Core Insights - The 2025 Global Benefits Trends Study by Aon reveals that only 14% of multinationals have global guidelines for personalized benefits, despite 65% of employees expressing a desire for more choice in their benefits [1][2] Group 1: Employee Expectations and Company Challenges - Cost management is the top priority for 70% of multinationals, with medical inflation being the primary cost driver, while delivering employee value has become a key objective for benefits leaders [2] - Employees expect a consumer-grade experience in their benefits, which includes meaningful choices and innovative solutions tailored to individual needs [3] - There is a disconnect between rising employee expectations for flexibility and the need for cost management, presenting a challenge for global benefits leaders [2][3] Group 2: Personalization and Inclusion - Personalization now includes inclusive benefits that cater to diverse workforce needs, with nearly two-thirds of leading companies planning to expand offerings focused on families (54%), aging (39%), gender (39%), and lower-income employees (39%) [4] - 25% of survey respondents indicated they would reduce benefits that are less valued by employees to balance investments in more valued offerings [4] Group 3: Overcoming Structural Challenges - While nearly half of companies have a global benefits strategy, only 25% of global benefits leaders feel their governance structure supports their objectives [6] - Leading companies are three times more likely to have formal governance committees and twice as likely to centralize data and decision-making, resulting in better alignment and cost savings [6] Group 4: Technology and Future Outlook - Technology, including AI, offers significant opportunities for delivering employee value and creating cost efficiencies, yet only one in six benefits teams currently utilize AI for benefits design or delivery [7] - The adoption of AI is expected to nearly triple by 2027, but is hindered by legacy systems and governance challenges [7] - Organizations must embrace personalization, invest in inclusive benefits, and leverage data and technology to meet rising expectations and shape the future of work [8]

Part I - Financial Information [Financial Statements](index=7&type=section&id=Item%201.%20Financial%20Statements) The company presents its unaudited condensed consolidated financial statements for the periods ended June 30, 2025 [Condensed Consolidated Statements of Income](index=7&type=section&id=Aon%20plc%20Condensed%20Consolidated%20Statements%20of%20Income) The company reports Q2 2025 revenue of $4.16 billion and six-month revenue of $8.88 billion Q2 2025 vs Q2 2024 Income Statement Highlights (in millions) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Total revenue | $4,155 | $3,760 | | Operating income | $859 | $656 | | Net income attributable to Aon shareholders | $579 | $524 | | Diluted net income per share | $2.66 | $2.46 | Six Months 2025 vs 2024 Income Statement Highlights (in millions) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Total revenue | $8,884 | $7,830 | | Operating income | $2,320 | $2,121 | | Net income attributable to Aon shareholders | $1,544 | $1,595 | | Diluted net income per share | $7.10 | $7.72 | [Condensed Consolidated Statements of Comprehensive Income](index=8&type=section&id=Aon%20plc%20Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Comprehensive income reached $1.19 billion in Q2 2025, driven by positive foreign currency translation adjustments Comprehensive Income Highlights (in millions) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net income attributable to Aon shareholders | $579 | $524 | $1,544 | $1,595 | | Foreign currency translation adjustments | $604 | $(88) | $843 | $(220) | | Comprehensive income attributable to Aon shareholders | $1,192 | $450 | $2,446 | $1,490 | [Condensed Consolidated Statements of Financial Position](index=9&type=section&id=Aon%20plc%20Condensed%20Consolidated%20Statements%20of%20Financial%20Position) Total assets grew to $54.0 billion and total equity rose to $7.8 billion as of June 30, 2025 Balance Sheet Highlights (in millions) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total assets | $54,010 | $48,965 | | Goodwill | $16,024 | $15,234 | | Total liabilities | $45,921 | $42,535 | | Long-term debt | $15,451 | $16,265 | | Total Aon shareholders' equity | $7,843 | $6,121 | [Condensed