Aon reported higher third-quarter earnings and revenue, with growth across its insurance and reinsurance broking businesses.

However, increased restructuring costs weighed on profit.

Investors welcomed this morning’s earnings announcement and Aon shares were up 4.6 per cent in afternoon trading.

The group’s net income attributable to shareholders rose 4 per cent to $476 million in the three months ended September 30, from $458 million a year earlier. Diluted earnings per share increased 6 per cent to $2.23, helped by a lower average share count.

Revenue climbed 3 per cent to $4.1 billion. Organic revenue growth was 6 per cent, with new business and strong client retention supporting gains across all four business lines.

Divestitures, principally the sales of NFP’s wealth business and Stroz Friedberg, partly offset that growth.

Adjusted earnings per share, which exclude certain costs and other items, increased 10 per cent to $3.36.

Greg Case, Aon’s chief executive, said the results reinforced confidence in the company’s performance as it approached the end of its three-year strategic plan.

“We enter the fourth quarter with significant momentum, reinforcing confidence in our ongoing ability to deliver sustained, differentiated performance,” he said.

Commercial Risk Solutions, Aon’s largest business line, generated revenue of $2.11 billion, up 6 per cent. Organic growth of 7 per cent reflected strength in North America and Europe, the Middle East and Africa. North American growth included contributions from mergers and acquisitions services, US property and casualty business, and construction.

Reinsurance Solutions revenue rose 7 per cent to $572 million, matching its organic growth rate. Aon attributed the performance to treaty placements, new business and client retention, alongside a favourable adjustment to previously constrained revenue. Market conditions had an unfavourable impact during the quarter.

Health Solutions revenue increased 6 per cent to $992 million, supported by core health and benefits business, particularly internationally, and demand for talent analytics.

Wealth Solutions revenue fell 21 per cent to $429 million following the NFP wealth disposal. However, organic revenue grew 4 per cent, driven by retirement advisory demand linked to regulatory changes in the UK and EMEA.

Operating profit declined 1 per cent to $809 million, while the operating margin narrowed to 19.7 per cent from 20.4 per cent.

Expenses under the Accelerating Aon United restructuring programme nearly tripled to $93 million, mainly because of workforce-related costs. The company also incurred $25 million in transaction costs associated with its proposed USI acquisition.

The group expects the USI acquisition to close in the fourth quarter and plans to prioritise debt repayment, targeting leverage of 2.8 to three times in approximately 24 months.

For the first nine months, revenue increased 4 per cent to $13.38 billion and net income attributable to shareholders rose 12 per cent to $2.24 billion. Free cashflow increased 3 per cent to $1.94 billion.

Aon made no share repurchases during the third quarter, leaving $7.7 billion available under its buyback authorisation.

• This story was generated by machine and edited by The Royal Gazette newsroom