…BUT REVENUES DECLINE IN BROKER’S REINSURANCE BUSINESS

Aon’s reinsurance business will return to organic growth in 2016, the broking group’s chief executive said on Friday. Organic revenues for the Aon Benfield reinsurance operation declined 1% in the second quarter. Difficult reinsurance market conditions and a decline in capital markets transactions contributed to the fall in organic revenues. This was partially offset by “strong new business growth” in treaty and facultative placements, Aon said. It was also a slower rate of decline than the 4% fall reported in the second quarter of 2014. Greg Case said Aon Benfield would achieve growth through a mixture of new business generation, the creation of new sources of business and better analytics. “We will return to growth over the next 12 months,” Case said during an earnings call with analysts. Case said Aon Benfield had been “addressing the headwinds” in the treaty market, where pricing was under the greatest pressure, and had produced 17 positive quarters for new business generation.