Consolidated Statements of Shareholders' Equity](index=10&type=section&id=Aon%20plc%20Condensed%20Consolidated%20Statements%20of%20Shareholders%27%20Equity) Total equity increased to $8.0 billion in H1 2025, influenced by net income, repurchases, and dividends - Key changes in equity for the six months ended June 30, 2025 include net income adding **$986 million (Q1)** and **$593 million (Q2)**, offset by share repurchases totaling **$500 million** and dividends of **$308 million**[22](index=22&type=chunk) - In the prior year period (six months ended June 30, 2024), a major equity event was the issuance of **19.0 million shares valued at $5.88 billion** as part of the NFP Transaction[24](index=24&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=12&type=section&id=Aon%20plc%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow for H1 2025 was $936 million, with investing and financing activities reflecting the NFP transaction Cash Flow Summary (in millions) | Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Cash provided by operating activities | $936 | $822 | | Cash used for investing activities | $(268) | $(2,285) | | Cash provided by (used for) financing activities | $(373) | $2,264 | | Net increase in cash | $991 | $599 | [Notes to Condensed Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail accounting principles, the NFP transaction, restructuring, and legal contingencies - The financial statements are prepared in accordance with **U.S. GAAP** and require management to make estimates and assumptions that affect reported amounts[28](index=28&type=chunk)[30](index=30&type=chunk) - The company is monitoring new accounting guidance and stayed **SEC rules on climate-related disclosures**[31](index=31&type=chunk)[32](index=32&type=chunk)[34](index=34&type=chunk) - The company faces legal proceedings related to a 2016 plane crash and transactions involving Vesttoo Ltd, for which it recognized **$197 million in anticipated legal expenses** in Q4 2023[112](index=112&type=chunk)[113](index=113&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=35&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 and H1 2025 results, including 11% Q2 revenue growth and the NFP acquisition impact [Executive Summary of Second Quarter 2025 Financial Results](index=35&type=section&id=EXECUTIVE%20SUMMARY%20OF%20SECOND%20QUARTER%202025%20FINANCIAL%20RESULTS) Q2 2025 revenue grew 11% to $4.2 billion, driven by 6% organic growth and the NFP acquisition Q2 2025 Key Financial Highlights | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | $4.2B | $3.8B | +11% | | Organic Revenue Growth | 6% | N/A | N/A | | Operating Margin | 20.7% | 17.4% | +330 bps | | Adjusted Operating Margin | 28.2% | 27.4% | +80 bps | | Diluted EPS | $2.66 | $2.46 | +8.1% | | Adjusted Diluted EPS | $3.49 | $2.93 | +19.1% | - **Free cash flow** for the first six months of 2025 **increased 13% to $816 million**, driven by strong operating income growth and improved days sales outstanding[134](index=134&type=chunk) [Review of Consolidated Results](index=37&type=section&id=REVIEW%20OF%20CONSOLIDATED%20RESULTS) Q2 2025 revenue rose 11% to $4.2 billion, with operating income increasing 31% to $859 million Q2 2025 Revenue Growth by Segment | Segment | Revenue (Q2 2025) | YoY Change | Organic Growth | | :--- | :--- | :--- | :--- | | **Risk Capital** | $2.9B | +8% | 6% | | Commercial Risk Solutions | $2.2B | +8% | 6% | | Reinsurance Solutions | $688M | +8% | 6% | | **Human Capital** | $1.3B | +15% | 5% (blended) | | Health Solutions | $772M | +17% | 6% | | Wealth Solutions | $519M | +12% | 3% | - Operating expenses increased mainly due to NFP's inclusion, higher intangible amortization from the NFP deal (**$73M increase**), and costs tied to organic growth[144](index=144&type=chunk)[148](index=148&type=chunk)[149](index=149&type=chunk)[150](index=150&type=chunk) - Other income decreased to **$56 million from $236 million** in Q2 2024, primarily because the prior year period included a significant gain from the sale of a business[156](index=156&type=chunk) [Non-GAAP Metrics](index=41&type=section&id=Non-GAAP%20Metrics) The company reconciles GAAP results to non-GAAP metrics like adjusted operating income and free cash flow Reconciliation to Adjusted Operating Income (Q2 2025, in millions) | Description | Amount | | :--- | :--- | | **U.S. GAAP Operating Income** | **$859** | | Amortization and