Adjustments for Non-Cash Items

Stock-Based Compensation [USD, Millions]

Changes in Working Capital

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from / Repayments of Debt

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

79a5578f700da2b6e756a9efdf0c74158e208b1978c663f6887bfa8c251721ee

| Segment / Quarter | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|-------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **Commercial Risk Solutions** ($ million) | **1,822**  **[0001628280-23-002143_ex991prq42022.htm:2]**  | **1,778**  **[0001628280-23-013726_ex991prq12023.htm:2]**  | **1,774**  **[0001628280-23-025994_ex991prq22023.htm:2]**  | **1,585**  **[0001628280-23-035349_ex991prq32023.htm:2]**  | **1,906**  **[0001628280-24-002994_ex991prq42023.htm:2]**  | **1,808**  **[0001628280-24-018649_aon-20240331.htm:31]**  | **2,015**  **[0001628280-24-033161_aon-20240630.htm:39]**  | **1,852**  **[0001628280-24-043809_aon-20240930.htm:39]**  |
| **Reinsurance Solutions** ($ million) | **281**  **[0001628280-23-002143_ex991prq42022.htm:2]**  | **1,077**  **[0001628280-23-013726_ex991prq12023.htm:2]**  | **607**  **[0001628280-23-025994_ex991prq22023.htm:2]**  | **465**  **[0001628280-23-035349_ex991prq32023.htm:2]**  | **332**  **[0001628280-24-002994_ex991prq42023.htm:2]**  | **1,167**  **[0001628280-24-018649_aon-20240331.htm:31]**  | **635**  **[0001628280-24-033161_aon-20240630.htm:39]**  | **503**  **[0001628280-24-043809_aon-20240930.htm:39]**  |
| **Health Solutions** ($ million) | **678**  **[0001628280-23-002143_ex991prq42022.htm:2]**  | **671**  **[0001628280-23-013726_ex991prq12023.htm:2]**  | **447**  **[0001628280-23-025994_ex991prq22023.htm:2]**  | **552**  **[0001628280-23-035349_ex991prq32023.htm:2]**  | **763**  **[0001628280-24-002994_ex991prq42023.htm:2]**  | **733**  **[0001628280-24-018649_aon-20240331.htm:31]**  | **662**  **[0001628280-24-033161_aon-20240630.htm:39]**  | **870**  **[0001628280-24-043809_aon-20240930.htm:39]**  |
| **Wealth Solutions** ($ million) | **353**  **[0001628280-23-002143_ex991prq42022.htm:2]**  | **350**  **[0001628280-23-013726_ex991prq12023.htm:2]**  | **352**  **[0001628280-23-025994_ex991prq22023.htm:2]**  | **352**  **[0001628280-23-035349_ex991prq32023.htm:2]**  | **377**  **[0001628280-24-002994_ex991prq42023.htm:2]**  | **370**  **[0001628280-24-018649_aon-20240331.htm:31]**  | **463**  **[0001628280-24-033161_aon-20240630.htm:39]**  | **499**  **[0001628280-24-043809_aon-20240930.htm:39]**  |
| **Eliminations** ($ million) | N/A | **-5**  **[0001628280-23-013726_ex991prq12023.htm:2]**  | **-3**  **[0001628280-23-025994_ex991prq22023.htm:2]**  | **-1**  **[0001628280-23-035349_ex991prq32023.htm:2]**  | N/A | **-8**  **[0001628280-24-018649_aon-20240331.htm:31]**  | **-15**  **[0001628280-24-033161_aon-20240630.htm:39]**  | **-3**  **[0001628280-24-043809_aon-20240930.htm:39]**  |
| **Total Revenue** ($ million) | **3,130**  **[0001628280-23-002143_ex991prq42022.htm:2]**  | **3,871**  **[0001628280-23-013726_ex991prq12023.htm:2]**  | **3,177**  **[0001628280-23-025994_ex991prq22023.htm:2]**  | **2,953**  **[0001628280-23-035349_ex991prq32023.htm:2]**  | **3,375**  **[0001628280-24-002994_ex991prq42023.htm:2]**  | **4,070**  **[0001628280-24-018649_aon-20240331.htm:31]**  | **3,760**  **[0001628280-24-033161_aon-20240630.htm:39]**  | **3,721**  **[0001628280-24-043809_aon-20240930.htm:39]**  |

dcbb58f20843714f0937ff3f68cca94e382b1aefb7a9a1c48746f15c3fc266dc

33a03f23e4f18005d2f899539e1b0391535e3b9e4c41c6229c40b307f6c5f6db

Maximum Exposure [USD Million]

b29a64de7a2448ca2874728487a00df99919180618828c5439f8eefbdb31f590

Aon plc is a leading global professional services firm that provides a broad range of risk and human capital solutions. Operating under the unified segment of Aon United, the company offers services through four primary solution lines: Commercial Risk Solutions, Reinsurance Solutions, Health Solutions, and Wealth Solutions. Aon's revenue is predominantly recognized at a point in time upon the effective date of the underlying policy, or over the term of the arrangement using output measures to depict the transfer of control of the services to customers **[0001628280-24-005392_aon-20231231.htm:6]** **[0001628280-24-005392_aon-20231231.htm:95]** **[0001628280-24-018649_aon-20240331.htm:27]** **[0001628280-24-005392_aon-20231231.htm:94]**.

1. **Commercial Risk Solutions** - Provides services such as retail brokerage, specialty solutions, and global risk consulting, generating revenue primarily from insurance commissions and fees.
2. **Reinsurance Solutions** - Involves treaty and facultative reinsurance, with revenue derived from reinsurance commissions and fees.
3. **Health Solutions** - Offers consulting and brokerage services, with revenue from insurance commissions and fees.
4. **Wealth Solutions** - Focuses on retirement and investment consulting.

1fd5f765e688c7ddcc00ea8cd0a07a42f93af993a9025437d4a92db3438cc243

| Metric               | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|----------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Maximum Exposure [USD Million] | **173**  **[0001628280-23-004087_aon-20221231.htm:126]** **[0001628280-23-014187_aon-20230331.htm:22]**  | **114**  **[0001628280-23-014187_aon-20230331.htm:22]**  | **135**  **[0001628280-23-026117_aon-20230630.htm:24]**  | **145**  **[0001628280-23-035412_aon-20230930.htm:44]**  | **110**  **[0001628280-24-018649_aon-20240331.htm:27]**  | **110**  **[0001628280-24-018649_aon-20240331.htm:27]**  | **138**  **[0001628280-24-033161_aon-20240630.htm:36]**  | **133**  **[0001628280-24-043809_aon-20240930.htm:36]**  |

06e7687d743af0417439fc1560223ebb4f30dfb684c7b9923e02b9d1799e6a75

1. **Given that revenue synergies from acquisitions can be challenging to achieve, can you provide more specific details on how you plan to realize the **$175 million** in revenue synergies from the NFP acquisition by **2026**, and what steps you are taking to ensure these targets are met?**  **[AON_3403991_14]** 

2. **With **organic revenue growth reaching 7%** in Q3 largely driven by net new business and existing clients, how sustainable is this level of growth, and what factors could impact your ability to maintain this momentum going forward?**  **[AON_3403991_3]** **[AON_3403991_13]** **[AON_3403991_10]** 

3. **You mentioned that lower interest rates could impact fiduciary investment income by approximately **$70 million** per **100 basis point** change; how do you plan to mitigate this risk, and what alternative strategies are you considering to offset potential declines in this income stream?**  **[AON_3403991_22]** 

