Aon plc, the insurance and reinsurance broking specialist, has reported strong organic growth in its reinsurance treaty placement business during the third-quarter of 2017, which has helped to drive a revenue increase.
Aon reports that its reinsurance broking business, which sits under the Aon Benfield brand, saw strong growth, particularly in its treaty business.
That will have included the key mid-year renewal placements at July 1st, an important juncture in the reinsurance market cycle.
Greg Case, President and Chief Executive Officer, commented on the quarter, “Our results for the quarter reflect strong organic revenue growth in our reinsurance business, 170 basis points of adjusted operating margin improvement, and 18% adjusted earnings per share growth, highlighting increased operating leverage in our Aon United operating model and effective capital management with the repurchase of $750 million of shares in the quarter.
“Looking forward, we expect a strong finish to the year as we head into our seasonally strongest quarter. With continued momentum amplified by significant capital deployment towards our industry-leading platform and share repurchase, we believe we are on track to exceed $7.97 adjusted earnings per share in 2018 and deliver double-digit free cash flow growth over the long-term.”
Aon reports that overall revenue across its business increased 6% to $2.3 billion, with organic revenue growth of 2% reported.
In its reinsurance solutions segment, Aon saw impressive organic revenue growth of 7% in the third-quarter of 2017, compared to Q3 2016, having seen growth across every major product line and particular strong growth in reinsurance treaty placements
The treaty business at Aon was driven by record new business generation during the quarter, the company explained.
Revenues in the reinsurance broking business actually increased by 8%, but this was offset by 1% of currency effects.
For the first nine months of the year revenue in the reinsurance segment increased by 4%, with another 1% benefit from currency effects, so 5% of organic growth across the first nine months of 2017.
