UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED June 30, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 1-7933 Aon plc (Exact Name of Registrant as Specified in Its Charter) ENGLAND AND WALES 98-1030901 (State or Other Jurisdiction of (I.R.S. Employer Incorporation or Organization) ...

Financial Data and Key Metrics Changes - The company reported a 6% organic revenue growth for the second quarter, marking the fourth consecutive quarter of achieving this growth rate, reflecting an acceleration of historical trends [5][15] - Operating margin expanded by 240 basis points, with operational income growth of 13% and EPS growth of 9%, despite facing foreign exchange headwinds [5][19] - For the first half of the year, the company achieved a 10% growth in operating income and an 11% growth in EPS, alongside a 210 basis points increase in operating margin [18] Business Line Data and Key Metrics Changes - The company highlighted strong performance across its core portfolio, driven by net new business generation and improved retention [18] - The Reinsurance Solutions segment experienced a 12% growth in Q2 and a 10% growth for the first half of the year, attributed to increased demand from insurers utilizing reinsurance capabilities [70][71] Market Data and Key Metrics Changes - The company noted that client demand is higher than ever, with many organizations feeling less prepared for traditional and emerging risks, as indicated by a global survey conducted with over 2,600 clients [8][9] - The survey revealed that only 12% of respondents use risk modeling, highlighting a significant opportunity for the company to address client needs in risk management [9] Company Strategy and Development Direction - The company is focused on its "Aon United" initiative, which aims to break down internal barriers and enhance client service by leveraging global resources [6][10] - Investments in innovative solutions, such as the Aon Architect tool, are aimed at addressing client challenges in managing healthcare costs and improving talent retention [12][13] - The establishment of the New Ventures Group is intended to accelerate innovation and expand the company's relevance in various sectors, including public sector partnerships [14][15] Management's Comments on Operating Environment and Future Outlook - Management emphasized the need for organizations to be better prepared for a range of risks, including cyber threats and climate change, which presents growth opportunities for the company [8][10] - The company is confident in achieving mid-single-digit organic revenue growth or greater over the long term, supported by strategic actions taken over the past decade [15][16] Other Important Information - The company expects to deliver $510 million in annualized savings in 2019 and $535 million in 2020 from ongoing restructuring initiatives [20][24] - Free cash flow declined to $255 million, impacted by legacy litigation payments, but the company anticipates strong growth in free cash flow moving forward [22][46] Q&A Session Summary Question: Sustainability of 6% organic growth rate - Management indicated that the 6% organic growth rate is sustainable due to strong client demand and effective execution of the Aon United strategy [29][30] Question: Cost savings and restructuring program - Management confirmed that the restructuring program is on track to deliver $535 million in savings for 2020, with clarity on projects and initiatives [40][42] Question: Impact of foreign exchange on margins - Management stated that FX had an immaterial impact on margins, with the primary drivers of margin expansion being organic revenue growth and operational leverage [44] Question: Free cash flow expectations - Management reiterated expectations for strong free cash flow growth in the second half of the year, driven by operational improvements and reduced cash uses [51][52] Question: Organic growth in the PC Brokers business - Management noted that while the impact from pricing is modest, client opportunities and the Aon United approach are the main drivers of growth [58][59]

Financial Performance - For Q1 2019, total revenue increased by 2%, or $53 million, to $3.1 billion, driven by organic revenue growth of 6%[162] - Operating margin improved to 27.7% in Q1 2019 from 25.9% in the prior year, supported by organic revenue growth and operational improvements[164] - Net income from continuing operations rose by $72 million, or 12%, to $676 million in Q1 2019 compared to the prior year[164] - Diluted earnings per share from continuing operations increased to $2.70 in Q1 2019 from $2.35 in the prior year[165] - Organic revenue growth was 6% for Q1 2019, up from 3% in the prior year, with strong performance in Reinsurance Solutions and Commercial Risk Solutions[167] - Adjusted operating margin for Q1 2019 was 33.7%, compared to 31.8% in the prior year, reflecting core operational improvements[168] - Adjusted operating income for the three months ended March 31, 2019, was $1,060 million, up from $983 million in the prior year, resulting in an adjusted operating margin of 33.7% compared to 