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Aon slides to Q3 loss after WTW deal exit costs

Aon has reported a third-quarter $US900 million ($1.2 billion) loss following $US1.3 billion ($1.7 billion) in charges related to a decision to abandon a proposed merger with Willis Towers Watson.

The companies in July said they were not proceeding with the business combination agreement after being unable to resolve US Department of Justice concerns, triggering a $US1 billion ($1.3 billion) termination fee paid by Aon.

Putting aside the charges, Aon said last week its business had “delivered outstanding results” in the September quarter, with adjusted operating income rising 12% from the year-earlier period to $US598 million ($795 million).

Total revenue increased 13% to $US2.7 billion ($3.6 billion), including organic growth of 12%, with Commercial Risk Solutions revenue rising 14% to $US1.5 billion ($2 billion).

Revenue increased 10% for reinsurance solutions, 17% for the health business and 7% in wealth solutions.

“Our focus on unmet client needs related to new forms of volatility, workforce resiliency, and access to capital make us more relevant to current clients and more capable of addressing a broader marketplace, positioning Aon to deliver substantial ongoing value to clients and shareholders,” CEO Greg Case said.

Aon says clients need a partner capable of accelerating innovation on their behalf.

“There are sizeable unaddressed markets that we can open, as demonstrated by our track record in areas like intellectual property and US mortgage reinsurance,” the firm says.