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Home / Insurance / Aon-Willi's asset sales do not reduce cost savings target: Aon CFO

Aon-Willi's asset sales do not reduce cost savings target: Aon CFO



Aon PLC still expects to achieve its previously predicted $ 800 million savings through its proposed purchase of rival Willis Towers Watson PLC, although regulators are expected to force various unit sales before approving the deal, Aon's chief financial officer said. [19659002] In a conference call with analysts on Friday, however, CFA Christa Davies declined to comment on the $ 1.8 billion divestment ceiling described in Aon-Willi's merger document still remaining.

Ms. Davies commented when Aon reported revenue in the first quarter amid strong economic growth, rising interest rates and favorable exchange rates.

The Willis deal, which is being reviewed by regulators in the European Union and elsewhere, is still expected to close in the first half of this year, she said. The EU, which has demanded the divestment of several companies, reportedly including Willis' reinsurance business, extended its deadline for approving the deal earlier this month to July 27.

"We continue to expect $ 800 million in cost synergies given the solutions we have offered," said Davies. The expected savings represent 5.5% of the brokerage firm's total cost base and are lower than the 1

1% cost savings achieved through Aon's acquisition of Hewitt Associates in 2010 and the 18% cost savings achieved through the acquisition of Benfield Group Ltd. 2008. [19659002] Aon reported revenue of $ 3.53 billion for the first quarter, an increase of 9.5% over the same period last year and an increase of 6% on an organic basis, which excludes the positive effect. The weakening of the US dollar against the euro

The rise was largely driven by better-than-expected macroeconomic growth, Aon CEO Greg Case said in the interview. figure or greater organic growth for the full year 2021, ”he said.

Net profit for the quarter was $ 933 million, an increase of 18.3% over the same period last year.

Aon's main commercial brokerage firms reported first-quarter revenue of $ 1.29 billion, an increase of 9% over the previous year on an organic basis. the reinsurance unit's organic revenue increased by 6% to $ 922 million . Retirement operations increased by 5% to $ 434 million; health care operations rose 4% to $ 536 million; and data and analytical organic revenue decreased by 2% to $ 351 million.

The agency continued to see "modestly positive" changes in insurance rates, said Aon President Eric Andersen. Catalog

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