Aon Reports First Quarter 2019 Results

Aon plc has reported results for the three months ended March 31, 2019...

First Quarter Key Metrics From Continuing Operations

• Total revenue increased 2% to $3.1 billion, with organic revenue growth of 6%
• Operating margin increased 180 basis points to 27.7%, and operating margin, adjusted for certain items, increased 190 basis points to 33.7%
• EPS increased 15% to $2.70, and EPS, adjusted for certain items, increased 11% to $3.31
• For the first three months of 2019, cash flow from operations decreased 47% to $74 million, and free cash flow decreased 82% to $17 million

First Quarter Highlights

• Repurchased 0.6 million Class A Ordinary Shares for approximately $100 million
• Subsequent to the close of the quarter, announced a 10% increase to the quarterly cash dividend
• Aon's New Ventures Group announced the formal sponsorship of the firm's Intellectual Property Solutions to accelerate industry-leading innovation and scale our internal capabilities with greater speed to market

Net income from continuing operations attributable to Aon shareholders was $659 million, or $2.70per share, compared to $588 million, or $2.35 per share, in the prior year period. Net income per share from continuing operations attributable to Aon shareholders, adjusted for certain items, increased 11% to $3.31, including an unfavorable impact of $0.13 per share if the company were to translate prior year period results at current period foreign exchange rates ("foreign currency translation"), compared to $2.97 in the prior year period. Certain items that impacted first quarter results and comparisons with the prior year period are detailed in the "Reconciliation of Non-GAAP Measures - Operating Income from Continuing Operations and Diluted Earnings Per Share" on page 10 of this press release.

"Our results reflect increasing strength from our Aon United initiatives, as highlighted by strong organic revenue growth of 6%, substantial operating margin improvement of +190 basis points, and double-digit earnings per share growth for the first quarter," said Greg Case, Chief Executive Officer. "More important, we continue to strengthen our firm through investments in industry-defining content and capability, while increasing our relevance to clients, delivering strong financial results and unlocking significant shareholder value creation through double-digit free cash flow growth over the long-term."