4. **Your adjusted operating margin expanded by **70 basis points** in the quarter from your combined 2023 baseline; can you explain the key drivers behind this margin expansion, and do you expect this trend to continue in the face of potential market headwinds?**  **[AON_3403991_3]** **[AON_3403991_0]** 

5. **Given the extraordinary items affecting free cash flow, including NFP transaction and integration charges, restructuring, and legal settlement expenses, how confident are you in your ability to generate **double-digit free cash flow growth** from **2023 to 2026**, and what are the primary risks to achieving this goal?**  **[AON_3403991_6]** **[AON_3403991_3]** 

273d1e9dd655f2630fece4cc431a278f8a819b934cf04ef50d5c47ce7571e40f

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Organic Revenue Growth**: Mid-single-digit or greater organic revenue growth for the full year 2024  **[AON_3403991_3]** **[AON_3403991_6]** .
  2. **Adjusted Operating Margin Expansion**: Expected to expand above the 2023 baseline of 30.6%  **[AON_3403991_6]** .
  3. **Free Cash Flow Growth**: Double-digit free cash flow growth from 2023 to 2026  **[AON_3403991_6]** **[AON_3403991_1]** .
  4. **Restructuring Savings**: $100 million of savings in 2024 from their restructuring initiative  **[AON_3403991_6]** **[AON_3403991_5]** .
  5. **Debt Reduction**: Plan to pay down $2.1 billion in debt in 2024 and reduce the debt-to-EBITDA leverage ratio from 3.9 to between 2.8 and 3x by Q4 2025  **[AON_3403991_6]** .
  6. **Share Repurchases**: Approximately $1 billion in share repurchases for 2024  **[AON_3403991_6]** .
  7. **Interest Expense**: Expected to be $210 million in Q4 2024  **[AON_3403991_5]** .
  8. **Tax Rate**: The Q3 tax rate was 18%, with further details on 2025 tax rates to be provided during the year-end earnings call  **[AON_3403991_6]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: FY 2024 and FY 2025
- **Guidance**:
  1. **Organic Revenue Growth**: Mid-single-digit or greater organic revenue growth for the full year 2024 and over the long term  **[AON_3394673_3]** .
  2. **Adjusted Operating Margin**: Aiming for expansion over the full year 2024 and over the long term, with a baseline of 30.6%  **[AON_3394673_4]** .
  3. **Free Cash Flow**: Strong growth expected, with NFP adding $300 million and $600 million of incremental free cash flow in 2025 and 2026, respectively  **[AON_3394673_4]** .
  4. **Share Buyback**: Substantial, at $1 billion or more in 2024  **[AON_3394673_4]** .
  5. **EPS Accretion from NFP**: Dilutive in 2024, breakeven in 2025, and accretive in 2026  **[AON_3394673_18]** .
  6. **Restructuring Savings**: $95 million in 2024, with a total of $100 million of realized savings in 2024  **[AON_3394673_3]** .
  7. **M&A Activity**: NFP expected to do M&A comprising $45 million to $60 million of EBITDA per year  **[AON_3394673_5]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Revenue Growth**: Mid-single-digit or greater organic revenue growth for the full year 2024 and over the long term  **[AON_3381123_3]** **[AON_3381123_1]** .
  2. **Operating Margin**: Committed to margin expansion each year, starting from a baseline of 30.6% for 2024  **[AON_3381123_4]** **[AON_3381123_14]** .
  3. **Free Cash Flow**: Additional $300 million in 2025 and $600 million in 2026 from the NFP acquisition  **[AON_3381123_3]** **[AON_3381123_1]** **[AON_3381123_4]** .
  4. **EPS Growth**: NFP acquisition expected to be dilutive in 2024, breakeven in 2025, and accretive in 2026 and beyond  **[AON_3381123_4]** .
  5. **Share Buyback**: Substantial for 2024 at $1 billion or more  **[AON_3381123_5]** **[AON_3381123_9]** .
  6. **Restructuring Savings**: $90 million in 2024  **[AON_3381123_3]** .
  7. **Interest Rate on Debt**: Average interest rate of 5.7%  **[AON_3381123_5]** .

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Organic Revenue Growth**: Mid-single-digit or greater for the full year 2024 and over the long term  **[AON_3371751_2]** **[AON_3371751_3]** .
  2. **Operating Margin Expansion**: Anticipated in 2024 and over the long term  **[AON_3371751_2]** **[AON_3371751_3]** .
  3. **Free Cash Flow Growth**: Targeting double-digit growth over the long term, with near-term impacts from restructuring and NFP integration costs  **[AON_3371751_2]** **[AON_3371751_14]** .
  4. **Restructuring Savings**: $70 million of run rate savings in 2024, contributing to $100 million of cumulative savings  **[AON_3371751_3]** **[AON_3371751_4]** .
  5. **Capital Expenditures**: Expected to grow in line with the business  **[AON_3371751_4]** .
  6. **NFP Acquisition Impact**: Dilutive in 2025, breakeven in 2026, and accretive in 2027 and beyond  **[AON_3371751_4]** .
  7. **Interest Expense**: Approximately $12.5 million of negative interest carry expense per quarter until the NFP deal closes  **[AON_3371751_5]** .
  8. **Return on Invested Capital (ROIC)**: Ended 2023 with 33.1%, expected to improve over time post-NFP acquisition  **[AON_3371751_5]** .
  9. **Debt and Credit Ratings**: Plans to maintain investment-grade ratings and add debt supported by EBITDA growth  **[AON_3371751_5]** .

