Aon’s fourth-quarter revenue up, profit downPosted On: Feb. 3, 2023 10:25 AM CST
Aon Plc Friday reported fourth-quarter revenue rose 2% to $3.13 billion, and organic revenue growth for the quarter was 5%.
Net income dropped 24% to $657 million, as foreign currency exchange rates and increased expenses took a toll, Aon said in its earning statement before markets opened Friday.
Aon’s commercial risk solutions business saw revenue drop 1% to $1.82 billion, as it registered 4% organic growth for the quarter.
Speaking on the broker’s Friday morning earnings call, CEO Gregg Case said the unit delivered double-digit growth in Canada and Latin America, while also seeing strong growth in Europe, the U.K. and the Asia Pacific region
Reinsurance solutions notched 9% organic growth as revenue increased 27% to $281 million for the quarter. Aon said it saw double-digit growth in both the Strategy and Technology Group and facultative placements while noting that the majority of revenue in its treaty portfolio is recurring in nature.
Mr. Case referred to the Jan. 1 reinsurance renewals cycle as “challenging.”
Aon’s health solutions business had fourth-quarter organic revenue growth of 7%, with double-digit growth in Latin America, the U.K. and Asia Pacific.
The wealth solutions business had fourth-quarter organic revenue growth of 6%, led by growth in retirement services, driven by project work related to pension risk transfer and ongoing impacts of regulatory changes.
For the full-year 2022, revenue increased 2% to $12.5 billion, with 6% organic growth. Net income jumped to $2.589 billion from $1.255 billion in 2021.
The commercial risk solutions business had 2022 organic growth of 6%, and the reinsurance solutions unit had organic growth of 8%.
Health solutions had full-year organic growth of 8%, and wealth solutions grew 3% organically.
Christa Davies, chief financial officer, speaking on the earnings call, said Aon continues to expect mid-single-digit organic growth this year and over the long term, as well as continued margin expansion.