Aon Reports Fourth Quarter and Full Year 2024 Results

Core Viewpoint - Aon plc reported strong financial results for Q4 and full year 2024, highlighting a 23% increase in total revenue for Q4 and a 17% increase for the full year, driven by organic growth and acquisitions, particularly from NFP [2][30]. Financial Performance Summary - Total revenue for Q4 2024 was $4.1 billion, a 23% increase from $3.4 billion in Q4 2023, while full year revenue reached $15.7 billion, up 17% from $13.4 billion in 2023 [2][30]. - Organic revenue growth for both Q4 and the full year was reported at 6% [2][30]. - The diluted EPS for Q4 increased by 33% to $3.28, while the full year diluted EPS was $12.49, a slight decrease from $12.51 in the previous year [2][31]. Segment Performance - Aon realigned its reporting segments into Risk Capital and Human Capital, with Q4 Risk Capital revenue increasing by 13% to $2.5 billion and Human Capital revenue rising by 41% to $1.6 billion [3][4]. - Within Risk Capital, Commercial Risk Solutions saw a 15% increase in revenue, while Reinsurance Solutions grew by 6% [16][17]. - In Human Capital, Health Solutions revenue grew by 40%, and Wealth Solutions increased by 44% [18][19]. Expense Overview - Total operating expenses for Q4 increased by 18% to $3.1 billion, primarily due to the inclusion of NFP's operating expenses and organic growth-related costs [5][20]. - Compensation and benefits expenses rose by 27% to $2.1 billion, reflecting ongoing expenses from NFP and organic growth [20][41]. Cash Flow and Shareholder Returns - Free cash flow for 2024 was $2.8 billion, a decrease of 11% compared to the previous year, attributed to lower cash flows from operations [11][30]. - The company repurchased approximately 3.1 million shares for about $1 billion during 2024, with $2.3 billion remaining under its share repurchase authorization as of December 31, 2024 [32][8]. Guidance and Future Outlook - Aon introduced guidance for 2025, expecting to maintain mid-single-digit organic revenue growth, adjusted margin expansion, and strong adjusted EPS growth [13][30].