Aon has released its results for the second quarter of 2019, which show a 2% increase in the broker’s total revenue, partly driven by significant growth in its Reinsurance Solutions segment.
Overall revenue increased by $45 million to $2.606 billion, boosted by an 11% increase in the revenue of Aon’s reinsurance business, which totalled $420 million in Q2 2019, compared to $380 million for the same period last year.
Aon attributed the improved performance of its Reinsurance Solutions unit to strong new business generation in treaty, as well as strong growth in facultative placements and capital markets transactions.
Accounting for whole first half of 2019, the Reinsurance Solutions segment’s growth was slightly lower at 8%. Revenue rose from $1.122 billion in H1 2018 to $1.208 in H1 2019, representing an increase of $86 million.
Aon also attributed its overall growth in Q2 to a 6% increase in organic revenue growth, which was partially offset by a 3% unfavourable impact from foreign currency translation and a 1% unfavourable impact from divestitures, net of acquisitions.
This marks the fourth consecutive quarter of 6% organic revenue growth for the company, which it says has been driven by consistent improvement in both portfolio mix and return on investment in high-growth areas of client demand.
“Our second quarter results reflect continued progress and momentum from our Aon United initiatives, highlighted by strong organic revenue growth of 6% for the fourth consecutive quarter and substantial operating margin improvement of 240 basis points,” said Greg Case, Chief Executive Officer.
He continued: “The steps we are taking to lead Aon United in response to increasing client demand combined with significant investment in content and capability, is not only amplifying our ability to serve clients, but also our ability to deliver improved operational and financial performance that we believe will unlock significant shareholder value creation over the long-term.”
In terms of its other business segments, Aon’s Commercial Risk Solutions unit produced by far the largest revenue in Q2, at $1.167 billion, although this represented almost no change on the Q2 result of the previous year.
The segment did, however, experience organic revenue growth of 6% due to solid growth globally, with particular strength in the U.S., EMEA and the Pacific, driven by strong new business generation and management of the renewal book portfolio.
Aon’s Health Solutions and Data & Analytics Services segments both grew their revenue by 3% when compared with Q2 2018. The Retirement Solutions business was the only segment to turn a loss, with revenue down 3% last quarter.