Aon PLC Friday reported $3.76 billion in revenue for the second quarter, an 18.4% increase over the same period last year, as most of its main divisions benefited from the $13 billion purchase of NFP Corp., which was completed in late April.
The brokerage reported 6% organic growth, which excludes the effect of acquisitions and foreign currency fluctuations.
Aon expects continued acquisitions and is hiring staff in various specialty areas, senior executives said on an earnings call with analysts.
Aon reported second-quarter revenue of $2.01 billion in commercial risk solutions, its main retail brokerage unit, a 13.5% increase over the same period last year and up 6% on an organic basis; in reinsurance broking, it reported $635 billion in revenue, up 4.6% overall and 7% organic.
Revenue for health solutions, its health and benefits consulting unit, totaled $662 million, up 48.1% overall and 6% on an organic basis; wealth solutions, its retirement services unit, reported revenue of $463 million, up 31.5% overall and 9% organic.
Aon posted net income of $538 million for the quarter, down 6.4%. It reported higher interest expenses and tax rates during the quarter.
Aon will continue to look for companies to acquire, said Christa Davies, the company’s chief financial officer. Ms. Davies is stepping down as CFO next week.
“Our M&A pipeline continues to be focused on our high-priority areas, including the mid-market and attractive geographies,” she said.
Ms. Davies said the company will also continue to make acquisitions through NFP, noting that NFP has made 14 acquisitions so far in 2024. Aon says NFP operates as an “independent but connected” unit.
Aon is also seeking to hire more staff in various sectors, said CEO Greg Case.
“We’re making great progress on our priority hire pipeline in areas like energy and construction and expect these new colleagues to contribute to further growth over time,” he said.