impairment | $201 | | Change in fair value of contingent consideration | $(10) | | Accelerating Aon United Program expenses | $94 | | Transaction and integration costs | $27 | | **Adjusted Operating Income** | **$1,171** | Reconciliation to Adjusted Diluted EPS (Q2 2025) | Description | Per Share Amount | | :--- | :--- | | **U.S. GAAP Diluted EPS** | **$2.66** | | Adjustments (net of tax) | $0.83 | | **Adjusted Diluted EPS** | **$3.49** | Free Cash Flow Reconciliation (Six Months Ended June 30, in millions) | Description | 2025 | 2024 | | :--- | :--- | :--- | | Cash provided by operating activities | $936 | $822 | | Capital expenditures | $(120) | $(101) | | **Free Cash Flow** | **$816** | **$721** | [Liquidity and Financial Condition](index=46&type=section&id=LIQUIDITY%20AND%20FINANCIAL%20CONDITION) The company maintains adequate liquidity through cash from operations and $2.0 billion in available credit facilities - Primary uses of liquidity include operating expenses, acquisitions, share repurchases (**$500M in H1 2025**), dividends, and restructuring charges[189](index=189&type=chunk)[206](index=206&type=chunk) - The company has two primary committed credit facilities totaling **$2.0 billion**, which were undrawn as of June 30, 2025, and was in compliance with all financial covenants[215](index=215&type=chunk)[216](index=216&type=chunk) - The Accelerating Aon United Program is expected to incur cumulative costs of **$1.0 billion** and generate annualized savings of approximately **$350 million** by the end of 2026[198](index=198&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=54&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company is exposed to market risks from foreign exchange and interest rates, which it manages with derivatives - The company's primary foreign exchange exposures are against the U.S. dollar, including the **euro, British pound, and Canadian dollar**[236](index=236&type=chunk) - For the six months ended June 30, 2025, currency fluctuations had an unfavorable impact of **$0.13 on both net income per diluted share and adjusted diluted earnings per share**[239](index=239&type=chunk) - **Fiduciary investment income** is sensitive to changes in short-term interest rates, and the company monitors and hedges this exposure as appropriate[240](index=240&type=chunk) [Controls and Procedures](index=55&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective with no material changes in internal controls - An evaluation confirmed that as of June 30, 2025, the company's disclosure controls and procedures were **effective at a reasonable assurance level**[241](index=241&type=chunk) - **No material changes** occurred during the quarter ended June 30, 2025, that affected the company's internal control over financial reporting[242](index=242&type=chunk) Part II - Other Information [Legal Proceedings](index=56&type=section&id=Item%201.%20Legal%20Proceedings) The company details legal matters, including litigation from a 2016 plane crash and Vesttoo Ltd. transactions - The company refers to **Note 15** for details on claims, lawsuits, and other contingencies[245](index=245&type=chunk) [Risk Factors](index=56&type=section&id=Item%201A.%20Risk%20Factors) This section refers to the detailed risk factors disclosed in the company's 2024 Annual Report on Form 10-K - For a discussion of risk factors, the report refers to **Part I, Item 1A of the Annual Report on Form 10-K** for the year ended December 31, 2024[246](index=246&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=56&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased 0.7 million shares in Q2 2025 and has $1.8 billion remaining in its repurchase program Q2 2025 Share Repurchase Activity | Period | Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 2025 | 224,498 | $371.20 | | May 2025 | — | $— | | June 2025 | 467,548 | $356.47 | | **Total Q2** | **692,046** | **$361.25** | - The maximum remaining value of shares that may be purchased under the program is approximately **$1.82 billion** as of June 30, 2025[247](index=247&type=chunk) - There were **no unregistered sales of equity securities** in the second quarter of 2025[249](index=249&type=chunk) [Exhibits](index=56&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including agreements and required certifications - Exhibits filed include **CEO and CFO certifications (31.1, 31.2, 32.1, 32.2)** and Interactive Data Files (101)[257](index=257&type=chunk)

