Aon Reports First Quarter 2014 Results First Quarter Key Metrics
- $2.9 billion total revenue with 2% organic revenue growth
- 15.9% operating margin
- $1.06 EPS
- $65 million decrease in cash flow to a use of $11 million
"Our first quarter results reflect a solid start to the year with double-digit earnings growth, highlighted by strong performance across Risk Solutions and effective capital management," Greg Case, president and chief executive officer of Aon plc. "We are returning a record amount of capital to shareholders, highlighted by the repurchase of $600 million of ordinary shares in the quarter and the recently declared 43% increase in our quarterly cash dividend, while continuing to invest in innovative solutions across the firm to strengthen our industry-leading platform for long-term growth, strong free cash flow generation and increased financial flexibility." Click
here for full results.
Aon Helps Clients Simplify FATCA Requirements As the implementation date for Foreign Account Tax Compliance Act (FATCA) rapidly
approaches, Aon wants you to be aware of recent developments in the regulations and of
Aon’s commitment to reducing the burden they place on U.S. insurance buyers.
U.S. Treasury issued FATCA regulations that included Property &
Casualty insurance premiums as FATCA-regulated payments
Aon submitted a proposal to U.S. Treasury recommending changes to
FATCA that would allow U.S. insurance brokers to assume certain
FATCA-related responsibilities on behalf of U.S. insurance buyers February
U.S. Treasury released updated regulations that included Aon’s proposed
changes, significantly reducing the operational burden and financial risk
related to FATCA for U.S. insurance buyers
What you need to know as an insurance buyer
FATCA represents a major change to the U.S. tax law and organizations need to understand
how it will potentially affect incoming and outgoing premium payments. Specific to insurance
programs, here are some of the key points you should be aware of:
As currently drafted, the reporting aspect of FATCA applies to insurance premium
payments made by U.S. clients for U.S. risks in 2014;
Each March, beginning in 2015, U.S. insurance buyers will be required to provide
premium reports to insurers and the IRS that reflect the previous year’s premium
payments for U.S. risks made to non-U.S. insurers;
FATCA places a significant operational responsibility on U.S. insurance buyers to ensure that they have valid FATCA forms in-hand prior to making insurance premium payments;
Failure to have appropriate FATCA documents in-hand from non-U.S. insurers at
time of payment for policies with effective dates on or after January 1, 2015 could result
in withholding taxes equal to 30 percent of gross premium;
Even if your entire placement is made with U.S. insurers, FATCA withholding could apply
without proper documentation
Benefits of working with Aon in the U.S.1
For placements made through Aon U.S., the recent changes to the FATCA regulations will have a significant impact on your responsibilities. Specifically:
You will not be required to obtain and validate FATCA documents from insurers for premium payments made through Aon U.S.;
You will not be required to report premiums placed with non-U.S. insurers to the IRS each year for placements made through Aon U.S.;
You will simply need to obtain and validate a W-9 form from the appropriate Aon U.S. entity to be FATCA-compliant on all premium payments made through Aon U.S.; and
You will not be responsible for any FATCA withholding issues related to premiums placed with U.S. and non-U.S. insurers by Aon U.S.
You will, however, still be responsible for all aspects of FATCA compliance for premium payments made to entities other than Aon U.S.
Utilizing Aon’s global network for placements outside the U.S.1
With respect to placements effectuated for you by Aon offices and teams outside the U.S, we want you to be aware of the following plans and preparations designed to minimize the impact of FATCA for any premium payments you make through non-U.S. Aon entities with which you have a direct relationship.
Aon is actively engaged with the largest insurers and intermediaries to prepare for the receipt and validation of the FATCA forms.
Through its global presence, Aon is working closely with major non-U.S. insurers – especially in London and Bermuda – that provide coverage on behalf of U.S. clients.
Aon is implementing a controlled process so that only FATCA-compliant insurers are recommended for placements and to help ensure that valid FATCA documents are in place prior to your making payments to the insurers.
Aon will capture and make available relevant premium information needed for you to comply with the March 2015 reporting requirements for 2014 premium payments you made directly to Aon entities outside the U.S.
Please reach out to your Aon Account Executive or the contacts listed below to learn more about Aon’s efforts to simplify FATCA for U.S. insurance buyers.
1As of the date of this publication, it remains the duty of the insured to comply with all FATCA requirements as respects placements directly or self-procured, whether with foreign or domestic insurers or in instances where your premium is paid to or on behalf of a non-U.S. broker.
This publication contains general information that Aon considers to be reliable, but such reliability is not guaranteed. Aon is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor.