HB Wealth Management LLC boosted its position in shares of Aon plc (NYSE:AON – Free Report) by 23.6% during the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 9,279 shares of the financial services provider’s stock after acquiring an additional 1,770 shares during the period. HB Wealth Management LLC’s holdings in AON were worth $3,078,000 at the end of the most recent quarter.
Other large investors have also added to or reduced their stakes in the company. Capital World Investors increased its stake in shares of AON by 1.5% in the fourth quarter. Capital World Investors now owns 12,252,904 shares of the financial services provider’s stock worth $4,323,850,000 after purchasing an additional 176,207 shares in the last quarter. State Street Corp lifted its stake in shares of AON by 1.2% during the 3rd quarter. State Street Corp now owns 9,229,464 shares of the financial services provider’s stock valued at $3,291,048,000 after buying an additional 105,154 shares in the last quarter. Dodge & Cox boosted its holdings in AON by 126.6% in the 4th quarter. Dodge & Cox now owns 7,852,456 shares of the financial services provider’s stock worth $2,770,975,000 after buying an additional 4,387,773 shares during the period. Geode Capital Management LLC increased its stake in AON by 0.5% in the 4th quarter. Geode Capital Management LLC now owns 5,141,363 shares of the financial services provider’s stock worth $1,810,726,000 after buying an additional 28,066 shares in the last quarter. Finally, Norges Bank bought a new stake in AON during the fourth quarter valued at about $1,155,981,000. Hedge funds and other institutional investors own 86.14% of the company’s stock.
AON Stock Down 2.2% AON opened at $316.08 on Wednesday. The company has a market capitalization of $67.05 billion, a PE ratio of 17.42, a price-to-earnings-growth ratio of 1.63 and a beta of 0.66. The firm has a 50-day simple moving average of $353.17 and a two-hundred day simple moving average of $334.17. The company has a quick ratio of 1.54, a current ratio of 1.54 and a debt-to-equity ratio of 1.34. Aon plc has a 52 week low of $304.59 and a 52 week high of $382.34.
AON (NYSE:AON – Get Free Report) last issued its earnings results on Wednesday, July 29th. The financial services provider reported $3.81 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.80 by $0.01. AON had a return on equity of 42.13% and a net margin of 22.27%.The firm had revenue of $4.25 billion for the quarter, compared to analysts’ expectations of $4.28 billion. During the same period in the previous year, the firm posted $3.49 earnings per share. The business’s revenue was up 2.2% compared to the same quarter last year. Analysts forecast that Aon plc will post 18.99 earnings per share for the current fiscal year. AON Dividend Announcement The company also recently disclosed a quarterly dividend, which was paid on Friday, August 14th. Shareholders of record on Monday, August 3rd were paid a $0.82 dividend. The ex-dividend date of this dividend was Monday, August 3rd. This represents a $3.28 dividend on an annualized basis and a yield of 1.0%. AON’s payout ratio is presently 18.08%.
Insider Activity at AON In other news, Director Lester Knight bought 20,000 shares of the stock in a transaction dated Wednesday, September 2nd. The stock was purchased at an average cost of $327.48 per share, for a total transaction of $6,549,600.00. Following the transaction, the director owned 163,000 shares of the company’s stock, valued at $53,379,240. The trade was a 13.99% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, General Counsel Darren Zeidel sold 1,900 shares of the firm’s stock in a transaction on Tuesday, July 28th. The shares were sold at an average price of $377.76, for a total transaction of $717,744.00. Following the completion of the transaction, the general counsel directly owned 11,504 shares of the company’s stock, valued at approximately $4,345,751.04. This trade represents a 14.17% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 4,450 shares of company stock worth $1,659,242 over the last ninety days. Insiders own 1.00% of the company’s stock.
Wall Street Analysts Forecast Growth AON has been the topic of several research analyst reports. Wells Fargo & Company lowered their price objective on AON from $419.00 to $383.00 and set an “overweight” rating on the stock in a research report on Tuesday, September 1st. Keefe, Bruyette & Woods lifted their target price on AON from $412.00 to $417.00 and gave the company an “outperform” rating in a research note on Tuesday, September 1st. Roth Capital set a $380.00 price target on AON in a report on Tuesday, September 1st. UBS Group restated a “neutral” rating on shares of AON in a research note on Monday, August 31st. Finally, TD Cowen reaffirmed a “buy” rating on shares of AON in a report on Tuesday, September 1st. Twelve research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $399.12.
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About AON (Free Report)
Aon plc is a global professional services firm that helps organizations manage risk, support workforce strategies and make informed decisions. Its principal activities include commercial risk brokerage, insurance and reinsurance consulting, retirement and investment advisory services, health and benefits consulting, and data- and analytics-based business solutions.
Aon serves businesses, governments, institutional investors and individuals across a broad range of industries and geographies.
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CYBER HORNET ETFs LLC grew its holdings in Aon plc (NYSE:AON – Free Report) by 4,903.4% during the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 29,470 shares of the financial services provider’s stock after acquiring an additional 28,881 shares during the period. AON comprises approximately 3.3% of CYBER HORNET ETFs LLC’s holdings, making the stock its 5th biggest holding. CYBER HORNET ETFs LLC’s holdings in AON were worth $9,775,000 as of its most recent SEC filing.
A number of other institutional investors have also recently added to or reduced their stakes in the business. City National Bank of Florida MSD raised its position in AON by 3.8% in the fourth quarter. City National Bank of Florida MSD now owns 867 shares of the financial services provider’s stock valued at $306,000 after purchasing an additional 32 shares during the period. MassMutual Private Wealth & Trust FSB grew its stake in shares of AON by 5.3% in the second quarter. MassMutual Private Wealth & Trust FSB now owns 650 shares of the financial services provider’s stock valued at $216,000 after buying an additional 33 shares in the last quarter. Larson Financial Group LLC raised its holdings in shares of AON by 0.4% during the 4th quarter. Larson Financial Group LLC now owns 9,584 shares of the financial services provider’s stock valued at $3,382,000 after buying an additional 34 shares during the period. Aspen Grove Capital LLC lifted its position in AON by 4.8% during the 1st quarter. Aspen Grove Capital LLC now owns 737 shares of the financial services provider’s stock worth $238,000 after acquiring an additional 34 shares in the last quarter. Finally, J.W. Cole Advisors Inc. boosted its holdings in AON by 1.9% in the 4th quarter. J.W. Cole Advisors Inc. now owns 1,863 shares of the financial services provider’s stock worth $648,000 after acquiring an additional 35 shares during the period. 86.14% of the stock is owned by hedge funds and other institutional investors.
Key Headlines Impacting AON Here are the key news stories impacting AON this week:
Positive Sentiment: Aon director Lester Knight purchased 20,000 shares for approximately $6.55 million, increasing his direct holdings by nearly 14%. The sizable insider purchase may signal confidence that the recent weakness has created attractive value. Aon director stock purchase filing Positive Sentiment: Aon executives highlighted strong demand for insurance-linked securities and expect continued growth through year-end and into 2027. A more flexible reinsurance market, supported by approximately $800 billion of capital, could increase transaction activity and benefit Aon’s brokerage and advisory operations. Strong ILS demand and continued growth expected Positive Sentiment: The company urged insurers to use record reinsurance capacity and third-party capital to support growth, reinforcing the potential for expanding demand for Aon’s capital-markets and risk-transfer services. Aon urges insurers to use reinsurance and third-party capital Positive Sentiment: Aon launched a defined-benefit pension “run-on” solution aimed at smaller schemes, broadening its retirement-services offering and potentially creating additional recurring consulting revenue. Aon launches run-on solution Neutral Sentiment: Chief Executive Greg Case will speak at the KBW Insurance Conference on September 10, giving investors a potential catalyst for updates on the USI transaction, organic growth and capital allocation. Aon to speak at the KBW Insurance Conference Negative Sentiment: Analysis of Aon’s planned $17 billion USI acquisition questioned whether roughly $395 million in expected synergies will adequately offset the risks of another debt-funded megadeal. Leverage and integration concerns may be weighing on valuation. Analysis of Aon’s USI acquisition Negative Sentiment: Mizuho lowered its price target while maintaining an outperform rating, adding near-term pressure amid broader uncertainty over valuation and the acquisition’s financing. This caution contrasts with the more bullish view from Keefe, Bruyette & Woods. Mizuho forecast for AON Analysts Set New Price Targets AON has been the topic of a number of analyst reports. Evercore reiterated an “outperform” rating and set a $423.00 price objective on shares of AON in a research note on Wednesday. Barclays raised their price target on shares of AON from $372.00 to $382.00 and gave the company an “equal weight” rating in a report on Tuesday, July 7th. Roth Capital set a $380.00 price target on shares of AON in a research note on Tuesday, September 1st. Piper Sandler cut their price objective on shares of AON from $391.00 to $349.00 and set a “neutral” rating on the stock in a report on Tuesday, September 1st. Finally, Weiss Ratings upgraded AON from a “hold (c)” rating to a “hold (c+)” rating in a research note on Wednesday, August 19th. Twelve equities research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $399.12. Check Out Our Latest Stock Analysis on AON
AON Stock Performance AON stock opened at $322.57 on Monday. The company has a debt-to-equity ratio of 1.34, a current ratio of 1.54 and a quick ratio of 1.54. Aon plc has a 12 month low of $304.59 and a 12 month high of $382.34. The company has a fifty day moving average price of $353.58 and a two-hundred day moving average price of $334.24. The company has a market cap of $68.42 billion, a PE ratio of 17.78, a P/E/G ratio of 1.63 and a beta of 0.66.
AON (NYSE:AON – Get Free Report) last issued its earnings results on Wednesday, July 29th. The financial services provider reported $3.81 earnings per share for the quarter, topping analysts’ consensus estimates of $3.80 by $0.01. AON had a net margin of 22.27% and a return on equity of 42.13%. The company had revenue of $4.25 billion for the quarter, compared to analysts’ expectations of $4.28 billion. During the same period in the prior year, the company earned $3.49 earnings per share. The firm’s revenue was up 2.2% compared to the same quarter last year. Research analysts expect that Aon plc will post 18.99 earnings per share for the current year.
