Aon plc reports double-digit new business growth in Canada and Latin America in Q1 results

Aon plc announced on Friday that “double-digit new business growth in Canada and Latin America” was responsible for an organic revenue increase of 4% in Q1 for its Americas businesses.

The company reported a net income of US$328 million for the three months ending March 31, compared to US$325 million for the prior year quarter.

“Our first quarter results reflect a solid start to the year with seven percent earnings growth despite a significant headwind from foreign currency translation,” said Aon president and CEO Greg Case in a statement. “Results are highlighted by solid organic revenue growth across both Risk and HR Solutions, underlying operational improvement, effective capital management, and substantial free cash flow generation enabling the repurchase of approximately $250 million of ordinary shares in the quarter.”

Aon noted in the statement that total revenue decreased 3% to US$2.8 billion, compared to the prior year quarter, driven primarily by a 7% unfavorable impact from foreign currency translation and partially offset by 3% organic revenue growth and a 1% increase in commissions and fees related to acquisitions. Total operating expenses for Q1 decreased 3% to US$2.4 billion compared to the prior year quarter.

The company reported solid organic revenue growth across both Risk and HR Solutions. Risk Solutions’ total revenue decreased 5% to US$1.9 billion compared to the prior year quarter due to an 8% unfavorable impact from foreign currency translation, partially offset by 3% organic growth in commissions and fees. Retail organic revenue increased 4%, reflecting revenue growth in both the Americas and International businesses. “Americas organic revenue increased 4%, reflecting growth across all regions driven by solid management of the renewal book portfolio in US Retail, as well as double-digit new business growth in Canada and Latin America,” the statement said.

HR Solutions total revenue increased 1% to US$970 million compared to the prior year quarter, driven by 4% organic growth in commissions and fees, partially offset by a 3% unfavorable impact from foreign currency translation.

Reinsurance organic revenue decreased 1% compared to the prior year quarter due primarily to an unfavorable market impact globally, most notably in the Americas.