Aon plc releases Q4 and full year 2016 results, free cash flow with a record 22% increase


Aon plc (NYSE: AON), the global provider of risk management, insurance brokerage and reinsurance brokerage, and human resources solutions and outsourcing services, just announced its fourth quarter and full year 2016 results.

Fourth Quarter Key Metrics and Highlights

  • Total revenue was $3.3 billion with organic revenue growth of 3%
  • Operating margin decreased 290 basis points to 18.9%, and operating margin, adjusted for certain items, increased 210 basis points to 26.2%
  • EPS decreased 11% to $1.87, and EPS, adjusted for certain items, increased 13% to $2.56
  • The Company closed its acquisition of Stroz Friedberg, strengthening its ability to serve clients as the global leader in cyber risk mitigation
  • The Company closed its acquisition of Admix, a health and benefits brokerage firm in Brazil
  • Repurchased 1.8 million Class A Ordinary Shares for approximately $200 million

Full Year Key Metrics and Highlights

  • Total revenue was $11.6 billion with organic revenue growth of 3%
  • Operating margin increased 60 basis points to 16.4%, and operating margin, adjusted for certain items, increased 80 basis points to 20.8%
  • EPS increased 6% to $5.16, and EPS, adjusted for certain items, increased 7% to $6.59
  • Cash flow from operations increased 16% to a record $2.3 billion, and free cash flow increased 22% to a record $2.1 billion
  • Repurchased 12.2 million Class A Ordinary Shares for approximately $1.3 billion
  • Subsequent to the close of the fourth quarter, the Company signed a definitive agreement to sell the Benefits Administration and HR Business Process
  • Outsourcing businesses for gross cash proceeds up to $4.8 billion, including $4.3 billion in gross cash at closing and additional consideration up to $500 million based on future performance. Total after-tax cash proceeds are expected to be approximately $3.0 billion.

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Aon plc releases Q4 and full year 2016 results, free cash flow with a record 22% increase

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