AON Announces Dividend The firm also recently disclosed a quarterly dividend, which was paid on Friday, August 14th. Investors of record on Monday, August 3rd were paid a dividend of $0.82 per share. The ex-dividend date was Monday, August 3rd. This represents a $3.28 annualized dividend and a yield of 1.0%. AON’s dividend payout ratio is 18.08%.
Insider Transactions at AON In related news, Director Lester B. Knight purchased 20,000 shares of the company’s stock in a transaction dated Wednesday, September 2nd. The shares were acquired at an average cost of $327.48 per share, for a total transaction of $6,549,600.00. Following the transaction, the director owned 163,000 shares of the company’s stock, valued at $53,379,240. This trade represents a 13.99% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, General Counsel Darren Zeidel sold 1,950 shares of the business’s stock in a transaction that occurred on Friday, July 17th. The shares were sold at an average price of $372.05, for a total value of $725,497.50. Following the transaction, the general counsel owned 13,404 shares of the company’s stock, valued at $4,986,958.20. This represents a 12.70% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 4,450 shares of company stock worth $1,659,242 in the last three months. 1.00% of the stock is currently owned by corporate insiders.
AON Company Profile (Free Report)
Aon plc is a global professional services firm that provides a broad suite of risk, retirement and health solutions to corporations, institutions and individuals. The company operates primarily as an insurance broker and risk adviser, helping clients identify, quantify and transfer risk across property, casualty, cyber and other areas. Aon also offers reinsurance brokerage and capital market solutions that connect insurers, reinsurers and corporate buyers.
In addition to traditional brokerage activities, Aon delivers consulting and outsourcing services in areas such as human capital, benefits, and retirement plan design and administration.
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DUBLIN, Sept. 3, 2026 /PRNewswire/ -- Greg Case, Chief Executive Officer of Aon plc (NYSE: AON), a leading global professional services firm, will speak at the KBW Insurance Conference in New York on Thursday, September 10, in a session that begins at 1:35 PM ET.
Key Takeaways Marsh sees employer health benefit costs rising 8.2% in 2027 after planned cost-control measures.UnitedHealth can gain as employers seek plan redesign, pharmacy management, analytics and care navigation.Centene targets ICHRA growth with compatible coverage in 13 states in 2026 as employer costs rise. U.S. employers could face another sharp increase in healthcare costs in 2027, according to Marsh & McLennan Companies, Inc. (MRSH - Free Report) . A Marsh survey of more than 1,800 employers shows that average health benefit costs per employee could climb 8.2% next year, even after companies take steps to curb the increase. If those measures were not in place, employers estimate costs could rise about 11%. The projected increase would be the steepest since 2003.
Marsh points to expensive new treatments, rising provider charges, greater use of GLP-1 weight-loss drugs, AI-assisted medical billing and out-of-network payments. GLP-1 usage alone is expected to add about one percentage point to health benefit cost growth in 2027.
Employers are responding by reworking plan structures. Marsh found that 59% of companies plan to make cost-reduction changes to their health plans for 2027, including higher deductibles. Roughly two-thirds of large employers also expect workers to shoulder a larger share of premium costs. Employee paycheck deductions could therefore rise faster than overall employer health benefit expenses.
Aon Echoes the Healthcare Cost WarningAon plc (AON - Free Report) is pointing to a similar buildup in healthcare costs. It recently stated that it expects employer healthcare costs to rise 9.5% before mitigation, citing higher utilization, specialty-drug spending, provider pricing and billing practices. Marsh’s estimate is even steeper at 11% before cost-control actions, easing to 8.2% after planned measures.
Both firms see employers leaning more on data, plan redesign and care steering. Marsh says 12% of large employers plan to offer variable-copay plans, with adoption rising to 18% among companies with at least 20,000 employees. In addition, 58% of large employers rank steering workers toward higher-quality care among their top priorities.
For investors, the spending surge creates two distinct opportunities: stronger demand for benefits consulting and greater need for insurers that can help employers control costs.
For MRSH, this can support demand for benefits consulting, analytics, plan design and cost-management services. Employers facing costly claims and complex pricing need more help balancing affordability with coverage. That can create recurring advisory opportunities, deepen client relationships and increase demand for Marsh’s Health and Benefits expertise.
Marsh currently carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for 2026 EPS stands at $10.44, implying 7.1% year-over-year growth, while the 2027 estimate of $11.38 points to another 9% increase. Both estimates received two upward revisions over the past month and no downward revisions. MRSH also beat earnings estimates in each of the past four quarters, with an average surprise of 4.1%.
Rising Costs Create Both Risks and Opportunities for Health InsurersRising medical utilization and provider prices can squeeze health insurers when claims costs outpace premium increases. Yet employers looking to control healthcare spending may also place greater value on insurers and service platforms that can improve care management, pharmacy costs, network efficiency and benefit design.
UnitedHealth Group Incorporated (UNH - Free Report) is well positioned to capture some of that demand through both UnitedHealthcare and Optum. Employers dealing with higher benefit costs may turn to UnitedHealthcare for plan redesign, care navigation and more efficient coverage options. Optum can benefit from increased use of pharmacy management, analytics, value-based care and other services aimed at reducing spending.
Higher drug costs can also support demand for Optum Rx’s purchasing scale and pharmacy capabilities. UnitedHealth’s integrated model can deepen employer relationships, generate recurring revenues and support cross-selling.
UNH’s commercial mix provides another layer of protection. At the end of the second quarter, it had about 22.3 million commercial fee-based members compared with 7.7 million commercial risk members. The larger self-funded base limits direct underwriting exposure to medical-cost volatility. Meanwhile, better cost trends and management actions helped reduce its medical care ratio to 86.7% from 89.4% a year earlier.
UnitedHealth also carries a Zacks Rank #2 at present. The consensus EPS estimates for 2026 and 2027 are $19.82 and $22.54, indicating growth of 21.2% and 13.7%, respectively. The estimates saw two and three upward revisions over the past month, with no downward moves. UNH topped earnings estimates in each of the past four quarters, delivering an average surprise of 12.1%.
Meanwhile, Centene Corporation (CNC - Free Report) offers a different way to play the same healthcare-cost trend.It has less direct exposure to employer-sponsored coverage because its commercial business is centered on the ACA Marketplace. Still, rising employer healthcare costs could open another growth avenue through Individual Coverage Health Reimbursement Arrangements, or ICHRAs.
ICHRAs allow employers to fund employees’ individual health plans instead of offering traditional group coverage.Centene says ICHRA adoption among businesses increased 34% from 2024 to 2025, pointing to growing interest in the model. Centene is positioning Ambetter Health Solutions to participate in that shift. The company is offering ICHRA-compatible coverage in 13 states in 2026. If ICHRA adoption continues to expand, Centene could add members, support premium growth and broaden its commercial reach.
Centene is not insulated from rising medical costs. However, its second-quarter commercial health-benefits ratio improved to 79.2% from 90.6% a year ago, helped by better pricing and risk transfer.
Centene currently sports a Zacks Rank #1 (Strong Buy). The consensus EPS estimate for 2026 is $4.89, implying a 135.1% year-over-year increase, while the 2027 estimate of $5.34 suggests 9.2% growth. Those estimates received two and three upward revisions, respectively, over the past month, with no downward changes. CNC beat earnings estimates in each of the last four quarters, posting an average surprise of 151.3%. You can see the complete list of today’s Zacks #1 Rank stocks here.
AON (NYSE:AON – Get Free Report) and Brighthouse Financial (NASDAQ:BHFAN – Get Free Report) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, valuation, analyst recommendations, risk, dividends, profitability and institutional ownership.
Valuation and Earnings This table compares AON and Brighthouse Financial”s revenue, earnings per share (EPS) and valuation.
Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio AON $17.18 billion 4.03 $3.69 billion $18.14 18.00 Brighthouse Financial $6.35 billion N/A N/A N/A N/A AON has higher revenue and earnings than Brighthouse Financial. Dividends AON pays an annual dividend of $3.28 per share and has a dividend yield of 1.0%. Brighthouse Financial pays an annual dividend of $1.34 per share and has a dividend yield of 11.5%. AON pays out 18.1% of its earnings in the form of a dividend.
Analyst Recommendations This is a summary of current recommendations for AON and Brighthouse Financial, as provided by MarketBeat.com.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score AON 0 7 12 0 2.63 Brighthouse Financial 0 0 0 0 0.00 AON currently has a consensus price target of $399.88, indicating a potential upside of 22.47%. Given AON’s stronger consensus rating and higher possible upside, equities analysts plainly believe AON is more favorable than Brighthouse Financial.
Insider & Institutional Ownership 86.1% of AON shares are owned by institutional investors. 1.0% of AON shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Profitability This table compares AON and Brighthouse Financial’s net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets AON 22.27% 42.13% 7.57% Brighthouse Financial N/A N/A N/A Summary AON beats Brighthouse Financial on 9 of the 11 factors compared between the two stocks.
About AON (Get Free Report)
Aon Plc engages in the provision of risk, health, and wealth solutions. It focuses on risk capital including claim management, reinsurance, risk analysis, management, retention, and transfer; and human capital involving analytics, health and benefits, investments, pensions and retirement, talent and rewards, and workplace wellbeing. The company was founded in 1982 and is headquartered in Dublin, Ireland.
(Get Free Report)
Brighthouse Financial, Inc. provides annuity and life insurance products in the United States. It operates through three segments: Annuities, Life, and Run-off. The Annuities segment consists of variable, fixed, index-linked, and income annuities for contract holders' needs for protected wealth accumulation on a tax-deferred basis, wealth transfer, and income security. The Life segment offers term, universal, whole, and variable life products for policyholders' needs for financial security and protected wealth transfer. The Run-off segment manages structured settlements, pension risk transfer contracts, certain company-owned life insurance policies, funding agreements, and universal life with secondary guarantees. Brighthouse Financial, Inc. was founded in 1863 and is headquartered in Charlotte, North Carolina.
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Key Takeaways Aon is buying USI for $17 billion to expand its U.S. middle-market brokerage footprint.The deal adds specialty insurance and E&S access, plus USI's analytics capabilities to Aon's platform.Aon expects $395 million in annual EBITDA benefits, with EPS accretion projected in 2028. Aon plc (AON - Free Report) is making a major push to strengthen its position in the U.S. insurance brokerage market with a $17 billion acquisition of USI Insurance Services from KKR and other shareholders. USI, the 10th-largest U.S. insurance broker, generates about $3 billion in annual revenues, employs more than 10,500 people and operates nearly 200 offices across the country.
