(Reuters) - Insurance brokerage firm Aon reported a higher fourth-quarter profit on Friday, helped by robust performance in its commercial risk solutions business.

WHY IT'S IMPORTANT

Strong demand trends across the sector have boosted income for insurance brokers such as Aon, who pocket commissions based on insurance premiums.

Insurance spending has remained steady even amid economic uncertainties and inflationary pressures, as businesses and individuals prioritized financial security over discretionary expenses.

BY THE NUMBERS

Adjusted net income attributable to Aon's shareholders rose to $965 million, or $4.42 per share, in the fourth quarter ended Dec. 31, from $785 million, or $3.89 per share, a year earlier.

The average analyst estimate was for a fourth-quarter profit of $4.25 per share, according to data compiled by LSEG.

Revenue from Aon's commercial risk solutions unit jumped 15% to $2.19 billion.

The company's health solutions business reported revenue of $1.07 billion, compared with $763 million.

CONTEXT

Peers Marsh McLennan and Brown & Brown also beat profit estimates earlier in the week.

Aon's shares gained about 23% in 2024.