View this article online: https://www.insurancejournal.com/news/international/2016/02/05/397779.htm
London-based Aon plc reported net income attributable to Aon shareholders in the fourth quarter of 2015 was $584 million, or $2.09 per share, a 27 percent increase from $459 million, or $1.56 per share, reported during for the prior year quarter.
During the full year, net income was $1.4 billion, down 1 percent from 2014. However, if “adjusted for certain items,” net income increased 2 percent to $1.8 billion, Aon said.
Total revenue in the fourth quarter was flat at $3.3 billion, compared to the prior year quarter, driven primarily by 5 percent organic revenue growth, which was then offset by a 5 percent unfavorable impact from foreign currency translation.
Total revenue for 2015 was $11.7 billion, down 3 percent from $12.0 billion during 2014. Aon said the decrease was due to a 6 percent unfavorable impact from foreign currency translation, partially offset by 3 percent organic growth in commissions and fees. Risk Solutions total revenue decreased 5 percent to $7.4 billion and HR Solutions total revenue increased 1 percent to $4.3 billion, the company said.
Total operating expenses for the fourth quarter decreased 3 percent to $2.6 billion compared to the prior year quarter, while operating expenses during the full year decreased 2 percent from $9.8 billion reported during 2014.
Net income per share attributable to Aon shareholders for 2015 increased 5 percent to $4.88 per share, compared to $4.66 per share for the prior year.
“Overall, our results reflect a strong performance for both the fourth quarter and the full year 2015. In a year of substantial volatility driven by macroeconomic factors and industry headwinds, we continued to invest heavily in client-serving capabilities across our industry-leading platform,” said Greg Case, president and chief executive officer.
“These investments, combined with the leadership of our colleagues around the globe, contributed to our strongest quarterly rate of organic growth in Risk Solutions since 2007, record operating margins in both segments, record free cash flow of $1.7 billion, and the return of $1.9 billion of capital to shareholders,” Case said.
Source: Aon plc