8a78056704735600b07761b02f7b47a75271aa0ae8d5efe1e80b58cb1487e016

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

| Name           | Position                                              | Start Date         | Short Bio                                                                                                                                                                                                 |
|----------------|-------------------------------------------------------|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Eric Andersen  | President                                             | February 2020      | Eric Andersen joined Aon in **1997** following the acquisition of Minet. He has held various roles, including CEO of Aon Risk Solutions Americas and CEO of Aon Benfield. He became President in **February 2020**  **[0001628280-24-005392_aon-20231231.htm:55]** **[0001628280-23-004087_aon-20221231.htm:47]** .                     |
| Gregory C. Case| Chief Executive Officer                               | April 2005         | Gregory C. Case has served as CEO of Aon since **April 2005**. Before joining Aon, he was a partner at McKinsey & Company, leading the Financial Services Practice and Global Insurance Practice  **[0001193125-24-099218_d718867d10ka.htm:9]** **[0001628280-24-005392_aon-20231231.htm:55]** **[0001193125-24-122308_d726535ddef14a.htm:9]** .                                      |
| Christa Davies | Executive Vice President, CFO (until July 29, 2024)   | March 2008         | Christa Davies joined Aon in **November 2007** and became CFO in **March 2008**. She announced her retirement effective **July 29, 2024**, and will continue as a senior advisor into 2025  **[0001628280-24-005392_aon-20231231.htm:55]** **[0001193125-24-122308_d726535ddef14a.htm:59]** **[AON_3394673_0]** .                                            |
| Michael Neller | Chief Accounting Officer and Global Controller        | February 2018      | Michael Neller joined Aon in **August 2011** as VP, Technical Accounting and Policy. He became Senior Vice President and Global Controller in **February 2018**  **[0001628280-24-005392_aon-20231231.htm:55]** .                                                                             |
| Mindy Simon    | Chief Operating Officer                               | October 2022       | Mindy Simon joined Aon in **October 2022**. Previously, she was Chief Information Officer for Conagra Brands and held various roles in finance and IT at Conagra Brands  **[0001628280-24-005392_aon-20231231.htm:55]** **[0001628280-23-004087_aon-20221231.htm:47]** .                                                                |
| Jillian Slyfield| Chief Innovation Officer                              | December 2021      | Jillian Slyfield joined Aon in **November 2015** and became Chief Innovation Officer in **December 2021**. She previously held roles at Marsh and Wells Fargo Insurance Services  **[0001628280-24-005392_aon-20231231.htm:55]** **[0001628280-23-004087_aon-20221231.htm:47]** .                                                        |
| Lisa Stevens   | Chief People Officer and Head of Global Human Capital Solutions | October 2019 | Lisa Stevens joined Aon in December **2018** and was named Chief People Officer in **October 2019**. She previously worked at Wells Fargo for 29 years  **[0001628280-24-005392_aon-20231231.htm:55]** **[0001628280-23-004087_aon-20221231.htm:47]** .                                                                                  |
| Andy Weitz     | Chief Marketing Officer                               | 2014               | Andy Weitz joined Aon in **2014** as Senior Vice President for Global Marketing and Communications. Before Aon, he was President and CEO of the U.S. region for Hill + Knowlton Strategies  **[0001628280-24-005392_aon-20231231.htm:55]** .                                                 |
| Darren Zeidel  | Executive Vice President, General Counsel, and Company Secretary | July 2019 | Darren Zeidel was named Executive Vice President, General Counsel, and Company Secretary in **July 2019**. He joined Aon in 2012 and previously worked for Honeywell and Skadden, Arps, Slate, Meagher & Flom, LLP  **[0001628280-24-005392_aon-20231231.htm:55]** **[0001628280-23-004087_aon-20221231.htm:47]** .                     |
| Edmund Reese   | Executive Vice President, CFO                          | July 1, 2024       | Edmund Reese joined Aon as CFO on **July 1, 2024**. His appointment was part of a transition plan where he succeeded Christa Davies  **[AON_3392612_2]** **[AON_3403991_3]** .                                                                                                      |

3583b1eb3140ab23643f03825e421fcf025f793062eb935343458874cbbf6c81

Total Revenue [USD, Millions]

Cost of Goods Sold (COGS) [USD, Millions]

SG&A [USD, Millions]

R&D [USD, Millions]

D&A [USD, Millions]

Interest Expense [USD, Millions]

Operating Income (EBIT) [USD, Millions]

Net Income [USD, Millions]

EPS - Basic [USD, Per Share]

EPS - Diluted [USD, Per Share]

f34554686f983fc4ce062badfc23d920cf48ece4d43f07e97597e68233af1d3f

| Program Details          | Program 1       | Program 2       | Program 3       | Program 4       | Program 5       |
|--------------------------|-----------------|-----------------|-----------------|-----------------|-----------------|
| Approval Date            | April 2012  **[0001628280-24-043809_aon-20240930.htm:50]**   | November 2014  **[0001628280-24-043809_aon-20240930.htm:50]**  | June 2017  **[0001628280-24-043809_aon-20240930.htm:50]**    | November 2020  **[0001628280-24-043809_aon-20240930.htm:50]**  | February 2022  **[0001628280-24-043809_aon-20240930.htm:50]**  |
| End Date/Duration        | N/A             | N/A             | N/A             | N/A             | N/A             |
| Total Additional Amount  | **$5.0 billion**  **[0001628280-24-043809_aon-20240930.htm:50]**  | **$5.0 billion**  **[0001628280-24-043809_aon-20240930.htm:50]**  | **$5.0 billion**  **[0001628280-24-043809_aon-20240930.htm:50]**  | **$5.0 billion**  **[0001628280-24-043809_aon-20240930.htm:50]**  | **$7.5 billion**  **[0001628280-24-043809_aon-20240930.htm:50]**  |
| Remaining Authorization Amount | N/A             | N/A             | N/A             | N/A             | **$2.5 billion**  **[0001628280-24-043809_aon-20240930.htm:50]**  |
| Details                  | Initial authorization  **[0001628280-24-043809_aon-20240930.htm:50]**  | Additional authorization  **[0001628280-24-043809_aon-20240930.htm:50]**  | Additional authorization  **[0001628280-24-043809_aon-20240930.htm:50]**  | Additional authorization  **[0001628280-24-043809_aon-20240930.htm:50]**  | Additional authorization  **[0001628280-24-043809_aon-20240930.htm:50]**  |

c7c95e53a393f5b9889c9b46423077690b28941570c883adfeff8739fedcacb2

United States

Americas other than U.S.

United Kingdom

Ireland

Europe, Middle East, & Africa other than U.K. and Ireland

Asia Pacific

- Americas (Retail Brokerage)

- International (Retail Brokerage)

- Total Retail Brokerage

- Total Reinsurance Brokerage

Total Revenue

0988b26f0780f11018b4856a5412c2c89007a7bf63f22dd59137537e5b006251

**Quarterly guidance for Q4 2024:**
- **Interest Expense**: $210 million  **[AON_3403991_5]**  (no prior guidance)

**Annual guidance for FY 2024:**
- **Organic Revenue Growth**: Mid-single-digit or greater  **[AON_3403991_3]** **[AON_3403991_6]**  (no change from mid-single-digit or greater  **[AON_3394673_3]** )  
- **Adjusted Operating Margin Expansion**: Expected to expand above the 2023 baseline of 30.6%  **[AON_3403991_6]**  (no change from aiming for expansion over the full year 2024 and over the long term, with a baseline of 30.6%  **[AON_3394673_4]** )  
- **Free Cash Flow Growth**: Double-digit free cash flow growth from 2023 to 2026  **[AON_3403991_6]** **[AON_3403991_1]**  (no change from strong growth expected  **[AON_3394673_4]** )  
- **Restructuring Savings**: $100 million in 2024  **[AON_3403991_6]** **[AON_3403991_5]**  (raised from $95 million in 2024  **[AON_3394673_3]** )  
- **Share Repurchases**: Approximately $1 billion in 2024  **[AON_3403991_6]**  (no change from $1 billion or more in 2024  **[AON_3394673_4]** )  
- **Debt Reduction**: Plan to pay down $2.1 billion in 2024 and reduce the debt-to-EBITDA leverage ratio from 3.9 to between 2.8 and 3x by Q4 2025  **[AON_3403991_6]**  (no prior guidance)  
- **Tax Rate**: Q3 tax rate was 18%  **[AON_3403991_6]**  (no prior guidance)  

dea0c60fa694963e6aa07b698c5ee6eb29abf6046cb9cd00d40e628fd100cf84

d6789aa715a9871d0f3a020597a17e01979a2b41aac3e6756f0bade571a9767a

- Total Revenue: $4,147 million (+23% YoY)  **[0001628280-24-005392_aon-20231231.htm:6]** **[0001628280-25-003243_ex991prq42024.htm:13]**   
- Commercial Risk Solutions: $2,186 million (+15% YoY)  **[0001628280-24-005392_aon-20231231.htm:6]** **[0001628280-25-003243_ex991prq42024.htm:13]**   
- Reinsurance Solutions: $351 million (+6% YoY)  **[0001628280-24-005392_aon-20231231.htm:6]** **[0001628280-25-003243_ex991prq42024.htm:13]**   
- Health Solutions: $1,070 million (**+40% YoY**)  **[0001628280-24-005392_aon-20231231.htm:6]** **[0001628280-25-003243_ex991prq42024.htm:13]**   
- Wealth Solutions: $542 million (**+44% YoY**)  **[0001628280-24-005392_aon-20231231.htm:6]** **[0001628280-25-003243_ex991prq42024.htm:13]**   
- Operating Income (EBIT): $1,091 million (+40% YoY)  **[0001628280-24-005392_aon-20231231.htm:89]** **[0001628280-25-003243_ex991prq42024.htm:11]** **[0001628280-25-003243_ex991prq42024.htm:12]** **[0001628280-25-003243_ex991prq42024.htm:4]**   
- Net Income: $716 million (+44% YoY)  **[0001628280-24-005392_aon-20231231.htm:89]** **[0001628280-25-003243_ex991prq42024.htm:11]** **[0001628280-25-003243_ex991prq42024.htm:4]**   
- Share Repurchases: **$1,000 million** (vs. $75 million in prior year, +1,233% YoY)  **[0001628280-24-005392_aon-20231231.htm:92]** **[0001628280-25-003243_ex991prq42024.htm:18]**   

