NFP Acquisition Growth Projections
Q: Will NFP maintain 14% revenue growth post-acquisition?
A: Management is confident that the NFP acquisition will drive strong revenue growth, viewing it as a "tour de force" opportunity. They emphasize substantial opportunities in the middle market, where Aon was previously underweight. Integration will focus on independent operations and connected synergies, leveraging content and capabilities to potentially exceed prior growth projections.

Organic Growth Lagging Peers
Q: Why is Aon's commercial risk growth lagging peers?
A: Management acknowledges pressure in certain U.S. business lines, particularly in specialty areas like D&O insurance . They attribute this to exposure to larger clients and declines in transactional activity. However, they highlight strong growth in Continental Europe, Asia-Pacific, and sectors like energy and construction, expressing confidence in future growth, especially with the NFP acquisition expanding their middle-market presence .

Margin Expansion Outlook
Q: Why hasn't margin expanded despite 5% organic growth?
A: Margins are viewed in total, and management reinvests gross margin gains to drive net margin expansion annually. The confirmed baseline margin of 30.6% for 2024 is expected to expand due to organic growth, portfolio mix shift, and efficiencies from Aon Business Services . They remain committed to delivering margin expansion each year.

Share Buybacks Reduced
Q: Will share buybacks be lower this year?
A: Yes, buybacks will be lower than last year but still substantial, expected at $1 billion or more for the full year 2024. This reduction accounts for impacts from the NFP acquisition and restructuring program on free cash flow. Q1 is seasonally the smallest free cash flow quarter.

Interest Expense Outlook
Q: Will lower rates reduce interest expense from NFP deal?
A: Interest expense is lower than initially projected due to lower average interest rates, down from 6.5% forecasted to 5.7%. Although the total interest expense for the stub period increased due to two extra months, future years show reduced interest expenses, positively impacting financials.

FTC Noncompete Ban Impact
Q: How will FTC's noncompete ban affect Aon?
A: Noncompetes are not significant for Aon, as they generally do not enter into them in the U.S.. Management focuses on other factors like culture, tools, and team environment to retain talent. Therefore, the potential FTC ban is not expected to materially impact their business or the NFP acquisition economics.

Transaction Solutions and M&A Outlook
Q: Is Aon investing ahead of M&A rebound?
A: Yes, Aon has retained and invested in their Transaction Solutions team, anticipating a market rebound. They've expanded from private equity-backed deals to corporate transactions, maintaining industry-leading expertise to capitalize when M&A activity picks up.

Tax Rate Increase
Q: Why did tax rate increase to 23% this quarter?
A: The higher tax rate was driven by changes in geographic income distribution and unfavorable discrete items. Historically, the underlying rate excluding discrete items has been 18%. Discrete items, typically positive, were net negative this quarter. The tax rate can be lumpy quarter to quarter, and no specific guidance is provided going forward.

New Business Down in U.S.
Q: Why was U.S. new business down year-over-year?
A: Management notes some pressure in the U.S., particularly in areas like D&O insurance. However, they highlight solid growth in sectors like energy and construction and investments in talent to grow capabilities. Strong performance in other regions like Continental Europe and Asia-Pacific is also noted.

Organic Growth in CRS Down
Q: Did anything worsen causing CRS organic decline?
A: Management doesn't focus on quarter-over-quarter comparisons and sees no specific issues causing a decline. They remain committed to mid-single-digit or greater growth over the year and are on track to achieve that. Some pressures were highlighted, but confidence in the overall annual approach remains.