The transaction builds on Aon’s $13.4 billion acquisition of NFP in 2024 and significantly expands its footprint across the more than $40 billion U.S. middle-market segment. Expected to be closed in the fourth quarter of 2026, the acquisition will expand Aon's access to specialty insurance and the Excess & Surplus (E&S) segment while adding USI's proprietary analytics capabilities to Aon's broader data platform.
Aon expects the combination to generate around $395 million in annual net adjusted EBITDA benefits through revenues and cost synergies, with adjusted EPS expected to become accretive in 2028. The opportunity is attractive, but the transaction value leaves little room for operational missteps. Aon is paying $16.7 billion net of certain tax attributes, or about 14.5 times synergized trailing adjusted EBITDA, while funding the purchase with new debt.
Overall, this transaction is strategically strong but financially demanding. Aon is taking on more debt in exchange for a larger platform and stronger growth prospects. While the near-term suspension of share repurchases may weigh on shareholder returns, prioritizing debt repayment should improve financial flexibility. If Aon successfully integrates USI, realizes the planned synergies and steadily reduces leverage, the acquisition could become a meaningful earnings driver and create lasting value for shareholders.
AON’s Stock Price PerformanceShares of AON have lost 4.9% over the past six months compared to the industry’s 9.1% growth.
Image Source: Zacks Investment Research
AON’s Zacks Rank & Key PicksAON currently carries a Zacks Rank #3 (Hold).
Investors interested in the broader Finance space may look at some better-ranked stocks like Lincoln National Corporation (LNC - Free Report) , Willis Towers Watson Public Limited Company (WTW - Free Report) and The Hanover Insurance Group, Inc. (THG - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Lincoln National’s 2026 earnings is pegged at $7.97 per share, which has witnessed five upward revisions in the past 30 days, with no movement in the opposite direction. LNC beat earnings estimates in each of the trailing four quarters, with the average surprise being 10.9%. The consensus estimate for 2026 revenues is pinned at $19.9 billion.
The Zacks Consensus Estimate for Willis Towers’ 2026 earnings is pegged at $19.82 per share, which has witnessed 11 upward revisions in the past 30 days, with no movement in the opposite direction. WTW beat earnings estimates in each of the trailing four quarters, with the average surprise being 3.9%. The consensus estimate for 2026 revenues is pinned at $10.51 billion.
The Zacks Consensus Estimate for Hanover Insurance Group’s 2026 earnings is pegged at $20.17 per share, which has witnessed three upward revisions in the past 30 days, with no movement in the opposite direction. THG beat earnings estimates in each of the trailing four quarters, with the average surprise being 27.3%. The consensus estimate for 2026 revenues is pinned at $6.95 billion.
Aon AON is experiencing a decline in its stock price following the announcement of its $17 billion cash acquisition of USI Insurance Services. This move aims to enhance Aon's U.S. middle-market platform, building on its previous acquisition of NFP in 2024. While the strategic benefits are evident, investor concerns center around the deal's size and financing details.
Strategic Rationale: The acquisition of USI boosts Aon's footprint in the $40 billion U.S. middle-market sector. It enhances Aon's Risk Capital and Human Capital services, providing broader access to clients. Additionally, it strengthens Aon's presence in the E&S market, which accounts for 26% of U.S. commercial P&C premiums and is one of the industry's fastest-growing segments. Deal Economics: The net purchase price of $16.7 billion reflects approximately 14.5 times trailing adjusted EBITDA on a synergized basis. Aon anticipates around $395 million in annual run-rate net adjusted EBITDA from identified revenue and cost synergies. This acquisition is expected to foster organic growth by enhancing client access and creating cross-selling opportunities, with synergies projected to be realized by 2029. Q2 Results: Prior to the acquisition announcement, Aon reported healthy underlying business performance, with a 5% organic revenue growth driven by new business and strong client retention. The growth was widespread across its insurance brokerage, reinsurance, and health sectors, while the adjusted operating margin improved by 70 basis points year-over-year to 28.9%. Capital Allocation: Aon plans to finance the acquisition through new debt across various maturities, while aiming to maintain its investment-grade ratings. Following the acquisition, debt repayment will take precedence, and although Aon intends to continue paying a stable and growing dividend, share repurchases are not expected in the near future as the company focuses on deleveraging.The strategic rationale for acquiring USI is clear, significantly enhancing Aon's scale in the U.S. middle market. However, investor focus is primarily on the transaction's price and financing. The $17 billion acquisition, funded through new debt, shifts capital allocation towards deleveraging and delays share repurchases, with adjusted EPS not expected to be accretive until 2028. The purchase multiple of 14.5 times includes anticipated synergies, making the realization of the projected $395 million annual run-rate EBITDA impact critical. Aon's solid underlying business performance suggests that the current stock weakness reflects concerns about the acquisition's size and financing rather than its strategic fit.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Disclosures I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.
Buffett's latest portfolio additions, trims and cuts in Q3AON NYSE: AON said it has entered a definitive agreement to acquire U.S. middle-market insurance broker USI in an all-cash transaction valued at approximately $17 billion, or $16.7 billion net of certain tax attributes. The company expects the deal to close in the fourth quarter of 2026, subject to regulatory approvals and customary closing conditions.
Greg Case, Aon’s president and chief executive officer, described the transaction as a move to establish what the company calls the premier U.S. middle-market platform. The combined operation would bring together Aon, USI and NFP, which Aon previously acquired, and expand the company’s capabilities in property and casualty, employee benefits, personal risk and retirement solutions.
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3 Stocks Hedge Funds Scooped Up in Q1Following the closing, USI Chairman and CEO Mike Sicard is expected to become Aon’s president and global CEO of Middle Market. He will lead the combined platform with leadership drawn from USI, NFP and Aon, Case said.
Middle-Market and E&S Expansion Aon said the transaction will deepen its presence in the U.S. middle market, which Case said represents about one-third of the U.S. commercial property-and-casualty market. The company estimated that the segment includes more than 200,000 businesses employing roughly 48 million people and represents an addressable market of more than $40 billion.
USI has approximately $11 billion of property-and-casualty premium placement and 2,800 producers, according to Aon. The combined middle-market platform is expected to generate $6.5 billion in revenue.
The acquisition also expands Aon’s direct access to the excess and surplus, or E&S, insurance market and wholesale distribution. Case said the E&S segment accounts for 26% of U.S. commercial property-and-casualty premiums and has been growing at an 18% compound annual rate. Aon said its existing direct presence in the segment has been limited largely to its Totalis Specialty business.
Andy Marcell, Aon’s deputy CEO and senior executive vice president of Risk Capital and Human Capital, said direct access to E&S markets would give clients greater choice and enable Aon to better serve specialty and wholesale-related business. He also said USI’s brokers would gain access to Aon’s global retail network, including relationships in London and Bermuda.
Financial Terms and Synergy Plans Nadin Virani, Aon’s interim chief financial officer, said the $17 billion purchase price represents a 14.5-times synergized EBITDA multiple. Aon plans to finance the acquisition with newly issued debt across a range of maturities.
The company identified $395 million in expected adjusted EBITDA impacts from revenue and cost synergies across the full middle-market platform. Those plans include:
$321 million in net revenue synergies across 23 work streams, translating to a projected $115 million EBITDA contribution. $280 million in cost synergies from 10 identified work streams, including technology integration, shared services and Aon Business Services capabilities. Opportunities to improve producer productivity and retention, expand cross-selling between risk capital and human capital solutions, and optimize insurance premium placement. Virani said USI would add $3.3 billion in revenue and $1.2 billion in adjusted EBITDA on a fully synergized trailing 12-month basis. Aon expects the transaction to dilute earnings per share in 2027 before becoming accretive in 2028 and thereafter.
The company anticipates $160 million in transaction costs and $550 million in integration costs, with most integration work expected to be completed by the end of 2028. It also expects retention costs of up to $400 million over three years.
Capital Allocation and Integration Aon said it expects to maintain its current credit ratings and return to its leverage objective of 2.8 times to 3 times approximately 24 months after closing. The company does not expect to repurchase shares in the near term as it prioritizes debt repayment, while continuing to fund a stable and growing dividend and invest in growth opportunities.
Case said the company intends to operate an integrated middle-market platform rather than treat the businesses as separate operations. He said the integration would apply lessons from Aon’s acquisition of NFP, including its approach to producer retention, technology and operating infrastructure.
Sicard said the combination would preserve the importance of producer and client relationships while adding access to a broader set of analytics, solutions and international capabilities. He described USI’s technology and data tools as complementary to Aon’s platform, particularly because USI has focused heavily on the U.S. middle market while Aon has extensive experience serving larger risk-management clients.
Case said the deal is intended to support Aon’s goal of organic revenue growth in the mid-single digits or greater over time, citing the potential to provide more solutions to existing clients, gain new clients and increase participation in the E&S market.
About AON (NYSE:AON)Aon plc is a global professional services firm that provides a broad suite of risk, retirement and health solutions to corporations, institutions and individuals. The company operates primarily as an insurance broker and risk adviser, helping clients identify, quantify and transfer risk across property, casualty, cyber and other areas. Aon also offers reinsurance brokerage and capital market solutions that connect insurers, reinsurers and corporate buyers.
In addition to traditional brokerage activities, Aon delivers consulting and outsourcing services in areas such as human capital, benefits, and retirement plan design and administration.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Aon plc (AON) M&A Call August 31, 2026 8:00 AM EDT
Company Participants
Gregory Case - President, CEO & Executive Director
Michael Sicard - Chairman, Chief Executive Officer and President
Nadin Virani - Interim Chief Financial Officer
Andy Marcell - Deputy CEO and Senior EVP of Risk Capital & Human Capital
Conference Call Participants
David Motemaden - Evercore ISI Institutional Equities, Research Division
Elyse Greenspan - Wells Fargo Securities, LLC, Research Division
Pablo Singzon - JPMorgan Chase & Co, Research Division
Meyer Shields - Keefe, Bruyette, & Woods, Inc., Research Division
Jian Huang - Morgan Stanley, Research Division
Andrew Kligerman - TD Cowen, Research Division
Presentation
Operator
Good morning, and thank you for holding. Welcome to Aon plc's conference call.
