Aon reinsurance business grows 6% organically in Q1

Broker Aon has recorded organic revenue growth in the reinsurance solutions business of 6 percent year on year in the first quarter of 2018 after 4 percent in the same period of 2017.

All major reinsurance product lines delivered growth, but Aon stressed particular strength in treaty placements, driven by net new business generation and a modest favourable market impact. In addition, business expansion was boosted by both facultative placements and capital markets transactions, according to a presentation.

In the first quarter, Aon Securities, as part of reinsurance solutions, launched a $1.4 billion catastrophe bond on behalf of the World Bank, a transaction that brings emergency funding and disaster support to certain Latin American countries if and when an earthquake occurs.

Overall, the group’s total revenues increased 13 percent year on year to $3.1 billion, including 3 percent organic revenue growth.

Net income from continuing operations attributable to Aon shareholders on a reported basis was $588 million, compared to $251 million, in the prior year period. However, this includes $239 million of favourable impact from adoption of a new revenue recognition accounting standard.

"Our first quarter results reflect a strong start to the year with positive performance across each of our key metrics, highlighted by strong organic revenue growth in reinsurance and commercial risk solutions, substantial operational improvement, 26 percent growth in earnings per share and double-digit adjusted free cash flow growth," said Aon CEO Greg Case.

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