Aon revealed that its total operating expenses in the fourth quarter decreased 5% to $2.3bn (£1.6bn) compared to the prior year period due “primarily to a $170m (£120m) decrease in restructuring charges, expense discipline, including lower travel and entertainment expenses”.
In addition the group also noted a $51m (£37m) decrease from “accelerated amortisation” related to trade names that were fully amortised in the second quarter. Aon said it was partially offset by $44m (£32m) of transaction costs related to the “pending combination” with Willis Towers Watson.
Greg Case, CEO, Aon said: “We delivered a strong finish to 2020, with 2% organic revenue growth and 4% EPS growth in the fourth quarter. For the full year, free cash flow increased by $1.0bn (£731m) to $2.6bn (£1.5bn) , the highest in our firm’s history, demonstrating the stability of our business and the efficiency of our Aon Business Services platform”
“Our team is incredibly proud of the tremendous resiliency demonstrated by our colleagues. Understanding the opportunity and the need in front of them, they responded by bringing the best of our firm to our clients and each other, allowing the firm to excel during a year filled with unprecedented challenges.”