Global broker Aon’s Reinsurance Solutions arm achieved organic revenue growth of 9% in the first quarter of 2023, as revenue across the group increased by 5%, year-on-year, to $3.87 billion, reflecting organic revenue growth of 7%.
This growth in organic revenue in the reinsurance arm was driven by strong retention and continued net new business generation, the broker said.
Higher total revenue of $3.87 billion includes the 7% organic revenue growth and a 1% favorable impact from fiduciary investment income, partially offset by a 3% unfavorable impact from foreign currency translation.
“In the first quarter, our team built momentum for 2023 by delivering strong operational performance, highlighted by 7% organic revenue growth and 70 basis points of adjusted operating margin improvement,” CEO Greg Case said.
Across the group, total operating expenses in Q1 2023 increased 4% to $2.4 billion when compared with the prior year period, primarily as a result of an increase in expense associated with 7% organic revenue growth and investments in long-term growth, partially offset by a $67 million favorable impact from foreign currency translation.
All in all, net income attributable to Aon shareholders in the first quarter of 2023 increased by 3%, year-on-year, to $1.05 billion.
The global insurance and reinsurance broker’s first quarter 2023 results show that its Reinsurance Solutions division contributed to the solid revenue growth experienced in the period.
The unit’s revenue increased by 10% to $1.08 billion in Q1 2023 compared with $976 million a year earlier, with 9% organic revenue growth reflecting double-digit growth in both the Strategy and Technology Group and facultative placements.
In Commercial Risk Solutions, revenue rose by 3% to $1.79 billion, Aon notes organic revenue growth of 6% on the back of growth across major geographies driven by strong retention, net new business generation, and management of the renewal book portfolio.
The Health Solutions segment saw revenue rise from $638 million in Q1 2022 to $671 million in Q1 2023, with organic revenue growth of 8% reflecting growth globally in core health and benefits brokerage, driven by strong retention, new business generation and management of the renewal book portfolio.
Aon’s Wealth Solutions arm also reported a rise in revenue in Q1 2023 to $350 million compared with $345 million in Q1 2022. Aon says that organic revenue growth was 6% and reflects growth in Retirement, driven by higher advisory demand and project-related work related to pension de-risking and ongoing impacts of regulatory changes.
“As we move past the pandemic, our clients are telling us there are two primary areas where they are urgently looking for competitive advantage: Risk and People. As these results demonstrate, our Aon United strategy has established the firm as uniquely capable of helping clients go on offense and make better decisions that mitigate risk to their business and maximize the impact of their people,” Case commented.
