Group 1 - Aon plc will host its Investor Day on June 9, 2025, at 8:30 a.m. ET [1] - Aon's leadership will discuss the 3x3 Plan and how Aon United addresses complex client needs at the intersection of Risk Capital and Human Capital [1] - The focus will be on driving sustainable, profitable growth and shareholder value creation [1] Group 2 - A live webcast and materials will be available on Aon's Investor Relations website, with a replay accessible after the event [2] - Aon operates in over 120 countries, providing clients with actionable analytic insights and integrated expertise in Risk Capital and Human Capital [3]

Core Insights - Aon plc has launched the Health Price Transparency Analysis, an analytics solution designed to help U.S. employers gain insights from publicly available healthcare pricing data [1][2][3] - The analysis aims to assist plan sponsors in evaluating negotiated rates between payers and providers, thereby managing rising medical costs and mitigating fiduciary risks [1][4] Company Overview - Aon is a global professional services firm that provides clients with actionable analytic insights and expertise in risk and human capital [7] - The company operates in over 120 countries, focusing on helping clients make better risk and people decisions [7] Product Features - The Health Price Transparency Analysis processes petabytes of public Price Transparency data and market data covering over 50 million commercial lives [3] - Key features include granular benchmarking of negotiated rates across various carrier networks, network performance insights, provider price variance insights, and fiduciary documentation [9] Market Context - Aon's analysis comes at a time when employers expect healthcare costs to rise by 9.2% in 2025, up from 8% the previous year, highlighting the need for strategic action [4] - The analysis provides timely insights that refresh monthly, ensuring employers have access to the most current data [4]

Core Insights - Aon plc has identified a significant opportunity to reduce healthcare costs and improve workforce health through a comprehensive obesity management program that incorporates GLP-1 medications [1][4][5] - The company has launched its own GLP-1 weight management program for U.S. employees, combining affordable treatment access with virtual support and adherence tools [3][9] Health Data Analysis - Aon's analysis utilized data from over 50 million commercially insured lives, including 139,000 GLP-1 users from 2022-2024, to quantify the economic impact of GLP-1 medications [5][6] - The analysis revealed that GLP-1 users experienced a 44% reduction in the risk of hospitalizations due to major adverse cardiovascular events over 24 months [6] Economic Impact - The initial cost increase associated with GLP-1 medications was followed by a significant reduction in medical spend growth, with a seven-percentage point improvement observed in the second year for GLP-1 users [6] - Aon emphasized that addressing obesity not only presents a public health opportunity but also serves as an economic imperative, with obesity costing the U.S. economy up to $1.72 trillion annually [4] Program Implementation - Aon's GLP-1 weight management program aims to de-stigmatize obesity treatment and provide subsidized access to GLP-1 medications for its U.S. workforce [9][10] - The program includes AI-driven wellness tools, at-home blood tests, and virtual check-ins to enhance adherence and support sustainable health outcomes [9] Future Directions - Aon plans to advance analytics to support better decision-making regarding GLP-1 adoption and its long-term business impact [10] - The company aims to revolutionize chronic condition prevention and redefine workforce health investment, setting a new industry benchmark [10]

Core Insights - Aon plc reported disappointing earnings for Q1, with earnings per share at $5.67, missing the analyst consensus estimate of $6.02, and quarterly sales of $4.73 billion, below the expected $4.86 billion [1][2]. Group 1: Financial Performance - The company achieved 5% organic revenue growth and 12% adjusted operating income growth in the first quarter [2]. - Aon's adjusted EPS was reported at $5.67, reflecting strong operating performance despite missing overall earnings expectations [1][2]. Group 2: Market Reaction - Following the earnings announcement, Aon shares increased by 1.4%, trading at $340.52 [2]. Group 3: Analyst Ratings and Price Targets - Evercore ISI Group analyst David Motemaden maintained an Outperform rating on Aon but reduced the price target from $420 to $398 [7]. - Piper Sandler analyst Paul Newsome upgraded Aon from Neutral to Overweight while lowering the price target from $384 to $378 [7].

