July 29 (Reuters) – Aon reported a jump in second-quarter profit on Wednesday, as the insurance broker giant benefited from robust demand for its commercial risk management offerings.
The construction business has benefited from strong data center spending by Big Tech firms, boosting demand for insurance offerings that support capital-intensive projects through their lifecycle.
Here are some more details:
• Revenue from Aon’s commercial risk solutions arm rose 5% to $2.3 billion in the quarter from a year earlier. Within North America, the construction segment posted double-digit growth in the quarter.
• Aon has previously said it has ramped up hiring in high-growth areas like data centers, construction, energy and health, helping drive new business.
• “As clients navigate increasing complexity, we are expanding our addressable market, creating new opportunities with both traditional and non-traditional sources of capital,” CEO Greg Case said in a statement.
• Organic revenue growth – a closely watched metric – stood at 5% in the quarter.
• Insurance brokerages serve as a bridge between customers and insurers and generally pocket a percentage of the premiums as commission.
• Adjusted net income attributable to Aon shareholders was $814 million, or $3.81 per share, in the three months ended June 30, compared with $759 million, or $3.49 per share, a year earlier.
• Aon reaffirmed its annual revenue growth forecast of mid-single digits or higher.
(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Vijay Kishore)
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