Aon reports 6% year-on-year fall in Q2 2024 profit 

Professional services company Aon has reported net income of $538m in Q2 2024, a 6% drop from $575m in the same quarter a year ago.  

For the first six months of 2024, net income stood at $1.63bn, down from $1.65bn in the prior year. 

Aon generated revenues of $7.83bn in the first half of 2024, an 11% increase from $7.04bn a year ago.  

In Q1 2024, Aon’s net income was $1.09bn.  

During the three months ending 30 June 2024, the company’s total revenue increased by $583m, or 18%, to $3.76bn.  

The rise in revenue was due to earnings from the $13bn acquisition of NFP and a 6% organic growth in revenue fuelled by new business generation and robust retention.  

This was offset by a 1% negative effect from foreign currency translation. 

In the commercial risk solutions unit, 6% organic revenue growth was driven by new business and strong retention across major regions.  

Aon said its retail brokerage saw double-digit growth in Europe, the Middle East and Africa and Latin America, solid performance in North America (including most of NFP Commercial Risk), and growth in Asia-Pacific due to strong core property and casualty performance.  

Reinsurance solutions saw 7% organic revenue growth from strong treaty and facultative placements, driven by new business and high retention. Results were positively impacted by market conditions. 

The health solutions unit achieved 6% organic revenue growth from strong core health brokerage and benefits, including NFP, with global growth in major regions. 

Wealth solutions business saw 9% organic revenue growth from retirement and investments performance, driven by advisory demand, pension de-risking and asset inflows. 

Total operating expenses soared by 33% year on year to $3.1bn in Q2, mainly due to NFP’s ongoing expenses. 

Aon’s other Q2 highlights include repurchasing 0.8 million shares for $250m, appointing Edmund Reese as CFO from 29 July 2024 and launching a $350m insurance capacity solution for Ukraine. 

Aon CEO Greg Case said: “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.  

“We welcomed our new NFP colleagues to the firm, and we are even more excited about the opportunities we see to better serve our clients, through shared expertise, content and capabilities enabled by Aon Business Services.  

“The first half marks great progress against all elements of our 3×3 plan, and we are well-positioned for the remainder of 2024 and the long term.”