Revenue Performance - Total revenue for the three months ended March 31, 2025, was $4,729 million, a 16.2% increase from $4,070 million in the same period of 2024[35] - Revenue from Commercial Risk Solutions increased to $2,002 million in Q1 2025, up 10.7% from $1,808 million in Q1 2024[35] - Health Solutions revenue rose significantly by 40% to $1,026 million in Q1 2025, compared to $733 million in Q1 2024[35] - The company recognized $230 million in revenue from deferred revenue during Q1 2025, up from $179 million in Q1 2024[51] - Total consolidated revenue for the three months ended March 31, 2025, was $4,729 million, an increase from $4,070 million for the same period in 2024, representing a growth of approximately 16.2%[117] Operating Income and Expenses - Operating income for the Risk Capital segment was $1,197 million with an operating margin of 37.5%, while the Human Capital segment reported an operating income of $403 million with a margin of 26.1%[117] - Total operating expenses for the three months ended March 31, 2025, were $3,268 million, compared to $2,605 million for the same period in 2024, reflecting an increase of approximately 25.4%[117] - Interest expense for the three months ended March 31, 2025, was $(206) million, compared to $(144) million for the same period in 2024, indicating an increase in interest costs[117] Acquisitions and Goodwill - The company completed 7 acquisitions during the three months ended March 31, 2025, with a total consideration transferred of $640 million, including $605 million in cash[54] - The NFP Transaction, completed on April 25, 2024, had a total purchase price of $9.1 billion, which included $3.2 billion to settle NFP's indebtedness and $5.9 billion in class A ordinary shares[56] - Goodwill recognized from the NFP Transaction amounted to approximately $6.8 billion, primarily due to anticipated growth opportunities and synergies[62] - As of March 31, 2025, the company reported a total of $15,697 million in goodwill, an increase from $15,234 million as of December 31, 2024[68] - The company had total assets acquired from the NFP Transaction amounting to $14,984 million, with total liabilities assumed of $5,662 million[58] Financial Position and Cash Flow - Cash and cash equivalents and short-term investments remained stable at $1.3 billion as of March 31, 2025, with $138 million restricted[44] - The allowance for doubtful accounts decreased to $74 million at the end of Q1 2025, down from $79 million at the beginning of the period[46] - Other current liabilities increased to $2,131 million as of March 31, 2025, compared to $1,773 million at the end of 2024[51] - The net carrying amount of costs to fulfill contracts with customers decreased to $302 million as of March 31, 2025, from $424 million at the beginning of the period[47] - The company repaid $900 million of its $2 billion delayed draw term loan as of March 31, 2025, leaving an outstanding balance of $1.1 billion[70] Tax and Pension Contributions - The effective tax rate on net income for the three months ended March 31, 2025, was 21.4%, a decrease from 23.2% for the same period in 2024[78] - Total contributions to Aon's significant pension plans amounted to $30 million for the three months ended March 31, 2025, compared to $17 million in the same period of 2024[87] - Aon is actively monitoring the potential impacts of the OECD's proposed Pillar Two tax regime on its global effective tax rate and financial condition[80] Derivative Instruments and Market Risks - The company utilizes various derivative instruments to manage market risks related to foreign currency exchange rates and interest rates, without engaging in trading or speculative purposes[88] - The notional amount of foreign exchange contracts increased to $1,178 million as of March 31, 2025, from $991 million on December 31, 2024, representing a growth of approximately 18.8%[91] - The company recorded a derivative gain of $13 million for the three months ended March 31, 2025, compared to a loss of $3 million for the same period in 2024[94] - Approximately $7 million of pretax gains currently included within Accumulated other comprehensive loss are expected to be reclassified into earnings in the next twelve months[93] Debt and Credit Facilities - Aon North America, Inc. issued a total of $6 billion in Senior Notes with varying maturities and interest rates, including $600 million due in 2027 and $2 billion due in 2054[73] - As of March 31, 2025, Aon plc had two primary committed credit facilities totaling $2 billion, with no borrowings under these facilities reported[74][75] - The carrying value of the current portion of long-term debt was $750 million as of March 31, 2025, with a fair value of $747 million, indicating a slight decrease in fair value from $744 million on December 31, 2024[102] - The fair value of long-term debt was $15,541 million as of March 31, 2025, down from $15,308 million on December 31, 2024[102] Legal and Regulatory Matters - The company is monitoring ongoing legal challenges related to the SEC's climate-related disclosure rules, effective for the year ended December 31, 2025[34] - The company recognized legal settlement expenses of $197 million in the fourth quarter of 2023 related to ongoing legal matters, with a significant portion potentially recoverable in future periods[107]

