
Aon plc (NYSE: AON) has reported results for the three and twelve months ended December 31, 2022. Here are some extracts FYI;
Net income attributable to Aon shareholders in the fourth quarter decreased 24% to $657 million, or $3.14 per share, compared to $863 million, or $3.90 per share, in the prior year period. Net income per share, adjusted for certain items, increased 5% to $3.89, including an unfavorable impact of $0.09 per share if prior year period results were translated at current period foreign exchange rates (“foreign currency translation”), compared to $3.71 in the prior year period. Certain items that impacted fourth quarter results and comparisons with the prior year period are detailed in “Reconciliation of Non-GAAP Measures – Operating Income and Diluted Earnings Per Share” on page 10 of this press release.
“In the fourth quarter, our colleagues delivered 5% organic revenue growth, to finish a very strong year, contributing to full year organic revenue growth of 6%, margin expansion of 70 basis points to 30.8%, EPS growth of 12% to $13.39, and over $3 billion of free cash flow, an all-time high.” said Greg Case, Chief Executive Officer. “These results continue our long-term progress and demonstrate the success of our Aon United strategy as we enter 2023 in a position of strength to continue delivering results for clients, colleagues, and shareholders.”
FOURTH QUARTER 2022 FINANCIAL SUMMARY
Total revenue in the fourth quarter increased 2% to $3.1 billion compared to the prior year period reflecting 5% organic revenue growth and a 1% favorable impact from fiduciary investment income, partially offset by a 4% unfavorable impact from foreign currency translation.
Total operating expenses in the fourth quarter increased 1% to $2.1 billion compared to the prior year period due primarily to an increase in expense associated with 5% organic revenue growth and investments in long-term growth, partially offset by a $102 million favorable impact from foreign currency translation.
Foreign currency translation in the fourth quarter had a $20 million, or $0.10 per share, unfavorable impact on U.S. GAAP net income and a $19 million, or $0.09 per share, unfavorable impact on adjusted net income. If currency were to remain stable at today’s rates, the Company would expect an unfavorable impact of approximately $0.13 per share, or an approximately $39 million decrease in adjusted operating income, in the first quarter of 2023, and an unfavorable impact of approximately $0.12 per share, or an approximately $36 million decrease in adjusted operating income, for full year 2023.
There is a full statement available to download from Aon at their website here.
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