Aon revenue tops US$12 billion, Q4 net income up 30%

Commercial insurance broker Aon plc released Friday its financial results for 2014, reporting an increase of about 0.4% in Q4 retail risk solutions revenue and a 2% increase, in revenue for the full year, to $12.045 billion.

In a press release, Aon reported its fourth-quarter revenue was up 4%, from $3.209 billion in 2013 to $3.299 billion in the latest quarter. All figures are in United States dollars.

Aon reported net income of $467 million in the most recent quarter, up 30% from $360 million in the same period in 2013.

Worldwide, the London-based Aon ranked first by commercial non-life insurance brokerage revenues in 2013, with a market share of 12.5%, Finaccord Ltd. reported last October.

Aon said Friday its revenue (including fees and commissions), from retail risk solutions, was $1.715 billion in the latest quarter. That was essentially unchanged from $1.708 billion in Q4 2013. In reinsurance, risk solutions revenues dropped 1%, from $338 million in Q4 2013 to $334 million last year.

Operating income increased 23%, from $515 million in Q4 2013 to $635 million in the most recent quarter.

“Total operating expenses for the fourth quarter decreased 1% to $2.7 billion compared to the prior year quarter due primarily to a $79 million favourable impact from foreign currency translation, a $65 million decrease in formal restructuring costs, and a $10 million decrease in intangible asset amortization, partially offset by an increase in expense associated with 6% organic revenue growth, $35 million of expense related to legacy litigation, and a $17 million increase in expenses related to acquisitions, net of divestitures,” Aon said in a press release.

For the full year, Aon reported a 2% increase in revenues, from $11.815 billion in 2013 to $12.045 billion last year.

Net income increased 25%, from $1.148 billion in 2013 to $1.431 billion last year.

Revenue (including fees and commissions) from retail risk solutions increased 1% from $6.256 billion in 2013 to $6.334 billion in 2014. Reinsurance brokerage revenue dropped 2%, from $1.505 billion in 2013 to $1.474 billion last year.

The firm reported a 3% increase, from 2013 to 2014, in organic growth in commissions and fees,” partially offset by a 1% unfavorable impact from foreign currency translation.”