Aon Q1 earnings reflect operating margin expansion, driven by strong retention

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• Aon (NYSE:AON) first-quarter earnings on Friday highlighted operating margin expansion and solid organic revenue growth amid robust retention and net new business generation.
• The company's Commercial Risk Solutions segment booked revenue of $1.72B in Q1 compared with $1.64B in the year-ago quarter.
• For its Reinsurance Solutions business, revenue totaled $976M in Q1 vs. $922M in Q1 2021.
• Q1 operating margin of 37.2% vs. 35.3% in Q1 2021.
• Still, total revenue of $3.7B fell short of the average analyst estimate of $3.72B but rose from $3.53B in Q1 a year ago.
• Q1 expenses of $2.3B edged higher from $2.28B in Q1 of last year.
• Interest income of $3M in the first quarter was unchanged from the year-ago period, though interest expense of $91M in Q1 increased from $79M in Q1 2021, driven by higher outstanding term debt.
• In mid-April, Aon lifted its quarterly dividend by 10%.