[Operator Instructions]
I would also like to remind all parties that this call is being recorded. If anyone has an objection, you may disconnect your line at this time. It is important to note that some of the comments in today's call may constitute certain statements that are forward-looking in nature as defined by the Private Securities Reform Act of 1995.
Such statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or those anticipated. For information concerning these risk factors, please refer to our earnings release for this quarter and our most recent quarterly or annual SEC filings, all of which are available on our website. It is now my pleasure to turn the call over to Greg Case, President and CEO of Aon plc. Thank you. Please go ahead.
Gregory Case
President, CEO & Executive Director
Thank you, Donna. Good morning, everyone, and I appreciate you joining us today. I'm here with Nadin Virani, Interim CFO; Andy Marcell, Deputy CEO and responsibility for Risk Capital and Human Capital; and Michael Sicard, Chairman and CEO of USI. For reference, we published slides on our website that supplement our
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Marek Kameništiak
Fio banka, a.s.
Prohlášení
Aon PLC (NYSE:AON) has agreed to acquire insurance brokerage USI from KKR for $17 billion including debt, the companies said Monday, as Aon expands its reach among medium-sized businesses.
USI provides risk management, health insurance and retirement plan services for businesses and individuals, and reports about $3 billion in annual revenue.
The purchase price is $17 billion, or $16.7 billion on a net basis, reflecting approximately $278 million of certain tax attributes, the companies said.
The net purchase price represents approximately 14.5x on a synergized trailing twelve-month adjusted EBITDA basis.
Aon expects to fund the transaction, as well as related transaction expenses and other costs, with new debt raised across a range of maturities, subject to market conditions.
"Combining with USI will establish the premier U.S. middle-market platform, deepen our context advantage and position Aon to accelerate organic growth,” Aon CEO Greg Case said in a statement.
The deal marks the latest exit for KKR, which acquired USI along with another investment firm for $4.3 billion in 2017.
The private equity firm recently reported a record $1.29 billion in quarterly asset sales.
Aon PLC (NYSE:AON) has agreed to acquire insurance brokerage USI from KKR for $17 billion including debt, the companies said Monday, as Aon expands its reach among medium-sized businesses.
USI provides risk management, health insurance and retirement plan services for businesses and individuals, and reports about $3 billion in annual revenue.
The purchase price is $17 billion, or $16.7 billion on a net basis, reflecting approximately $278 million of certain tax attributes, the companies said.
The net purchase price represents approximately 14.5x on a synergized trailing twelve-month adjusted EBITDA basis.
Aon expects to fund the transaction, as well as related transaction expenses and other costs, with new debt raised across a range of maturities, subject to market conditions.
"Combining with USI will establish the premier U.S. middle-market platform, deepen our context advantage and position Aon to accelerate organic growth,” Aon CEO Greg Case said in a statement.
The deal marks the latest exit for KKR, which acquired USI along with another investment firm for $4.3 billion in 2017.
The private equity firm recently reported a record $1.29 billion in quarterly asset sales.
Insurance broker Aon announced on Monday it will purchase rival USI Insurance Services from private equity firm KKR.
The $17 billion deal, which will be funded by Aon with new debt, is anticipated to close in the fourth quarter, subject to regulatory approvals.
CEO Greg Case in an appearance on CNBC's "Squawk Box" Monday said that the merger will establish the "premier U.S. middle-market platform."
"This means we're going to be in a position to bring world class solutions to the underserved U.S. middle market, and … set a new standard of client leadership for the 200,000 middle-market companies in the U.S. and their 48 million employees," he said.
The acquisition for Aon builds on the company's purchase of NFP in 2024, another insurance broker focused on the U.S. middle market.
USI, according to a press release announcing the deal, is the tenth largest insurance broker in the U.S. The company has more than $3 billion in annual revenue, and more than 10,500 employees.
Once a deal is closed, USI CEO Mike Sicard will transition to Aon's president and global CEO of middle market.
"Joining Aon represents a truly energizing next chapter for our firm and an opportunity to accelerate our momentum as part of the Aon United platform," Sicard said in the release. "Our firms share strong, one-firm cultures with a deep commitment to working together to bring the best of our capabilities to clients."
In a press release, KKR partner Chris Harrington said Aon is the ideal partner to support USI's next growth chapter.
Shares of Aon slipped about 1% in premarket trading Monday. But despite the initial slide, Case said the opportunity to serve the middle market at the scale the company now can through the acquisition has tremendous value potential for shareholders.
"Maybe the greatest I've seen in my 20-year career as CEO," he said.
Q3 2026 Insurance Labor Market Study Results Reflect Slowing Turnover and Modest Growth The latest iteration of the Semi-Annual U.S. Insurance Labor Market Study, conducted by The Jacobson Group, the leading provider of talent to the insurance industry, and Aon (NYSE: AON), a leading global professional services firm, found 89% of respondents intend to increase or maintain staff size in the next 12 months.
“While about half of carriers plan to increase their staff sizes in the next 12 months, it seems many companies are hiring to backfill key positions and bring in new talent, rather than hiring for growth, given revenue expectations,” said Jeffrey Blair, Senior Vice President of Executive Search and Business Development at The Jacobson Group.
“Lower employee turnover, both voluntary and involuntary is a positive trend that may indicate more stability for carriers, but also make recruiting for certain positions more challenging if incumbents are not actively looking to leave their current employer,” added Jeff Rieder, Head of Performance Benchmarking, Strategy and Technology Group, Aon.
Some of the study’s key findings include the following:
In the next 12 months, 49% of insurance carriers plan to increase staff. Eleven percent plan to decrease staff, up from 7% in January and down from 14% one year ago.Technology, underwriting and claims roles remain the industry’s greatest need.Seventy-eight percent of companies expect revenue growth during the next 12 months, up six points from January’s study.Compared to July 2025, recruiting difficulty has decreased in nine of 12 categories. Actuarial, technology and executive roles are the most challenging to fill.During the next six months, 74% of carriers expect most employees to work a hybrid schedule, up three points from January. Seven percent require employees in the office every day, unchanged from January’s study.If carriers follow through on their plans, the industry will see a 0.78% increase in employment during the next 12 months.For more highlights and commentary, view the full results summary and recorded webcast.
The insurance labor market study has been conducted semi-annually since 2009. Collecting revenue and hiring projections from carriers across all sectors of the industry, it provides a valuable look at the insurance labor market outlook and hiring trends.
The study’s next iteration will occur in January 2027. To be alerted when it opens, sign up for labor study notifications.
About The Jacobson Group:
The Jacobson Group is the leading provider of talent to the insurance industry. For more than 50 years, Jacobson has been connecting insurance organizations with professionals at all levels across all industry verticals. Jacobson provides insurance talent solutions to support virtually any human capital need. We offer executive search services and comprehensive staffing solutions, including professional recruiting, temporary staffing and interim experts.
Follow The Jacobson Group on LinkedIn, X, Instagram and Facebook.
About Aon:
Aon plc (NYSE: AON) exists to shape decisions for the better — to protect and enrich the lives of people around the world. Through actionable analytic insight, globally integrated Risk Capital and Human Capital expertise, and locally relevant solutions, our colleagues provide clients in over 120 countries with the clarity and confidence to make better risk and people decisions that help protect and grow their businesses.
Follow Aon on LinkedIn, X, Facebook and Instagram. Stay up-to-date by visiting Aon’s newsroom and sign up for news alerts here.
Aon UK Limited is authorised and regulated by the Financial Conduct Authority for the provision of regulated products and services in the UK. Registered in England and Wales. Registered number: 00210725. Registered Office: The Aon Centre, The Leadenhall Building, 122 Leadenhall Street, London EC3V 4AN. Tel: 020 7623 5500. Aon is not responsible for the content of the third party website.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260825343235/en/
Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.
It has been about a month since the last earnings report for Aon (AON - Free Report) . Shares have lost about 4.6% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Aon due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for Aon plc before we dive into how investors and analysts have reacted as of late.
Aon Q2 Earnings Beat Estimates on New Business Wins, Strong Retention
Aon reported second-quarter 2026 adjusted earnings of $3.81 per share, which surpassed the Zacks Consensus Estimate by 1.1%. The bottom line advanced 9% year over year.
Total revenues of $4.2 billion grew 2% year over year. The top line missed the consensus mark by 0.4%. Organic revenue growth was 5%.
The quarterly results were supported by strong organic revenue growth, healthy client retention, operating margin expansion and disciplined execution. Solid performance across the Commercial Risk, Reinsurance and Health Solutions businesses was partly offset by weakness in Wealth Solutions.
AON’s Q2 OperationsTotal operating expenses inched up 1% year over year to $3.3 billion due to higher expenses related to organic revenue growth, investments in long-term growth and unfavorable foreign currency translation. This was partly offset by lower expenses associated with the sale of NFP Wealth. The metric was in line with our estimate.
Adjusted operating income amounted to $1.2 billion, up 5% year over year and in line with our estimate. The metric benefited from organic revenue growth, scale improvements in scale improvements in Aon Business Services (ABS) and net restructuring savings, partially offset by growth investments. Adjusted operating margin improved 70 basis points year over year to 28.9%.
Q2 Segmental PerformanceRisk CapitalCommercial Risk Solutions: Organic revenues rose 5% year over year in the second quarter on the back of new business and strong retention rates across North America and EMEA. Revenues in this solution line advanced 5% year over year to $2.3 billion, in line with the Zacks Consensus Estimate.
Reinsurance Solutions: Organic revenues grew 5% year over year, driven by increased treaty placements, new business wins and strong client retention, along with growth in facultative placements. Revenues amounted to $711 million, which improved 3% year over year but missed the consensus mark by 1%.
Human CapitalHealth Solutions: Organic revenues inched up 5% year over year as a result of new business growth, strong retention rates and positive market impact. The solution line’s revenues increased 6% year over year to $818 million, which beat the Zacks Consensus Estimate by 0.4%.
Wealth Solutions: Organic revenue growth of 5% was driven by expansion in Retirement and continued demand for advisory services in the UK and EMEA amid ongoing regulatory changes. Revenues totaled $426 million, down 18% year over year. The metric lagged the consensus mark by 3.2%.
