Insurance broker Aon beats profit estimates on strong business growth
Oct 25 (Reuters) -Aon AON.N beat Wall Street estimates for third-quarter profit on Friday, driven by strong growth in its commercial risk solutions business.
WHY IT'S IMPORTANT
A strong labor market and growing expectation of soft landing of the U.S. economy have kept the demand for insurance services intact across various sectors, despite higher costs.
That boosted the commission earned by insurance brokers as their earnings are tied to the premiums charged by insurers.
BY THE NUMBERS
Adjusted net income attributable to Aon shareholders rose to $594 million, or $2.72 per share, in the three months ended Sept. 30, from $474 million, or $2.32 per share, a year ago.
Analysts on average estimated an adjusted profit of $2.48 per share, according to data compiled by LSEG.
Revenue of the broker from its commercial risk solutions unit jumped 17% to $1.85 billion in the quarter.
Aon's health solutions unit's revenue rose to $870 million, compared with $552 million in the year-ago quarter.
CONTEXT
Aon provides advice and services on risk management through four principal products - commercial risk, reinsurance, health solutions and wealth solutions.
Last week, its peer Marsh McLennan MMC.N also reported a rise in third-quarter profit on insurance unit strength.
Reporting by Prakhar Srivastava in Bengaluru
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