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Aon reports rise in Q2 income as expenses decline

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Aon has posted a 44% rise in net income to $US398 million ($555 million) for the second quarter from a year earlier, aided by a sharp decline in expenses that cushioned the impact of weaker revenues.

Overall revenue fell 4% to $US2.5 billion ($3.49 billion) in the three months to June but expenses shrank at a sharper 13% to $US1.9 billion ($2.65 billion).

The broker’s commercial risk solutions arm, the biggest unit by income generated, suffered a 4% drop in revenue to $US1.13 billion ($1.58 billion).

Aon says the division’s results reflected a decline in the more discretionary portions of its book as a result of COVID-19, including transaction liability, construction and project-related work.

In other key units, retirement solutions revenue fell 6% to $US393 million, health solutions dropped 19% to $US258 million ($360 million) and data and analytics services sank 4% to $US274 million ($382 million).

Reinsurance solutions was the only unit to record a rise, with revenue up 7% to $US448 million ($625 million).