Aon Reports 6% Drop in Q2 Net Income, Organic Revenues Grow 6%

Aon reported net income attributable to shareholders of $524 million during the second quarter, a 6% decrease from $560 million reported in Q2 2023.

Adjusted net income attributable to Aon shareholders increased 9% during Q2 2024 to $624 million, compared to $570 million in the prior year period. Q2 earnings per share dropped 9% to $2.46 from $2.71 in Q2 2023, while adjusted EPS increased 6% to $2.93 from $2.73 last year.

Operating income during the second quarter declined 22% to $656 million, compared with $842 million reported for Q2 2023.

On the other hand, adjusted operating income increased 19% to $1.029 billion from $867 million in Q2 2023. Aon attributed the increase in adjusted operating income to the impact of the acquisition of NFP (completed in April), organic revenue growth, net restructuring savings and increased fiduciary investment income, which was partially offset by increased expenses and investments in long-term growth.

Revenue for the quarter was $3.8 billion, an increase of 18% from $3.2 billion in Q2 2023. Organic revenue grew 6% during the first half of 2024, which was level with last year’s second quarter.

Organic growth for each of Aon’s segments was reported as:

• Commercial Risk Solutions, 6%. Growth across all geographies was driven by net new business generation and sg growth across all major geographies driven by net new business generation and strong retention;
• Reinsurance Solutions, 7%. Treaty business saw strong growth, driven by continued net new business generation and strong retention, while facultative placements also saw strong growth;
• Health Solutions, 6%. High single-digit growth was seen globally in core health and benefits brokerage, including in NFP, which was driven by net new business generation and strong retention;
• Wealth Solutions, 9%. Strong growth was seen in Retirement, driven by advisory demand and project-related work related to pension de-risking and ongoing impact of regulatory changes.

“Our colleagues delivered excellent results in the second quarter, with 6% organic revenue growth, adjusted operating margin expansion and 19% growth in adjusted operating income,” said Greg Case, CEO of Aon, in a statement.

Aon , noting that Aon welcomed its new NFP colleagues to the firm during the second quarter.

First 6 Months

For the six months ended June 30, 2024, Aon reported net income attributable to shareholders of $1.595 billion, a 1% drop from $1.610 billion reported in H1 2023. Adjusted net income attributable to Aon shareholders rose 7% to $1.757 billion from $1.640 billion in H1 2023.

Aon’s operating income for the first half was $2.121 billion, a drop of 8% from $2.315 billion in H1 2023. Adjusted operating income rose 12% to $2.644 billion from $2.365 billion last year.

Revenue for the half was up 11% to $7.830 billion from $7.048 billion reported during H1 2023.

Related:

• WTW Reports 48% Hike in Q2 Net Income With Organic Growth of 6%
• Marsh McLennan Reports 8.7% Increase in Q2 Net Income
• Aon Completes $13B Acquisition of Middle-Market Broker NFP

Topics Profit Loss Aon