Aon revenue drops on foreign exchange impact
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Third quarter revenue slid 4.8% to $2.74 billion at Aon P.L.C. mainly as a result of foreign exchange effects as the brokerage saw positive organic growth in its Risk Solutions and HR Solutions segments.
Net income declined 4.5% to $295.0 million for the third quarter.
Exchange rates hit the company's bottom line.
“Foreign currency exchange rates in the third quarter had $30 million pretax, unfavorable impact on adjusted net income from continuing operations,” the company said in its earning statement Friday morning. The $30 million broke down into $25 million in Risk Solutions and $5 million in HR Solutions, the release added.
Third quarter revenue in the Risk Solutions segment declined 8.0% to $1.69 billion while HR solutions saw revenue increase 0.7% to $1.06 billion for the quarter
Overall organic growth was 2%, “highlighted by 5% organic growth in the HR Outsourcing business and 4% organic growth in the Americas Retail Brokerage business,” president and CEO Greg Case said during an earnings call Friday Morning.
Retention rates were 90% across retail brokerage, he added.
For the nine months ended Sept. 30, Aon's revenues dipped 4.0% to $8.39 billion as net income fell 14.6% to $801.0 million.
Nine-month revenue in the Risk Solutions segment was off 6.2% to $5.42 billion while nine-month HR solutions revenue rose 0.3% to $3.01 billion.
Mr. Case added on the call that nine-month organic growth in the Risk Solutions segment was 2%.
“”Despite short-term headwinds, we continue to drive growth across both segments,” said Mr. Case on the call.
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