Aon profit misses estimates on weakness in US retail brokerage business
Recasts throughout
April 26 (Reuters) -Aon AON.N first-quarter profit missed estimates onFriday due to underperformance in its U.S. retail brokerage business, sending its shares down nearly 9%.
While the company's retail brokerage revenue grew on the back of solid growth in EMEA, Asia and the Pacific, U.S. results faced pressure from lower net new business and the ongoing impacts from external capital markets activity, TD Cowen analysts said in a note.
Shares of the Dublin-based insurance broker tumbled to $280 and were on track to hit their lowest level in 17 months if the current losses hold.
Excluding one-time charges, it earned $5.66 a share, below analysts' average estimate of $5.91 a share, according to LSEG data.
Still, interestincome rose nearly six times to $28 million in the first quarter ended March, primarily due to interest earned on $5 billion investment of debt proceeds used to fund the purchase of NFP.
Last year, Aon agreed to buy privately held NFP in a deal valued at about $13.4 billion to tap the fast-growing middle-market segment of insurance brokerage, wealth management and retirement plan advisory.
As a result, it also incurred $4 million in integration costs in the three months ended March 31.
Fiduciary investment income, which rose to $79 million in the quarter from $52 million a year ago, refers to interest earned on funds held in a fiduciary capacity by entities acting in a custodial role. These funds are typically held on behalf of policyholders, and the fiduciary has a legal obligation to manage them in the best interests of clients.
The U.S. Federal Reserve's higher-for-longer interest rate environment has helped such companies rake in higher income on funds and investments.
Last week, peer Marsh & McLennan MMC.N also reported a better-than-expected first-quarter profit as fiduciary interest income rose 34% to $122 million.
Reporting by Mehnaz Yasmin in Bengaluru; Editing by Maju Samuel
免責聲明: XM Group提供線上交易平台的登入和執行服務，允許個人查看和/或使用網站所提供的內容，但不進行任何更改或擴展其服務和訪問權限，並受以下條款與條例約束：（i）條款與條例；（ii）風險提示；（iii）完全免責聲明。網站內部所提供的所有資訊，僅限於一般資訊用途。請注意，我們所有的線上交易平台內容並不構成，也不被視為進入金融市場交易的邀約或邀請 。金融市場交易會對您的投資帶來重大風險。
所有缐上交易平台所發佈的資料，僅適用於教育/資訊類用途，不包含也不應被視爲適用於金融、投資稅或交易相關諮詢和建議，或是交易價格紀錄，或是任何金融商品或非應邀途徑的金融相關優惠的交易邀約或邀請。
本網站的所有XM和第三方所提供的内容，包括意見、新聞、研究、分析、價格其他資訊和第三方網站鏈接，皆爲‘按原狀’，並作爲一般市場評論所提供，而非投資建議。請理解和接受，所有被歸類為投資研究範圍的相關内容，並非爲了促進投資研究獨立性，而根據法律要求所編寫，而是被視爲符合營銷傳播相關法律與法規所編寫的内容。請確保您已詳讀並完全理解我們的非獨立投資研究提示和風險提示資訊，相關詳情請點擊 這裡查看。
