(Reuters) – Insurance brokerage firm Aon missed Wall Street estimates for first-quarter profit on Friday, hurt by higher expenses.
Aon increased its total debt to finance the acquisition of NFP. The additional debt led to a rise in its expenses in the first quarter compared with the prior year.
The company also spent more on compensation and incentives for its employees during the three months ended March 31.
Aon’s first-quarter interest income decreased 82% to $5 million from a year ago, while its total operating expenses rose 25% to $3.27 billion.
Its adjusted quarterly net income attributable to shareholders rose to $1.24 billion, or $5.67 per share, from $1.13 billion, or $5.66, a year ago.
Analysts had expected its earnings to be $6.02 per share, according to data compiled by LSEG.
On the bright side, the company’s revenue from its commercial risk solutions unit and health solutions unit rose 11% and 40%, respectively, in the first quarter.
Peer Marsh McLennan earlier this month topped its quarterly profit estimates.
Shares of Aon have gained 1.64% YTD.
(Reporting by Prakhar Srivastava in Bengaluru; Editing by Shreya Biswas)