Core Insights - Aon plc reported second-quarter 2025 adjusted earnings of $3.49 per share, exceeding the Zacks Consensus Estimate by 2.7% and reflecting a 19.1% increase year-over-year [1][10] - Total revenues rose 11% year-over-year to $4.2 billion, surpassing the consensus mark by 0.7%, with organic revenue growth at 6% [1][10] Financial Performance - The strong quarterly results were driven by new business growth and solid retention rates, particularly in Aon's Risk Capital and Human Capital segments, aided by NFP acquisition synergies and net restructuring savings [2] - Total operating expenses increased 6% year-over-year to $3.3 billion, influenced by higher costs from the NFP acquisition and long-term growth investments [3] - Adjusted operating income advanced 14% year-over-year to $1.2 billion, with an adjusted operating margin of 28.2%, improving by 80 basis points year-over-year [4] Segmental Performance - **Risk Capital**: - Commercial Risk Solutions saw organic revenues grow 6% year-over-year, with revenues of $2.2 billion, an 8% increase [5] - Reinsurance Solutions experienced organic revenue growth of 6%, with revenues increasing 8% year-over-year to $688 million, surpassing the consensus estimate [6] - **Human Capital**: - Health Solutions reported organic revenue growth of 6%, with revenues climbing 17% year-over-year to $772 million, exceeding the consensus estimate [7] - Wealth Solutions saw organic revenues improve 3% year-over-year, with revenues growing 12% to $519 million, though it missed the consensus mark [8] Financial Position - As of June 30, 2025, Aon had cash and cash equivalents of $1 million, down from $1.1 billion at the end of 2024, while total assets increased to $54 billion from $49 billion [11] - Long-term debt decreased to $15.5 billion from $16.3 billion, with total short-term debt and current portion of long-term debt at $1.8 billion [11] - Cash flow from operations rose to $796 million from $513 million a year ago, with adjusted free cash flows increasing 59% year-over-year to $732 million [12] Capital Deployment - Aon repurchased 0.7 million class A ordinary shares for approximately $250 million in the second quarter, with a remaining repurchase capacity of around $1.8 billion [13] Forward Guidance - Aon expects mid-single-digit or higher organic revenue growth for 2025 and beyond, with anticipated expansion in adjusted operating margin and strong growth in adjusted EPS [14] - The Aon United Restructuring program is projected to achieve annual run-rate savings of approximately $350 million by the end of 2026 [15]

Core Insights - Aon reported $4.16 billion in revenue for Q2 2025, a year-over-year increase of 10.5% and an EPS of $3.49 compared to $2.93 a year ago, exceeding both revenue and EPS consensus estimates [1] Financial Performance - The revenue surprise was +0.72% over the Zacks Consensus Estimate of $4.13 billion, while the EPS surprise was +2.65% over the consensus estimate of $3.40 [1] - Aon's stock has returned +0.9% over the past month, underperforming the Zacks S&P 500 composite's +4.6% change [3] Organic Revenue Growth by Segment - Commercial Risk Solutions: 6% organic revenue growth versus an estimated 4.6% [4] - Reinsurance Solutions: 6% organic revenue growth versus an estimated 4.4% [4] - Wealth Solutions: 3% organic revenue growth versus an estimated 4.5% [4] - Consolidated: 6% organic revenue growth versus an estimated 4.9% [4] - Health Solutions: 6% organic revenue growth versus an estimated 5.4% [4] Revenue by Segment - Reinsurance Solutions revenue: $688 million, exceeding the estimate of $665.04 million, representing an +8.4% year-over-year change [4] - Health Solutions revenue: $772 million, exceeding the estimate of $749.67 million, representing a +16.6% year-over-year change [4] - Wealth Solutions revenue: $519 million, below the estimate of $549.51 million, representing a +12.1% year-over-year change [4] - Commercial Risk Solutions revenue: $2.18 billion, slightly above the estimate of $2.17 billion, representing an +8.1% year-over-year change [4]