AON’s Q2 Financial PositionAon exited the second quarter with cash and cash equivalents of $1.1 billion, which declined 11.1% from the 2025-end level. Total assets of $53.3 billion increased 5% from the 2025-end figure.
Long-term debt amounted to $12.9 billion, down 11.7% from the figure as of Dec. 31, 2025. Short-term debt and the current portion of long-term debt totaled $2 billion.
Aon generated cash flow from operations of $556 million, which decreased 30% year over year. Adjusted free cash flow decreased 34% year over year to $483 million.
Aon’s Capital Deployment UpdateAon bought back 1.9 million Class A ordinary shares for roughly $600 million in the second quarter of 2026. It also returned $175 million to shareholders through dividends. As of June 30, 2026, the company had approximately $7.7 billion remaining under its share repurchase authorization.
AON Reaffirms Its 2026 OutlookAon expects mid-single-digit or higher organic revenue growth in 2026. The company anticipates adjusted operating margin expansion of 70-80 basis points. It projects strong growth in adjusted EPS for the year. Free cash flow is likely to grow at a double-digit rate, while the tax rate is expected to be in the 19.5-20.5% range.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates review.
VGM ScoresAt this time, Aon has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. Charting a somewhat similar path, the stock was allocated a score of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Aon has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerAon belongs to the Zacks Insurance - Brokerage industry. Another stock from the same industry, Brown & Brown (BRO - Free Report) , has gained 0.7% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.
Brown & Brown reported revenues of $1.68 billion in the last reported quarter, representing a year-over-year change of +30.4%. EPS of $1.07 for the same period compares with $1.03 a year ago.
For the current quarter, Brown & Brown is expected to post earnings of $1.09 per share, indicating a change of +3.8% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.8% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Brown & Brown. Also, the stock has a VGM Score of F.
Aon Plc (AON.N) is close to an agreement to acquire insurance brokerage USI Insurance Services from private equity firm KKR (KKR.N) for about $17 billion, including debt, the Wall Street Journal reported on Sunday, citing people familiar with the matter.
The deal could be announced as early as Monday, the report said, provided the negotiations are successfully concluded.
Reuters could not immediately verify the report.
London-headquartered Aon and Valhalla, New York-based USI could not immediately be reached for comment. New York City-based KKR declined to comment.
The deal would be the latest in a string of big exits for KKR, which includes the sale of its data-center cooling business CoolIT and the sale of the commercial and defense aerospace unit of Circor.
KKR, along with Canadian pension fund Caisse de dépôt et placement du Québec, acquired USI from Onex Corporation (ONEX.TO) in 2017 for $4.3 billion, including debt. KKR has since made additional investment of more than $1 billion, making it the largest shareholder.
The acquisition would boost USI's capabilities in helping midsize businesses and is expected to increase earnings per share as soon as 2028, according to the report.
Aon is nearing a roughly $17 billion deal, including debt, to acquire insurance brokerage USI from private-equity firm KKR, The Wall Street Journal reported Sunday.
A deal could be announced as soon as Monday, the Journal said, citing people familiar with the matter.
USI is an insurance brokerage and consulting firm based in Valhalla, N.Y., that specializes in risk management, employee benefits and retirement consulting. The company has about $3 billion in annual revenue, according to its website.
KKR bought USI from private-equity firm Onex in 2017 and has since increased its ownership stake, becoming the company's largest shareholder in 2023.
A possible deal for USI would follow a string of prominent exits for KKR, including sales of data-center cooling firm CoolIT and Circor's commercial and defense aerospace business earlier this year. KKR reported a record $1.29 billion in asset sales for the quarter that ended in June.
A USI deal would help Aon — a large insurance broker and consultancy with a market capitalization of $75 billion — extend its reach into midsize businesses and boost earnings per share as soon as 2028, the Journal reported, citing a person familiar with the matter.
Aon reported second-quarter adjusted earnings of $3.81 per share on July 29, topping Wall Street analysts' estimates. The stock has since fallen by 5.6%, closing at $355.40 on Friday.
Read the complete Wall Street Journal report here.
Aon Plc is close to an agreement to acquire insurance brokerage USI Insurance Services from private equity firm KKR for about $17 billion, including debt, the Wall Street Journal reported on Sunday, citing people familiar with the matter.
The deal could be announced as early as Monday, the report said, provided the negotiations are successfully concluded.
Aon PLC could announce a deal for KKR’s USI Insurance Services business as soon as Monday. Bloomberg via Getty Images Reuters could not immediately verify the report.
London-headquartered Aon and Valhalla, N.Y.-based USI could not immediately be reached for comment. New York City-based KKR declined to comment.
The deal would be the latest in a string of big exits for KKR, which includes the sale of its data-center cooling business CoolIT and the sale of the commercial and defense aerospace unit of Circor.
KKR and Canadian pension fund Caisse de dépôt et placement du Québec acquired USI in 2017. REUTERS KKR, along with Canadian pension fund Caisse de dépôt et placement du Québec, acquired USI from Onex Corporation in 2017 for $4.3 billion, including debt. KKR has since made additional investment of more than $1 billion, making it the largest shareholder.
The acquisition would boost USI’s capabilities in helping midsize businesses and is expected to increase earnings per share as soon as 2028, according to the report.
Builds on the successful acquisition of NFP to advance leading platform in the large and growing U.S. middle market Extends Aon's differentiated capabilities to provide better choice, superior solutions and greater value for clients Expands Aon's access to the Excess & Surplus (E&S) segment, among the fastest-growing areas in U.S. commercial insurance Enhances Aon's industry-leading data platform, deepening its context advantage Following the close of the transaction, USI Chairman and CEO Mike Sicard will serve as President of Aon plc and global CEO of Middle Market for the firm Purchase price of $17.0 billion; transaction expected to deliver $395 million in annual run-rate net adjusted EBITDA impact from revenue and cost synergies across the combined middle-market platform and to be accretive to adjusted EPS in 2028 Aon to host conference call to discuss transaction on August 31, 2026, at 8:00 AM ET , /PRNewswire/ -- Aon plc (NYSE: AON), a leading global professional services firm, today announced the signing of a definitive agreement to acquire USI from KKR and other shareholders for a total purchase price of $17.0 billion. The transaction establishes the premier platform in the large and growing U.S. middle-market segment, building on the success of Aon's acquisition of NFP in 2024.
USI, a leading provider of property & casualty, employee benefit, personal risk and retirement solutions for the middle market, is the tenth largest U.S. insurance broker with approximately $3 billion in annual revenue and more than 10,500 team members across nearly 200 U.S. offices. Powered by its proprietary USI ONE® platform for analytics, networked resources and strategic planning to inform and advise clients, USI is highly complementary with Aon's one-firm, Aon United strategy and global Aon Business Services operating and technology engine.
"In a time of rising complexity and volatility, creating better outcomes for clients across their risk and people challenges requires a combination of capabilities and expertise supported by proprietary data, analytics and technology," said Greg Case, President and CEO of Aon. "Through the successful execution of our 3x3 Plan to accelerate our Aon United strategy, we have significantly strengthened our firm to build the industry's most differentiated model: what we call our context advantage."
Case added: "Combining with USI will establish the premier U.S. middle-market platform, deepen our context advantage and position Aon to accelerate organic growth. Building on the success of our acquisition of NFP, USI will substantially enhance our middle-market footprint and expand access for our firm in the E&S segment to deliver content, capabilities and expertise to a broader client base, while enabling client leaders to expand relationships and win new business. Our combined data platform will generate richer insight, advance the development of innovative, AI-driven solutions and expand the universe of insurable risk, while further reinforcing the context advantage that differentiates Aon. For nearly two decades, Mike Sicard has built and led a high-performing and integrated team, and I am excited about the opportunities we will create together for our clients, colleagues and shareholders."
Following the close of the transaction, USI Chairman and CEO Mike Sicard will serve as President of Aon plc and global CEO of Middle Market, reporting to Case, and join the Aon Executive Committee.
"Joining Aon represents a truly energizing next chapter for our firm and an opportunity to accelerate our momentum as part of the Aon United platform," said Sicard. "Our firms share strong, one-firm cultures with a deep commitment to working together to bring the best of our capabilities to clients. I look forward to leading Aon's middle-market platform and uniting the strengths of USI, NFP and Aon to deliver a new standard of content, capabilities and service to our clients."
Compelling Strategic and Financial Rationale
Establishes the leading platform in the large and growing U.S. middle-market segment. The addition of USI substantially enhances Aon's presence in the more than $40 billion U.S. middle-market segment. The middle-market segment represents more than one third of U.S. commercial P&C direct written premium. The acquisition will also extend Aon's capabilities across health, talent and Human Capital advisory offerings to provide better choice, superior solutions and greater value for clients. Expands Aon's direct access to the E&S segment, distributed through Managing General Agents, Managing General Underwriters and Wholesalers. USI's emerging wholesale capabilities will strengthen Aon's ability to meet a wider range of client needs and meaningfully participate in the E&S segment, among the fastest-growing areas in U.S. commercial insurance, representing 26% of U.S. commercial P&C premiums. Enhances Aon's industry-leading data platform, deepening its context advantage. The transaction will expand Aon's data ecosystem and augment the firm's proprietary data flow, fidelity and analytics to generate richer insights and deliver differentiated, AI-enabled solutions and drive better client outcomes. Unites organizations with shared one-firm mindsets and proven leadership teams, facilitating a faster, more seamless integration and greater value capture. Powered by its proprietary USI ONE® platform for analytics, USI is highly complementary with Aon's one-firm, Aon United strategy and global Aon Business Services operating and technology engine. With experienced leadership across USI, NFP and Aon, the combined firm will be well positioned to capture the unique value of its middle-market platform. Creates compelling long-term shareholder value with significant synergies, enhanced growth opportunities and larger addressable markets. The combination is expected to accelerate organic growth across Aon's middle-market platform by enhancing client access to value-added capabilities. Building on the firm's demonstrated success in integrating NFP, Aon has a clear path to deliver approximately $395 million in annual run-rate net adjusted EBITDA impact from identified revenue and cost synergies across the combined middle-market platform. Aon expects the acquisition to be accretive to adjusted EPS in 2028 and thereafter. Transaction Details
The purchase price for USI is $17.0 billion, or $16.7 billion on a net basis, which reflects approximately $278 million of certain tax attributes. The net purchase price represents approximately 14.5x on a synergized trailing twelve-month adjusted EBITDA basis.
