Net income fell at Aon plc as the company reported rising costs partly tied to restructing that outpaced sales growth.
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.
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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.
Shares of Aon were down 3.6% in morning trading.
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(END) Dow Jones Newswires
October 27, 2017 12:23 ET (16:23 GMT)