But organic growth in broking slips back to 2% because of fall in reinsurance revenue
Aon’s broking division made an operating profit of $1.65bn (£1.1bn) in 2014, up 7% on the $1.54bn it made in 2013.
Total revenues in the division increased by 1% to $7.83bn (2013: $7.79bn).
Organic growth in commissions and fees was 2%, but this was down from the 3% organic growth the broking division reported in 2013.
The decline in organic growth was driven by a fall in reinsurance broking revenue. Reinsurance broking revenue for the year was down 2% to $1.47bn (2013: $1.5bn), translating into organic shrinkage of 1%.
The retail broking segment enjoyed organic growth of 3%, driven mainly by the 4% organic growth in the Americas segment. The international segment reported more muted organic growth of 1%.
Group profit surge
Group wide, Aon’s profit after tax surged by 26% to $1.4bn in 2014 from $1.1bn in 2013. Total revenues increased 2% to $12bn (2013: $11.8bn), and organic growth across the broking and HR solutions segments combined was 3%.
Aon chief executive Greg Case said: “Results reflect a strong finish to 2014, having made significant investments in client serving capabilities while returning a record amount of capital to shareholders. Looking forward, we have positioned the firm for increased operating leverage, strong free cash flow generation and significant shareholder value creation in 2015.”
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