Core Insights - Aon plc has signed a definitive agreement to sell a significant majority of NFP's wealth business, including Wealthspire Advisors, Fiducient Advisors, and Newport Private Wealth, to Madison Dearborn Partners for an estimated total consideration of $2.7 billion [1][3][7] - The transaction aligns with Aon's strategy to focus on its core Risk Capital and Human Capital capabilities, enhancing its position in the middle market [1][2] Financial Details - The total after-tax cash proceeds from the transaction are expected to be approximately $2.2 billion [3] - The businesses being sold represent approximately $127 million in EBITDA for the trailing twelve-month period ending June 30, 2025 [3] Strategic Implications - Aon's CEO, Greg Case, emphasized the company's commitment to investing in its core wealth and retirement business, which includes institutional retirement and investment consulting [2] - Madison Dearborn Partners aims to support the growth of the acquired businesses, focusing on organic growth and acquisitions to enhance client value [3][9] Leadership and Structure - Post-transaction, the acquired businesses will operate under a unified brand, led by Michael LaMena as CEO and Carl Nelson as President [2][3] Advisors Involved - UBS Investment Bank served as the lead financial advisor to Aon, while Goldman Sachs acted as the financial advisor to Madison Dearborn Partners [4]

Core Insights - Aon plc has made a strategic investment in eMed Population Health, Inc. to enhance employer-sponsored access to GLP-1 therapies and obesity solutions [1][5] - The partnership aims to improve medication adherence, retention, and health outcomes while reducing long-term health costs for employers [4][5] Company Developments - Aon launched a subsidized GLP-1 weight management benefit program for its U.S. workforce, resulting in over 1,200 registrations and an average weight loss of 22.4 pounds with a retention rate of 95% within six months [2] - eMed will expand its digital-first healthcare platform, which includes at-home diagnostics and continuous adherence support, to reach more employers and patients [3] Industry Trends - The rise of GLP-1 medications has prompted employers to consider strategies for addressing obesity and chronic conditions, with a focus on data-driven approaches tailored to specific populations [6] - Aon's multi-year analysis of U.S. commercial health claims data highlights the transformative potential of GLP-1 medications in managing obesity and improving health outcomes [5]

Group 1 - Warren Buffett's Berkshire Hathaway reported a significant asset write-down of $3.8 billion on its investment in Kraft Heinz, reducing its book value to $8.4 billion from over $17 billion at the end of 2017 [4] - Despite the apparent loss, an analysis revealed that Buffett had secured nearly 60% profit due to favorable terms negotiated during the transaction, showcasing his ability to turn a perceived failure into a profitable outcome [4][5] - Buffett's investment philosophy emphasizes long-term value and strategic positioning, which has allowed him to navigate market fluctuations effectively [5] Group 2 - Buffett's cautious outlook on the current U.S. stock market is evident, as he believes the S&P 500's price-to-earnings ratio exceeding 30 indicates inflated growth expectations, suggesting potential historical investment opportunities in the next five years [16] - Berkshire Hathaway's cash reserves reached a record high of $344 billion, providing a robust buffer against market volatility as Buffett prepares to pass the reins to his successor, Greg Abel [21] - The company holds a diversified portfolio, with significant investments in Apple, American Express, and Coca-Cola, which together account for over 50% of its stock investment portfolio [18][19] Group 3 - Buffett's investment strategy includes a focus on companies with strong fundamentals, as evidenced by his long-term holdings in Coca-Cola and Apple, which have shown resilience and growth despite market challenges [27][29] - The investment approach is characterized by a preference for businesses with a competitive edge and sustainable cash flow, avoiding speculative trends such as AI investments that do not align with his expertise [20][32] - Buffett's principles emphasize the importance of understanding the intrinsic value of investments, advocating for a long-term perspective rather than short-term speculation [28][30] Group 4 - Buffett's philanthropic efforts include significant donations to charitable causes, particularly the Gates Foundation, reflecting his belief in responsible wealth distribution and opposition to hereditary wealth [36] - His lifestyle remains modest despite immense wealth, highlighting a commitment to simplicity and frugality, which has become a notable aspect of his public persona [36]

