About AON Risk Services Northeast, Inc.
Aon provides a broad range of brokerage, risk, retirement, and health services. The company, a top global insurance and reinsurance broker, places policies with corporate clients and individuals on behalf of insurance companies. The Commercial Risk Solutions division provides retail property/casualty, liability, workers' compensation, and other insurance products for groups and businesses, as well as risk management services. The Reinsurance Solutions business brokers reinsurance to protect insurers from policy losses. Other units include Retirement Solutions (retirement benefits consulting), Health Solutions (health plan and benefits brokerage) and Data & Analytic Services. Aon operates in more than 120 countries; the US accounts for more than 40% of sales. Insurance commissions and client fees make up most of sales.
Aon reported revenue of $10.8 billion in 2018, an 8% increase over 2017 results. About 5% of growth came from organic measures, while 2% came from acquisitions. All operating segments contributed to organic growth, with the strongest improvements coming from the Commercial Risk Solutions, Reinsurance Solutions, and Health Solutions.
Net income attributable to shareholders dropped nearly 8% in 2018 to some $1.1 billion due to higher operating expenses (including benefits, IT, and general costs) and lower income from discontinued operations (related to the HR business divestiture in 2017).
The company ended 2018 with $656 million in cash, down $100 million from 2017. Operating activities contributed $1.7 billion, while financing activities used $1.7 billion via share repurchases and shareholder dividends.
Aon has worked diligently over the years to expand in its core business areas. The company primarily strengthens its retail insurance brokerage network through purchases of smaller agencies. It also adds new products and services in high-growth fields such as cyber solutions and transaction liability.
The company is undergoing a multi-year restructuring program to streamline its operations for greater efficiency and insight. Through the program, Aon has combined its operating units (including Aon Risk Solutions and Aon Benfield) under one segment – Aon United. It is also eliminating about 5,000 jobs. The plan has a cost of some $1.2 billion but will result in $500 million in annual savings going forward.
The restructuring program was launched after Aon sold its human resources outsourcing business (which made up the majority of its Aon Hewitt division) in 2017.
To support international growth and financial flexibility, in 2012 the company converted from a US-based corporation to a UK-based public limited company. Aon moved its headquarters from Chicago to London and changed the parent entity name from Aon Corporation to Aon plc. The Chicago location continued as the headquarters for operations in the Americas (Aon's largest geographic segment).
Aon spent $4.9 billion to acquire HR firm Hewitt Associates, which specialized in business process outsourcing (BPO) and benefits administration for large corporations, in late 2010. Hewitt Associates was combined with the existing HR business, Aon Consulting Worldwide, to form the Aon Hewitt entity.
Then, in 2017, Aon divested the BPO and benefits administration operations (a large portion of the Aon Hewitt division) to private equity firm Blackstone Group for up to $4.8 billion. The deal helped Aon focus on its core professional services offerings, as well as on areas including cybersecurity and health insurance.
1660 W 2nd St
Cleveland, OH 44113-1454
Phone: 1 (216) 621-8100
Employer Type: Privately Owned
Admin. Assistant: Crystal Bridges
Senior Vice President Central Region Healthcare Practice Leader: Brian Hunley
Resident Managing Director: Jerry Kysela
Employees (This Location): 1,100
Employees (All Locations): 1,600
New York, NY