Aon Posts $11.5 Billion FY Total Revenue; $3.1 Billion in Q4; Income Gains

February 1, 2013

Aon has reported that its total revenue for 2012 increased by 2 percent to $11.5 billion “due to a 4 percent increase in organic revenue, partially offset by a 2 percent unfavorable impact from foreign currency exchange rates.”

Total revenuses from its Risk Solutions operations “increased 1 percent to $7.6 billion and HR Solutions total revenue increased 4 percent to $3.9 billion.

“Net income attributable to Aon shareholders for 2012 increased 1 percent to $993 million compared to $979 million for the prior year. Net income attributable to Aon shareholders, adjusted for certain items, increased 1 percent to $1.4 billion,” while net income per share increased 4 percent to $2.99 per share compared to $2.87 per share in 2011.

A summary of the fourth quarter showed that total revenue increased by 4 percent to $3.1 billion compared to Q4 2011, “driven by a 4 percent increase in organic revenue, partially offset by a 50 percent decline in investment income due to lower average interest rates.”

Net income attributable to Aon shareholders from continuing operations in Q4 “was $305 million, or $0.93 per share, compared to $277 million, or $0.82 per share, for the prior year quarter. Net income per share attributable to Aon shareholders from continuing operations, adjusted for certain items, was $1.27, a 9 percent increase compared to $1.16 in the prior year quarter.”

President and CEO Greg case commented: “Our results reflect earnings growth of nine percent driven by a higher rate of organic revenue growth across each segment, strong free cash flow growth and effective capital management, as highlighted by the repurchase of $500 million of ordinary shares in the quarter,” said Greg Case, chief executive officer.

“We finished 2012 having made significant investments in GRIP and in healthcare exchanges, took significant steps to increase our strategic position and financial flexibility with the redomicile to London, delivered record cash flow from operations of $1.4 billion and created significant value for shareholders through the repurchase of more than $1.1 billion of ordinary shares. As we look ahead to 2013, we have positioned our industry-leading platform for solid long-term growth, improved operational performance, strong free cash flow growth and effective capital management.”

The full report, including a replay of today’s conference call may be obtained on the company’s web site.

Source: Aon Plc

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