Aon expects to fund the transaction, as well as related transaction expenses and other costs, with new debt raised across a range of maturities, subject to market conditions.
The firm expects to maintain its current rating of Baa2 with Moody's and A- with S&P. Aon will continue to execute its disciplined capital allocation strategy, prioritizing de-leveraging, funding a stable and growing dividend and balancing investments for growth with return of excess capital. Consistent with this strategy, the firm does not expect to repurchase shares in the near-term as it prioritizes debt repayment.
The transaction has been unanimously approved by the Board of Directors of Aon and the Board of Directors of USI. Closing of the transaction is subject to customary conditions, including regulatory approvals, and is expected to occur in the fourth quarter of 2026. Aon and USI will continue to operate independently until the closing date.
Conference Call, Presentation Slides and Webcast Details
The firm will host a conference call on August 31, 2026, from 8:00-8:45 AM ET. Interested parties can listen to the conference call via a live audio webcast and view the presentation slides at ir.aon.com.
Advisors
BofA Securities and Citi served as financial advisors to Aon on the transaction. Cravath, Swaine & Moore LLP acted as legal counsel to Aon, McDermott Will & Schulte LLP acted as legal advisor to Aon with respect to regulatory matters and Skadden, Arps, Slate, Meagher & Flom is acting as financing counsel to Aon.
About USI Insurance Services
USI is one of the largest insurance brokerage and consulting firms in the United States, delivering property and casualty, employee benefits, personal risk, program and retirement solutions to its clients nationwide. Headquartered in Valhalla, New York, USI connects more than 10,500 industry-leading professionals from nearly 200 offices to serve clients' needs. USI has become a premier insurance brokerage and consulting firm by leveraging the USI ONE Advantage®, an interactive platform that integrates proprietary and innovative client solutions, networked local resources and enterprise-wide collaboration to deliver customized results with positive, bottom-line impact. For more information about USI, please visit www.usi.com.
About Aon
Aon plc (NYSE: AON) exists to shape decisions for the better — to protect and enrich the lives of people around the world. Through actionable analytic insight, globally integrated Risk Capital and Human Capital expertise, and locally relevant solutions, our colleagues provide clients in over 120 countries with the clarity and confidence to make better risk and people decisions that protect and grow their businesses.
Follow Aon on LinkedIn, X, Facebook and Instagram. Stay up-to-date by visiting Aon's newsroom and sign up for news alerts here.
Media Contacts
Aon
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Safe Harbor Statement
This communication contains certain statements related to future results, or states Aon's intentions, beliefs and expectations or predictions for the future, all of which are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from either historical or anticipated results depending on a variety of factors. These forward-looking statements include information about possible or assumed future results of Aon's operations. All statements, other than statements of historical facts, that address activities, events or developments that Aon expects or anticipates may occur in the future, including, without limitation, statements about Aon's outlook, expected market and industry conditions, including competitive and pricing trends, the development and performance of Aon's services and products, the expected timing and closing requirements for completing the proposed acquisition, the expected benefits of the proposed acquisition, including advances in the middle-market segment and access to the Excess & Surplus segment, business generation, revenue and cost synergies, increased profitability, the timing of value capture and costs and other anticipated financial impacts of the proposed acquisition, including with respect to credit ratings, expected governance and stakeholder value impacts as a result of the proposed acquisition, Aon's expected cost structure and the outcome of cost-saving or restructuring initiatives, including the impacts of the Accelerating Aon United Program and the integration of USI, Aon's, USI's and the combined firm's plans, objectives, expectations and intentions, actual or anticipated legal settlement expenses, future capital expenditures, growth in commissions and fees, changes to the composition or level of our revenues, cash flow and liquidity, expected tax rates, expected foreign currency translation impacts, business strategies, competitive strengths, goals, the benefits of new initiatives, growth of Aon's business and operations, plans and references to future successes are forward-looking statements. Also, when Aon uses words such as "anticipate", "believe", "continue", "confidence", "conviction", "could", "estimate", "expect", "forecast", "intend", "looking forward", "may", "might", "plan", "potential", "opportunity", "commit", "probably", "project", "positioned", "should", "will", "would" or similar expressions, it is making forward-looking statements.
The following factors, among others, could cause actual results to differ materially from those set forth in or anticipated by the forward-looking statements: the possibility that the proposed acquisition will not be consummated, uncertainties relating to the timing of consummation of the proposed acquisition, failure to obtain necessary regulatory approvals or to satisfy any of the other conditions to the proposed acquisition, adverse effects on the market price of Aon's securities and on Aon's operating results for any reason, including, without limitation, because of the failure to consummate the proposed acquisition, the failure to realize the expected benefits of the proposed acquisition (including anticipated revenue and cost synergies), the failure to effectively integrate the combined companies following consummation of the proposed acquisition, the diversion of management time on transaction-related issues, negative effects of an announcement of the proposed acquisition, changes in global, political, economic, business, competitive, market and regulatory forces, future exchange and interest rates, changes in tax laws, regulations, rates and policies, future business acquisitions or disposals, or any announcement relating to the consummation of or failure to consummate the proposed acquisition on the market price of Aon's securities, significant transaction and integration costs or difficulties in connection with the proposed acquisition and/or unknown or inestimable liabilities, potential litigation associated with the proposed acquisition, the potential impact of the announcement or consummation of the proposed acquisition on relationships, including with suppliers, customers, employees and regulators, and general economic, business and political conditions (including any epidemic, pandemic or disease outbreak) that affect the combined companies following the consummation of the proposed acquisition.
Any or all of Aon's forward-looking statements may turn out to be inaccurate, and there are no guarantees about Aon's performance. The factors identified above are not exhaustive. Aon and its subsidiaries operate in a dynamic business environment in which new risks may emerge frequently. Accordingly, you should not place undue reliance on forward-looking statements, which speak only as of the dates on which they are made.
In addition, results for prior periods are not necessarily indicative of results that may be expected for any future period. Further information concerning Aon and its businesses, including factors that could materially affect Aon's financial results, is contained in Aon's filings with the SEC. See Aon's Annual Report on Form 10-K for the year ended December 31, 2025 and subsequent Quarterly Reports on Form 10-Q for further discussion of these and other risks and uncertainties applicable to Aon and its businesses. These factors may be revised or supplemented in subsequent reports filed with the SEC. Aon is not under, and expressly disclaims, any obligation to update or alter any forward-looking statement that it may make from time to time, whether as a result of new information, future events or otherwise.
No Offer or Solicitation
This communication is for information purposes only and is not intended to and does not constitute, or form part of, an offer, invitation or the solicitation of an offer or invitation to purchase, otherwise acquire, subscribe for, sell or otherwise dispose of any securities, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in contravention of applicable law. No offer of securities shall be made in the United States absent registration under the U.S. Securities Act of 1933, as amended, or pursuant to an exemption from, or in a transaction not subject to, the registration requirements thereof.
Explanation of Non-GAAP Measures
This communication includes supplemental information not calculated in accordance with generally accepted accounting principles in the United States ("U.S. GAAP"), including Aon's organic revenue growth, USI's EBITDA, USI's adjusted EBITDA, synergized adjusted EBITDA, Aon's adjusted diluted net income per share ("adjusted EPS") and certain other noteworthy items that affected results for the comparable periods. Organic revenue growth includes the impact of intercompany activity and excludes foreign exchange rate changes, acquisitions (provided that organic revenue growth includes organic growth of an acquired business as calculated assuming that the acquired business was part of the combined company for the same proportion of the relevant prior year period), divestitures (including held for sale disposal groups, which are adjusted from organic revenue growth upon classification as held for sale, if any), transfers between revenue lines, fiduciary investment income and gains or losses on derivatives accounted for as hedges. Reconciliations to the closest U.S. GAAP measure for each non-GAAP measure presented in this communication are provided in the attached appendices. Supplemental organic revenue growth information and additional measures that exclude the effects of certain items noted above do not affect net income or any other U.S. GAAP reported amounts. EBITDA is net income minus the impact of interest, taxes, depreciation and amortization. Adjusted EBITDA is EBITDA minus the impact of earnout adjustments and accretion of discount, certain acquisition related tax obligations, certain restructuring costs and management fees. Synergized adjusted EBITDA, presented including the full benefit of estimated run-rate cost and net revenue synergies expected to be substantially realized in the period between the anticipated closing date and 2029, is based on management's estimates, assumptions and projections and has not been prepared in conformance with the applicable requirements of Regulation S-X relating to pro forma financial information, and the required pro forma adjustments have not been applied and are not reflected therein. This information should not be considered in isolation from, or as a substitute for, the historical financial statements of USI. This information does not reflect what USI's financial condition or results of operations would have been had the proposed transaction occurred on or prior to the dates indicated. Various factors could cause actual future results to differ materially from those currently estimated by management, including, but not limited to, the risks described above and in Aon's filings with the SEC. Management believes that these measures are important to make meaningful period-to-period comparisons and that this supplemental information is helpful to investors. Management also uses these measures to assess operating performance and performance for compensation. Non-GAAP measures should be viewed in addition to, not in lieu of, Aon's Condensed Consolidated Financial Statements. Industry peers provide similar supplemental information regarding their performance, although they may not make identical adjustments. Aon does not provide a reconciliation of forward-looking non-GAAP measures, such as EBITDA, adjusted EBITDA and synergized adjusted EBITDA, where Aon believes such a reconciliation would imply a degree of precision and certainty that could be misleading and is unable to reasonably predict certain items contained in the corresponding GAAP measures without unreasonable efforts. This is due to the inherent difficulty of forecasting the timing or amount of various items that have not yet occurred and are out of Aon's control or cannot be reasonably predicted. These items are uncertain, depend on various factors and could have a material impact on U.S. GAAP reported results. For these reasons, Aon is also unable to address the probable significance of the unavailable information.
