Aon reports third quarter net income of $256 million

Aon plc has reported a net income attributable to shareholders for the third quarter of the year of $256 million, up from $204 million in the same period of 2012.

“Our third quarter results reflect positive performance across each of our key metrics highlighted by strong operating margin improvement of 110 basis points in our Risk Solutions segment and the repurchase of $500 million of ordinary shares,” Greg Case, president and CEO noted in a statement on the results.

“Having made significant investments across the firm in both the Global Risk Insight Platform and the most robust set of solutions for healthcare exchanges, we are on-track for a solid finish to 2013 and continue to strengthen the platform for long-term growth, strong free cash flow generation and increased financial flexibility in 2014.”

Aon’s total revenue increased 2% to $2.8 billion when compared to the prior year quarter, which it says was driven “by a 3% increase in organic revenue and partially offset by a 1% unfavorable impact from foreign currency translation and a 27% decline in investment income due to lower average interest rates.”

Operating income for the firm’s Risk Solutions division (including retail brokerage and reinsurance) reached $333 million, over $309 million for the third quarter of 2012.

Total revenue in Risk Solutions increased to $1.82 billion over the same period of 2012 ($1.77 billion).

“Retail Brokerage organic revenue increased 4% reflecting revenue growth in both the Americas and International businesses,” Aon’s statement noted.

“Americas organic revenue increased 5% reflecting growth across all regions driven by strong management of the renewal book portfolio, including record retention rates in U.S. Retail, and a modestly positive market impact.”