Broking giant Aon has benefited from a 20% jump in revenue within its commercial risk segment, citing strong new business generation, retention, and management of the renewal book portfolio.
This improvement has also been attributed to the more discretionary portions of Aon’s business, primarily in transaction liability, project-related work, construction, and cyber consulting, which were negatively impacted in the prior year period.
Overall, the segment’s revenue rose from $1,126 million in Q220 to $1,349 million.
Aon’s efforts in the reinsurance space during Q2 saw the firm secure a 12% year-on-year increase that resulted in revenues of $500 million.
Market impact is reported to have been a modestly positive driver in this area, with the majority of revenue in its treaty portfolio recurring in nature and recorded in connection with the major renewal periods that take place throughout the first half of the year.
Equally, the second half of the year is driven by facultative placements and capital markets that are more transactional in nature.
Net income attributable to shareholders was $379 million, down from $398 million in the prior year quarter.
Total revenue increased 16% to $2.9 billion, including organic revenue growth of 11%, which CEO Greg Case describes as the firm’s strongest in over a decade, translating into 17% growth in earnings per share, and contributing to 13% free cash flow growth.
“These results demonstrate the incredible resilience of our colleagues and the power of Aon United, said Case.
“We are moving forward at an accelerated pace, with a proven leadership team and an enduring strategy.
“Our ability to innovate on behalf of clients remains unrivaled and continues to translate into significant progress against key financial metrics and shareholder value creation.”