Aon ( NYSE: AON ) Q2 earnings on Friday came in better than expected as its Reinsurance and Health segments helped to offset a decrease in free cash flow.
Adjusted EPS of $2.63 topped the average analyst estimate of $2.55 and climbed from $2.29 in the year-ago quarter.
The insurance broker's revenue of $2.98B, though, missed the consensus of $3.01B but rose from $2.89B in Q2 of last year.
Its Commercial Risk business generated revenue of $1.7B at June 30, compared with $1.6B at June 30, 2021, driven by strong retention and management of the renewal book portfolio.
Reinsurance revenue for Q2 was $537M, up from $500M in Q2 2021, reflecting continued net new business generation globally and strong retention
Q2 Health revenue of $414M vs. $391M in Q2 2021.
Revenue for its wealth solutions segment was $343M in Q2 vs. $356M in Q2 a year ago, thanks to higher utilization rates and project-related work related to pension de-risking and ongoing impacts of regulatory changes.
Total expenses for Q2 was $2.3B, up from $2.2B in Q2 2021.
Q2 operating margin of $23.5% vs. 23.3% in Q2 2021.
For the first six months of 2022, free cash flow fell 17% to $1.1B compared with the prior year period, mostly due to higher receivables and incentive compensation payments.
In mid-July, Aon declared a quarterly dividend of $0.56 per share .
For further details see:
Aon Q2 earnings beat strengthened by Reinsurance, Health businesses