Net income, revenue up for Aon in first quarter of 2014

Aon plc has reported net income attributable to shareholders of $325 million for the first three months of the year, up from $261 million in the first quarter of 2013.

Total revenue for the company increased by 1% to $2.9 billion during the first quarter (over Q1 in 2013).

“Our first quarter results reflect a solid start to the year with double-digit earnings growth, highlighted by strong performance across Risk Solutions and effective capital management,” Greg Case, president and chief executive officer of Aon said in a statement.

“We are returning a record amount of capital to shareholders, highlighted by the repurchase of $600 million of ordinary shares in the quarter and the recently declared 43% increase in our quarterly cash dividend, while continuing to invest in innovative solutions across the firm to strengthen our industry-leading platform for long-term growth, strong free cash flow generation and increased financial flexibility.”

First quarter operating income for its Risk Solutions division increased 10% to $445 million compared to the prior year quarter.

“Retail organic revenue increased 3% reflecting revenue growth in both the Americas and International businesses,” Aon noted.

“Americas organic revenue increased 4% reflecting growth across all regions driven by new business generation in US Retail and strong management of the renewal book portfolio across Latin America and Canada.

“Reinsurance organic revenue increased 3% compared to the prior year quarter due primarily to growth in facultative placements and capital markets transactions and advisory business, as well as net new business growth in treaty placements, partially offset by an unfavorable market impact in the quarter.”

In its HR Solutions division, operating income increased 31% to $67 million compared to the first quarter of 2013.

“Restructuring savings in the first quarter related to the Aon Hewitt restructuring program are estimated at $100 million compared to $69 million in the prior year quarter,” its press release noted.