Core Viewpoint - Aon plc reported mixed financial results for Q1 2025, with adjusted earnings per share missing estimates but total revenues showing year-over-year growth [1][2]. Financial Performance - Adjusted earnings per share for Q1 2025 were $5.67, missing the Zacks Consensus Estimate by 6.1%, but improved by $0.01 from the previous year [1]. - Total revenues increased by 16% year over year to $4.73 billion, although this was 2.6% below consensus expectations [1]. - Organic revenue growth was reported at 5% [1]. Operating Costs and Margins - Total operating expenses rose by 25% year over year to $3.3 billion, driven by higher costs associated with the NFP acquisition and long-term growth investments [3]. - Adjusted operating income grew by 12% year over year to $1.8 billion, but fell short of the estimated $1.9 billion [4]. - The adjusted operating margin decreased by 130 basis points year over year to 38.4% [4]. Segment Performance - **Commercial Risk Solutions**: Organic revenues grew by 5% year over year, with revenues of $2 billion, an 11% increase, but missed estimates by 4.8% [5]. - **Reinsurance Solutions**: Organic revenues improved by 4% year over year, with revenues of $1.2 billion, a 2% increase, but also missed estimates by 3.6% [6]. - **Health Solutions**: Organic revenues grew by 5% year over year, with revenues of $1 billion, a 40% increase, but fell short of estimates by 1.7% [7]. - **Wealth Solutions**: Organic revenues increased by 8% year over year, with revenues soaring by 40% to $519 million, exceeding estimates by 3.8% [8]. Financial Position - As of March 31, 2025, Aon had cash and cash equivalents of $964 million, down from $1.1 billion at the end of 2024 [9]. - Total assets increased to $50.3 billion from $49 billion at the end of 2024 [9]. - Long-term debt remained stable at $16.28 billion, while short-term debt totaled $1.3 billion [9]. Cash Flow and Capital Deployment - Cash flow from operations was $140 million, down from $309 million a year ago [10]. - Adjusted free cash flows decreased by 68% year over year to $84 million [10]. - Aon repurchased 0.6 million class A ordinary shares for approximately $250 million, with $2.1 billion remaining under its repurchase authorization [11]. Future Outlook - Aon expects mid-single-digit or higher organic revenue growth for 2025 and anticipates an expansion in adjusted operating margin [12]. - Adjusted EPS is projected to see strong growth this year, with free cash flow expected to witness double-digit growth in the long term [12]. - The Aon United Restructuring program aims for annual run-rate savings of approximately $350 million by the end of 2026, with $40 million in net savings realized in Q1 [13].

Aon plc (NYSE:AON) Q1 2025 Earnings Conference Call April 25, 2025 8:30 AM ET Company Participants Greg Case - Chief Executive Officer Edmund Reese - Chief Financial Officer Conference Call Participants Andrew Kligerman - TD Securities Elyse Greenspan - Wells Fargo David Motemaden - Evercore ISI Paul Newsome - Piper Sandler Meyer Shields - KBW Jimmy Bhullar - JPMorgan Cave Montazeri - Deutsche Bank Operator Good morning, and thank you for holding. Welcome to Aon Plc's First Quarter 2025 Conference Call. At ...

Aon (AON) Q1 2025 Earnings Call April 25, 2025 04:35 PM ET Company Participants Greg Case - President & CEOEdmund Reese - CFO & EVPAndrew Kligerman - Managing DirectorElyse Greenspan - Managing DirectorMeyer Shields - Managing Director Conference Call Participants David Motemaden - Managing Director & Sr. Equity Research Analyst - Insurance & Business ServicesPaul Newsome - MD & Senior Research AnalystJimmy Bhullar - Equity Research AnalystCave Montazeri - Analyst Operator Good morning, and thank you for ho ...

Aon (AON) reported $4.73 billion in revenue for the quarter ended March 2025, representing a year-over-year increase of 16.2%. EPS of $5.67 for the same period compares to $5.66 a year ago.The reported revenue represents a surprise of -2.63% over the Zacks Consensus Estimate of $4.86 billion. With the consensus EPS estimate being $6.04, the EPS surprise was -6.13%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectati ...

Earnings Conference Call First Quarter 2025 April 25, 2025 Any or all of Aon's forward-looking statements may turn out to be inaccurate, and there are no guarantees about Aon's performance. The factors identified above are not exhaustive. Aon and its subsidiaries operate in a dynamic business environment in which new risks may emerge frequently. Accordingly, you should not place undue reliance on forward-looking statements, which speak only as of the dates on which they are made. In addition, results for pr ...