Oct 31 (Reuters) - Insurance brokerage firm Aon
beat Wall Street estimates for third-quarter profit on Friday,
amid robust demand for its risk-management solutions.
WHY IT'S IMPORTANT
Despite mounting concerns over the macroeconomic
uncertainty, spending on insurance has remained resilient.
Businesses and individuals are prioritizing risk-management
products, fueling revenue for Aon and peers, as they work with
several insurers to give clients wider coverage.
Brokers generate revenue through commissions based on
premiums, tying their performance closely to the insurance
industry numbers.
BY THE NUMBERS
Adjusted profit attributable to Aon's shareholders rose to
$660 million, or $3.05 per share, for the quarter ended
September 30, up from $594 million, or $2.72 per share, a year
earlier.
Analysts on average had expected a profit of $2.91 per
share, according to data compiled by LSEG.
Revenue from Aon's commercial risk solutions unit jumped 7%
to $1.99 billion.
The company also posted revenue growth in both its health
and wealth-solutions units.
MARKET CONTEXT
Aon, whose shares have fallen 8.6% this year, is sharpening
its focus on core insurance brokerage operations. Last month, it
agreed to sell a majority of NFP's wealth business to private
equity firm Madison Dearborn Partners for $2.7 billion.
Peer Marsh McLennan's shares tumbled earlier this
month after it reported flat operating margins and slowing
growth in its risk and insurance business.
Softening rates, an uneven economy and macro uncertainty are
weighing on demand from large clients across the industry,
analysts have said.
KEY QUOTE
"We remain confident in achieving our full-year 2025
financial targets and are well-positioned to deliver sustainable
growth in 2026 and beyond," said CEO Greg Case in a statement.
(Reporting by Ateev Bhandari in Bengaluru; Editing by Sriraj
Kalluvila)