Global insurance and reinsurance broker Aon saw its total revenue increase to $10.8 billion for the full-year 2018, which includes 5% of organic revenue growth.
The global re/insurance brokerage has announced its results for the fourth-quarter and full-year 2018. Concerning revenues, the broker states that total revenues for Q4 increased 3% to $2.8 billion, including 6% organic revenue growth.
Net income for the fourth-quarter reached $276 million compared with $10 million a year earlier, which includes a negative impact of $135 million as a result of the adoption of a new revenue recognition standard.
By segment, Aon Reinsurance Solutions experienced solid organic revenue growth of 8% when compared with the same period in 2017, driven by the generation of new business in treaty, especially in the U.S. The broker’s reinsurance unit also experienced strong growth globally in facultative placements, and notes that market impact “was modestly favourable on results in the fourth quarter.”
An organic growth revenue increase of 4% was experienced in Aon Commercial Risk Solutions unit in Q4, as was the case in its Retirement Solutions division. Health Solutions experienced organic revenue growth of 8%, while Aon’s Data and Analytics Services department recorded increased organic revenue growth of 9%.
For the full-year 2018, organic growth of 5% contributed to total revenues of $10.8 billion, an overall 8% revenue increase on the same period a year earlier. Net income for the year reached $1.13 billion, which is a decline from the $1.23 billion recorded for the same period a year earlier.
Greg Case, Aon’s Chief Executive Officer (CEO), commented: “Our results for the quarter reflect both a strong operational and financial performance to finish the year, highlighted by organic revenue growth of 6%, with growth across every solution line, and substantial operating improvement reflected in +280 basis points of margin expansion and 19% growth in adjusted earnings per share.
“For the full year, we delivered our strongest level of organic revenue growth since 2006 and achieved $8.16 of adjusted earnings per share, fully delivering on our near-term target to exceed $7.97 per share in 2018.”
“Our strong performance reflects initial success from the strategic actions we have progressively taken to drive Aon United, while also absorbing significant investments to support long-term growth initiatives.
“Our team is excited about the momentum we have heading into 2019 and the firm’s outlook for substantial long-term client and shareholder value creation.”