Key Takeaways Aon posted 5% organic revenue growth in Q2, with all four solution lines growing 5%.Aon's restructuring delivered $25 million in Q2 savings, helping adjusted margins expand 70 basis points.AON returned $775 million to shareholders in Q2 as cash flow and buybacks continued to strengthen. Aon plc (AON - Free Report) is a leading global provider of risk, retirement and health solutions, serving clients across more than 120 countries. The company has been benefiting from steady organic growth, strong client retention and strategic acquisitions. Its shares have lost 1.3% year to date compared with the industry’s average decline of 5.7% over the same period.
Valuation of AONAON has a market capitalization of nearly $73.9 billion. The stock appears somewhat expensive relative to the industry. Shares are currently trading at a forward 12-month P/E of around 17.1X, above the industry average of 16.1X, reflecting a premium valuation. The stock currently carries a Value Score of D.
Where Do Estimates for AON Stand?Aon is expected to deliver year-over-year earnings growth of 11.6% in 2026 to $19.05 per share, followed by an additional 11.3% increase in 2027. Over the past month, analysts have raised 2026 earnings estimates two times versus six downward revisions. The consensus estimate for 2026 revenues is pegged at $17.91 billion, implying year-over-year growth of 4.3%.
AON beat on earnings in each of the trailing four quarters, delivering an average surprise of 2.7%. This is depicted in the figure below.
Aon plc Price, Consensus and EPS SurpriseWhat’s Favoring AON Stock?Aon continues to deliver consistent organic growth despite less favorable insurance pricing conditions. In the second quarter of 2026, organic revenues increased 5%, with all four solution lines delivering 5% growth. New business contributed 10 points to organic growth, while retention remained in the mid-90s. Its growth is being driven more by client demand and new business than by pricing, supporting the durability of Aon’s business model.
Aon’s Accelerating Aon United restructuring program continues to generate savings and improve operating efficiency. The company delivered $25 million of restructuring savings in the second quarter, contributing about 60 basis points to adjusted operating margin. Aon remains on track to generate $100 million of savings in 2026 and reach its longer-term goal of $450 million in cumulative savings by 2027. At the same time, the scalable Aon Business Services (“ABS”) platform is using AI-enabled productivity improvements and disciplined expense management to lower unit costs. These efforts helped adjusted operating margin expand 70 basis points to 28.9% in the second quarter of 2026.
Aon continues to expand its middle-market platform through programmatic tuck-in acquisitions. The company has deployed more than $350 million of capital year to date, including investments that strengthen its MGU and MGA capabilities, while continuing to use the ABS platform to accelerate NFP's growth. In second quarter, Aon also invested $29 million in targeted middle-market acquisitions that met its strategic priorities and return thresholds. This strategy is helping Aon broaden its capabilities and addressable market while maintaining a disciplined approach to capital allocation.
Aon's improving earnings and cash generation continue to provide significant financial flexibility. Operating cash flow increased 5% year over year to $986 million in the first half of 2026, while free cash flow rose 4% to $846 million. In second quarter of 2026, Aon returned $775 million to shareholders, including $600 million through share repurchases and $175 million in dividends. The company has already exceeded its full-year target of at least $1 billion in share repurchases, while approximately $7.7 billion remained available under its authorization as of June 30,2026, supporting continued shareholder-friendly initiatives.
Risks to WatchAon continues to operate with a highly leveraged balance sheet following years of acquisitions, including NFP. As of June 30, 2026, the company had approximately $1.1 billion in cash and cash equivalents, $2.0 billion in short-term debt and current maturities and $12.9 billion in long-term debt. Total shareholders' equity stood at $9.6 billion. The sizable debt load remains an important risk for investors, particularly if operating conditions weaken or the company needs to allocate more cash toward debt repayment.
Aon's debt burden continues to result in substantial interest costs. Interest expense totaled $358 million in the first half of 2026, down 14.4% from $418 million a year earlier, primarily reflecting lower average debt balances. The improvement is encouraging, but interest expense remains a meaningful cash and earnings obligation. Aon expects interest expense of approximately $185 million in the third quarter of 2026. A sustained high interest burden could also limit Aon’s financial flexibility if operating conditions weaken.
Aon’s disciplined execution, ongoing efficiency initiatives and strategic investments should continue to support long-term growth and gradual deleveraging. The company currently carries a Zacks Rank #3 (Hold), reflecting balanced near-term risk and reward potential.
Key PicksInvestors interested in the broader Finance space can look at some better-ranked stocks like Accelerant Holdings (ARX - Free Report) , Willis Towers Watson Public Limited Company (WTW - Free Report) and Erie Indemnity Company (ERIE - Free Report) each sporting a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Accelerant’s 2026 earnings is pegged at 87 cents per share, which has witnessed four upward revision in the past 30 days, with no movement in the opposite direction. ARX beat earnings estimates in each of the trailing four quarters, with the average surprise being 55.7%. The consensus estimate for 2026 revenues is pinned at $1.16 billion.
The Zacks Consensus Estimate for Willis Towers’ 2026 earnings is pegged at $19.77 per share, which has witnessed nine upward revisions in the past 30 days, with no movement in the opposite direction. WTW beat earnings estimates in each of the trailing four quarters, with the average surprise being 3.9%. The consensus estimate for 2026 revenues is pinned at $10.51 billion, implying 8.2% year-over-year growth.
The Zacks Consensus Estimate for Erie Indemnity’s 2026 earnings is pegged at $12.55 per share, indicating 37.2% year-over-year growth. ERIE beat earnings estimates in two of the trailing four quarters but missed in the other two, with the average negative surprise being 30%. The consensus estimate for 2026 revenues is pinned at $4.17 billion, implying 2.5% year-over-year growth.
Fourth straight year of near double-digit increases for U.S. employers Employers now absorb more than 80% of health plan costs as rising expenses increasingly impact workforce and business planning decisions The average employee is expected to spend nearly $5,300 on health care in 2026, reflecting continued pressure on household budgets , /PRNewswire/ -- Aon plc (NYSE: AON), a leading global professional services firm, revealed today that U.S. employer health care costs are projected to rise 9.5%* in 2027, pushing average costs above $19,000 per employee.
This projection marks the fourth consecutive year of elevated health care cost trends approaching double digits, extending one of the most sustained periods of health care inflation employers have faced in decades.
* Total Employee Costs reflects Premiums from Paycheck and Out-of-Pocket Costs. Medical spending continues to rise as utilization of health care services increases, chronic conditions become more prevalent and the numbers of high-cost claims grow. Prescription drug spending also remains a significant contributor, driven by growing use of specialty medications and continued adoption of GLP-1 therapies. As these treatments expand into new clinical areas such as cardiovascular disease, sleep apnea and chronic kidney disease as emerging oral formulations broaden access and treatment options, employers are facing increasing pressure to balance access, affordability and long-term sustainability.
Additional cost pressure is emerging as providers adopt technologies, including AI, that support more detailed clinical documentation and coding, contributing to higher billed charges in some instances.
"Employers have now experienced several consecutive years of health care cost increases that are approaching double digits," said Mike Pasterick, North America Health Solutions Leader for Aon. "At this level, rising health care costs become much more than a budgeting challenge and influence organizational decisions from benefits strategy and employee affordability to broader workforce and financial planning priorities. Leaders are undergoing pressure to maintain affordable benefits while continuing to invest in attracting, supporting and retaining talent."
The Growing Cost Burden on Employers and Employees
Although health care costs are projected to increase 9.5% in 2027 before mitigation efforts, employers routinely implement plan design changes and cost-management strategies to help offset a portion of those increases.
The chart detailing Annual Changes to Total Cost of Care reflects actual employer and employee health care costs in 2026 after those actions were taken, providing a view of how rising costs are ultimately shared between employers and employees.
Even after implementing measures to manage costs, employers continue to absorb most of the increase. Employer health care cost increases have more than doubled since 2022, rising from 3.7% to 8.8% in 2026. On average, employers are responsible for about 82% of the plan cost, reflecting ongoing efforts to limit the financial impact on employees.
Plan Cost
2025
2026
Change from
2025 to 2026
Employer Cost
$13,269
$14,432
8.8 %
Employee Premiums from Paycheck
$2,943
$3,130
6.4 %
Total Plan Cost**
$16,212
$17,562
8.3 %
Employer Subsidy
81.8 %
82.2 %
0.4 %
While average plan costs increased 8.3%, the average tells only part of the story. The middle 50% of employers experienced increases ranging from 5.5% to 11.5%, demonstrating the wide variation in cost pressures organizations are facing.
Employee Costs***
2025
2026
Change from
2025 to 2026
Employee Premiums from Paycheck
$2,943
$3,130
6.4 %
Employee Out-of-Pocket Costs
$1,966
$2,167
10.2 %
Total Employee Costs
$4,909
$5,297
7.9 %
Employees are also facing growing affordability pressures. In 2026, employees are expected to pay an average of $5,297 for health care coverage, including both payroll contributions ($3,130) and out-of-pocket expenses ($2,167). The increase in out-of-pocket costs can be attributed to the increased utilization of health care services, as well as the enrolment in leaner plan options.
Health Care Inflation Remains a Cross-Industry Challenge
Cost pressures are affecting employers across every sector; all industries experienced significant growth in plan costs from 2025 to 2026. Average employer cost increases ranged from 6.5% to 9.8% across the industries, while total plan cost increases exceed 6% across the board.
Additionally, across all industries, employee contribution increases remained below overall employer and total plan cost increases, indicating that many organizations continue to absorb a significant share of rising health care expense.
Projected 2025 to 2026 Increase
by Industry
Employer
Cost
Employee
Contributions
from Paycheck
Total
Plan Cost
Manufacturing
7.5 %
5.3 %
7.1 %
Professional Services
8.7 %
3.5 %
7.5 %
Finance and Insurance
9.8 %
4.7 %
8.8 %
Health Care
6.5 %
5.3 %
6.3 %
Retail and Wholesale Trade
7.7 %
6.6 %
7.5 %
Public Sector
8.8 %
7.7 %
8.6 %
Technology and Communications
9.1 %
6.4 %
8.6 %
Looking Ahead: Navigating a New Era of Health Care Costs
Employers are expected to face continued pressure from rising medical utilization, chronic disease prevalence and growth in drug spending. As these cost drivers evolve, organizations are increasingly focused on strategies that improve health outcomes, enhance the employee experience and address the underlying drivers of spending to manage long-term affordability for both employers and employees.
