AON BENFIELD EXPERIENCES DECLINE IN REVENUES IN THIRD QUARTER

Aon’s reinsurance business shrank in the third quarter of the year as softening reinsurance rates and a decline in capital markets business hit fees and commissions. The broking giant reported revenues for Aon Benfield down 5% year-on-year for the quarter to $371m – this was equivalent to a decline of 4% on an organic basis. The firm attributed the fall to an “unfavourable” market impact in treaty business and a decline in capital markets and transaction advisory business. It also suffered a $3m “unfavourable impact from timing of certain revenues”. This was partially offset by net new business growth in treaty placements and growth in facultative placements. Aon Benfield’s performance is in stark contrast to those of its major rivals. Guy Carpenter reported organic growth of 3% for the quarter, while Willis Re achieved “single digit” growth in the period.