Financial Data and Key Metrics Changes - The company reported a strong quarter with 6% organic revenue growth, 19% adjusted EPS growth, and 59% free cash flow growth [4][18][28] - Total revenue increased by 11% to $4.2 billion, with an adjusted operating margin of 28.2%, up 80 basis points year-over-year [19][20] Business Line Data and Key Metrics Changes - Three of the four solution lines (Commercial Risk, Reinsurance, and Health) delivered 6% organic revenue growth, while Wealth generated 3% organic revenue growth [20][22] - Commercial Risk saw strong performance in core P&C business, with notable contributions from North America and EMEA, and double-digit growth in construction [21] - Reinsurance organic revenue growth was driven by double-digit growth in insurance-linked securities, with $50 billion outstanding in cat bond placements [21] - Health solutions benefited from strong performance in international markets, driven by rising healthcare costs and contributions from NFP [22] Market Data and Key Metrics Changes - The company noted significant developments in the operating environment, including U.S. tax legislation and global tariff shifts, which have impacted client operations [5][6] - The North American middle market remains a significant growth opportunity, with the integration of NFP progressing well towards the $80 million net revenue synergy target for 2025 [10][11] Company Strategy and Development Direction - The Aon United strategy, operationalized by the 3x3 plan, is driving sustainable top-line growth and margin expansion [4][11] - The company is focused on deepening client relationships and expanding capabilities in high-growth areas such as cyber insurance and construction [9][10] - Continued investment in talent and analytics is expected to support sustainable organic revenue growth [31][92] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to meet evolving client needs in a complex operating environment [4][12] - The company reaffirmed its 2025 full-year guidance, including mid-single-digit organic revenue growth and double-digit free cash flow growth [11][31] Other Important Information - Free cash flow for the quarter was $732 million, reflecting strong adjusted operating income growth and improvements in days sales outstanding [28][29] - The company is on track to return $1 billion in capital to shareholders through share repurchases this year [30] Q&A Session Summary Question: Contribution to growth from capital markets activities and new hires - Management indicated that M&A services are expected to strengthen, with modest growth anticipated in the second half of the year, while new hires are contributing positively to organic revenue growth [34][38] Question: Preferred uses of free cash flow and interest in large M&A - Management emphasized the importance of deleveraging and maintaining flexibility in capital allocation, while remaining open to evaluating strategic M&A opportunities [44][46] Question: M&A transactional book geography and margin comparison - Management confirmed that M&A services are diversified across regions and industries, with commercial risk margins slightly higher but overall margins in line [52][55] Question: Drivers of strong free cash flow growth - Key drivers include operating income growth, working capital improvements, and lower transaction costs from NFP, with confidence in achieving double-digit free cash flow growth [56][58] Question: Progress on NFP cash and cost synergies - Management reported strong producer retention and confidence in achieving the $80 million revenue synergy target for 2025 and $175 million for 2026 [66][72] Question: Dynamics between reinsurance solutions and treaty - Management described the relationship between reinsurance and commercial risk as complementary, with increasing demand across both areas [75][78] Question: Future investments in talent - Management reiterated the commitment to adding talent in priority areas to meet client needs and drive sustainable organic revenue growth [83][90]

Financial Data and Key Metrics Changes - The company reported a strong quarter with 6% organic revenue growth, 19% adjusted EPS growth, and 59% free cash flow growth [4][17][28] - Total revenue increased by 11% to $4.2 billion, with an adjusted operating margin of 28.2%, up 80 basis points year-over-year [18][26] - Free cash flow reached $732 million, reflecting strong adjusted operating income growth and improvements in days sales outstanding [28][30] Business Line Data and Key Metrics Changes - Commercial Risk, Reinsurance, and Health solutions each delivered 6% organic revenue growth, while Wealth generated 3% organic revenue growth [19][21] - The Reinsurance segment