Aon reports higher revenue, sees ‘buyer-friendly’ market

Aon PLC on Friday reported $4.73 billion in revenue for the first quarter, a 16.2% increase over the same period last year, reflecting its $13 billion purchase of NFP Corp. in April 2024, though profit fell on expenses related to the deal.

The brokerage reported 5% organic growth, which excludes the effect of acquisitions and foreign currency fluctuations, and expects to report organic revenue of mid-single digits or higher for 2025, despite easing insurance rates, Greg Case, Aon’s president and CEO, said on a call with analysts Friday.

Meanwhile, increased concerns over climate change and geopolitical disruption are driving some changes in insurance purchasing, he said.

In its main insurance brokerage business, commercial risk solutions, Aon reported $2 billion in revenue, a 10.7% increase over the same period last year and up 5% on an organic basis.

The organic increase was driven by new business and business retention as average rates fell.

The market “is generally buyer-friendly,” Mr. Case said. Property rates are softening, particularly on large U.S. accounts and in Asia-Pacific, and financial lines and cyber liability rates are also decreasing. Auto and excess liability rates continue to rise, he said.

In its reinsurance brokerage business, Aon reported $1.19 billion in revenue for the quarter, up 1.89% compared with the year-earlier period and up 4% on an organic basis.

In its human capital segment, health and benefits consulting revenue rose 40% to $1.03 billion, up 5% organically, and wealth management and investment advisory revenue increased 40.3% to $519 million, up 8% organically. At the time of its acquisition, about 45% of NFP’s business was benefits-related.

Aon reported $982 million in net income for the quarter, a 10.2% decrease from the same period last year. Expenses increased in part due to the amortization and impairment of intangible assets related to the NFP deal, Aon said in its earnings statement.

Meanwhile, commercial insurance buyers continue to face increased volatility due to tariffs and trade issues, changing weather patterns, and other issues, Mr. Case said.

“The drama is real; you are seeing it every day,” he said.

The company is increasingly analyzing supply chains for its clients, and some are purchasing new coverages, Mr. Case said. For example, Aon recently completed a “massive” parametrics program for convective storms for a large steel company, he said.