Aon (NYSE: AON) reported a rise in its second-quarter adjusted profit on Friday, helped by gains in interest earned from investments and growth in its commercial risk solutions business.
Interest income rose more than six times to $31 million in the second quarter ended June 30, primarily driven by interest earned on the investment of $5 billion of term debt proceeds, which were used to fund the acquisition of middle-market insurance broker NFP, the company said.
The U.S. Federal Reserve’s higher-for-longer interest rate environment has helped insurance companies rake in higher income on funds and investments. The resilient economy and growing optimism for a rate cut have also helped keep the demand for insurance services intact.
Aon (NYSE: AON), which generates revenue through insurance, risk management services, consulting, and advisory, reported adjusted net income attributable to shareholders of $624 million, or $2.93 a share, compared with $570 million, or $2.76 a share, a year ago.
Revenue from the commercial risk solutions unit rose about 14% to $2.02 billion, helping its total revenue to rise 18% to $3.76 billion.
(Source: ReutersReuters)
