Insurance and reinsurance broker Aon plc has reported organic growth in its reinsurance operations at Aon Benfield in the final quarter of 2016.
The broker reported a 2% increase in organic reinsurance related revenues at the firm, increasing from $323 million in the fourth-quarter of 2015 to $329 million in the fourth-quarter of 2016.
Aon said that new business generated in its reinsurance treaty and facultative reinsurance units helped to drive this incremental growth, however the growth was offset by lumpiness in capital markets and advisory related business which both declines in the quarter.
“We ended 2016 in a strong position, driving positive performance across each of our key metrics for both the fourth quarter and the full year, highlighted by growth across every major business and record operating margin in Risk Solutions,” commented Greg Case, President and Chief Executive Officer.
The Risk Solutions business, which includes retail broking and reinsurance activities, saw a 2% increase in revenue to a record $2.051 billion in the quarter, propelled by 3% organic growth in commissions and fees, but partially offset by a 1% unfavorable impact from foreign currency effects.
Total revenue across Aon’s business was $3.3 billion with organic revenue growth of 3% in Q4 2016.
Case said; “Substantial investments in high-growth areas of our industry-leading platform, improved operational performance, and record free cash flow generation of more than $2.1 billion, continue to position the firm for increased shareholder value creation over the long-term.”
