Aon reported growth across its major businesses in the third quarter, with organic revenue rising in each of its four solution lines. The insurance brokerage and professional services company also said earnings per share increased and that strong free cash flow supports its capital-allocation approach.
Aon said it expects its acquisition of USI to close in the fourth quarter.
Key details
- Revenue growth: Total revenue increased 3% from a year earlier, while organic revenue — which excludes the effects of acquisitions, dispositions and currency movements — grew 6%.
- Growth across businesses: Organic revenue rose 7% in Commercial Risk, 7% in Reinsurance, 6% in Health and 4% in Wealth.
- Earnings and cash flow: Aon reported EPS growth and characterized its free-cash-flow generation as strong. The results provided did not specify the EPS growth rate or cash-flow amount.
- USI acquisition: Aon expects the acquisition to close in the fourth quarter. The reported details did not include transaction terms or a more specific closing date.
Plain-English implications
Growth was broad-based across Aon’s four business lines, though the reported figures show faster organic growth in Commercial Risk and Reinsurance than in Wealth. The expected USI closing remains a pending transaction; Aon’s stated capital-allocation approach is supported by its free-cash-flow generation.