AON's Q2 net income down by 41% y-o-y to USD 178 million

26 August 2015 — Vlad BOLDIJAR
For the second quarter of 2015, the risk and insurance brokerage services provider AON posted a total revenue of USD 2.8 billion, down by 4% y-o-y "primarily by a 7% unfavorable impact from foreign currency translation, partially offset by 2% organic revenue growth and a 1% increase in commissions and fees related to acquisitions, net of divestitures". The net income attributable to shareholders was down by 41% y-o-y to USD 178 million, or USD 0.62 per share, compared to USD 304 million, or USD 1.01 per share, for the prior year quarter.

Total operating expenses increased 2% y-o-y to USD 2.5 billion "due primarily to USD 176 million of legacy litigation expense for events that primarily occurred ten or more years ago", AON officials explained in a press release. At the same time, this indicator was influenced by an increase in expense to support 2% organic revenue growth, and a USD 14 million increase in expenses related to acquisitions, net of divestitures, partially offset by a USD 166 million favorable impact from foreign currency translation and an USD 8 million decrease in intangible asset amortization.

By divisions, Risk Solutions' total revenue decreased by 6%, to USD 1.80 billion (operating income decreased 33% to USD 279 million), while HR Solutions' total revenue was down in absolute value by USD 3 million, to USD 979 million (operating income decreased 43% to USD 39 million).

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