Bloomberg the Company

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Follow Us

Industry Products

Aon Falls Most Among Financials on Reinsurance Sales Drop

Don't Miss Out —
Follow us on:

July 25 (Bloomberg) -- Aon Plc, the world’s second-largest insurance broker by market value, fell the most since 2012 after revenue missed estimates as reinsurance sales declined.

Aon slipped $4.65, or 5.1 percent, to $86.32 at 4:03 p.m. in New York, the biggest decline in the 84-company Standard & Poor’s 500 Financials Index.

Revenue was $2.92 billion, compared with analysts’ estimates of $2.96 billion in a survey by Bloomberg. Reinsurance commissions and fees fell 4.3 percent to $360 million, the London-based broker said today in a statement.

The reinsurance slump was “the key negative in the quarter,” Meyer Shields, a Keefe Bruyette & Woods analyst said in an investor note today. The decrease probably “reflects rate declines and shrinking demand.”

Reinsurance provides backup coverage to primary insurers. Sales have declined amid increased competition from catastrophe bond investors willing to shoulder weather-related risks. Everest Re Group Ltd. and Allied World Assurance Co. were among carriers this week that reported profit that missed estimates.

Marsh & McLennan Cos., the world’s largest insurance broker fell 2.5 percent. No. 3 Willis Group Holdings Plc slipped 2.9 percent. They both report earnings July 29.

Aon’s net income was $304 million, or $1.01 a share, compared with $241 million, or 76 cents a share a year earlier.

To contact the reporter on this story: Kelly Gilblom in New York at kgilblom@bloomberg.net

To contact the editors responsible for this story: Dan Kraut at dkraut2@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.