Aon Reinsurance Solutions showed organic growth in Q2 2023

Aon Reinsurance Solutions showed consistent 9% organic growth, both for Q2 and also for H1 2023, respectively.

The reinsurance broker saw robust growth in treaty business, driven by strong retention and continued net new business generation, as well as double-digit growth in both facultative placements and investment banking, and solid growth in its strategy and technology group.

Market impact was modestly positive on results in the quarter. Total Q2 revenue increased 7% to $3.2bn, including organic revenue growth of 6%.

Operating margin increased 300 basis points to 26.5%, and operating margin, adjusted for certain items, increased 110 basis points to 27.3%

For the first six months of 2023, cash flows from operations was flat, and free cash flow decreased 7% to $986mn.

Christa Davies, Aon’s CFO

Our financial results in the second quarter and year-to-date reflect strong operational performance driven by our Aon United strategy and Aon Business Services platform

Christa Davies, Aon’s CFO

The majority of revenue in the broker’s treaty portfolio is recurring in nature and is recorded in connection with the major renewal periods that take place throughout the first half of the year.

Second quarter revenue within its reinsurance arm reached $607mn, up from $537mn in the same quarter a year ago, representing a 13% rise before currency adjustments.

Revenue for the first half was $1.68bn, up from $1.51bn in the same period of last year.

Overall, Q2 net income attributable to Aon shareholders increased 12% to $560mn or $2.71 per share on a diluted basis, compared to $501mn, or $2.33 per share, in the prior year period.

The global team delivered strong operating results in the second quarter, including 6% organic revenue growth and 110 basis points of adjusted operating margin improvement, demonstrating the strength of Aon United strategy and ongoing progress against our financial goals.

Greg Case, Aon’s CEO

By aligning solution development around Risk Capital and Human Capital, we’re accelerating innovation in our core business and more effectively leveraging our Aon Business Services platform to address growing client demand for analytical tools that will help them make better decisions on risk and people challenges and opportunities

Greg Case, Aon’s CEO

The clients need help to understand and anticipate the future landscape. Their organizations need the right expertise, insights and intelligence to drive more innovative and adaptable strategies.

“By aligning solution development around risk capital and human capital, we’re accelerating innovation in our core business and leveraging Aon Business Services platform to address growing client demand for analytical tools to help them make better decisions on risk and people challenges and opportunities”, – Greg Case says.

Nataly Kramer   by Nataly Kramer