Reinsurance News

Aon’s Reinsurance Solutions contributes to robust revenue growth in 2021

4th February 2022 - Author: Luke Gallin

Global broker Aon has reported an increase in total revenue of 4% to $3.1 billion for the fourth quarter of 2021 and growth of 10% to $12.2 billion for the full year, driven in part by an improved performance in its Commercial Risk Solutions and Reinsurance Solutions segments.

For the quarter, re/insurance broker Aon has announced organic revenue growth of 10% and net income of $863 million, which represents year-on-year growth of 64%.

The firm also achieved organic revenue growth of 9% for the full year 2021, although its annual net income did fall by 34% to $1.9 billion.

During the final quarter of 2021, Aon’s Reinsurance Solutions business recorded a 13% rise in organic revenue to $222 million when compared with the previous year. The broker attributes this expansion to double-digit growth in treaty, driven by continued net new business generation globally and strong retention, alongside solid growth in facultative placements and capital markets transactions.

For the full year, the Reinsurance Solutions unit achieved organic revenue growth of 10% to almost $2 billion, against roughly $1.8 billion a year earlier.

AmericanAg - Global Reinsurance Solutions

With 2021 revenue just shy of $2 billion, Aon’s Reinsurance Solutions now claims the number one spot in our ranking of top reinsurance brokers.

Aon’s solid group-wide performance in both the quarter and full year was also supported by its Commercial Risk Solutions division, which produced revenue growth of 11% in Q4 to approximately $1.85 billion. The company attributes this expansion to growth across every major geography driven by strong new business generation, retention, and management of the renewal book portfolio.

For the 12-month period, the division achieved revenue growth of an impressive 13% to over $6.6 billion, compared with roughly $5.8 billion in 2020.

Further revenue growth was also seen in Aon’s Wealth Solutions operation in both periods, with 2% growth in Q4 to $364 million, and growth of 6% for the full year to more than $1.4 billion.

Partially offsetting the positive trend in the fourth quarter is Aon’s Health Solutions division, which actually saw revenue dip by 13% to $651 million. However, for the full year, this part of the business recorded revenue growth of 4% to over $2.1 billion, compared with just over $2 billion in 2020.

Greg Case, Chief Executive Officer (CEO) at Aon, commented: “In the fourth quarter, our colleagues delivered 10% organic revenue growth, an outstanding finish to a very strong year, contributing to full year organic revenue growth of 9%, margin expansion of 160 basis points, and EPS growth of 22%.

“These results are a direct outcome of our Aon United strategy. We’re accelerating innovation, with a focus on developing and scaling proven solutions to serve new and existing clients. This gives us confidence in our ability to build even greater momentum in 2022.”

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