Aon posts near billion dollar profit, solid growth
Aon plc reported steady growth in the first quarter of 2025, with revenue climbing 16 per cent to $4.7 billion compared to the same period last year, despite a tougher global economic environment, it reported.
The company declared net income of $965 million, down 10 per cent from the $1.1 billion in the same period a year ago. Adjusted net income attributable to Aon shareholders increased 9 per cent to $1.2 billion compared to $1.1 billion in the prior year period.
Organic revenue, which strips out currency and acquisition impacts, rose 5 per cent. Adjusted operating income increased 12 per cent to $1.8 billion, while adjusted earnings per share held steady at $5.67.
"Aon has momentum entering year two of the 3x3 Plan and our continued execution drove another quarter of mid-single-digit organic revenue growth and strong operating performance," said Greg Case, Aon's president and chief executive. "These results reflect robust demand for our risk capital and human capital solutions."
Risk capital, which includes Aon's commercial insurance and reinsurance businesses, generated $3.2 billion in revenue, up 7 per cent from last year. Human capital revenue, which covers employee health and retirement solutions, jumped 40 per cent to $1.5 billion, fuelled in part by the acquisition of NFP, a US insurance brokerage and consulting firm.
Mr Case added: “We are reaffirming our 2025 guidance, across all key metrics, reflecting the resilience and strength of our business and financial model."
The company highlighted strong performance in its commercial risk division, which grew 5 per cent organically thanks to new business wins and high client retention, the report said. Reinsurance solutions also posted a 4 per cent organic increase, driven by treaty placements and a rise in insurance-linked securities.
However, there were signs of pressure as operating margins slipped. Aon’s operating margin fell to 30.9 per cent from 36 per cent a year ago, while adjusted operating margin dropped to 38.4 per cent from 39.7 per cent.
The company’s free cashflow fell sharply by 68 per cent to $84 million, due to higher incentive compensation payments, interest costs and restructuring expenses.
Still, Aon remains confident, announcing a 10 per cent increase to its quarterly dividend, marking the 15th consecutive year of dividend growth, and maintaining its leverage target of 2.8x to 3.0x by the end of 2025.
"We are driving growth by providing actionable insights, powered by Aon Business Services, to our clients in an increasingly complex macro environment," Mr Case said.
Aon’s full-year outlook projects continued mid-single-digit organic revenue growth, expanded margins, strong adjusted EPS growth and double-digit free cashflow gains.
• For a full report on Aon’s First Quarter 2025 Results, see Related Media
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