Aon, 4Q2019: consolidated revenues increased 4% to USD 2.9 billion

31 January 2020 — press.release
Aon announced the 2019 results of the fourth quarter and the full year. The figures of the fourth quarter (3 months) show an increase of 4% in the consolidated revenues, to USD 2.885 billion (4Q2018: USD 2.770 billion).

The revenue positive evolution in the fourth quarter was driven by 7% organic revenue growth, partially offset by a 2% unfavorable impact from divestitures, net of acquisitions, and a 1% unfavorable impact from foreign currency translation.

Total operating expenses in the fourth quarter increased 4% to USD 2.4 billion compared to the prior year period due primarily to an increase in expense associated with 7% organic revenue growth, an increase in investments supporting growth initiatives across the portfolio, and a USD 51 million increase in restructuring charges, partially offset by USD 54 million of incremental savings from restructuring and other operational improvement initiatives, a USD 27 million favorable impact from foreign currency translation, and a USD 12 million decrease in expenses related to divestitures, net of acquisitions.

The 2019 full year (12 months) figures show an increase of 2% of the revenues to USD 11.0 billion (FY2018: USD 10.7 billion) and a 4% decrease of the expenses to USD 8.8 billion (FY2018: USD 9.2 billion).

Aon 4Q2019 (3 months) figures, changes y-o-y

  • Revenues: USD 2,885 million (+4%), of which
    • Commercial Risk Solutions: USD 1,331 million (+5%)
    • Reinsurance Solutions: USD 187 million (+15%)
    • Retirement Solutions: USD 494 million (-3%)
    • Health Solutions: USD 585 million (+5%)
    • Data & Analytic Services: USD 291 million (+7%)
  • Expenses: USD 2,361 million (+4%)
  • Operating income: USD 524 million (+5%)
  • Net income (shareholders): USD 374 million (+8%)

Commercial Risk Solutions organic revenue growth of 7% was driven by growth across every major geography, highlighted by double-digit growth in the U.S., driven by strong new business generation and management of the renewal book portfolio, as well as double-digit growth in Latin America. On average globally, exposures and pricing were both modestly positive, resulting in a modestly positive market impact overall.

Reinsurance Solutions organic revenue growth of 17% was driven by double-digit growth across every major business, highlighted by continued net new business generation globally and strong growth in catastrophe bonds within capital markets transactions. In addition, market impact was modestly positive on results in the fourth quarter.

Retirement Solutions organic revenue growth of 3% was driven by growth across every major business, highlighted by particular strength in our rewards and assessment businesses within the Human Capital practice, as well as double-digit growth in delegated investment management. Results also reflect modest growth in core retirement driven by strong retention and project-related work.

Health Solutions organic revenue growth of 5% was driven by strong growth globally in health and benefits brokerage, with growth across every major geography and highlighted by particular strength internationally. In the U.S., we saw strong new business generation and double-digit growth in voluntary benefits, a specific area of continued investment driven by increased client demand. Results were partially offset by a decline in project-related work within the health care exchange business.

Data & Analytic Services organic revenue growth of 6% was driven by growth globally across our affinity business, with particular strength in the U.S. driven by double-digit new business generation. Results also reflect solid growth in the Aon Inpoint and ReView businesses driven by strong retention.

Operating income increased to USD 524 million. Adjusting for certain items detailed on page 10 of this press release, operating income increased USD 88 million, or 12%, and operating margin increased 210 basis points to 27.9%, each compared to the prior year period.

Adjusted operating income and margin primarily reflects strong organic revenue growth, including double-digit growth in certain priority areas of investment, and USD 54 million, or +190 basis points, of incremental savings from restructuring and other operational initiatives, partially offset by a USD 10 million unfavorable impact from foreign currency translation.

Operating income growth and operating margin expansion compared to the prior year period also reflect the absorption of investment to support long-term Aon United growth initiatives.

Greg Case, Chief Executive Officer, commented on the results:

"Our fourth quarter results reflect strong operational and financial performance to finish the year, highlighted by organic revenue growth of 7%, including growth of 5% or greater in four of the five solutions lines, and substantial operating margin improvement of 210 basis points. For the full year, we delivered our strongest level of organic revenue growth in over 15 years and adjusted operating margin of 27.5%. Our strong performance reflects continued momentum as we strategically position the firm to bring the best of global Aon to clients and execute against our Aon United strategy. We enter 2020 in a position of strength to continue to improve the long-term growth profile of the firm that we believe will unlock significant value for clients and shareholders."

More financial information about Aon can be found at

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