Aon Beats Estimates While Expenses Rise

By Allison Prang Features Dow Jones Newswires

Net income fell at Aon plc as the company reported rising costs partly tied to restructing that outpaced sales growth.

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The company reported profit attributable to shareholders of $185 million, down 42% from this time last year. On an adjusted basis, earnings were $1.29 per share, slightly beating analysts' estimates of $1.28.

Operating margin expanded 170 basis points to 20.3%, helped by restructuring initiatives that saved the company $55 million.

Overall sales rose 6% to $2.34 billion, while expenses at the company grew 13% driven by both amortization and impairment of intangible assets and restructuring costs.

Organic revenue rose by 2%, largely helped by higher revenue from Aon's reinsurance and retirement solutions businesses. Organic revenue from commercial risk solutions, the company's biggest revenue pool by dollars, declined by 1%.

The company also entered into agreements during the past quarter to buy both the Townsend Group, a real-estate investment management firm, and Unirobe Meeus Groep, a Netherlands-based insurance and real-eastate brokerage company. Aon also repurchased $750 million worth of its shares.

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Shares of Aon were down 3.6% in morning trading.

Write to Allison Prang at allison.prang@wsj.com.

(END) Dow Jones Newswires

October 27, 2017 12:23 ET (16:23 GMT)