746f02b599bbeda098df85d98c87bc9bdc6bab0d75bb21830ed43f84e409c6a0

- **Strong Organic Revenue Growth with Confidence in Future Performance:** Aon reported **6% organic revenue growth** in both Q4 2024 and the full year, marking a strong start to their 3x3 Plan. Management expects **mid-single-digit or greater organic revenue growth in 2025**, driven by new business from existing and new clients, high retention rates, and contributions from priority hiring in areas like construction and energy. The company expresses high confidence in sustaining this growth momentum into 2025.  **[AON_3413955_9]** **[AON_3413955_13]**
- **Positive Impact from NFP Acquisition and Balanced Capital Allocation:** The integration of NFP is progressing well, with strong producer retention and accretive top-line results. NFP is expected to contribute **$300 million in 2025 free cash flow** and **$45 million to $60 million of EBITDA** through middle-market acquisitions, supporting Aon's growth objectives. Additionally, Aon plans to return **$1 billion in share repurchases** to shareholders in 2025, reflecting a commitment to balanced capital allocation and shareholder returns.  **[AON_3413955_12]** **[AON_3413955_9]** **[AON_3413955_11]**
- **Investments in Priority Areas Driving Future Growth:** Aon is investing in specialty areas by increasing revenue-generating roles, with a **4% growth** in specialty revenue-generating positions in 2024. These hires in areas like energy and construction are expected to contribute to future organic revenue growth as they come online over the next 12 to 18 months, reinforcing Aon's growth strategy and enhancing capabilities across Risk Capital and Human Capital solutions.  **[AON_3413955_9]** **[AON_3413955_17]**

4b203e2e1c895ed6eba009a367934a1f2a8cf5592d9fcf7dd8eea8f6be94a756

- **Aon's Reinsurance Solutions business may face growth pressures due to lower reinsurance rates and overcapacity in the market, which could negatively impact revenue growth.**  **[AON_3413955_18]**
- **Earnings per share growth might be impacted by non-operating items, specifically FX headwinds of $0.32 or 2-point EPS headwind and increased pension expenses, leading to lower-than-expected EPS growth.**  **[AON_3413955_13]**
- **Uncertainty regarding tax policy changes, such as OECD Pillar 2 agreements, may lead to increased effective tax rates, potentially impacting Aon's net income and EPS growth.**  **[AON_3413955_15]**

4ccad52b64ffdc89bf87ea41afb4f14d85b35f7bb770c413cbde93b5ef8b0b09

1. **EPS Growth Guidance**  
   **Q:** What does "strong EPS growth" mean?  
   **A:** Management indicates confidence in achieving robust EPS growth, referencing a historical **11% EPS growth** over the past decade. They did not specify if "strong" means double digits for the current guidance but emphasized detailed plans for revenue growth and margin expansion.  **[AON_3413955_13]** 

2. **Share Buyback Strategy**  
   **Q:** Will share repurchases increase after 2025?  
   **A:** Management states their capital allocation policy remains unchanged, focusing on growth investments and returning capital to shareholders. They plan to pay down debt in 2025 and anticipate having capacity for share repurchases as they meet leverage targets, but they did not provide specific figures for 2026.  **[AON_3413955_12]** **[AON_3413955_14]** 

3. **NFP Acquisition Impact**  
   **Q:** How does NFP affect 2025 guidance?  
   **A:** The NFP acquisition has exceeded expectations, contributing **$45 million to $60 million** in targeted acquired EBITDA for 2025, which is included in their guidance. Integration is progressing well, supporting growth, and management is positive about future prospects with NFP.  **[AON_3413955_7]** **[AON_3413955_11]** 

4. **Reinsurance Growth Prospects**  
   **Q:** Can Reinsurance continue strong growth?  
   **A:** Management is optimistic about Reinsurance Solutions, noting that while the Insurance-Linked Securities (ILS) business is a smaller component, it drives growth. They expect continued contributions from ILS, strategy and technology groups, and treaty business, supporting mid-single-digit organic growth despite market dynamics.  **[AON_3413955_8]** **[AON_3413955_18]** 

5. **Revenue Growth Drivers**  
   **Q:** What's driving mid-single-digit growth?  
   **A:** Management cites healthy new business trends, strengthening retention particularly in North America, contributions from priority hiring in areas like construction and energy, and synergies from the NFP acquisition as key drivers supporting their mid-single-digit or greater organic revenue growth outlook.  **[AON_3413955_9]** 

6. **Tax Rate Guidance**  
   **Q:** How certain is the tax rate outlook?  
   **A:** Management provides a tax rate guidance range of **19.5% to 20.5%** for 2025 based on current knowledge, acknowledging complexity and potential changes due to operating in 120 countries and policy developments like OECD Pillar 2.  **[AON_3413955_15]** 

7. **Free Cash Flow Growth**  
   **Q:** What impacts 2025 free cash flow growth?  
   **A:** Management expects double-digit free cash flow growth in 2025, driven by operating income growth, working capital improvements, contributions from the NFP acquisition (targeting **$300 million** in free cash flow), and reduced integration charges, offsetting any extraordinary items from prior years.  **[AON_3413955_16]** 

8. **Commercial Risk Q1 Outlook**  
   **Q:** Is Q1 seasonally stronger for commercial risk?  
   **A:** Management does not highlight any seasonality in Q1 for commercial risk, noting nothing out of the ordinary impacting performance, and remains confident in mid-single-digit or greater organic revenue growth for 2025.  **[AON_3413955_11]** 

9. **Specialty Hiring Impact**  
   **Q:** How do new hires affect growth?  
   **A:** Management is investing in priority areas like construction and energy, seeing **double-digit growth** in these sectors due to strategic hiring. These hires are contributing to growth, although they are still a small part of the overall picture and will continue to come online over the next few years.  **[AON_3413955_17]** 

10. **Retention Rates Improvement**  
    **Q:** Are retention rates improving in North America?  
    **A:** Management notes that retention rates in North America have strengthened, returning toward historical norms, particularly in commercial risk. They continue to focus on improving retention through enhanced client experience and specialized services.  **[AON_3413955_10]** 

f91530418eb05bc16809d2def8053c032b172f5261a0b8f014b140bdbf03669a

Aon delivered 6% organic revenue growth for Q4 and is targeting mid-single-digit+ in 2025. NFP integration adds $300M FCF, $45–$60M EBITDA. Despite reinsurance headwinds, Aon plans $1B share buybacks, reinforcing confidence in sustained growth.

