Insurance and reinsurance broker Aon has announced total organic revenue growth of 8% to $3 billion in the second-quarter of 2022, on the back of growth in all business segments including a notable 9% rise in organic revenue within its Reinsurance Solutions arm.
Across the firm, Aon has revealed that net income spiked by 32%, year-on-year, to $501 million in Q2 2022, as organic review jumped 8% and total revenue by 3%.
At the same time, the operating expense increased by 3% to $2.3 billion when compared with the prior year quarter, driven by an increase in expense associated with 8% organic revenue growth, a $58 million charge related to certain legal settlements reached, and investments in long-term growth. Aon says that this was partially offset by a $90 million favorable impact from foreign currency translation and a $38 million decrease in transaction costs.
Examining revenue growth by segment reveals that growth in Q2 2022 was aided by all of Aon’s operating segments, including its Reinsurance Solutions division.
The 9% organic growth to $537 million seen in this part of the business reflects double-digit growth in treaty, which Aon says is a result of continued net new business generation around the world and strong retention, alongside solid growth in facultative placements.
“The majority of revenue in our treaty portfolio is recurring in nature and is recorded in connection with the major renewal periods that take place throughout the first half of the year, while the second half of the year is largely driven by facultative placements and capital markets that are more transactional in nature,” explains the broker.
In Commercial Risk Solutions, organic revenue growth hit 7% to $1.7 billion in Q2 2022, and reflects growth across every major geography, again driven by strong retention and also management of the renewal book. The re/insurance broker notes that strength in its retail book of business was highlighted by double-digit growth in EMEA, the Pacific, and also Latin America.
In Health Solutions and Wealth Solutions Aon has announced organic revenue growth of 11% to $414 million and 3% to $343 million, respectively. Within the former, growth is a reflection of double-digit growth across every major geography. And within the latter, Aon says that the growth reflects growth in Retirement Consulting.
Greg Case, Aon’s Chief Executive Officer (CEO), commented: “In the second quarter, our team delivered strong financial results that reflect the momentum of our business, with 8% organic revenue growth, operating margin expansion of 40 basis points to 26.2%, and EPS growth of 15%.
“This performance highlights the fundamental strength of our core business and client belief in the exceptional value they receive through our globally connected Aon United operating model.”
