Bob Huang

Bob Huang asked about Aon's talent and retention strategy amidst aggressive competition, particularly in high-growth sectors like data centers and energy, and inquired about the outlook for inorganic growth and M&A valuations in the current market.

Answer

President and CEO Greg Case emphasized Aon's unique position to attract and retain talent through significant investments in AI business services and enhanced capabilities. CFO Edmund Reese highlighted a 6% net increase in revenue-generating hires for the year, contributing 50 basis points to organic revenue growth, and discussed a robust M&A pipeline focused on high-margin, high-growth areas, while noting a lag in valuation adjustments due to seller expectations.

Bob Huang asked about the competitive landscape for talent and retention, specifically inquiring about the impact of aggressive brokers on Aon's ability to retain and hire in key growth areas like data centers, Energy, and infrastructure. He also asked about Aon's strategy for acquisition and inorganic growth, given broader market volatility and pricing deceleration, and whether the company foresees more attractive M&A valuations or plans to adjust its pace of inorganic growth.

Answer

CEO Greg Case emphasized Aon's fundamental investment in talent, leveraging its AI-embedded Aon Business Services (ABS) platform to enhance colleague effectiveness and attract new talent, resulting in a 6% net increase in revenue-generating hires. CFO Edmund Reese acknowledged the aggressive competitive environment but confirmed Aon is on track with its talent objectives, with 2024 and 2025 cohorts contributing 50 basis points to organic revenue growth, particularly in priority areas. Regarding M&A, Edmund Reese highlighted Aon's strong capital allocation model, including $7 billion in available capital for 2026, disciplined debt reduction, and programmatic tuck-in acquisitions, which generated $42 million of EBITDA in 2025. He noted a robust pipeline for high-margin, high-growth areas, particularly in the middle market through NFP, and a commitment to at least $1 billion in share repurchases, while maintaining strict financial and strategic criteria for acquisitions despite sellers anchoring to trailing EBITDA. Greg Case added that the NFP Wealth divestiture underscored Aon's focus on maximizing return on capital.

Bob Huang asked about specific casualty lines where pricing trends are becoming irrational, potentially leading to exposure cuts, and sought details on low-hanging fruit opportunities for AI implementation in underwriting.

Answer

CEO Rob Berkley identified Auto Liability as a line where the company is shrinking exposure due to unfavorable pricing. He also expressed concerns about professional lines (D&O, A&E) and large account property. For AI, he highlighted 'intake side' technologies in underwriting as current and impactful, enabling increased efficiency and better prioritization of business.

Bob Huang asked about specific casualty lines where pricing trends are becoming irrational, potentially leading to exposure cuts. He also inquired about low-hanging fruit or specific AI capabilities that are closer to reality and expected to yield quick payoffs.

Answer

CEO Rob Berkley identified Auto Liability as a line where they are actively shrinking exposure due to inadequate rates. He also noted concerns in professional lines (D&O, A&E) and large account property. Regarding AI, he highlighted the underwriting intake side as an area where technology is dramatically increasing efficiency and enabling better prioritization of business.

Bob Huang inquired about Progressive's advertising spend strategy, particularly given increased competition and decelerated personal auto policy-in-force growth, asking if current ad spending levels are sustainable and necessary.

Answer

President and CEO Tricia Griffith explained that advertising spend is monitored monthly for efficiency, ensuring cost per sale is below targeted acquisition costs. While some ad buys are made in advance for discounts, the majority are in the auction market, allowing flexibility to adjust spending based on competition. She reiterated that advertising is a key lever to achieve the company's operating goal of continued growth.

Bob Huang with Morgan Stanley inquired about Progressive's advertising spend strategy, particularly given the deceleration in personal auto policy in-force growth and increased competition. He also sought clarification on the flexibility of ad spending given advance purchases.

Answer

Tricia Griffith, President and CEO of Progressive, explained that ad spending is monitored monthly for efficiency, ensuring cost per sale remains below targeted acquisition costs. She clarified that while some ad buys are made in advance for discounts, a significant majority are auction-based, providing levers to adjust spending based on competition. Growing as fast as possible remains an operating goal.

Bob Huang from Morgan Stanley inquired about future growth opportunities outside of Kinsale's commercial property division, given a slight deceleration in overall growth, and asked which specific areas are most attractive for expansion or where the company might pull back. He also asked about Kinsale's technology strategy, including new innovations, implementation of emerging technologies, and areas where tech provides a competitive advantage.

Answer

Brian Haney, President and COO, highlighted opportunities across the entire book, specifically mentioning transportation, agribusiness, casualty, high-value homeowners, and personal lines. Michael Kehoe, CEO and Chairman, added that all property lines, excluding large commercial property, grew at a double-digit rate. Regarding technology, Mr. Kehoe explained Kinsale's long-standing commitment to tech as a core competency, including building its own enterprise system and undertaking a complete rewrite with 'target state architecture.' He noted the use of new AI tools in IT, underwriting, and claims to drive automation, contributing to Kinsale's significant cost advantage.

Bob Huang asked about future growth opportunities outside of Kinsale's commercial property division, given a perceived growth deceleration, and which specific areas are most attractive or where the company might pull back.

Answer

Brian Haney, President and COO, indicated widespread opportunities across the book, highlighting newer areas like transportation and agribusiness, as well as continued strong potential in casualty, high-value homeowners, and personal lines. Michael Kehoe, CEO and Chairman, reiterated confidence, noting double-digit growth in all property lines except large commercial property for the quarter.

Bob Huang asked about the Japan reinsurance opportunities.

Answer

CEO Tony Cheng described it as exciting and early in the cycle, focusing on asset transactions with biometric risk and long-term relationships.