Aon, 2Q2019: total revenue increased 2% to USD 2.6 billion

8 August 2019 — press.release
Total revenue of Aon plc (NYSE: AON) in the second quarter increased 2% to USD 2.6 billion compared to the prior year period, driven by 6% organic revenue growth, partially offset by unfavorable impact from foreign currency translation and divestitures, net of acquisitions.

The net income of the second quarter from continuing operations attributable to Aon shareholders was USD 277 million, or USD 1.14 per share, compared to USD 47 million, or USD 0.19 per share, in the prior year period.

Total operating expenses in the second quarter decreased 15% to USD 2.2 billion compared to the prior year period due primarily to:
  • a USD 176 million decrease from a non-cash impairment charge related to certain assets and liabilities that were classified as held for sale in the prior year period,
  • a USD 103 million decrease in expense related to legacy litigation, a USD 74 million favorable impact from foreign currency translation,
  • a USD 68 million decrease in restructuring charges, USD 38 million of incremental savings related to restructuring and other operational improvement initiatives,
  • and a USD 21 million decrease in expenses related to divestitures, net of acquisitions, partially offset by an increase in expense associated with 6% organic revenue growth.
Restructuring expenses were USD 127 million in the second quarter, primarily driven by workforce reductions and other costs associated with restructuring and separation initiatives. Restructuring savings in the second quarter related to restructuring and other operational improvement initiatives were estimated at USD 122 million, representing an increase of USD 38 million compared to the prior year period.

Greg CASE, Chief Executive Officer of Aon, said:

"Our second quarter results reflect continued progress and momentum from our Aon United initiatives, highlighted by strong organic revenue growth of 6% for the fourth consecutive quarter and substantial operating margin improvement of 240 basis points.

The steps we are taking to lead Aon United in response to increasing client demand combined with significant investment in content and capability, is not only amplifying our ability to serve clients, but also our ability to deliver improved operational and financial performance that we believe will unlock significant shareholder value creation over the long-term."

More information about Aon's second quarter and half year results can be found on Aon's website.


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