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Member, Beacon International Group, Ltd.
Aon P.L.C. saw first-quarter revenue slip 3.4% to $2.85 billion as headwinds from foreign currency and excess reinsurance capital offset 3% organic growth, the brokerage said Friday.
The slight decline in revenue was “driven primarily by a 7% unfavorable impact from foreign currency translation, partially offset by 3% organic growth in commissions and fees,” the brokerage said in a statement.
First-quarter net income rose 1% to $325 million as expenses decreased 2.9% to $2.41 billion.
Revenue in Aon's Risk Solutions segment declined 5% to $1.90 billion “due to an 8% unfavorable impact from foreign currency translation,” the earning statement said. Expenses decreased 4.3% to $1.50 billion.
The unit saw “solid growth across all regions, the U.S. Latin American and Canada,” Greg Case, president and CEO, said during the company's earnings call. It was highlighted by “4% growth in the company's American retail brokerage” and “double-digit new-business growth in Latin America and Canada.”
Reinsurance operations blunted results as “excess capital continued to pressure global treaty prices, especially in America,” Mr. Case said on the call, though he remained confident.
“We're on track for low-to-mid single digit growth in 2015 despite pressure in reinsurance,” Mr. Case said of the risk solutions segment.
He was similarly upbeat about the company's HR Solutions segment, which includes benefits management consulting unit Aon Hewitt, as “multinational clients continue to look for benefits solutions,” amid changes in health care legislation and regulation in the U.S and abroad.
Revenue in the company's HR Solutions segment declined 0.1% to $970.0 million as the unit saw “4% organic growth in commissions and fees, partially offset by a 3% unfavorable impact from foreign currency translation,” the statement said. Expenses were essentially flat at $894.0 million.