aeaaf00dbc08cfc026782665d45d873499a51e565236ea86e9381c0b89bf238a

**Annual guidance for FY 2025:**

- **Organic Revenue Growth**: Mid-single-digit or greater  **[AON_3413955_6]** **[AON_3413955_5]** **[AON_3413955_3]**   
  (no change from “Mid-single-digit or greater”  **[AON_3403991_3]** **[AON_3403991_6]** **[AON_3403991_1]** )

- **Adjusted Operating Margin**: Continued margin expansion in line with historical performance  **[AON_3413955_6]** **[AON_3413955_5]** **[AON_3413955_3]**   
  (no change from “above the 2023 baseline of 30.6%”  **[AON_3403991_6]** **[AON_3403991_5]**  — no explicit numeric raise or lower)

- **Restructuring Savings**: $150M incremental savings  **[AON_3413955_5]** **[AON_3413955_3]**   
  (raised from $100M  **[AON_3403991_6]** **[AON_3403991_5]** )

- **Free Cash Flow Growth**: Double-digit free cash flow growth  **[AON_3413955_6]** **[AON_3413955_5]** **[AON_3413955_3]**   
  (no change from “double-digit CAGR”  **[AON_3403991_3]** **[AON_3403991_6]** **[AON_3403991_5]** )

- **Share Repurchases**: $1B in share repurchases  **[AON_3413955_6]** **[AON_3413955_5]**   
  (no change from prior guidance of $1B  **[AON_3403991_6]** )

- **Tax Rate**: 19.5% to 20.5%  **[AON_3413955_6]**   
  (no prior guidance provided  **[AON_3403991_6]** **[AON_3403991_12]** )

- **Adjusted EPS Growth**: Strong growth despite a $0.32 (2-point) FX headwind  **[AON_3413955_6]** **[AON_3413955_5]**   
  (no prior guidance)

- **NFP EBITDA Contribution**: $45M to $60M  **[AON_3413955_5]** **[AON_3413955_11]**   
  (no prior guidance)

- **Interest Expense**: ~$205M in Q1 2025  **[AON_3413955_4]**   
  (no prior guidance)

- **FX Impact**: $110M impact on revenue in Q1 2025; $0.16 (3-point) EPS headwind  **[AON_3413955_6]**   
  (no prior guidance)

b2f1adb1d9ce61532883104a1e0f0eea63732a3a89afcd364650a88da2d6fd68

| Name              | Start Date | End Date | Reason for Change |
|-------------------|------------|----------|-------------------|
| Ernst & Young LLP | 1986  **[0001628280-24-005392_aon-20231231.htm:88]**    | Present  | Current auditor   |

7acddb7a41b187a0e77e01eec3d299d6870914edae4679b34c12c14a3a683e09

6a323ce0c8268ab3630bffe76f600fd98b65950e5437a8209e130d50662f4d7b

3d4d1fec9498b593b2d66b723d11b485adc2fb8c9181a412447d1c25844c2432

83ac9d81b9eb436554efefe09e39b4865ae10e55de08e180cc6c3f12275ad379

09161b13b3f105b160bfc99f9a8f3c164e9e00479845792e3c3af57378597138

- Total Revenue: $3,721 million (+26% YoY)  **[0001628280-23-035412_aon-20230930.htm:11]** **[0001628280-24-043809_aon-20240930.htm:39]**   
- Commercial Risk Solutions: $1,852 million (+17% YoY)  **[0001628280-23-035412_aon-20230930.htm:11]** **[0001628280-24-043809_aon-20240930.htm:39]**   
- Reinsurance Solutions: $503 million (+8% YoY)  **[0001628280-23-035412_aon-20230930.htm:11]** **[0001628280-24-043809_aon-20240930.htm:39]**   
- Health Solutions: $870 million (**+58%** YoY)  **[0001628280-23-035412_aon-20230930.htm:11]** **[0001628280-24-043809_aon-20240930.htm:39]**   
- Wealth Solutions: $499 million (**+42%** YoY)  **[0001628280-23-035412_aon-20230930.htm:11]** **[0001628280-24-043809_aon-20240930.htm:39]**   
- United States Region: $2,083 million (**+49%** YoY)  **[0001628280-23-035412_aon-20230930.htm:11]** **[0001628280-24-043809_aon-20240930.htm:14]**   
- Ireland Region: $38 million (**+58%** YoY)  **[0001628280-23-035412_aon-20230930.htm:11]** **[0001628280-24-043809_aon-20240930.htm:14]**   
- Net Income: $343 million (-17% YoY)  **[0001628280-23-035412_aon-20230930.htm:5]** **[0001628280-24-043809_aon-20240930.htm:6]**   
- EPS (Basic): $1.49 (**-34%** YoY)  **[0001628280-23-035412_aon-20230930.htm:5]** **[0001628280-24-043809_aon-20240930.htm:6]**   

8f8214ae2d973c0830cca1f17efa79f68f977d8434e367ba369ea182978abe84

14a4af3186b9ef9569c13d123569af6a6d682dad58d5c5e66d8f7611b013eb3c

Organic revenue growth for Commercial Risk Solutions (percentage)

Organic revenue growth for Reinsurance Solutions (percentage)

Organic revenue growth for Health Solutions (percentage)

Organic revenue growth for Wealth Solutions (percentage)

Total organic revenue growth (percentage)

Annualized expense savings from the Accelerating Aon United Program (USD millions)

Expense savings realized from the Accelerating Aon United Program (USD millions)

2b3ae9fc831aaa851e8985231b9275432f84fd7c4cdc45d15a1971d2a46ae025

a8df2f95eb440c142b5824470adcf39fc078d41cddf72d02cbcbeb0d2fef1d45

1. **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.  **[AON_3381123_17]**  They emphasize substantial opportunities in the middle market, where Aon was previously underweight.  **[AON_3381123_8]**  Integration will focus on independent operations and connected synergies, leveraging content and capabilities to potentially exceed prior growth projections.  **[AON_3381123_17]** 

2. **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  **[AON_3381123_8]** **[AON_3381123_12]** . They attribute this to exposure to larger clients and declines in transactional activity.  **[AON_3381123_8]**  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  **[AON_3381123_8]** **[AON_3381123_12]** .

3. **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.  **[AON_3381123_19]**  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  **[AON_3381123_14]** **[AON_3381123_19]** . They remain committed to delivering margin expansion each year.  **[AON_3381123_14]** 

4. **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.  **[AON_3381123_9]**  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.  **[AON_3381123_9]** 

5. **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%**.  **[AON_3381123_11]**  Although the total interest expense for the stub period increased due to two extra months, future years show reduced interest expenses, positively impacting financials.  **[AON_3381123_11]** 

6. **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..  **[AON_3381123_15]**  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.  **[AON_3381123_15]** 

7. **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.  **[AON_3381123_18]**  They've expanded from private equity-backed deals to corporate transactions, maintaining industry-leading expertise to capitalize when M&A activity picks up.  **[AON_3381123_18]** 

8. **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.  **[AON_3381123_7]**  Historically, the underlying rate excluding discrete items has been **18%**.  **[AON_3381123_7]**  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.  **[AON_3381123_7]** 

9. **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.  **[AON_3381123_12]**  However, they highlight solid growth in sectors like energy and construction and investments in talent to grow capabilities.  **[AON_3381123_12]**  Strong performance in other regions like Continental Europe and Asia-Pacific is also noted.  **[AON_3381123_12]** 

10. **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.  **[AON_3381123_16]**  They remain committed to mid-single-digit or greater growth over the year and are on track to achieve that.  **[AON_3381123_16]**  Some pressures were highlighted, but confidence in the overall annual approach remains.  **[AON_3381123_16]** 

