Aon’s Reinsurance Solutions unit witnessed a 6% rise in revenue in the first-quarter of 2022 to $976 million, as the broker reports organic revenue growth of 8% across the business in the period.
At $3.7 billion, insurance and reinsurance broker Aon’s total revenue increased by 4% in Q1 2022 when compared with the prior year and includes organic revenue growth of 8%.
While this was partially offset by a 3% unfavourable impact from foreign currency translation and a 1% unfavourable impact from acquisitions, divestitures, and other, it’s a solid start to the year for the company.
In fact, net income increased by 12% to more than $1 billion in the first-quarter of 2022.
With the exception of Wealth Solutions, all business segments saw year-on-year revenue growth in the quarter, led by 6% at Reinsurance Solutions to $976 million.
The division has reported organic revenue growth of 7%, which Aon says is a reflection of strong growth in treaty, driven by robust retention and continued net new business generation, as well as strong growth in facultative placements and double-digit growth in capital markets transactions.
Within Commercial Risk Solutions, revenues spiked by 5% to more than $1.7 billion, with the segment reporting organic revenue growth of 9%, reflecting growth across every major geography.
The broker’s Health Solutions arm witnessed revenue growth of 4% in Q1 2022 to $638 million, with organic revenue growth of 8% on the back of strong growth globally in core health and benefits brokerage.
Revenue in Wealth Solutions, however, fell slightly from $355 million in Q1 2021 to $345 million in Q1 2022, with flat organic revenue growth overall.
Aon’s Chief Executive Officer (CEO), Greg Case, commented: “In the first quarter, our team delivered strong financial results with 8% organic revenue growth, operating margin expansion of 60 basis points to 38.0%, and EPS growth of 13%.
“Our performance demonstrates how increasing global volatility has further reinforced the relevance of our Aon United strategy. In the face of rising complexity and uncertainty, our colleagues will continue to employ the advanced analytics and underlying technology of our Aon Business Services platform to identify areas of unmet need, improve service standards, and accelerate delivery of new solutions that provide clients the clarity and confidence they need to protect and grow their business.”
