Aon reported total revenue of $2.4bn for the Q3 2020, which almost unchanged compared to Q3 2019
Aon Australia Head Office, Aon Tower, Sydney. (Credit: Adam.J.W.C./Wikipedia.)
UK-based professional services firm Aon has reported a net income of $274m, or $1.18 per share, for the third quarter of 2020, a 23% increase compared to $223m, or $0.93 per share, for the same period last year.
The net income per share was adjusted to $1.53, including an unfavourable impact of $0.01 per share, an increase of 6%, compared to $1.45 for the previous year.
The UK-based firm reported total revenue of $2.4bn for the Q3 2020, which almost unchanged compared to Q3 2019.
The unchanged total revenue indicated 1% favourable impact from acquisitions, net divestitures, counterbalanced by 1% unfavourable impact from fiduciary investment income.
Aon chief executive officer Greg Case said: “Our third-quarter results demonstrate the resiliency of our firm and our colleagues. Year-to-date, we delivered strong operational performance with 170 basis points of operating margin expansion and free cash flow of $1.9 billion, up $908 million from last year.
“Over the past decade, we have evolved to better address client need by making their voice core to our Aon United growth strategy. Taking a complete client view – instead of a traditional product view, is fundamental to delivering the next generation of solutions they have told us they need.
“In an increasingly volatile world, our pending combination with Willis Towers Watson will accelerate this proven strategy and establish the combined firm as a preeminent partner to help clients navigate today’s most pressing issues and the long-tail risks we will face in the future.”
The company attributed the 13% organic growth in the revenue of its Reinsurance Solutions business to treaty, facultative, and capital markets transactions.
Aon reports 4% drop in Q3 total operating expenses
The company’s total operating expenses for Q3 dropped by 4% to $1.9bn compared to the corresponding quarter in 2019.
Aon’s US GAAP financial statements used 22.6% effective tax rate for the third quarter, which increased by 3% from 19.6% for the same prior last year.
The adjusted effective tax rate, excluding tax impact due to certain non-GAAP adjustments, was decreased to 20.2% for the Q3 2020, compared to 21.4% for Q3 2019.