Aon reports higher revenue on NFP deal, 6% organic growth

Aon PLC Thursday reported significant revenue growth in the fourth quarter as it benefited from its purchase of middle-market brokerage NFP Corp. last year, further acquisitions and continued organic growth.

The world’s second-largest brokerage reported fourth-quarter revenue of $4.15 billion, a 22.9% increase over the same period in 2023. Aon completed its $13 billion purchase of NFP in April 2024, adding about $2.2 billion in annual revenue.

Revenue grew 6% on an organic basis, which excludes the effect of acquisitions and foreign exchange fluctuations.

Aon reported net income of $734 million for the quarter, a 44.8% increase over the prior-year period.

Looking at this year, CEO Greg Case said on a call with analysts, “We remain well positioned to continue to deliver mid-single-digit or greater organic revenue growth.”

In the risk capital segment, commercial risk solutions, which

is its core insurance brokerage business, Aon reported $2.19 billion in revenue, a 14.7% increase over the 2023 fourth quarter and up 6% on an organic basis; reinsurance brokerage revenue increased 5.7% to $351 million, up 6% organically.

In its human capital segment, health and benefits consulting revenue rose 40% to $1.07 billion, up 5% organically; wealth management and investment advisory revenue increased 43.8% to $542 million, up 8% organically. About 45% of NFP’s business was benefits-related at the time of the acquisition.

Fourth-quarter growth was broad-based across Aon’s businesses, said Edmund Reese, chief financial officer.

“The net market impact from growth and exposures in rates was flat,” he said. “We saw the lower rates in reinsurance offset with modest rate benefits across commercial, health and wealth,” he said.

The NFP business, which operates under its own name, made multiple “tuck-in” acquisitions, adding $36 million in earnings before interest, taxes, depreciation and amortization in 2024.

“We continue to expect to acquire $45 million to $60 million of EBITDA through NFP middle-market acquisitions in 2025,” Mr. Reese said.

For the full year, Aon reported $15.7 billion in revenue, a 17.4% increase compared with 2023, and net income of $2.72 billion, up 3.5%.