AON reports 42% decrease in Q3 net income to USD 185 million

2 November 2017 — Vlad BOLDIJAR
Insurance brokerage company AON reported third quarter revenue of USD 2.3 billion, an increase of 6% y-o-y over the previous year's result. Acquisitions have played an important role in the revenues dynamic.

The increase was driven "primarily by a 3% increase related to acquisitions, net of divestitures, 2% organic revenue growth, and a 1% favorable impact from foreign currency translation", as AON representatives pointed out in a statement.

Per business lines, aggregate Q3 2017 revenue was generated as follows:
  • Commercial Risk Solutions: USD 917million vs. USD 884 million in Q3 2016
  • Reinsurance Solutions: USD 355 million vs. USD 329 million in Q3 2016
  • Retirement Solutions: USD 491 million vs. USD 466 million in Q3 2016
  • Health Solutions: USD 293 million vs. USD 265 million in Q3 2016
  • Data & Analytic Services: USD 289 million vs. USD 260 million in Q3 2016
At the same time, net income attributable to AON shareholders was USD 185 million, or USD 0.72 per share, a 42% decrease from USD 319 million, or USD 1.18 per share, in the prior year period.

The broker pointed out that the total Q3 operating result has increased 13% to USD 2.07 billion, compared to USD 1.83 billion during the prior year period. Of this total, the operating expenses' figure include Q3 restructuring costs of USD 102 million - primarily driven by workforce reductions, IT rationalization, and other separation costs.

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