Aon plc (AON) recently reported financial results for the three and nine months ended September 30, 2016.
The insurance brokerage and consulting firm reported $2.75 billion in revenue for the third quarter of 2016, up fractionally compared with the same period last year. It was driven primarily by 4% organic revenue growth in commissions and fees, offset by a 2% unfavorable impact from foreign currency translation and a 2% decrease in commissions and fees related to divestitures, net of acquisitions.
Revenue for its Risk Solutions segment, which includes retail brokerage and reinsurance, increased 2% compared with the prior year quarter driven by 3% organic growth in commissions and fees and a 1% increase in commissions and fees related to acquisitions, net of divestitures, partially offset by a 2% unfavorable impact from foreign currency translation, Aon said in a statement.
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Retail insurance brokerage revenue inched up 2% and reinsurance organic revenue increased 1% compared to the prior year quarter due primarily to growth in net new business generation in treaty and growth in facultative placements, partially offset by an unfavorable market impact globally.
The results reflect “solid organic revenue growth across both Risk and HR Solutions, effective capital management, and strong double-digit growth in free cash flow,” Greg Case, president and CEO said in a statement.
Revenue for Aon’s HR Solutions, which deals with employee benefits, decreased 2% compared with the prior year quarter driven by a 4% decrease in commissions and fees resulting from net of divestitures and a 2% unfavorable impact from foreign currency translation, the broker said in the statement.
Net income for the quarter increased 4% to $314 million.