Reinsurance broking revenues at Aon plc soared in the first-quarter of 2018, with the firm reporting a 100% increase year-on-year, on a reported basis, as its Aon Benfield unit led a 3% organic revenue increase across the insurance and reinsurance broking group.
Aon reported that its reinsurance business under the Aon Benfield brand recorded $742 million of revenue in the first-quarter, double the $371 million reported for Q1 2017. This is largely down to a change in the accounting method, but still reflects strong growth as its organic revenue increase shows.
At the same time the firms commercial risk solutions broking business also experienced solid growth, on a reported basis, recording $1.184 billion of revenues, up 20% from $984 million in the prior year.
“Our first quarter results reflect a strong start to the year with positive performance across each of our key metrics, highlighted by strong organic revenue growth in Reinsurance and Commercial Risk Solutions, substantial operational improvement, 26% growth in earnings per share and double-digit adjusted free cash flow growth,” explained Greg Case, President and Chief Executive Officer.
“An unmatched level of investment in client-serving capabilities, combined with improved operational performance through our Aon United operating model and effective capital management, we believe place us on track to exceed $7.97 of earnings per share in 2018 and unlock significant shareholder value through double-digit free cash flow growth over the long-term,” he continued.
Organic revenue growth for the reinsurance broking business of Aon Benfield achieved organic growth of 6%, while commercial risk solutions achieved 4%, giving Aon total organic revenues that were up 3% for the Q1 2018 period.
Aon said that in reinsurance it experienced, “Strong growth across every major product line, including particular strength in treaty placements driven by net new business generation and a modest favorable market impact, as well as growth in both facultative placements and capital markets transactions.”
You can read the full Aon quarterly results here.
