UK-based global professional services firm Aon has reported a net income of $659m, or $2.70 per diluted share, for the first quarter of 2019, an increase of 11% compared to $594m, or $2.37 per diluted share, for the same period last year.
Aon reported an increase of 2% in its revenue to $3.14bn in the first quarter of 2019, compared to $3.09bn earned in the same quarter in the previous year.
Aon achieved an organic revenue growth of 6%, which was offset partially by a 4% unfavorable impact owing to foreign currency translation.
The company said that the $53m increase in the first quarter was mainly due to strong new business generation and retention in its core portfolio across the world. Strong growth in transaction liability, cyber solutions, delegated investment management, and other specific areas of continued investment have also played part in the revenue growth, said the professional services firm.
Aon’s commercial risk solutions business saw an increase in organic revenue growth by 6% compared to the previous year quarter owing to growth across all the major regions. The company had a double-digit growth in Latin America and strong growth in both North America and Asia.
The commercial risk solutions unit reported revenue of $1.12bn in the first quarter of 2019, compared to $1.18bn in the first quarter of 2018.
Its reinsurance solutions business reported an increase of 9% in its organic revenue growth of 9% compared to Q1 2018 courtesy of strong net new business generation across the world in treaty. There was also double-digit growth witnessed globally in facultative placements and in capital markets transactions, said Aon.
The reinsurance solutions business fetched $788m in the reported period, an increase of 6% compared to $742m earned in Q1 2018.
Aon’s retirement solutions unit increased its organic revenue growth by 2% compared to the same quarter in the previous year. The retirement solutions business earned $420m in Q1 2019, which dropped 1% compared to $424m reported in Q1 2018.
The company’s health solutions and data and analytic services had both seen a 5% increase in their respective organic revenue growth for Q1 2019.
Aon CEO Greg Case said: “Our results reflect increasing strength from our Aon United initiatives, as highlighted by strong organic revenue growth of 6%, substantial operating margin improvement of +190 basis points, and double-digit earnings per share growth for the first quarter.
“More important, we continue to strengthen our firm through investments in industry-defining content and capability, while increasing our relevance to clients, delivering strong financial results and unlocking significant shareholder value creation through double-digit free cash flow growth over the long-term.”