the business anticipates “strong growth” in adjusted earnings per share and double-digit gains in free cash flow.