In the first quarter of 2023, the Reinsurance Solutions division of international broker Aon had an organic revenue increase of 9%, while overall group sales increased by 5% year over year to $3.87 billion, reflecting an organic revenue increase of 7%.
According to the broker, the reinsurance division’s organic revenue increase was primarily caused by excellent retention and continuous net new business generation. The $3.87 billion in total revenue is made up of a 7% increase in organic revenue, a 1% boost from fiduciary investment income, and a 3% decrease from exchange rates.
Total operating costs for the entire group increased by 4% to $2.4 billion in Q1 of 2023 compared to the same quarter the previous year, primarily as a result of higher costs related to 7% organic revenue growth and investments in long-term growth, which were only partially offset by a $67 million favorable impact from foreign currency translation.
Overall, net income attributable to Aon shareholders grew to $1.05 billion in the first quarter of 2023, increasing by 3% from the same period the previous year. According to the first quarter 2023 results of the international insurance and reinsurance broker, its Reinsurance Solutions segment helped drive the period’s strong revenue increase.
The unit’s sales climbed by 10% to $1.08 billion in Q1 of 2023 from $976 million a year earlier, representing double-digit growth in the Strategy and Technology Group and faculty placements, as well as 9% organic revenue growth.
Aon reports organic revenue growth of 6% in Commercial Risk Solutions, where revenue increased by 3% to $1.79 billion. This growth was fueled by excellent retention, net new business creation, and portfolio management of the renewal book portfolio.
Revenue for the Health Solutions sector increased from $638 million in the first quarter of 2022 to $671 million in the first quarter of 2023, with organic revenue growth of 8% reflecting growth in core health and benefits broking globally, driven by excellent retention, new business creation, and portfolio management of the renewal book portfolio.
Greg Case, CEO, noted that by delivering outstanding operational performance in the first quarter, “our team built momentum for 2023, highlighted by 7% organic revenue growth and 70 basis points of adjusted operating margin improvement.”.
Our clients tell us that as we move past the epidemic, risk and people are the two main areas in which they are urgently searching for competitive advantage. These outcomes show that our Aon United strategy has made the company uniquely capable of assisting clients in taking the initiative and making smarter decisions that minimize risk to their businesses and maximize the impact of their people. Case added.
