Aon reports strong Q4’24 result as Reinsurance Solutions delivers 6% organic revenue growth

Global broking group Aon’s Reinsurance Solutions segment delivered 6% and 7% organic revenue growth for the fourth quarter and full year 2024, respectively, as the firm highlights another “strong quarter of performance” and “outstanding” full year result.

Group-wide, Aon has today announced year-on-year total revenue growth of 23%, or 6% on an organic basis to $4.1 billion for the fourth quarter of 2024, and growth of 17%, or 6% on an organic basis to $15.7 billion for full year 2024, when compared with the prior year.

Net income across the business increased by a significant 44% in Q4’24 to $716 million from $498 million in Q4’23, as operating income rose 40% to $1.1 billion from $779 million. For the full year 2024, net income increased to $2.7 billion from $2.6 billion in 2023, as operating income increased slightly to $3.8 billion.

Aon achieved this solid rise in net income despite an 18% increase in total operating expense to $3.1 billion for the quarter, and an increase of 24% to $11.9 billion for full year 2024.

For both periods, Aon’s business segments performed well, including its Reinsurance Solutions arm, which sits within the Risk Capital division.

Reinsurance Solutions’ revenue increased to $351 million for the quarter from $332 million in the comparable prior year period, with Aon attributing the 6% organic revenue expansion to strong growth in the Strategy and Technology Group, as well as strength in treaty on the back of net new business and ongoing strong retention, partially offset by a modest unfavorable market impact. These results also reflect a double-digit increase in insurance-linked securities, says Aon.

For the full year, Aon’s Reinsurance Solutions saw its revenue increased from $2.5 billion in 2023 to $2.7 billion in 2024.

The Risk Capital division also includes Aon’s Commercial Risk Solutions arm, which recorded 6% organic revenue growth to $2.2 billion for the fourth quarter of 2024, and 12% growth to $7.9 billion for full year 2024. Aon attributes the quarterly growth to mid-single-digit or greater increases across all major geographies driven by net new business and ongoing strong retention.

All in all, the Risk Capital unit generated revenue of $2.5 billion for Q4’24, reflecting growth of 13% on the prior year period.

Within Aon’s Human Capital business, which includes Health Solutions and Wealth Solutions, revenue rose by 41% to $1.6 billion in Q4’24. This includes Health Solutions organic revenue growth of 5% to $1.1 billion, reflecting strong growth globally in core health and benefits, driven by net new business and ongoing strong retention, and Wealth Solutions organic revenue growth of 8% to $542 million, which reflects strength in retirement and strong growth in investments.

For the full year 2024, Health Solutions revenue increased from $2.4 billion to $3.3 billion, and Wealth Solutions revenue moved from $1.4 billion to $1.9 billion.

Greg Case, Aon’s Chief Executive Officer, commented on the results: “We ended 2024 with another quarter of strong performance and outstanding execution across all aspects of our strategy.

“We generated 6% Organic revenue growth for the fourth quarter and full year, with mid-single digit growth or better across all our solution lines. This top-line strength and continued cost efforts drove strong margins, double-digit EPS growth, and $2.8 billion of free cash flow. As expected, executing our 3×3 Plan creates differentiation in how we serve our clients across Risk Capital and Human Capital, powered by Aon Business Services. As clients navigate increasingly complex market dynamics, demand for our solutions remains strong. We are well-positioned to build on our momentum in 2025 and drive long-term value creation for our colleagues, clients and shareholders.”

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