Aon’s outsourced-CIO (OCIO) operation now manages $54 billion, making it one of the larger players in the game and aiding its latest earnings figures.
The London-headquartered company beat analysts' expectations for the seventh-straight quarter on Friday, with the release of it full-year performance figures.
“Organic revenue growth and efficient capital deployment led to the year-over-year improvement” of Aon’s operating earning per share, said analysts at research firm Zacks.
Organic revenues in the outsourcing space rose 15% for Aon overall, a global company includes human resources and health care operations. “We continue to see a strong demand for delegated services globally,” noted Kemp Ross, Aon Hewitt’s global head of solutions and operations. The business has expanded to include outsourced services for defined contribution plans, which Ross said “have launched in the US and UK.”
Analysts at Zacks had some reservations about the professional services giant, however. Despite another quarter of surprisingly good performance, the stock remained lists as a “hold.”
“Although Aon expects to create significant shareholder value in 2015, a weak financial position and an increased debt burden raises caution regarding the company’s future capital deployments and investment in growth initiatives,” the report stated.
Aon competitor Allstate earned a “buy.”
