Aon’s quarterly profit rises

(Reuters) — Insurance brokerage firm Aon reported a higher second-quarter profit on Friday, boosted by strong demand for its risk management and health solutions.

Despite persistent recession fears and stubborn inflation, spending on insurance has remained resilient. Both businesses and individuals are prioritizing risk mitigation over discretionary expenses, fueling revenue for brokers like Aon, whose commissions are tied to premium levels.

Adjusted net income attributable to Aon’s shareholders rose to $759 million, or $3.49 per share, for the quarter ended June 30, up from $624 million, or $2.93 per share, a year earlier.

Analysts on average had expected a profit of $3.40 per share, according to data compiled by LSEG.

Revenue from Aon’s commercial risk solutions unit jumped 8% to $2.18 billion.

The company also posted double-digit revenue growth in both its health and wealth solutions units.

Peer Marsh McLennan  also posted a strong quarterly profit last week, pointing to steady industry-wide demand.

Despite Aon’s earnings beat, its shares have dipped slightly this year, lagging behind peer Brown & Brown, which is scheduled to report quarterly results on Monday.

“We delivered strong second-quarter results, including 6% organic revenue growth, 19% growth in adjusted EPS, and 59% free cash flow growth,” said CEO Greg Case in a statement.