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Dec 31, 2023
Aon Q4 2022 Earnings Report
Aon reported a 2% increase in total revenue to $3.1 billion in the fourth quarter of 2022, driven by strong organic revenue growth and increased fiduciary investment income.
Key Takeaways
Aon delivered a strong fourth quarter, with total revenue increasing 2% to $3.1 billion, including 5% organic revenue growth. Operating margin improved to 32.3%, and adjusted EPS increased 5% to $3.89. The company also repurchased $675 million in shares.
Total revenue increased 2% to $3.1 billion, with organic revenue growth of 5%.
Operating margin increased 70 basis points to 32.3%, and adjusted operating margin increased 40 basis points to 33.2%.
EPS decreased 19% to $3.14, while adjusted EPS increased 5% to $3.89.
Aon repurchased 2.3 million class A ordinary shares for approximately $675 million.
Aon
Aon
Aon Revenue by Segment
Revenue by Segment
Commercial Risk Revenue
CapyFin.comReinsurance Revenue
CapyFin.comHealth Solutions Revenue
CapyFin.comWealth Solutions Revenue
CapyFin.com Forward Guidance
The company expects an unfavorable impact from foreign currency translation on adjusted operating income for the first quarter and full year 2023.
Positive Outlook
- Continued strong retention in Commercial Risk Solutions.
- Net new business generation across segments.
- Management of the renewal book portfolio.
- Ongoing investments in Aon Business Services-enabled technology platforms.
- Technology investments to drive long-term growth.
Challenges Ahead
- Expected unfavorable impact of approximately $0.13 per share from foreign currency translation in Q1 2023.
- Expected unfavorable impact of approximately $0.12 per share from foreign currency translation for full year 2023.
- Lower external deal volume impacting Transaction Solutions in U.S. retail brokerage.
- Potential for continued unfavorable impact of exchange rates on the remeasurement of assets and liabilities.
- Higher incentive compensation payments following strong performance in 2021.