Aon reports $560m net profit in Q2
Currency uncertainty can lead to a slow full-year operating income.
Aon registered a net income attributable to shareholders of $560m for the three months ending 30 June.
This was equivalent to a 12% growth and $2.71 per share on a diluted basis.
This performance marks a notable improvement compared to the prior year's figures, where net income stood at $501 million, or $2.33 per share, said the company in a press release.
Meanwhile, net income per share attributable to Aon shareholders rose by 5% to $2.76 on a diluted basis, taking into account an unfavourable impact of $0.05 per share due to foreign currency translation when compared to the previous year's results.
Total revenue for the second quarter exhibited a 7% increase, amounting to $3.2b when compared to the same period last year.
This growth was primarily driven by a 6% organic revenue increase and a favourable 2% impact from fiduciary investment income.
However, foreign currency translation had a slight negative impact of 1% on the overall revenue growth.
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In the second quarter, total operating expenses rose by 2% to $2.3b in comparison to the previous year.
The increase in expenses was mainly due to investments in long-term growth and associated costs with the 6% organic revenue growth.
Nonetheless, foreign currency translation provided a favorable impact of $10m, partially offsetting these expenses.
Aon expects that foreign currency translation will have a minimal impact in the third quarter of 2023 if currency rates remain stable at current levels.
However, if currency fluctuations continue, the company foresees a hostile impact of approximately $0.14 per share, which could lead to an estimated $42m decrease in adjusted operating income for the full year 2023.