Risk Capital revenue increased USD 311 million, or 10%, to USD 3.5 billion, and Human Capital revenue decreased USD 6 million, or less than 1%, to USD 1.5 billion.
Total operating expenses in the first quarter increased 2% to USD 3.3 billion compared to the prior-year period, due primarily to the increase in expense associated with 5% organic revenue growth and investments in long-term growth, as well as the unfavorable impact of foreign currency translation, partially offset by lower expenses associated with the sale of NFP Wealth and USD 25 million of net restructuring savings. Risk Capital operating expenses increased USD 126 million, or 6%, to USD 2.1 billion, and Human Capital operating expenses decreased USD 46 million, or 4%, to USD 1.1 billion.
Aon’s balance sheet position and strong free cash flow generation enabled execution of its disciplined capital allocation model, returning USD 662 million of capital to shareholders through dividends and share repurchases during the quarter.
"Our strong start to the year reflects continued execution of our 3x3 Plan and progress accelerating our client‑centric Aon United strategy", commented Greg Case, president and CEO. "In the first quarter, we delivered 5% organic revenue growth, expanded operating margin, and generated significant free cash flow, reinforcing our confidence in achieving our full‑year objectives", the president and CEO said.
"As risk and complexity continue to grow, demand is increasing among global, large, and middle‑market clients for integrated, high‑value solutions that combine expertise, data, and analytics at scale", Greg Case added. "Our long‑standing focus on these client segments along with our investments in analytics, technology, and innovative capital solutions is expanding our addressable market. As a result, we are well positioned to deepen our relevance with clients and deliver durable growth and long‑term shareholder value", Case emphasized.
The full report can be found here.
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