Global re/insurance broker Aon has reported a 5% organic growth within its Reinsurance Solutions segment for the third quarter, driven by double-digit growth in facultative placements and new business generation in treaty.
The reinsurance segment generated $291 million in revenue, compared to $279 million in the prior year quarter.
Aon has pegged Commercial Risk Solutions organic growth at 7%, driven by strong growth broadly and double-digit increases in the US, Canada and Latin America, primarily driven by strong retention and management of the renewal book portfolio.
Overall, Aon’s revenue increased $30 million, or 1%, to $2,379 million, compared to the prior year period, including organic revenue growth of 5%, primarily driven by strong management of the renewal book globally in Commercial Risk Solutions.
This overall growth was partially offset by the unfavourable impact of certain non-recurring revenue that benefited the prior year period in Health Solutions and Data & Analytic Services.
“Our third quarter results reflect continued progress resulting from our Aon United initiatives, highlighted by strong organic revenue growth of 5% and substantial operating margin improvement of 350 basis points,” said Greg Case, Chief Executive Officer.
“We are building momentum year-to-date as reflected in a 200 basis point acceleration of organic revenue growth to 6%, translating into double-digit free cash flow growth.
“We continue to strategically invest in content and capability while taking progressive steps to consistently deliver the best of our global firm to clients, strengthening our ability to deliver innovation and improved financial performance that we believe will unlock significant shareholder value creation.
“Looking ahead, we expect strong performance in the fourth quarter to close out the year with continued progress against our goal of mid-single digit organic revenue growth or greater over the long-term.”