32ea15e05ceeba6a6a5b965f1aa6560840a43211832eb52b5a6e6a205d8a8a81

- **Aon achieved 6% organic revenue growth**, aligning with its mid-single-digit or higher objective, driven by strong net new business generation and client retention across all solution lines, and expects to build momentum into 2025 and 2026.  **[AON_3394673_10]** **[AON_3394673_6]** **[AON_3394673_14]** **[AON_3394673_16]**
- The company's **3x3 plan** is delivering results by focusing on risk capital and human capital solutions, leveraging unique capabilities such as **risk analyzers** and making significant investments in talent from both within and outside the industry, positioning Aon to address clients' evolving needs in areas like technology, trade, workforce, and weather.  **[AON_3394673_10]** **[AON_3394673_19]** **[AON_3394673_9]** **[AON_3394673_14]** **[AON_3394673_13]**
- Aon's strategic hiring in priority areas like **construction and energy** enhances its capabilities and is expected to contribute significantly to growth over time, particularly in 2025 and 2026, supported by ongoing investments and strong client demand in these sectors.  **[AON_3394673_19]** **[AON_3394673_9]** **[AON_3394673_6]** **[AON_3394673_22]** **[AON_3394673_14]**

6a8eeb2466d5a0b16d604a3f3d834be4d0f3228a053317194d6afa8cbbf51a67

- **Aon delivered strong organic growth in Reinsurance Solutions and Health Solutions, with 14% and 11% organic growth respectively in Q4 2023, and expects these growth trends to be sustainable.**  **[AON_3371751_7]**
- **Aon is positioned to benefit from an anticipated uptick in M&A and IPO activity, which would positively impact its commercial risk segment and margins, leading to future growth.**  **[AON_3371751_20]** **[AON_3371751_11]**
- **The planned acquisition of NFP aims to expand Aon's presence in the fast-growing middle market segment, contributing to long-term growth, with the deal expected to close in mid-2024.**  **[AON_3371751_25]**

1171f4dff0e9198b1b42ed815fb800cd4608c0badab8f092f20819bf7aa0adbe

1. **Commercial Risk Growth Drivers**  
   **Q:** What drove the organic growth in Commercial Risk from 3% to 6%?  
   **A:** The **6% organic growth** in Commercial Risk Solutions was driven by strong net new business generation and high retention, without impact from the NFP acquisition.  **[AON_3394673_6]**  The growth resulted from investments in talent, particularly in areas like energy and construction, and the implementation of the 3x3 plan, focusing on better understanding client needs and offering distinctive solutions.  **[AON_3394673_6]** **[AON_3394673_9]** 

2. **Tax Rate Increase**  
   **Q:** Why did the tax rate rise above 22%, and will it stay higher?  
   **A:** The increase in the tax rate to above **22%** was due to a mix of geographic income and unfavorable discrete items, which can be lumpy quarter-to-quarter.  **[AON_3394673_7]** **[AON_3394673_15]**  The company considers the rate over the full year and maintains that the historical average of **18.5%** is accurate.  **[AON_3394673_7]**  The NFP acquisition led to a more U.S.-weighted income, but the overall tax rate guidance remains consistent.  **[AON_3394673_7]** **[AON_3394673_20]** 

3. **NFP Acquisition Impact**  
   **Q:** Is NFP expected to deliver $45-$60 million EBITDA this year?  
   **A:** Despite only **$36 million** of revenue so far, NFP is on track to deliver **$45-$60 million** of EBITDA in 2024.  **[AON_3394673_8]**  Acquisition activity had slowed during negotiations, but the pipeline looks incredibly strong for the back half of the year.  **[AON_3394673_8]** 

4. **Net Hiring Trends**  
   **Q:** Was Aon net hiring positive in 2Q, and what's the outlook?  
   **A:** Aon has been focusing on priority hires in key specialty areas like energy and construction.  **[AON_3394673_6]** **[AON_3394673_9]**  The company has high engagement and low voluntary attrition, with continued investment in talent expected to drive growth in 2024 and beyond.  **[AON_3394673_9]** **[AON_3394673_11]** 

5. **Middle Market Acquisitions**  
   **Q:** Is Aon considering larger middle market acquisitions beyond NFP?  
   **A:** Aon plans to focus on integrating NFP and leveraging its capabilities in the middle market.  **[AON_3394673_10]** **[AON_3394673_11]**  The company is not currently considering additional large acquisitions but is concentrating on maximizing value from NFP.  **[AON_3394673_10]** **[AON_3394673_11]** 

6. **Capital Allocation Priorities**  
   **Q:** Is share repurchase still the highest ROIC opportunity versus M&A?  
   **A:** Share repurchases remain the highest return on invested capital (**ROIC**) opportunity for Aon, even at current prices.  **[AON_3394673_12]**  The company plans to disproportionately allocate capital to share buybacks, driving free cash flow per share growth for shareholders.  **[AON_3394673_12]** 

7. **Market Conditions and Pricing**  
   **Q:** Can you provide color on market trends affecting organic growth?  
   **A:** The market is transitioning, with overall flat pricing but variations across different lines.  **[AON_3394673_13]**  Financial lines like cyber and D&O are seeing pricing favorable to buyers, property is heading towards flat, and casualty is seeing increasing rates.  **[AON_3394673_13]**  Clients are reevaluating risk exposures, providing opportunities for Aon to offer analytics and strategic risk management.  **[AON_3394673_13]** 

8. **Balance of Hiring and Productivity**  
   **Q:** How is Aon balancing adding headcount versus productivity improvements?  
   **A:** Aon is investing in both talent acquisition and productivity enhancements through better solutions and analytics.  **[AON_3394673_19]**  New hires are equipped with unique capabilities, such as risk analyzers supported by Aon Business Services, leading to greater effectiveness in serving clients.  **[AON_3394673_19]** **[AON_3394673_21]** 

9. **Margin Impact from Hiring**  
   **Q:** What's the margin impact from priority hiring in areas like energy?  
   **A:** Investments in priority hiring are opportunities for growth, with expectations of contributions over time.  **[AON_3394673_6]** **[AON_3394673_9]** **[AON_3394673_16]**  By matching talent with tools and analytics, Aon aims to enhance client experiences, which should support margins in the long term.  **[AON_3394673_6]** **[AON_3394673_16]** 

10. **Wealth Segment Growth**  
    **Q:** What drove the higher-than-usual organic growth in Wealth, and is it sustainable?  
    **A:** The Wealth segment saw **9% organic growth**, driven by strong performance in areas like pension risk transfer in the U.S. and U.K..  **[AON_3394673_23]**  NFP also has strong capabilities in this arena, contributing to the results.  **[AON_3394673_23]**  The team expects positive performance to continue.  **[AON_3394673_23]** 

11. **Geographic Earnings Mix and Taxes**  
    **Q:** Has the geographic earnings mix changed due to NFP, affecting taxes?  
    **A:** With the acquisition of NFP, Aon's income has become more U.S.-weighted, affecting the geographic mix of income and contributing to changes in the tax rate.  **[AON_3394673_20]** **[AON_3394673_21]** 

