Aon’s leadership have referred to the firm’s recent results as being ‘extraordinary’.
Referring to the numbers released last week, Greg Case, CEO, and Eric Andersen, president, said that the organic revenue growth in its reinsurance business had been ‘extraodinary’ and that they saw not only ‘tremendous momentum’ in the business but ‘great opportunity’.
Andersen said that it had been a very strong quarter for the team.
He added: “We had fantastic growth in the ILS business with the cat bond issuance very strong. In fact, lot of great work with clients as they look to reposition their portfolio going into the January 1 renewal cycle. So I would say it was very strong start for the year. I have high expectations for them as they continue to work through the existing insurance cycles. But really strong start for them.”
It was revealed at the end of last month that Aon’s Reinsurance Solutions unit witnessed a 6% rise in revenue in Q1 2022 to $976m, as the broker reports organic revenue growth of 8% across the business in the period.
At $3.7bn, insurance and reinsurance broker Aon’s total revenue increased by 4% in Q1 2022 when compared with the prior year and includes organic revenue growth of 8%.
While this was partially offset by a 3% unfavourable impact from foreign currency translation and a 1% unfavourable impact from acquisitions, divestitures, and other, it’s a solid start to the year for the company.
In fact, net income increased by 12% to more than $1bn in Q1 2022.
Apart from Wealth Solutions, all business segments saw year-on-year revenue growth in the quarter, led by 6% at Reinsurance Solutions to $976m.
According to Case, revenue growth was being driven by several factors including a continued strength in retention and global new business generation.
He added: “We see a tremendous, tremendous opportunity. A lot of what you see us doing is not just competing in the existing market, as it stands today, but it is truly creating net new markets. What we’re doing across the board in climate, net new market; some of the work we’re doing in IP is core market, but also net new market.
He went on: “So what we’re essentially saying is, we’re going to increase the size of the pie with the content and the analytics we have and the capability and the colleagues we have in place. We see tremendous, tremendous opportunity over time. It’s a big contributor as we think about mid-single-digit or greater growth over time.”
Andersen said in the earnings call that global capability, analytical insight, and being able to deal with client needs around the world were critical to Aon’s reinsurance business.
He added: “A lot of the issues that the insurance company clients have today are these future risks; trying to handle cyber as a product; trying to think through climate if you’re a homeowners’ insurer, if you’re a P&C insurer; how you deal with life from a mortality risk if it’s pandemic. So the opportunities for us there are very strong. And so I’m not surprised that it’s driving competition.
He concluded: “The reality is we feel good that our franchise and the team very closely aligned and we continue to make investments to make sure they have cutting edge capabilities.”
