Aon plc reported significant financial results for the third quarter and the first nine months of 2024, reflecting both revenue growth and challenges in profitability. For the three months ended September 30, 2024, total revenue reached $3,721 million, a 26% increase from $2,953 million in the same period of 2023. For the nine months, revenue was $11,551 million, up 15% from $10,001 million in the prior year. This growth was driven by strong performance across various segments, particularly in Health Solutions, which saw a 58% increase in revenue to $870 million, and Wealth Solutions, which rose 42% to $499 million.
Despite the revenue growth, Aon experienced a decline in profitability. Operating income for Q3 2024 was $623 million, down from $691 million in Q3 2023, while net income decreased to $355 million from $467 million in the prior year. For the nine months, net income was $1,986 million, compared to $2,121 million in 2023. The decrease in net income was attributed to increased operating expenses, which rose to $3,098 million in Q3 2024 from $2,262 million in Q3 2023, largely due to the integration of NFP, a significant acquisition completed on April 25, 2024, for a total consideration of $9.1 billion.
Aon's total assets increased to $49,885 million as of September 30, 2024, up from $33,959 million at the end of 2023, while total liabilities rose to $43,332 million from $34,701 million. The company's long-term debt surged to $17,090 million, reflecting the financing of the NFP acquisition. Aon also reported a total equity of $6,418 million, a significant recovery from a deficit of $(742) million at the end of 2023.
The company initiated the Accelerating Aon United Program in Q3 2023, aimed at restructuring and optimizing operations, which is expected to incur cumulative costs of approximately $1.0 billion. As of September 30, 2024, total costs incurred under this program were $320 million.
In terms of cash flow, Aon generated $1,835 million from operating activities in the first nine months of 2024, a decrease from $2,174 million in the same period of 2023. The company also repurchased 0.9 million shares during Q3 2024, with a remaining authorized amount for share repurchases of approximately $2.5 billion.
Overall, Aon's financial performance in 2024 reflects a combination of robust revenue growth driven by strategic acquisitions and ongoing challenges in maintaining profitability amid rising operational costs.
About Aon plc
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