Global broking group Aon’s Reinsurance Solutions arm delivered year on year organic revenue growth of 4% to $1.2 billion in the first quarter of 2025, as total revenue across the group increased by 5% on an organic basis to $4.7 billion.
In its Q1 2025 results, Aon attributes the revenue increase in its reinsurance segment to growth in treaty on the back of net new business and ongoing strong retention. The solid performance of the business also reflects a double-digit rise in facultative reinsurance placements, and insurance-linked securities.
Reinsurance Solutions sits within the broker’s Risk Capital division, which also includes Commercial Risk Solutions, which generated year on year organic revenue growth of 5% to $2 billion, with Aon highlighting growth across all major geographies, again driven by net new business and ongoing strong retention.
All in all, Risk Capital revenue increased by 7%, or $216 million to $3.2 billion in Q1 2025.
In Human Capital, which includes Health Solutions and Wealth Solutions, revenue rose by a significant 40%, or $442 million to $1.5 billion in the quarter, with growth in both segments.
Health Solutions organic revenue growth of 5% to more than $1 billion reflects double-digit growth globally in core health and benefits, which Aon attributes to net new business, ongoing strong retention, and a modestly positive market impact.
Wealth Solutions produced organic revenue growth of 8% to $519 million in Q1 2025, driven by strength in investments, highlighted by double-digit revenue growth in NFP on the back of net asset inflows and market performance.
Aon completed the acquisition of broker NFP in April 2024, and in Q1 2025, the aforementioned year on year rise in total revenue of $659 million to $4.7 billion, reflects the contribution from NFP, organic revenue growth of 5%, and also a 2% unfavourable impact from foreign currency translation.
The inclusion of NFP has led to higher operating expenses in Q1 2025 when compared with the prior year’s quarter, as compensation and benefits expenses, information technology expenses, premises expense, other general expenses, and amortization and impairment of intangible assets all increased. In total, operating expenses increased 25%, or $663 million to $3.3 billion in Q1 2025.
At the same time, operating income across the group fell by $4 million year on year to $1.461 billion, as the operating margin decreased 510 basis points to 30.9%. However, adjusted operating income increased by 12% year on year to $1.816 billion, as the adjusted operating margin decreased 130 basis points to 38.4%.
Interest income also fell year on year, by $23 million due primarily to interest earned in the prior year period on the investment of $5 billion of term debt proceeds, which were used to fund Aon’s purchase of NFP.
As a result of all of the above, Aon has reported Q1 2025 net income of $965 million, a decrease of 10% on Q1 2024, while adjusted net income increased by 9% to $1.2 billion, compared to $1.1 billion in the prior year period.
Greg Case, President and Chief Executive Officer of Aon, commented: “Aon has momentum entering year two of the 3×3 Plan and our continued execution drove another quarter of mid-single-digit Organic revenue growth and strong operating performance.
“In the first quarter, we delivered 5% Organic revenue growth, 12% Adjusted Operating Income growth and Adjusted EPS of $5.67. We are driving growth by providing actionable insights, powered by Aon Business Services, to our clients in an increasingly complex macro environment. These results reflect robust demand for our Risk Capital and Human Capital solutions. We are reaffirming our 2025 guidance, across all key metrics, reflecting the resilience and strength of our business and financial model.”