Summary of Aon Labor Market Study Conference Call Industry Overview - The conference call focused on the labor market study results for the insurance industry in the U.S. conducted by Aon and Jacobson Group, covering staffing trends and challenges within the sector [1][2][4][5]. Key Findings Employment Trends - The national unemployment rate is at 4.2%, while the insurance sector's unemployment rate is significantly lower at 2.3%, down from 3.1% at the beginning of the year [8][9]. - Total carrier employment has remained flat, with a slight decrease of 0.5% since January, indicating a stagnation below pre-pandemic levels [9][10]. - The staffing plans show that 81% of companies expect revenue growth, but only 53% anticipate increasing staff, indicating a divergence between revenue expectations and staffing growth [11][12]. Staffing Expectations - The percentage of companies expecting to decrease employees has hovered around 14%, a level not seen since the pandemic [13]. - The life and health insurance sectors are experiencing a decline in staffing, while property and casualty (P&C) sectors show slight growth [10][19]. - Companies are cautious in hiring due to growth being driven by rate increases rather than organic growth in policy counts [14][15]. Job Market Dynamics - Job openings in finance and insurance have decreased from 327,000 to 307,000, indicating a tighter job market [20][21]. - The staffing expectations for the next twelve months predict a modest increase of 1.03% in industry employment, with P&C balanced organizations expecting a growth of 2.4% [73]. Temporary Staffing - 84% of companies plan to maintain their temporary staffing levels, with only 5% expecting to increase and 11% to decrease [28][29]. - The use of temporary employees is influenced by automation and offshoring trends, particularly in the P&C sector [29]. Turnover Rates - Voluntary turnover is increasing, particularly in personal lines, reflecting employee confidence in the job market [30][31]. - The average turnover rate is reported at 6% for the last six months, lower than the twelve-month average of 9.2% [72]. Recruitment Challenges - The most difficult roles to fill remain in actuarial, executive, and analytics functions, with 12% of companies reporting increased difficulty in hiring compared to the previous year [71]. - There is a notable shift towards hiring experienced staff, particularly in technology and underwriting roles, while entry-level positions are more common in life and health sectors [45][49]. Additional Insights - Companies are increasingly offering flexible work hours, with 85% providing such options, which is becoming a significant factor in recruitment and retention [53][54]. - The impact of automation is a primary reason for expected reductions in headcount, with many companies reorganizing their staffing structures [69][70]. - The commercial lines sector is showing optimism for growth, particularly in specialty markets, while personal lines are recovering to historical profitability levels [51][52]. Conclusion - The insurance industry is facing a complex labor market characterized by low unemployment rates, cautious hiring practices, and a shift towards automation and offshoring. Companies are optimistic about revenue growth but are tempering their staffing expectations, leading to a modest outlook for employment growth in the coming year [66][68].

Core Insights - Aon plc has appointed Jo Ann Jenkins to its Board of Directors, effective August 15, 2025, bringing valuable experience from her leadership roles in nonprofit and public sector organizations [1][2] Company Overview - Aon plc is a global professional services firm focused on providing actionable analytic insights, integrated risk capital, and human capital expertise to clients in over 120 countries [5] Board Appointment Details - Jo Ann Jenkins previously served as CEO of AARP, where she led initiatives on multigenerational workforce, healthy longevity, and cost reduction in prescription drugs [2][3] - Jenkins has held various senior roles in organizations such as the Library of Congress and the U.S. Department of Agriculture, Transportation, and Housing and Urban Development [2][3] Jenkins' Contributions and Vision - Jenkins expressed excitement about joining Aon's Board, emphasizing the importance of addressing interconnected risks and people issues in a complex environment [4] - She aims to collaborate with Aon's board and executive leadership to unlock further opportunities for clients [4]

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]