Aon plc - Revenues by Geographic Region
Just more than 50% of Aon's revenues are from the United States. The rest of the Americas are source for 9% of the firms revenue, and the United Kingdom accounts for 13%. Europe, the Middle East and Africa (EMEA) accounted for 16% of 2015 revenue, and 10% from Asia Pacific (APAC) region. (Note; in some financial reporting Aon includes the UK and Europe/Middle East/Africa values in one EMEA number)
Aon plc - Revenue, Net Income & Free Cash Flow
2015 Revenue: $11.7 billion 2015 Net Income: $1.4 billion 2015 Free Cash Flow: $1.7 billion
- Risk Solutions Revenue (Aon Risk + Aon Benfield): $7.4 billion
- HR Solutions Revenue (Aon Hewitt): $4.3 billion
Prior Year Total Revenues and Net Incomes:
2014 Revenue: $12.0 billion 2014 Net Income: $1.4 billion 2014 Free Cash Flow: $1.6 billion
2013 Revenue: $11.8 billion 2013 Net Income: $1.1 billion 2013 Free Cash Flow: $1.5 billion
2012 Revenue: $11.5 billion 2012 Net Income: $993 million 2012 Free Cash Flow: $1.2 billion
2011 Revenue: $11.3 billion 2011 Net Income: $979 million 2011 Free Cash Flow: $871 million
Although total revenues were down slightly for 2015, operating incomes were up $400 million over the prior 5 years due to holding expenses steady, and other sources of income.
- Risk Solutions Revenue (Aon Risk + Aon Benfield): $7.4 billion
- HR Solutions Revenue (Aon Hewitt): $4.3 billion
Prior Year Total Revenues and Net Incomes:
2014 Revenue: $12.0 billion 2014 Net Income: $1.4 billion 2014 Free Cash Flow: $1.6 billion
2013 Revenue: $11.8 billion 2013 Net Income: $1.1 billion 2013 Free Cash Flow: $1.5 billion
2012 Revenue: $11.5 billion 2012 Net Income: $993 million 2012 Free Cash Flow: $1.2 billion
2011 Revenue: $11.3 billion 2011 Net Income: $979 million 2011 Free Cash Flow: $871 million
Although total revenues were down slightly for 2015, operating incomes were up $400 million over the prior 5 years due to holding expenses steady, and other sources of income.
Aon plc - Business Unit Profit Margins
The profit margin for the risk solutions business unit at Aon have had very health returns in the lower-mid twentys percent over the last seven years. This is a good profit margin for a mature US business. I am particularly impressed by the steady increases year-over-year seen here. This looks to be the result of a focus on this business metric as a yard stick for management's success.
Aon plc - Risk Solutions Profit Margin History
We see slightly lower profit margins for Aon's human resources management business unit, but still very acceptable results in the mid-upper teens percents. Again, looks to be a steady increase in the margin, likely the result of a close focus on using this as measurement for management performance.
Aon plc - Human Resources Profit Margin History
Aon plc - Free Cash Flows
The following graphic shows the dramatic increase in the free cash flow generated by the firm since 2009. The Benfield merger was in 2008, so the beginning of this period represents that revenue/income structure. The Hewitt Associates acquistion was in 2010, so the rest of the time period represents the three business structure currently seen.
Aon plc - Free Cash Flows History