Aon Plc reported Friday fourth-quarter revenue rose 2% to $3.13 billion, and organic revenue growth for the quarter was 5%.
Net income fell 24% to $657 million, as currency effects and increased costs took a toll, Aon said in its earnings report before markets opened on Friday.
Aon’s enterprise risk solutions business saw revenue decline 1% to $1.82 billion, as it posted 4% organic growth for the quarter.
On the broker’s earnings call Friday morning, CEO Gregg Case said the unit delivered double-digit growth in Canada and Latin America, while also seeing strong growth in Europe, the UK and Asia Pacific.
Reinsurance Solutions posted organic growth of 9% as revenue rose 27% to $281million for the quarter. Aon said it saw double-digit growth in both the strategy and technology group and facultative placements while noting that the majority of revenue in its contract portfolio is recurring in nature.
Mr. Case referred to the Jan. 1 reinsurance renewal cycle as “challenging.”
Aon’s health solutions business posted organic revenue growth of 7% in the fourth quarter, with double-digit growth in Latin America, the UK and Asia Pacific.
The wealth solutions business had fourth-quarter organic revenue growth of 6%, led by growth in pension services, driven by project work related to pension risk transfer and ongoing effects of regulatory changes.
For the full year 2022, revenue increased 2% to $12.5 billion, with 6% organic growth. Net income increased to $2.589 billion from $1.255 billion in 2021.
In 2022, the commercial risk solutions business had organic growth of 6% and the reinsurance solutions unit had organic growth of 8%.
Health Solutions had full-year organic growth of 8% and Wealth Solutions grew organically by 3%.
Speaking on the earnings call, Christa Davies, chief financial officer, said Aon continues to expect single-digit organic growth this year and over the long term, as well as continued margin expansion.