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.”
Broking improvement
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).
Hosted by comedian and actor Tom Allen, 34 Gold, 23 Silver and 22 Bronze awards were handed out across an amazing 34 categories recognising brilliance and innovation right across the breadth of UK general insurance.
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