12. **Clients' Cyber Insurance Adequacy**  
    **Q:** Do clients have adequate cyber insurance in light of recent events?  
    **A:** Clients are reevaluating risk exposures due to events like the recent cyber attack.  **[AON_3394673_25]**  Aon is investing in providing capabilities and analytics to help clients understand and manage these risks, including the launch of a cyber analyzer.  **[AON_3394673_25]** 

fbb88924ffd744794631782d1f2a77cc9a0e22302f6206d2f1c2541f6b5418ff

1. **NFP Acquisition Timing**  
   **Q:** When will the NFP deal close?  
   **A:** We fully expect to close the NFP acquisition by mid-2024, although we've conservatively modeled a mid-2025 close. We operate in highly competitive markets with limited overlap, so we anticipate regulatory approval without significant issues.  **[AON_3371751_24]** **[AON_3371751_25]** 

2. **Impact of Slower M&A Activity**  
   **Q:** Is slow M&A market affecting growth?  
   **A:** The decline in M&A and IPO activity has posed headwinds, but we've maintained growth, with 4% in Commercial Risk, consistent with last year.  **[AON_3371751_10]** **[AON_3371751_12]** **[AON_3371751_20]**  We see potential for M&A activity to return in 2024, which will positively impact our revenues.  **[AON_3371751_11]** **[AON_3371751_12]** 

3. **Organic Growth in Key Segments**  
   **Q:** How sustainable is growth in Reinsurance and Health?  
   **A:** Both Reinsurance and Health Solutions achieved **10% growth** for the year.  **[AON_3371751_7]**  We remain optimistic about continued strong performance in these areas, supported by factors like climate change and casualty loss trends driving demand.  **[AON_3371751_7]** 

4. **Free Cash Flow Expectations**  
   **Q:** What's the outlook for free cash flow?  
   **A:** We're confident in delivering double-digit free cash flow growth in the long term, accelerated by the NFP acquisition, which is expected to add **$300 million** in 2026 and **$600 million** in 2027.  **[AON_3371751_14]**  In 2024, we expect to grow free cash flow driven by operating income growth and improvements in working capital.  **[AON_3371751_14]** 

5. **P&C Pricing Outlook**  
   **Q:** What's the expectation for P&C pricing?  
   **A:** We anticipate a market consisting of varied conditions across different lines. While some areas may see price competitiveness due to new capital inflows, others may experience challenges due to factors like social inflation and prior year reserves. Overall, we expect stable pricing with opportunities for growth.  **[AON_3371751_16]** 

6. **Legal Settlement Impact**  
   **Q:** Will legal settlements affect financials?  
   **A:** We've made a **$197 million** settlement to resolve an issue and expect to recover a meaningful amount over time through the bankruptcy process. This strategic decision allows us to move forward with our market partners.  **[AON_3371751_13]** 

066ffd9682287c58f0446dca057f6699731eca12ac646a5d73e86b2ee9f9a349

- **Aon's organic growth is heavily dependent on the M&A and IPO markets**, which have been slow, impacting their organic growth and potentially causing differentiated results relative to peers.  **[AON_3371751_20]**
- The **acquisition of NFP will initially decrease Aon's operating margins** and is expected to be **dilutive to EPS in 2025**, with **increased leverage and interest expense** impacting free cash flow in the near term.  **[AON_3371751_3]** ,  **[AON_3371751_4]**
- **Organic growth benefited by 1% from a held-for-sale business** in the commercial risk segment, suggesting that future organic growth may be lower once the business is divested

e2feeafd417520e59b7af1af4d4b6cd405e1ab326315a8ebc292abb59ee18d83

1. **Margin Outlook and Fiduciary Income Impact**  
   **Q:** Will margin expansion continue given fiduciary income headwinds?  
   **A:** Management expects continued margin expansion despite anticipated headwinds from declining fiduciary investment income, which contributes less than **20 basis points** to margin expansion.  **[AON_3403991_16]**  They highlighted a history of achieving **100 basis points** of margin expansion annually over the last decade, driven by restructuring, Aon Business Services efficiencies, active portfolio management, and expense discipline.  **[AON_3403991_16]**  They are confident in continuing this trend, emphasizing their focus on creating investment capacity to invest in the business while improving margins.  **[AON_3403991_16]** 

2. **Organic Growth Drivers**  
   **Q:** What's driving the 7% organic growth: new business or pricing?  
   **A:** The **7%** organic growth is primarily driven by new business from existing clients purchasing more solutions and adding new logos, with retention rates above **90%**.  **[AON_3403991_13]**  Market impact, including rate and pricing, contributed only **2 points** to growth.  **[AON_3403991_13]**  Management emphasizes that this growth formula is consistent across solution lines and in line with their historical performance.  **[AON_3403991_13]** 

3. **NFP Acquisition Synergies**  
   **Q:** Are revenue synergies from the NFP acquisition materializing?  
   **A:** The NFP acquisition is performing well, with results in line with or better than the business case, contributing mid-single-digit growth and being accretive to Commercial Risk and Wealth segments.  **[AON_3403991_14]**  Management is confident in achieving **$175 million** in revenue synergies and **$60 million** in OpEx synergies by **2026**.  **[AON_3403991_14]**  They are also tracking to be better than expected on EPS accretion in **2025**.  **[AON_3403991_14]**  The integration is fostering cross-selling opportunities and bringing in new talent.  **[AON_3403991_14]** 

4. **Free Cash Flow and Capital Return**  
   **Q:** Is free cash flow growth on track despite extraordinary items?  
   **A:** Free cash flow is in line with expectations, aiming to reach a double-digit level from **$3.2 billion** in **2023** to the end of **2026**.  **[AON_3403991_9]**  This year's free cash flow is impacted by extraordinary items such as NFP integration costs, legal settlement costs, and restructuring charges.  **[AON_3403991_9]**  Management remains confident in their ability to pay down debt and continue capital return through dividends and share repurchases.  **[AON_3403991_9]** 

5. **Reinsurance Market Outlook**  
   **Q:** How does management view the reinsurance brokerage environment into 2025?  
   **A:** Management believes the reinsurance market is well-positioned to handle recent events like hurricanes Helene and Milton.  **[AON_3403991_23]**  While there is client pressure for pricing decreases and attachment point relief, substantial capital remains in the marketplace.  **[AON_3403991_23]**  They anticipate that negotiations over the next 8 to 10 weeks will shape the market, with clients pushing for rate decreases depending on their geographic location.  **[AON_3403991_23]** 

6. **Health Solutions Growth Opportunities**  
   **Q:** Can Health Solutions sustain its double-digit growth internationally?  
   **A:** Management sees significant opportunity in Health Solutions globally, driven by high client demand due to nationalized health systems under financial pressure and the need for global benefits management.  **[AON_3403991_8]**  They are winning new logos and investing in analytics and tools to deliver value to clients.  **[AON_3403991_8]**  The diversity of their business across markets gives them confidence in sustaining mid-single-digit or greater long-term growth.  **[AON_3403991_8]** 

7. **M&A Activity and Commercial Risk**  
   **Q:** How is the M&A activity impacting Commercial Risk Solutions?  
   **A:** M&A activity is improving but still **13%** below the 10-year average year-to-date.  **[AON_3403991_11]**  Management anticipates growth in Commercial Risk Solutions as M&A volumes recover, highlighting the significant demand and opportunity in the middle market.  **[AON_3403991_11]** 

8. **Tax Rate Considerations**  
   **Q:** What factors are affecting the company's tax rate outlook?  
   **A:** The tax rate has quarterly variability due to factors such as growth in higher-tax geographies and policy changes across the globe.  **[AON_3403991_12]**  A positive discrete item last year impacted the rate in the current quarter.  **[AON_3403991_12]**  Management plans to provide more insight into the baseline tax rate and any discrete items for **2025** during the **Q4** call.  **[AON_3403991_12]** 

