Aon P.L.C reported 2017 fourth-quarter revenue of $2.91 billion, up 9.8% from the prior-year quarter, the brokerage said in its earnings statement Friday.
The commercial risk solutions business saw revenue rise 12.1% to $1.23 billion vs. the year-ago period, according to the statement. Revenue for reinsurance solutions rose 9.1% to $359 million, revenue for retirement solutions grew 10.9% to $489 million, and health solutions saw a 1.1% rise to $538 million from $532 million a year ago.
Overall organic growth was 6%, Aon President and CEO Greg Case said on the broker’s Friday morning earnings call, as commercial risk solutions saw 5% organic growth and reinsurance solutions 8% organic growth.
“Overall, this was a tremendous year of growth for the reinsurance business,” Mr. Case said.
Retirement solutions saw 4% organic growth and health solutions 6% organic growth, he added.
However, the broker saw a net loss for the quarter of $19.0 million compared with net income of $452 million in the year-ago period. Income was blunted by a net loss from discontinued operations of $29.0 million compared with income of $100 million in the year-ago quarter, as well as income taxes of $389 million in the current quarter compared with just $21 million a year ago, according to the earnings statement.
For the full year of 2017, Aon had total revenue of just under $10 billion, up 6.3% from 2016, the earnings statement said. Revenue in commercial risk solutions grew 6.1% to $4.17 billion, while reinsurance solutions revenue grew 5.0% to $1.43 billion. Revenue in retirement solutions grew 2.8% in 2017 to $1.76 billion, and health solutions revenue rose 10.6% to $1.52 billion.
For the full year, Aon had net income of $1.23 billion, down 12.2% from 2016.
Mr. Case was optimistic about the company’s future growth prospects.
“While we don’t give specific guidance on expected levels of organic growth, if you look at history and actual performance from 2014 to 2015 we were growing at roughly 3% across the board,” Mr. Case said on the call. “Now, in 2016 and 2017, that’s elevated to 4%.”
“We would say as we go forward thinking about organic growth, you’re going to see that measured progression into 2018 and 2019,” Mr. Case said.