Aon plc

Aon plc is a leading global professional services firm providing a broad range of Risk Capital and Human Capital solutions. The company serves clients in more than 120 countries across all market segments and nearly every industry, and this diversification of its client base helps provide stability in different economic scenarios. The industry is characterized by a highly competitive and fragmented environment, with key structural forces including pricing cyclicality in insurance and reinsurance markets, the growing availability of alternative risk-protection methods such as self-insurance and captive insurers, and the development of capital markets-based solutions and other alternative capital sources.

Aon operates in a highly competitive environment and competes with numerous other global insurance brokers and consulting companies, including Marsh McLennan, Willis Towers Watson, Arthur J Gallagher & Company, and Lockton Companies, Inc., as well as numerous other global, regional, and local firms. The company also competes with insurance and reinsurance companies that directly market their services without the assistance of brokers, and with large financial institutions and independent consulting firms. Aon's stated competitive advantages include its actionable analytic insight, globally integrated Risk Capital and Human Capital expertise, and locally relevant solutions, as well as its focus on higher-margin, capital-light professional services businesses with high recurring revenue streams and strong cash flow generation.

Aon generates revenue primarily through commissions, compensation from insurance and reinsurance companies for services provided to them, and fees from customers. Commissions and fees for brokerage services vary depending on factors including the amount of premium, the type of insurance or reinsurance coverage provided, the particular services provided, and the capacity in which the company acts. Compensation from insurance and reinsurance companies includes fees for consulting and analytics services and fees and commissions for administrative and other services. Fees from clients for advice and consulting services are dependent on the extent and value of the services provided. The company's single largest client by revenue accounted for approximately 1% of Total revenue in 2025, and no single insurance carrier accounted for more than 10% of total premiums placed on behalf of clients in 2025.

The Risk Capital segment generated total revenue of $11,290 million ¹ in 2025, compared to $10,517 million ² in 2024. This segment includes Commercial Risk Solutions and Reinsurance Solutions. Commercial Risk Solutions uses extensive data and analytics capabilities to provide brokerage and consulting services that help organizations develop, improve, and implement their risk management strategies, including insurance and specialty brokerage, global risk consulting, captives management, and Affinity programs. In 2025, Aon launched its proprietary Data Center Lifecycle Insurance Program designed to support data center projects from construction through ongoing operations. Reinsurance Solutions includes treaty reinsurance, facultative reinsurance, Strategy and Technology Group and capital markets, and includes tools such as Capital Insights Explorer, ReMetrica, and PathWise. Commercial Risk Solutions revenue increased $636 million, or 8%, to $8.5 billion ³ in 2025, and Reinsurance Solutions revenue increased $137 million, or 5%, to $2.8 billion ⁴ in 2025.

The Human Capital segment generated total revenue of $5,907 million ⁵ in 2025, compared to $5,209 million ⁶ in 2024. This segment includes Health Solutions and Wealth Solutions. Health Solutions includes consulting and brokerage, consumer benefits, compensation, and talent advisory services, and advises multinational companies on global benefits programs in over 120 countries. Wealth Solutions includes retirement consulting, pension administration, and investments consulting, offering Master Trusts and Pooled Employer Plans for defined contributions and delegated investment solutions in partial or full discretionary models. Health Solutions revenue increased $504 million, or 15%, to $3.8 billion ⁷ in 2025, and Wealth Solutions revenue increased $194 million, or 10%, to $2.1 billion ⁸ in 2025.

In 2023, Aon initiated a three-year restructuring program, the Accelerating Aon United Program, intended to streamline technology infrastructure, optimize leadership structure and resource alignment, and reduce the real estate footprint. The Program is currently expected to result in cumulative costs of approximately $1.3 billion ⁹, consisting of approximately $1.2 billion ¹⁰ of cash charges and approximately $0.1 billion ¹¹ of non-cash charges. On October 30, 2025, Aon completed the sale of a significant majority of NFP's wealth businesses to Madison Dearborn Partners, LLC, with total cash proceeds received on closing of $2.3 billion ¹² and a pre-tax gain of $1.2 billion ¹³ recognized within Other income (expense). During 2025, the company repurchased 2.7 million ¹⁴ shares for $1,000 million ¹⁵ at an average price per share of $365.91 ¹⁶. As of December 31, 2025, the remaining authorized amount for share repurchase under the Repurchase Program was approximately $1.3 billion ¹⁷.

Total revenue increased $1.5 billion, or 9%, to $17.2 billion ¹⁸ in 2025, compared to $15.7 billion ¹⁹ in 2024, reflecting 6% organic revenue growth. Operating income increased $509 million, or 13%, to $4.3 billion ²⁰ in 2025. Net income attributable to Aon shareholders was $3,695 million ²¹ in 2025, an increase of $1.0 billion, or 38%, from $2,654 million ²² in 2024. Diluted earnings per share was $17.02 ²³ in 2025 compared to $12.49 ²⁴ in the prior year. Cash flows provided by operating activities was $3.5 billion ²⁵ in 2025, an increase of $446 million, or 15%, from $3.0 billion ²⁶ in 2024.