saw double-digit growth in insurance-linked securities, with $50 billion outstanding in cat bond placements [20] - The company launched innovative products like Aon Surge Stop Loss in the cyber insurance market, indicating a focus on high-growth areas [10] Market Data and Key Metrics Changes - The company noted strong performance in North America and EMEA, particularly in construction and renewable energy projects [20] - The health solutions segment benefited from rising healthcare costs and strong demand for executive benefits and pharmacy solutions [21] - The North American middle market remains a significant growth opportunity, with ongoing integration of NFP contributing to revenue synergies [11][30] Company Strategy and Development Direction - The Aon United strategy, operationalized by the 3x3 plan, is driving sustainable top-line growth and margin expansion [4][11] - The company is focused on deepening client relationships and expanding capabilities in high-growth areas like construction and energy [22][90] - The integration of NFP is progressing well, with a target of $80 million in net revenue synergies by 2025 [11][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating a complex operating environment shaped by megatrends such as trade, technology, weather, and workforce dynamics [5][12] - The company reaffirmed its full-year guidance, expecting mid-single-digit organic revenue growth and double-digit free cash flow growth through 2025 [32] - Management highlighted the importance of their integrated solutions in helping clients mitigate complexity and protect assets [12][94] Other Important Information - The company is on track to return $1 billion in capital to shareholders through share repurchases this year [30] - The leverage ratio was reduced to 3.4 times, with a target range of 2.8 to 3.0 times by Q4 2025 [29] - The company continues to invest in talent, with a 6% increase in revenue-generating hires through the first half of the year [10][90] Q&A Session Summary Question: Contribution to growth from capital markets activities and new hires - Management noted that M&A services are showing progress, with a modest growth outlook for the second half of the year, while new hires are contributing positively to organic revenue growth [35][39][41] Question: Preferred uses of free cash flow and interest in large M&A - Management emphasized the importance of deleveraging and evaluating assets that meet strategic criteria, while remaining open to large-scale M&A opportunities [45][46][49] Question: M&A transactional book geography and industry verticals - Management indicated that the M&A services are diversified across geographies and industries, with strong demand expected to continue [53][55] Question: Drivers of strong free cash flow growth - Key drivers include operating income growth, working capital improvements, and lower transaction costs from NFP integration [58][60][62] Question: Progress on NFP cash and cost synergies - Management confirmed they are on track for $80 million in revenue synergies in 2025 and $175 million by 2026, with strong producer retention contributing to these figures [66][72] Question: Dynamics between ILS and treaty in Reinsurance Solutions - Management clarified that ILS and treaty are complementary, with increasing demand across both areas, supported by strong analytics and capabilities [75][78] Question: Future investments in talent - Management reiterated the commitment to continuous improvement and investment in talent, focusing on quality hires in priority growth areas [82][90]

Financial Performance - Aon reported total revenue of $4155 million in Q2'25, an increase of 11% compared to $3760 million in Q2'24[10] - Organic revenue growth remained consistent at 6% in both Q2'25 and Q2'24[9, 10] - Adjusted operating income increased by 14% from $1029 million in Q2'24 to $1171 million in Q2'25[10, 16] - Adjusted earnings per share (EPS) grew by 19%, rising from $293 in Q2'24 to $349 in Q2'25[9, 10] - Free cash flow saw a significant increase of 59%, reaching $732 million in Q2'25 compared to $460 million in Q2'24[9, 10, 19] Business Segments - Commercial Risk Solutions and Reinsurance Solutions both experienced organic revenue growth of 6%[11] - Health Solutions also saw organic revenue growth of 6%[11] - Wealth Solutions experienced organic revenue growth of 3%[11] Guidance and Strategy - Aon reaffirms its confidence in achieving its full-year 2025 financial guidance[9] - The company's capital allocation strategy focuses on debt reduction, disciplined middle-market M&A, and returning capital to shareholders[9] - Aon is executing its Aon United strategy through the 3x3 Plan to meet client demand for advice and solutions[9]

