Chief executive Greg Case expects ‘strong finish’ to 2016

Greg Case, Aon

Aon’s broking business made an operating profit of $1.13bn (£927m) in the first nine months of 2016, up 12% on the £1.02bn it made in the same period last year.

The profit boost at the broking unit, called Risk Solutions, came despite almost flat revenues of $5.43bn (nine months 2015: $5.42bn).

Aon Risk Solutions nine month key figures

 Nine months 2016Nine months 2015change (%/points)
Revenue  ($m) 5,434 5,417 0.3
Operating profit ($m) 1,132 1,015 11.5
Total operating expenses ($m) 4,302 4,402 -2.3
Operating profit margin (%) 20.8 18.7 2.1

The profit margin increased by 2.1 percentage points to 20.8% (nine months 2015: 18.7%).

Aon was able to cut total operating expenses by 2% to $4.30bn (nine months 2015: $4.40bn).

While overall revenue was flat, Aon Risk Solutions produced organic growth of 3%. This was cancelled out by foreign exchange losses.

Aon’s retail broking operations produced organic growth of 4%, and reinsurance broker Aon Benfield produced organic growth

As a group, Aon made profit before tax of $1.10bn in the first nine months of 2016, up 11% on the $987m it made in the same period of 2015.

Total revenues fell 1% to $8.30bn from $8.31bn, but organic growth was 4%.

Aon chief executive Greg Case (pictured) said: “Looking forward, we expect a strong finish to the year as we head into our seasonally strongest quarter, resulting in improved operating performance for the full year.

“Our industry-leading platform and significant level of strategic investments continue to position the firm for long-term growth, increased operating leverage and significant free cash flow generation towards our near-term goal of $2.4bn for the full year 2017.”