Broking division produces 3% organic growth and 10% profit increase
Global broking group Aon made a net profit of $325m (£194m) in the first quarter of 2014, up 25% on the $261m it made in the same quarter last year.
Total revenue grew 1% to $2.95bn (Q1 2013: $2.92bn) and organic growth for the quarter was 2%.
The company also bought back 7.2 million shares for $600m.
Aon chief executive Greg Case said: “Our first quarter results reflect a solid start to the year with double-digit earnings growth, highlighted by strong performance across Risk Solutions and effective capital management.
“We are returning a record amount of capital to shareholders, highlighted by the repurchase of $600 million of ordinary shares in the quarter and the recently declared 43% increase in our quarterly cash dividend, while continuing to invest in innovative solutions across the firm to strengthen our industry-leading platform for long-term growth, strong free cash flow generation and increased financial flexibility.”
Aon’s broking division, Risk Solutions, enjoyed a 10% increase in operating profit to $445m (Q1 2013: $403m).
Total revenue increased 1% to $1.99bn (Q1 2013: $1.97bn) and organic growth for the division was 3%.
Within this, the insurance and reinsurance broking arms both produced organic growth of 3%.
Insurance broking commissions and fees increased 1% to $1.58bn (Q1 2013: $1.56bn), and reinsurance broking fees and commissions grew 2% to $409m (Q1 2013: $402m).