Aon Reports Second Quarter 2019 Results

Aon plc has reported results for the three months ended June 30, 2019....

Second Quarter Key Metrics From Continuing Operations

• Total revenue increased 2% to $2.6 billion, with organic revenue growth of 6%
• Operating margin increased from (0.6)% to 15.8%, and operating margin, adjusted for certain items, increased 240 basis points to 24.4%
• EPS increased from $0.19 to $1.14, and EPS, adjusted for certain items, increased 9% to $1.87
• For the first six months of 2019, cash flow from operations decreased 13% to $361 million, and free cash flow decreased 16% to $255 million

Second Quarter Highlights

• Repurchased 5.8 million Class A Ordinary Shares for approximately $1.05 billion
• Announced a 10% increase to the quarterly cash dividend
• Aon's New Ventures Group announced the launch of its global Public Sector Partnership, which is accountable for taking an Aon United approach across solution lines and geographies to consistently bring the best of Aon to governments and leading social sector institutions as clients

Net income from continuing operations attributable to Aon shareholders was $277 million, or $1.14per share, compared to $47 million, or $0.19 per share, in the prior year period. Net income per share from continuing operations attributable to Aon shareholders, adjusted for certain items, increased 9% to $1.87, including an unfavorable impact of $0.05 per share if the company were to translate prior year period results at current period foreign exchange rates ("foreign currency translation"), compared to $1.71 in the prior year period. Certain items that impacted second 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 second quarter results reflect continued progress and momentum from our Aon United initiatives, highlighted by strong organic revenue growth of 6% for the fourth consecutive quarter and substantial operating margin improvement of 240 basis points," said Greg Case, Chief Executive Officer. "The steps we are taking to lead Aon United in response to increasing client demand combined with significant investment in content and capability, is not only amplifying our ability to serve clients, but also our ability to deliver improved operational and financial performance that we believe will unlock significant shareholder value creation over the long-term."