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Dec 31, 2024
Aon Q4 2023 Earnings Report
Aon reported its fourth quarter and full year 2023 results, with total revenue increasing 8% to $3.4 billion and adjusted operating margin increasing 60 basis points to 33.8%.
Key Takeaways
Aon delivered strong performance in the fourth quarter of 2023, with total revenue increasing 8% and organic revenue growth of 7%. Adjusted operating margin saw a 60 basis point increase, reflecting organic revenue growth and increased fiduciary investment income. The company also repurchased $0.8 billion in shares and announced an agreement to acquire NFP.
Total revenue increased 8% to $3.4 billion, with organic revenue growth of 7%.
Adjusted operating margin increased 60 basis points to 33.8%.
Diluted EPS decreased 21% to $2.47, while adjusted EPS was flat at $3.89.
The company repurchased 2.3 million class A ordinary shares for approximately $0.8 billion.
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 a favorable impact from foreign currency translation in the first quarter and full year of 2024 if currency rates remain stable.
Positive Outlook
- Expected favorable impact of approximately $0.03 per share from foreign currency translation in Q1 2024.
- Expected approximately $9 million increase in adjusted operating income from foreign currency translation in Q1 2024.
- Expected favorable impact of approximately $0.02 per share from foreign currency translation for full year 2024.
- Expected approximately $6 million increase in adjusted operating income from foreign currency translation for full year 2024.
- Ongoing investments in Aon Business Services-enabled technology platforms to drive long-term growth.
Challenges Ahead
- Potential for changes in the competitive environment due to macroeconomic conditions.
- Fluctuations in currency exchange, interest, or inflation rates could impact financial condition or results.
- Changes in global equity and fixed income markets could affect return on invested assets.
- Impact of legal proceedings and other contingencies, including those arising from acquisition or disposition transactions.
- Risks associated with the pending acquisition of NFP, including integration costs and potential failure to realize expected benefits.