Risk solutions revenue down 6% at Aon

Commercial insurance brokerage Aon plc released Friday its financial results for the three months ending June 30, reporting a 6% drop, year-over-year, in Q2 revenue from risk solutions and a 41% drop in net income.

Total revenue decreased 4%, from $2.92 billion in the second quarter of 2014 to $2.805 billion in the most recent quarter. All figures are in United States dollars. The revenue drop was “driven primarily by a 7% unfavorable impact from foreign currency translation, partially offset by 2% organic revenue growth and a 1% increase in commissions and fees related to acquisitions, net of divestitures,” London-based Aon stated in a press release.

Aon reported $1.833 billion in revenue from risk solutions in the latest quarter, down 6% from $1.948 billion in Q2 2014.

Company-wide net income dropped 41%, from $304 million in Q2 2014 to $188 million in the most recent quarter.

“Despite macroeconomic headwinds, we expect solid performance across each of our four key financial metrics for the second half of the year, including significant free cash flow growth, placing us firmly on track towards our goal of delivering $2.3 billion or more of free cash flow for the full year 2017,” stated Greg Case, Aon’s president and chief executive officer, in the release.

In risk solutions, Aon employed about 32,000 worldwide as of the end of 2014, the firm stated in its annual report filed last February. Aon provides retail brokerage services, affinity products, managing general underwriting, placement, captive management services and data and analytics. In Canada, Aon places insurance covering property, kidnap and ransom, terrorism, trade credit and various lines of liability, including environmental, directors and officers and errors and omissions, among others.

Through its reinsurance brokerage, Aon places both treaty and facultative reinsurance.

In human resources solutions – which Aon provides using the Aon Hewitt brand – the company reported $979 million in revenues in the most recent quarter, essentially unchanged from $983 million in Q2 2014. As of the end of 2014, the firm employed about 31,000 in human resources solutions, which include recruiting, pension administration, performance management, leadership assessment and compensation advisory, among others.