Global broker Aon’s Reinsurance Solutions arm achieved organic revenue growth of 9% in the second quarter of 2023, as revenue across the group increased by 5%, year-on-year, to $3.2 billion, reflecting organic revenue growth of 6%.
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 $3.2 billion includes the 6% organic revenue growth and a 2% favorable impact from fiduciary investment income, partially offset by a 1% unfavorable impact from foreign currency translation.
“Our global team delivered strong operating results in the second quarter, including 6% organic revenue growth and 110 basis points of adjusted operating margin improvement, demonstrating the strength of our Aon United strategy and ongoing progress against our financial goals,” CEO Greg Case said.
Across the group, total operating expenses in Q2 2023 increased 2% to $2.3 billion when compared with the prior year period, primarily as a result of an increase in expense associated with 6% organic revenue growth and investments in long-term growth, partially offset by a $10 million favorable impact from foreign currency translation.
All in all, net income attributable to Aon shareholders in the second quarter of 2023 increased by 12%, year-on-year, to $560 million.
In Reinsurance Solutions, revenue increased by 13% to $607 million in Q2 2023 compared with $537 million a year earlier, with 9% organic revenue growth reflecting double-digit growth in both facultative placements and investment banking, and solid growth in the Strategy and Technology Group.
In Commercial Risk Solutions, revenue rose by 5% to $1.77 billion, Aon notes organic revenue growth of 5% 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 $414 million in Q2 2022 to $447 million in Q2 2023, with organic revenue growth of 10% 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 Q2 2023 to $352 million compared with $343 million in Q2 2022. Aon says that organic revenue growth was 2% and reflects growth in Retirement, driven by advisory demand and project-related work related to pension de-risking and ongoing impact of regulatory changes.
“By aligning solution development around Risk Capital and Human Capital, we’re accelerating innovation in our core business and more effectively leveraging our Aon Business Services platform to address growing client demand for analytical tools that will help them make better decisions on risk and people challenges and opportunities,” Case commented.