9. **Interest Rate Impact on Fiduciary Income**  
   **Q:** How will lower interest rates affect fiduciary investment income?  
   **A:** A **100 basis point** change in interest rates has approximately a **$70 million** impact on fiduciary investment income.  **[AON_3403991_22]**  While lower rates may reduce this income, management expects to meet their objectives across all solution lines despite the interest rate environment.  **[AON_3403991_22]** 

10. **Net New Business and Retention Rates**  
    **Q:** Is net new business growth strong across the company?  
    **A:** Net new business is strong, contributing **10 points** of growth, with retention rates above **90%**.  **[AON_3403991_10]** **[AON_3403991_13]**  Growth is driven by new business from existing clients and new logos, consistent with their historical performance.  **[AON_3403991_13]**  Management sees this as a key driver of growth across all solution lines.  **[AON_3403991_10]** 

11. **Pricing and Market Conditions**  
    **Q:** Are there differences in pricing trends across segments?  
    **A:** Pricing varies by segment, line, and geography.  **[AON_3403991_21]**  Property rates are decreasing for clients with favorable risk exposure, while casualty lines continue to see price increases due to higher loss costs and social inflation.  **[AON_3403991_21]**  Specialty casualty lines like D&O and cyber have surplus capital, offering opportunities for premium relief.  **[AON_3403991_21]** 

12. **Cat Bonds Economics**  
    **Q:** How does Aon view the economics of cat bond placements?  
    **A:** Aon is agnostic to the use of cat bonds versus traditional reinsurance, focusing on delivering value to clients.  **[AON_3403991_24]**  The company engages in transparent discussions about their value proposition, regardless of the tool used to transfer risk.  **[AON_3403991_24]** 

1aa657413858b94bcc5504b4c9da62da980e7301940a5a49d7f378ebdec2b811

| Year | Amount Due (in billions) | Debt Type | Interest Rate (%) | % of Total Debt |
|------|--------------------------|-----------|-------------------|-----------------|
| 2027 | 0.6 **[0001628280-24-043809_aon-20240930.htm:23]** | Senior Notes | 5.125 **[0001628280-24-043809_aon-20240930.htm:53]** | 3.5% = (0.6 / 17.1) * 100 **[0001628280-24-043809_aon-20240930.htm:23]** **[0001628280-24-043809_aon-20240930.htm:51]** |
| 2027 | 1.2 **[0001628280-24-043809_aon-20240930.htm:23]** | Delayed Draw Term Loan | N/A | 7.0% = (1.2 / 17.1) * 100 **[0001628280-24-043809_aon-20240930.htm:23]** **[0001628280-24-043809_aon-20240930.htm:51]** |
| 2031 | 0.65 **[0001628280-24-043809_aon-20240930.htm:23]** | Senior Notes | 5.300 **[0001628280-24-043809_aon-20240930.htm:53]** | 3.8% = (0.65 / 17.1) * 100 **[0001628280-24-043809_aon-20240930.htm:23]** **[0001628280-24-043809_aon-20240930.htm:51]** |
| 2033 | 0.75 **[0001628280-24-043809_aon-20240930.htm:23]** | Senior Notes | 5.35 **[0001628280-24-043809_aon-20240930.htm:54]** | 4.4% = (0.75 / 17.1) * 100 **[0001628280-24-043809_aon-20240930.htm:23]** **[0001628280-24-043809_aon-20240930.htm:51]** |
| 2034 | 1.75 **[0001628280-24-043809_aon-20240930.htm:23]** | Senior Notes | 5.450 **[0001628280-24-043809_aon-20240930.htm:53]** | 10.2% = (1.75 / 17.1) * 100 **[0001628280-24-043809_aon-20240930.htm:23]** **[0001628280-24-043809_aon-20240930.htm:51]** |
| 2054 | 2.0 **[0001628280-24-043809_aon-20240930.htm:23]** | Senior Notes | 5.750 **[0001628280-24-043809_aon-20240930.htm:53]** | 11.7% = (2.0 / 17.1) * 100 **[0001628280-24-043809_aon-20240930.htm:23]** **[0001628280-24-043809_aon-20240930.htm:51]** |

5d6be8751a87f14d474f5f552bc3a1c338c8dadde57a9bd3999a4d43515f4717

- **Lower interest rates are expected to reduce fiduciary investment income, potentially lowering margins; a 100 basis point change impacts income by approximately \$70 million.**  **[AON_3403991_22]**
- **Free cash flow is being negatively impacted by extraordinary items, including NFP integration costs, legal settlement expenses, and restructuring charges.**  **[AON_3403991_9]**
- **NFP's acquired EBITDA year-to-date is \$26 million, below the target of \$45 million to \$60 million, raising concerns about meeting acquisition growth objectives.**  **[AON_3403991_19]**

4e25930e6d604e8b6a941bfc406975863c9578755f05f4427ef58a2e9ab0c08a

- **Aon has experienced lower growth in the U.S. commercial risk business, with new business down year-over-year and pressure in certain areas, which may impact overall growth.**  **[AON_3381123_12]** **[AON_3381123_8]**
- **Transactional businesses, including M&A and IPO advisory services, remain depressed with no rebound yet, potentially continuing to negatively affect revenues.**  **[AON_3381123_13]** **[AON_3381123_20]** **[AON_3381123_18]**
- **The company reported a higher tax rate of around 23% this quarter, driven by unfavorable discrete items and changes in geographic distribution of income, which may impact net income.**  **[AON_3381123_7]**

5b7025ffcc4daa7c7d60623004d3b5d8496281c9bd3404f40d9d07d0f1569b2b

- **Aon expects significant revenue growth opportunities from the acquisition of NFP**, providing access to the fast-growing **$31 billion North American middle market**. The company sees this as a "tour de force" revenue opportunity and is confident in capitalizing on it.  **[AON_3381123_8]** ,  **[AON_3381123_18]**
- **Aon is committed to driving margin expansion each year** through organic revenue growth, portfolio mix shift to higher-margin areas, and efficiencies from Aon Business Services. They maintain their financial guidance to deliver **mid-single-digit or greater organic revenue growth** and adjusted operating margin expansion over the long term.  **[AON_3381123_19]** ,  **[AON_3381123_14]**
- **Aon continues to prioritize substantial share repurchases**, expecting **at least $1 billion** in buybacks for the year, reflecting confidence in strong free cash flow generation and commitment to returning capital to shareholders.  **[AON_3381123_10]** ,  **[AON_3381123_5]**

a71cbc8601496e7c288c295249c541a0e264df3071737c039698c33843341dd0

- **The NFP acquisition is performing exceptionally well**, with revenue synergies and operational cost savings tracking ahead of expectations. Aon anticipates **$175 million in revenue synergies and $60 million in operational expense synergies by 2026**, contributing to EPS accretion better than originally anticipated for 2025.  **[AON_3403991_14]**
- **Aon's Health Solutions segment is experiencing double-digit growth in EMEA, Asia-Pacific, and Latin America**, driven by strong demand and investment in analytics and tools. This indicates significant potential for continued expansion in less mature markets.  **[AON_3403991_8]**
- **The company is investing in priority hires in key areas such as construction, energy, and health**, enhancing its capabilities and positioning Aon for future growth. These strategic additions are expected to contribute to **mid-single-digit or greater top-line growth** over the long term.  **[AON_3403991_7]**

181e55e9692570e92910916727f8aa40107efd74f6104e9ceeac55589fcf38ee

Aon PLC (AON)

Financials