Global insurance and reinsurance broking group Aon has reported an 18% year-on-year rise in total revenue to $3.8 billion for the second quarter of 2024, with solid organic revenue growth across the business, including 7% to $635 million in its Reinsurance Solutions arm.
The increase in total revenue reflects acquired revenues from NFP following Aon’s acquisition of the broker, and organic revenue growth of 6% on the back of new business generation and ongoing strong retention. This was partially offset by a 1% unfavorable impact from foreign currency translation.
Revenue growth occurred across all of the firm’s business segments in the quarter, including within Reinsurance Solutions, which grew 5%, or 7% on an organic basis as a result of strong growth in both treaty and facultative placements.
In Commercial Risk Solutions, revenue increased 14%, or 6% on an organic basis to more than $2 billion in Q2 2024, with Aon highlighting strong growth across all major geographies driven by net new business generation and strong retention.
The broker’s Health Solutions division produced the strongest year-on-year revenue growth of 48%, or 6% on an organic basis to $662 million, which reflects high single-digit growth globally in core health and benefits brokerage, including in NFP, again driven by net new business generation and strong retention.
In its Wealth Solutions arm, Aon has reported Q2’24 revenue of $463 million, up 32%, or 9% on an organic basis, driven by strong growth in Retirement and Investments.
Group-wide, while revenue increased so too did expenses, rising 33% year-on-year from $2.335 billion to $3.104 billion, driven by the inclusion of NFP’s ongoing operating expenses, the acceleration of the Aon United restructuring program charges, an increase in expense associated with 6% organic revenue growth, and investments in long-term growth.
All in all, Aon has reported a 22% dip in operating income from $842 million in Q2 2023 to $656 million in Q2 2024, as net income fell by 6% from $560 million to $524 million.
Greg Case, Chief Executive Officer of Aon, commented: “Our colleagues delivered excellent results in the second quarter, with 6% organic revenue growth, adjusted operating margin expansion and 19% growth in adjusted operating income.
“We welcomed our new NFP colleagues to the firm, and we’re even more excited about the opportunities we see to better serve our clients, through shared expertise, content, and capabilities enabled by Aon Business Services. The first half marks great progress against all elements of our 3×3 plan, and we’re well-positioned for the remainder of 2024 and the long term.”