31.8%[197] - Adjusted diluted earnings per share for the three months ended March 31, 2019, was $3.31, an increase from $2.97 in the same period of 2018[200] Revenue Breakdown - Commercial Risk Solutions revenue decreased by $66 million, or 6%, to $1,118 million, despite 6% organic revenue growth driven by strong new business generation[173] - Reinsurance Solutions revenue increased by $46 million, or 6%, to $788 million, with organic revenue growth of 9% driven by strong global business generation[174] - Health Solutions revenue increased by $35 million, or 8%, to $486 million, with organic revenue growth of 5% supported by strong international performance[176] - Organic revenue growth for the same period was 6%, with Commercial Risk Solutions experiencing a 6% decline, while Reinsurance Solutions grew by 9%[195] Cash Flow and Investments - Free cash flow decreased by $78 million, or 82%, to $17 million in Q1 2019, impacted by a decline in cash flow from operations[170] - Free cash flow for the three months ended March 31, 2019, was $17 million, a significant decrease from $95 million in the prior year[204] - Cash flow used for investing activities was $27 million during the three months ended March 31, 2019, a decrease of $373 million compared to the prior year period[223] - Cash flow used for financing activities was $140 million during the three months ended March 31, 2019, a decrease of $523 million compared to the prior year period[227] Debt and Financial Health - Total debt at March 31, 2019, was $6.4 billion, an increase of $172 million compared to December 31, 2018[230] - As of March 31, 2019, the company had distributable reserves of over $3.5 billion, up from $2.2 billion as of December 31, 2018, indicating strong financial health for funding shareholder dividends[234] - The company expects cash generated from operations in 2019 to be sufficient to service debt, finance capital expenditures, and continue share repurchases and dividends[235] - The company has two committed credit facilities totaling $1.3 billion, with $900 million expiring in February 2022 and $400 million in October 2022, and no borrowings under either facility as of March 31, 2019[236][237] Regulatory and Market Conditions - The company does not anticipate significant impacts from the U.K. Competition and Markets Authority's investigation into investment consulting and fiduciary management services[208] - The Financial Conduct Authority's market study found no evidence of material market conditions warranting further regulatory intervention affecting the company[209] Currency and Interest Rate Risks - Currency fluctuations had a $0.12 unfavorable impact on net income per diluted share during the three months ended March 31, 2019[206] - The company is exposed to foreign exchange rate risk, primarily between the U.S. dollar and several currencies, and has hedged approximately 45% of its U.K. subsidiaries' expected exposures for 2019 and 2020[259] - If prior year results were translated at current quarter exchange rates, diluted earnings per share would decrease by $0.12 for the three months ended March 31, 2019[261] - The company monitors its exposure to short-term interest rates and hedges this exposure with various derivative financial instruments, as changes in interest rates affect fiduciary investment income[263] Shareholder Actions - The company repurchased 0.6 million shares at an average price of $161.16 during the three months ended March 31, 2019, with total costs recorded to retained earnings of $101 million[229] Other Financial Metrics - The effective tax rate for continuing operations under U.S. GAAP was 15.7% for the three months ended March 31, 2019[200] - The company completed the acquisition of one business for a total consideration of $22 million during the first three months of 2019[225] - Pension contributions were $47 million for the three months ended March 31, 2019, compared to $48 million for the same period in 2018[217] - The restructuring plan is expected to incur cumulative costs of approximately $1,225 million through the end of the plan at December 31, 2019[219] - Fiduciary assets included cash and short-term investments of $4.5 billion at March 31, 2019[212] - The company guaranteed future operating lease commitments related to the Divested Business, with maximum potential future payments of $81 million and an estimated fair value of $16 million as of March 31, 2019[241] - Performance guarantees related to client arrangements assumed by the Buyer have a maximum potential future payment of $179 million, with an estimated fair value of $1 million[242] - The company had total letters of credit outstanding of approximately $92 million as of March 31, 2019, an increase from $83 million at December 31, 2018[243]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________________________________________________________________ FORM 10-K (Mark One) ý ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2018 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 1-7933 ______________________________________________________________________________________ ...