Aon reported third quarter revenue of $2.3 billion, an increase of 6 percent from the $2.2 billion reported for the same period last year.
This increase was driven primarily by a 3 percent increase related to acquisitions, net of divestitures, 2 percent organic revenue growth, and a 1 percent favorable impact from foreign currency translation, Aon said.
Net income attributable to Aon shareholders was $185 million, or $0.72 per share, a 42 percent drop from $319 million, or $1.18 per share, reported during the prior year period.
Total operating expenses in the third quarter increased 13 percent to $2.1 billion, compared to $1.8 billion during the prior year period. The operating expenses’ figure included restructuring costs of $102 million in the third quarter, primarily driven by workforce reductions, IT rationalization, and other separation costs.
Other earnings highlights include:
Revenue for the company’s Commercial Risk Solutions unit increased by 4 percent during the third quarter to $917 million, compared with $884 million for Q3 2017.
Revenue for Reinsurance Solutions increased by 8 percent to $355 million, compared with $329 million for Q3 2017.
Revenue for Retirement Solutions increased by 5 percent to $491 million, compared with $466 million for Q3 2017.
Revenue for Health Solutions increased by 11 percent to $293 million, compared with $265 million for the same period last year.
Data & Analytic Services increased by 11 percent to $289 million, compared with $260 million last year.
“Our results for the quarter reflect strong organic revenue growth in our reinsurance business, 170 basis points of adjusted operating margin improvement, and 18 percent adjusted earnings per share growth, highlighting increased operating leverage in our Aon United operating model and effective capital management with the repurchase of $750 million of shares in the quarter.” said Greg Case, president and chief executive Officer.
“Looking forward, we expect a strong finish to the year as we head into our seasonally strongest quarter,” added Case, who said the broker is on track “to exceed $7.97 adjusted earnings per share in 2018 and deliver double-digit free cash flow growth over the long-term.”