Aon is focused on accelerating its Aon United strategy to serve clients as one globally connected firm and driving innovation to address unmet and evolving client need. The company continues to invest in artificial intelligence, particularly in generative artificial intelligence tools, and maintains governance and oversight measures regarding its use. The company has invested significantly in Aon Business Services and the development of proprietary data and analytics tools including repositories of its global insurance and reinsurance placement information. The Accelerating Aon United Program is a key growth vector, designed to streamline technology infrastructure, optimize leadership structure and resource alignment, and reduce the real estate footprint to align to the hybrid working strategy, with estimated annualized savings of approximately $450 million ²⁷ by the end of 2027.

The company continues to focus its portfolio on higher-margin, capital-light professional services businesses that have high recurring revenue streams and strong cash flow generation. Aon endeavors to make capital allocation decisions in order to maximize value for Aon and its shareholders. The company's 3x3 Plan, announced in 2023, is focused on attracting, developing and retaining the best talent from all backgrounds to support clients and grow the firm. The company's Aon United strategy is brought to life through a common client value creation model which scales strategies from across the firm through Risk Capital and Human Capital solutions.

The Accelerating Aon United Program is expected to generate annualized expense savings of approximately $450 million ²⁸ by the end of 2027, largely benefiting Compensation and benefits, Information technology, and Premises on the Consolidated Statements of Income. As a result of Program actions taken, the company realized an additional $160 million ²⁹ of annualized expense savings in 2025, resulting in $270 million ³⁰ of cumulative, annualized expense savings since the beginning of the Program. The Program is currently expected to result in cumulative costs of approximately $1.3 billion ³¹, consisting of approximately $1.2 billion ³² of cash charges and approximately $0.1 billion ³³ of non-cash charges.

Capital expenditures were $263 million ³⁴ in 2025 and $218 million ³⁵ in 2024, which primarily relate to new build out and the refurbishing of office facilities, software development costs, and computer equipment purchases. The company continues to support certain technology projects to drive long-term growth and real estate projects to align with its Smart Working strategy, including projects related to the AAU restructuring program. The company expects cash generated by operations for the near-term to be sufficient to service its debt and contractual obligations, finance capital expenditures, and continue to pay dividends to shareholders. In February 2026, Aon paid a quarterly cash dividend of $0.745 per share ³⁶.

The company faces headwinds from fluctuations in currency exchange rates, as approximately 51.8% ³⁷ of consolidated revenue is non-U.S., attributed on the basis of where the services are performed. A strengthening U.S. dollar has an adverse impact on Net income attributable to shareholders. The company also faces exposure to adverse movements in interest rates, with a hypothetical instantaneous parallel decrease in the year-end yield curve of 100 BPS causing a decrease, net of derivative positions, of $77 million ³⁸ to each of 2026 and 2027 pretax income. The company is subject to the OECD's Pillar Two global minimum tax regime, which could have a material adverse effect on its global effective tax rate, results of operations, cash flows and financial condition.

The company faces execution risks related to the Accelerating Aon United Program, noting that actual total costs, savings and timing may continue to vary from estimates due to changes in the scope or assumptions underlying the Program and other operational improvement initiatives. The company also faces risks from the competitive environment, noting that competitors may have better financial, technical and marketing resources, broader customer bases, greater name recognition, more comprehensive products, stronger presence in certain geographies, or more established relationships. Additionally, the company faces risks from the growing number of technology-enabled competitors offering new risk-transfer solutions that eliminate the traditional broker-client relationship in both insurance and reinsurance markets.

Aon faces significant risk from fluctuations in currency exchange rates, as approximately 51.8% ³⁹ of consolidated revenue is non-U.S., and a strengthening U.S. dollar adversely impacts reported net income. The company is exposed to interest rate risk, with a hypothetical 100 BPS decrease in the year-end yield curve causing a $77 million ⁴⁰ decrease to each of 2026 and 2027 pretax income. The company has substantial debt of approximately $15.2 billion ⁴¹ as of December 31, 2025, which could adversely affect financial flexibility. The company is subject to the OECD's Pillar Two global minimum tax regime, which could materially affect its global effective tax rate. The company also faces significant competitive pressures from traditional competitors such as Marsh McLennan, Willis Towers Watson, Arthur J Gallagher & Company, and Lockton Companies, Inc., as well as from non-traditional competitors including InsurTech firms utilizing artificial intelligence.

Management's message emphasizes a focus on accelerating the Aon United strategy to serve clients as one globally connected firm and driving innovation to address unmet and evolving client need. Key themes include strengthening Aon and uniting the firm with a portfolio of Risk Capital and Human Capital capabilities enabled by data and analytics and a united operating model to deliver additional insight, connectivity, and efficiency. Management highlights the 3x3 Plan, announced in 2023, which is focused on attracting, developing and retaining the best talent. The company is committed to accelerating innovation to address unmet and evolving client needs so that clients are better informed, better advised, and able to make better decisions to protect and grow their business. Management states that the company remains focused on strengthening Aon and uniting the firm with a portfolio of Risk Capital and Human Capital capabilities enabled by data and analytics and a united operating model to deliver additional insight, connectivity, and efficiency.