Re/insurance broker Aon has posted flat revenue of $2,696 million for the third quarter of 2022, as growth in its Reinsurance Solutions segment offset a decline in revenues across all other segments.
The Reinsurance Solutions segment grew its revenue by 12% to $396 million in Q3, including organic revenue growth of 7%.
Aon explained that this organic growth reflected strong growth in treaty, driven by strong retention and new business generation, as well as solid growth in both facultative placements and the Strategy and Technology Group.
Commercial Risk Solutions revenue, meanwhile, declined by 2% to $1,482 million, albeit with organic revenue growth of 5%, reflecting strong growth across most major geographies driven by strong retention, new business generation, and management of the renewal book portfolio.
Aon added that strength in retail brokerage was highlighted by double-digit growth in the UK, Asia, and Latin America, driven by continued strength in core P&C.
However, U.S. retail brokerage was pressured primarily by transaction solutions, which declined primarily due to lower external deal volume.
Elsewhere, Health Solutions segment revenue declined 1% but with organic growth of 5%, while Wealth Solutions revenue fell 7% with organic growth of 2%.
Aon’s net income increased to $408 million for the Q3 period, recovering from a loss of $900 million for the same period last year, while operating income totaled $590 million, up from a loss of $801 million previously.
This was primarily due to a reduction in operating expenses, and an increase in operating income due to strong organic revenue growth, partially offset by increased expenses and investments in long-term growth.
Operating expenses decreased 40% to $2.1 billion in part due to the $1.0 billion payment made in connection with the termination of the proposed combination with WTW.
“In the third quarter, our team continued to deliver strong top and bottom-line results, highlighted by 5% organic revenue growth and 16% adjusted EPS growth, and contributing to strong year-to-date progress on our key financial metrics, including 7% organic revenue growth year-to-date, adjusted operating margin expansion of 80 basis points, and strong free cash flow growth,” said Greg Case, Chief Executive Officer.
“These results demonstrate the importance of our Aon United strategy in helping clients navigate growing volatility and make better decisions that protect and grow their business.”
