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Aon profit dips amid restructuring costs

Aon’s first-quarter profit declined 10% to $US291 million ($395.5 million) amid restructuring costs, but the company says it made a positive start to the year as revenues from continuing operations increased.

President and CEO Greg Case says organic revenue growth of 4% was the strongest for the quarter since 2012, while earnings per share from continuing operations increased 20%, driven by effective operational and capital management.

Revenue from the commercial risk solutions brokerage division, the largest part of the business, grew 2% to $US984 million ($1.34 billion). Gains in the US, Europe, Middle East and Africa region and Asia-Pacific were partially offset by a decline in Latin America.

Reinsurance solutions revenue also grew 2%, with gains across every product line, including treaty, facultative and capital markets, partly offset by a modest unfavourable market impact globally.

Aon’s businesses also include retirement and health solutions, and data and analytic services.

Total operating expenses increased 10% to $US2 billion ($2.7 billion) on restructuring costs and expenses related to acquisitions.

Last year Aon agreed to sell its benefits administration and human resources business process units to investment group Blackstone.

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