November 1, 2015 by Canadian Underwriter
Aon plc reported Friday its risk solutions revenue dropped 8%, from $1.836 billion in the third quarter of 2014 to $1.689 billion in the three months ending Sept. 30, 2015, due in part to the unfavourable impact of foreign currency translation.
London-based Aon released Friday its financial results. Total revenue dropped 5%, to $2.742 billion in the latest quarter, compared to $2.88 billion during the same period in 2014. All figures are in United States dollars.
Aon’s results include its risk solutions segment (led by chief executive officer Stephen P. McGill) as well as those of Aon Hewitt, formed in connection with the acquisition of Hewitt, whose offerings include talent acquisition and pension and benefits administration.
In a report released in October, 2014, Aon was considered the top commercial insurance broker by Finaccord Ltd., with 12.5% market share. Finaccord ranked 150 firms by commercial non-life broking revenues in 2013.
Company-wide, Aon reported Friday its net income of $303 million in the latest quarter, down 4% from $315 million in Q3 2014.
Aon’s reinsurance revenues dropped 11%, from $371 million in Q3 2014 to $331 million in the most recent quarter.
“Reinsurance organic revenue decreased 4% compared to the prior year quarter due primarily to an unfavorable market impact globally, a modest decline in facultative placements, and unfavorable timing, partially offset by record new business growth in treaty placements,” Aon stated.
In reinsurance, Aon places treaty and facultative reinsurance, as well as capital management transaction and advisory services. Through its Aon Benfield Securities unit, the firm underwrites insurance-linked securities, arranges financing for insurers and provides advice on strategic and capital alternatives.
Its retail brokerage operation places commercial property and casualty insurance.
Major offices, in its risk solutions division, include Chicago (Aon’s corporate head office until 2012) as well as New York City. In Canada, Aon Reed Stenhouse is based in Toronto, with more than 20 offices across the country.
In its annual report for 2014, released last February, Aon said it has about 69,000 employees, of which about 32,000 were in risk solutions.
For the first nine months of calendar-year 2015, Aon reported risk solutions revenue of $3.013 billion, essentially unchanged from $3.004 billion during the first nine months of 2014.
Company-wide, Aon reported revenue of $8.394 billion for the nine months ending Sept. 30, down 4% from $8.746 billion in 2014.
Net income for the first nine months was $832 million, down 14% from $964 million during the same period in 2014.