Core Insights - Aon reported quarterly earnings of $3.49 per share, exceeding the Zacks Consensus Estimate of $3.4 per share, and up from $2.93 per share a year ago, representing an earnings surprise of +2.65% [1][2] - The company generated revenues of $4.16 billion for the quarter, surpassing the Zacks Consensus Estimate by 0.72% and increasing from $3.76 billion year-over-year [2] - Aon has outperformed consensus EPS estimates three times over the last four quarters and has topped revenue estimates twice in the same period [2] Earnings Outlook - The future performance of Aon's stock will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] - The current consensus EPS estimate for the upcoming quarter is $2.89 on revenues of $3.94 billion, while for the current fiscal year, the estimate is $16.76 on revenues of $17.19 billion [7] Industry Context - The Insurance - Brokerage industry, to which Aon belongs, is currently ranked in the top 32% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked using tools like the Zacks Rank [5][6]

Aon Reports Second Quarter 2025 Results DUBLIN - July 25, 2025 - Aon plc (NYSE: AON) today reported results for the three months ended June 30, 2025. | | | Second Quarter 2025 | | | First Half 2025 | | | --- | --- | --- | --- | --- | --- | --- | | | 2025 | 2024 | Change | 2025 | 2024 | Change | | Total revenue | $4,155 | $3,760 | 11% | $8,884 | $7,830 | 13% | | Organic revenue growth (Non-GAAP) | | | 6% | | | 5% | | Operating income | $859 | $656 | 31% | $2,320 | $2,121 | 9% | | Adjusted operating income (N ...

Core Insights - Aon plc reported strong financial results for the second quarter of 2025, with total revenue increasing by 11% to $4.2 billion and organic revenue growth of 6% [2][3][11] - The company experienced significant growth in adjusted earnings per share (EPS), which rose by 19% to $3.49, while diluted EPS increased by 8% to $2.66 [2][11][27] - Aon's performance is attributed to the successful execution of its Aon United strategy, which focuses on operational efficiency and meeting client demand in a complex environment [2][11] Financial Performance - Total revenue for the first half of 2025 reached $8.884 billion, a 13% increase from $7.830 billion in the prior year [2][3] - Operating income for the second quarter increased by 31% to $859 million, with an operating margin of 20.7%, up from 17.4% in the previous year [2][24] - Adjusted operating income rose by 14% to $1.171 billion, with an adjusted operating margin of 28.2% [2][24] Revenue Breakdown - Risk Capital revenue increased by 8% to $2.9 billion, while Human Capital revenue grew by 15% to $1.3 billion [3][11] - The growth in Risk Capital was driven by strong performance in Commercial Risk Solutions and Reinsurance Solutions, both achieving organic revenue growth of 6% [15][16] - Human Capital's Health Solutions segment saw a 6% organic revenue growth, supported by strong retention and new business [17] Expense Analysis - Total operating expenses for the second quarter rose by 6% to $3.3 billion, primarily due to the inclusion of NFP's operating expenses and increased amortization related to the NFP acquisition [4][19] - Compensation and benefits expenses increased by 11% to $2.36 billion, reflecting the integration of NFP and organic growth [19][36] - Amortization and impairment of intangible assets surged by 57% to $201 million, driven by the NFP acquisition [19][36] Cash Flow and Shareholder Returns - Cash provided by operations for the first half of 2025 increased by 14% to $936 million, while free cash flow rose by 13% to $816 million [8][9][41] - The company repurchased 0.7 million class A ordinary shares for approximately $250 million during the second quarter, with $1.8 billion remaining under its share repurchase program [7][11] Tax and Shareholder Metrics - The effective tax rate decreased to 15.5% from 22.9% in the prior year, contributing to improved net income [6][36] - Net income attributable to Aon shareholders increased by 10% to $579 million, with adjusted net income rising by 22% to $759 million [27][36]