UPDATE: Aon Posts Higher Q4 Earnings

reported a rise in its fourth-quarter profit. The London, United Kingdom-based company posted a quarterly profit of $459 million, or $1.56 per share, compared to $355 million, or $1.14 per share, in the year-ago period. Excluding non-recurring items, the company's earnings climbed 23% to $1.89 per share. Its revenue gained 3% to $3.3 billion. However, analysts were expecting earnings of $1.86 per share on revenue of $3.35 billion. Risk Solutions total revenue rose $3 million from the year-ago quarter, while HR Solutions total revenue climbed 8% in the quarter. Operating margin rose 320 basis points to 19.2% in the quarter, while adjusted operating margin widened 180 basis points to 23.0%. Total operating expenses fell 1% to $2.7 billion in the quarter. During the quarter, Aon repurchased 5.4 million Class A Ordinary shares for approximately $500 million. For 2014, cash flow from operations rose 1% to $1.6 billion. Greg Case, President and Chief Executive Officer said, "Results reflect a strong finish to 2014, having made significant investments in client serving capabilities while returning a record amount of capital to shareholders. Looking forward, we have positioned the firm for increased operating leverage, strong free cash flow generation and significant shareholder value creation in 2015." Aon shares rose 0.64% to close at $93.72 yesterday.