Aon has reported net income attributable to shareholders of $498m for the fourth quarter (Q4) of 2023, marking a 24% decline from $657m in the same period of 2022.
The performance in this quarter was hit by a rise in total operating expenses, which spiralled 23% to $2.6bn in Q4 2023 from $2.12bn a year ago.
However, the company’s total revenue for the three months under review grew 8% to $3.4bn from $3.14bn in Q4 2022.
Its Commercial Risk Solutions division reported organic revenue growth of 4% with solid performance across most major geographies.
This growth was attributed to strong retention, effective management of the renewal book, and the generation of new business.
Aon’s retail brokerage sector experienced double-digit growth in Asia and the Pacific, bolstered by the continued strength in core property and casualty insurance.
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Reinsurance Solutions also saw an increase, with organic revenue growth of 14%.
This was driven by growth in treaty reinsurance, strong retention, and the generation of new business, along with growth in facultative placements and investment banking.
The health solutions segment delivered an 11% organic revenue growth, reflecting global expansion in core health and benefits brokerage.
This growth primarily stemmed from new business generation and the management of the renewal book.
Wealth Solutions also grew with a 5% increase in organic revenue, driven by advisory demand and project-related work, particularly in pension de-risking and the ongoing impact of regulatory changes.
In a strategic move during the quarter, Aon announced a definitive agreement to acquire broker NFP, aiming to tap the fast-growing middle market.
Aon CEO Greg Case said: “In the fourth quarter and full year, our colleagues delivered a 7% organic revenue growth, highlighted by double-digit growth in Reinsurance Solutions and Health Solutions.
“This strong performance demonstrates how we are going further, and faster with our 3×3 plan, which is an acceleration of our proven Aon United strategy. Our Risk Capital and Human Capital structure has unlocked new opportunities to grow, and Aon Business Services is a catalyst for innovation delivering new products and tools at scale across client segments and geographies.”