London-based Aon plc reported net income attributable to Aon shareholders of $315 million, or $1.15 per share, during the first quarter ending March 31, which is down 4 percent from $328 million, or $1.14 per share, from the same period in 2015.
Income before taxes was $401 million during the three months ending March 31, down 5 percent from the $421 million reported for the same period last year.
Total revenue during the first quarter decreased 2 percent to $2.79 billion, compared to $2.85 billion in Q1 2015. Aon said the decline from last year was driven primarily by a 3 percent unfavorable impact from foreign currency translation and a 2 percent decrease in commissions and fees related to net divestitures.
Total operating expenses for the first quarter decreased 3 percent to $2.3 billion, compared to $2.41 billion reported for the prior year quarter. Aon said this decrease was due primarily to favorable impact from foreign currency translation ($82 million), a decrease in expenses related to net divestitures ($41 million), and a decrease in intangible asset amortization ($13 million).
The operating expense decline was partially offset by an increase in expense to support the 3 percent organic revenue growth and $20 million of transaction and portfolio repositioning related costs in HR Solutions from the sale of businesses, the company said.
Also during the first quarter of 2016, cash flow from operations decreased 8 percent, or $25 million, to $273 million, and free cash flow decreased 6 percent to $221 million, Aon said.
“Our first quarter results reflect a solid start to the year as retail brokerage organic revenue increased 4 percent and adjusted operating margin expanded 100 basis points in Risk Solutions,” said Greg Case, president and chief executive officer.
“In addition, return on invested capital improved through the disposition of a business in HR Solutions, and we effectively allocated capital highlighted by the repurchase of $750 million of Class A Ordinary shares,” said Case.
Source: Aon
Topics Profit Loss Aon
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