Aon’s Reinsurance Solutions generates 7% organic revenue growth in Q3’24

Global insurance and reinsurance broking group Aon has reported a 26% year-on-year rise in total revenue to $3.7 billion for the third quarter of 2024, with solid organic revenue growth across the business, including 7% to $503 million in its Reinsurance Solutions arm.

Aon noted that this increase in total revenue reflects organic revenue growth of 7% and acquired revenues from NFP, driven by net new business and ongoing strong retention.

Revenue growth occurred across all of Aon’s business segments in the quarter, including within Reinsurance Solutions, which climbed 8%, or 7% on an organic basis, as a result of solid growth in both treaty and facultative placements.

Moving towards Commercial Risk Solutions, revenue increased 17%, or 6% on an organic basis to more than $1.8 billion in Q3’24. Aon highlighted strong growth across all major geographies and in NFP, driven by net new business and ongoing strong retention.

The broking group’s Health Solutions division produced the strongest year-on-year revenue growth of 58%, or 9% on an organic basis to $870 million in the third quarter of 2024. Aon noted that this reflects strong growth globally in core health and benefits brokerage, which includes the majority of NFP’s Health solutions, driven by net new business and ongoing strong retention.

Aon’s Wealth Solutions arm reported Q3’24 revenue of $499 million, up 42%, or 7% on an organic basis, which the firm stated was driven by strong growth in Retirement and Investments.

Group-wide, while revenue increased, so did expenses too, rising 33% year-on-year from $2,262 billion to $3,098 billion. which was primarily driven by the inclusion of ongoing operating expenses from NFP and expense associated with 7% organic revenue growth, as well as the acceleration of the Aon United restructuring program charges.

Overall, Aon reported a 10% dip in operating income from $691 million in Q3’23 to $623 million in Q3’24. At the same time, net income fell by 25% from $456 million to $343 million.

Greg Case, CEO of Aon, commented: “Our global team delivered another quarter of excellent results in the third quarter, with  7% total organic revenue growth, including all Solution Lines at 6% or greater, which contributed to adjusted operating margin expansion and 17% growth in adjusted EPS.

“Our performance through the first three quarters positions us well to deliver full year results in line with our financial guidance, and demonstrates the success of our 3×3 Plan to bring better client solutions across Risk Capital and Human Capital, powered by Aon Business Services.”

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