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]

Aon United Strategy and Market Overview - Aon operates in large and attractive markets, including Risk Capital and Human Capital, driven by secular tailwinds and delivering a strong track record of performance[15] - The Risk Capital and Human Capital markets are substantial, with assets of $56.5 trillion and premiums of $4.6 trillion in 2023, reflecting Compound Annual Growth Rates (CAGR) of 8% and 4% respectively[17] - Aon's total revenue is $16 billion, with 50% from Risk Capital (Commercial Risk and Reinsurance) and 50% from Human Capital (Health and Wealth)[40] - Aon's revenue by geography shows 49% from the U S, 9% from Canada & LatAm, 32% from EMEA (including U K / Ireland), and 11% from Asia Pacific[41] Financial Performance and Growth Drivers - Aon has a strong 10-year performance record (2013-2023) with an average annual Organic revenue growth of +5%, ~130 bps average annual adjusted operating margin expansion, 11% Adjusted EPS CAGR, and 12% FCF/Share CAGR[54] - Aon's disciplined capital allocation includes 45% to M&A and 55% to share repurchases, resulting in a 10-Year CAGR (2014 – 2024) Annualized Total Shareholder Return of 15%[56] - The 3x3 Plan is operationalizing Aon United to drive core growth and innovation, focusing on winning share in core markets, capturing new demand in existing markets, and creating new demand in new categories[81] Aon Business Services (ABS) and Innovation - Aon Business Services (ABS) is driving the full realization of Aon United by operationalizing it at scale, delivering end-to-end client experiences, and creating a unique AI opportunity[264] - ABS has 15,000 colleagues, with 7,500 in Global Capability Centers, serving 50,000+ clients across 120 countries and 5 continents[270] - Aon is targeting $350 million in annual savings by year-end 2026 through AI tools adoption within ABS[284] Client Leadership and Market Opportunity - The Enterprise Client Group (ECG) is accelerating growth, expanding relationships, and improving retention, with a +3 points YoY increase in ECG contribution to new business with existing clients[222] - Approximately 50% of Enterprise Client Group revenue is cross-border, demonstrating stronger global penetration[223] - Aon is capturing growth in the $31 billion U S middle market[380]