Chief executive Greg Case expects ‘strong finish’ to 2016
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: $5.42bn).
Aon Risk Solutions nine month key figures
| Nine months 2016 | Nine months 2015 | change (%/points) | |
|---|---|---|---|
| Revenue ($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.”
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