"The organizations best positioned for the future will be those that can proactively identify emerging risks and take targeted action before costs escalate," said Debbie Ashford, North America Chief Actuary, Health Solutions for Aon. "Health care costs are becoming increasingly difficult to manage through traditional approaches alone. Employers will need better data and deeper insights to understand where costs are rising and how they can make more informed decisions about their health care investments."
To support these efforts, employers are increasingly turning to data and analytics tools that provide greater visibility into network performance, utilization patterns and cost drivers. Solutions such as Aon's Network Analyzer help organizations evaluate potential strategies, improve value and make more informed decisions about long-term health care affordability.
Aon's Health Value Initiative
The historical information and projections shown above were developed using Aon's Health Value Initiative database, which captures health care costs and benefit designs for more than 1,100 U.S. employers representing 7.9 million employees and $135 billion in 2026 health care spend. The projections above are developed after taking plan design changes as well as demographic and geographic population adjustments into account.
To learn more about Aon's Health Solutions, visit https://www.aon.com/home/solutions/health.
* The projection is applicable in a status quo environment when employers do not make changes or implement care management programs. Aon consultants expect many employers to implement cost-saving changes or programs to help mitigate this increase.
** Total plan costs represent the employer's and employee's combined premiums for medical and prescription drug costs but exclude employee out-of-pocket payments such as deductibles, co-pays and co-insurance.
*** Based on the weighted average cost of employers in Aon's analysis in both 2025 and 2026.
About Aon
Aon plc (NYSE: AON) exists to shape decisions for the better — to protect and enrich the lives of people around the world. Through actionable analytic insight, globally integrated Risk Capital and Human Capital expertise, and locally relevant solutions, our colleagues provide clients in over 120 countries with the clarity and confidence to make better risk and people decisions that help protect and grow their businesses.
Follow Aon on LinkedIn, X, Facebook and Instagram. Stay up-to-date by visiting Aon's newsroom and sign up for news alerts here.
Media Contact
Haley Robinson
+1 312 381 0159
[email protected]
Disclaimer
The information contained in this document is solely for information purposes, for general guidance only and is not intended to address the circumstances of any particular individual or entity. Although Aon endeavors to provide accurate and timely information and uses sources that it considers reliable, the firm does not warrant, represent or guarantee the accuracy, adequacy, completeness or fitness for any purpose of any content of this document and can accept no liability for any loss incurred in any way by any person who may rely on it. There can be no guarantee that the information contained in this document will remain accurate as on the date it is received or that it will continue to be accurate in the future. No individual or entity should make decisions or act based solely on the information contained herein without appropriate professional advice and targeted research.
Mike Schneider to serve as CEO, Ethan Foxman to serve as President and Mike James to serve as Chief Growth Officer of the Middle Market for North America Mike Goldman and Ed O'Malley appointed Vice Chairmen of NFP DUBLIN, Aug. 19, 2026 /PRNewswire/ -- Aon plc (NYSE: AON), a leading global professional services firm, today announced Doug Hammond will transition from CEO of NFP to Global Executive Chairman of Aon's middle market segment, including NFP. Effective immediately and reporting to Aon President and CEO Greg Case, Doug will guide the firm's middle market strategy and the continued development of shared capabilities across Aon and NFP.
Key Takeaways AON launched Sidecar X with up to $200 million for representation, warranties and tax insurance.AON's M&A pipeline rose 60% in announced transaction volumes, supporting its 2026 outlook.Sidecar X aims to speed up coverage for larger, complex deals while offering clients a 10% premium discount. Aon plc (AON - Free Report) recently launched Sidecar X, an expanded version of its Sidecar platform, to connect insurance capital with complex transaction risks. The platform provides up to $200 million of capacity for representation and warranties and tax insurance.
It has built pre-agreed underwriting and claims frameworks into the offering, reducing the need to negotiate terms from scratch for each placement. The platform combines insurer capital with Aon’s proprietary analytics and market expertise. Sidecar X is available exclusively to Aon’s clients across markets, including the United States, Canada, the UK, EEA and Asia, covering representations and warranties and tax insurance.
The launch addresses a problem in transaction insurance as deals are becoming larger and more complex, while insurers and capital providers are becoming more selective. Sidecar X gives a dedicated capacity that can help clients secure coverage more efficiently for these transactions. The biggest benefits include speed and certainty. Aon is also offering clients a 10% premium discount, which could make insurance attractive in deal processes.
On the second-quarter earnings call, AON pointed out that its M&A pipeline had increased 60% in announced transaction volumes, which management expects to be a tailwind in the second half of 2026. Its Risk Capital revenues rose 5% to $3 billion in the second quarter, while total revenues increased 2% to $4.25 billion.
Sidecar X should support Aon’s transaction business by improving its ability to place larger and more complex risks. The headline capacity expands the risk that Aon can help clients insure, while the premium discount could encourage greater usage. Faster execution may improve Aon’s competitiveness in time-sensitive M&A transactions. For Aon, the opportunity is potentially higher transaction volumes and deeper client engagement strategically.
Price PerformanceAON shares have declined 1.6% in the year-to-date period compared with 3.8% fall of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key PicksAON currently has a Zacks Rank #3 (Hold). Investors interested in the broader Finance space may look at some better-ranked players like Horace Mann Educators Corporation (HMN - Free Report) , CNO Financial Group, Inc. (CNO - Free Report) and Ategrity Specialty Insurance Company Holdings (ASIC - Free Report) . While Horace Mann Educators currently sports a Zacks Rank #1 (Strong Buy), CNO Financial and Ategrity Specialty have a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Horace Mann Educators’ current-year earnings is pegged at $4.78 per share, which has witnessed two upward revisions over the past 30 days and no movement in the opposite direction. Furthermore, the consensus estimate for HMN’s 2026 revenues indicates a 3.9% year-over-year increase.
The consensus mark for CNO Financial’s current-year earnings is pegged at $4.74 per share, which indicates 16.2% year-over-year growth. It has witnessed two upward estimate revisions against none in the opposite direction in the past 30 days. CNO beat earnings estimates in each of the last four quarters, with an average surprise of 23.2%.
The Zacks Consensus Estimate for Ategrity Specialty’s current year earnings is pegged at $2.16 per share, which indicates 34.2% year-over-year growth. It has witnessed one upward estimate revision against none in the opposite direction in the past month. ASIC beat earnings estimates in the last four quarters, with an average surprise of 30.2%.
, /PRNewswire/ -- Aon plc (NYSE: AON), a leading global professional services firm, today announced that Edmund Reese will transition from his role as Executive Vice President and Chief Financial Officer, effective immediately, to pursue opportunities outside the firm. Aon appointed Nadin Virani as Interim CFO, effective immediately, and Reese will serve as senior advisor to Aon President and CEO Greg Case, through August 16, 2027, to support the transition.
"I want to recognize Edmund for his many contributions to our firm," said Case. "Through consistent execution of our 3x3 Plan and a relentless and disciplined focus on performance, Edmund has helped to enhance our capabilities, accelerate growth and deliver meaningful value for our shareholders."
"It has been a privilege to serve as CFO of Aon," said Reese. "I am proud of the significant progress we have made building on the firm's strong financial foundation, strengthening our growth engine and enhancing our capacity to invest in long-term value creation. With a winning strategy and an experienced financial leadership team in place, Aon is well positioned to continue delivering strong results and creating value for clients, colleagues and shareholders."
Virani brings deep financial leadership expertise and a wealth of experience in the financial services industry to his new role, having previously served as the firm's Global Head of Corporate Planning and Analytics with oversight of financial planning and analysis, forecasting processes, cash management and budgeting. Prior to joining Aon, Virani served as Head of Corporate Planning and Analytics at Broadridge Financial and General Manager for the Delta Amex Co-Brand portfolio at American Express, where for 18 years he held a number of CFO positions in London, Frankfurt and New York, supporting areas such as international and U.S. lending, loyalty, insurance and merchant pricing.
"As Global Head of Corporate Planning and Analytics and a member of our Aon Executive Committee, Nadin has played a central role in strengthening our financial performance and developing our strategy to drive sustainable growth across our firm," said Case. "His financial expertise and proven leadership will be invaluable as we continue to accelerate our Aon United strategy and create better outcomes for clients and shareholders."
Virani will report to Case and lead Aon's Finance organization, while working closely with the Aon Executive Committee to ensure continuity and oversight of the firm's financial strategy. Aon has also engaged a leading executive search firm to conduct a comprehensive internal and external search for a permanent CFO.
"I am honored to serve as Interim CFO of Aon and build on the strong foundation we have established across our Finance organization," said Virani. "We will remain focused on financial discipline and thoughtful investment in the business as we continue to support Aon's growth and create long-term shareholder value."
Consistent with the update provided in its second quarter earnings release on July 29, 2026, Aon reaffirmed its full-year 2026 guidance.
About Aon
Aon plc (NYSE: AON) exists to shape decisions for the better — to protect and enrich the lives of people around the world. Through actionable analytic insight, globally integrated Risk Capital and Human Capital expertise, and locally relevant solutions, our colleagues provide clients in over 120 countries with the clarity and confidence to make better risk and people decisions that help protect and grow their businesses.
Follow Aon on LinkedIn, X, Facebook and Instagram. Stay up-to-date by visiting Aon's newsroom and sign up for news alerts here.
Media Contact
[email protected]
Toll-free (U.S., Canada and Puerto Rico): +1 833 751 8114
International: +1 312 381 3024
Key Takeaways WTW's health segment revenue grew 8% in Q2 2026, with high-single-digit growth expected for 2026.Propel is embedding AI and automation to improve productivity, client engagement and margins.Free cash flow jumped 65.9% to $360 million, while WTW targets at least $1 billion in 2026 buybacks. Shares of Willis Towers Watson Public Limited Company (WTW - Free Report) have gained 34.5% in three months, outperforming the industry’s growth of 21.3%.
WTW’s performance was supported by continued margin expansion, AI-driven productivity initiatives, a strong specialty business pipeline and disciplined capital returns. The second quarter 2026 earnings beat and continued organic growth across key businesses, along with cost discipline, have further strengthened investor confidence. The expected long-term earnings growth is pegged at 17.6%, better than the industry average of 14.4%.
Image Source: Zacks Investment Research
Shares of other insurance brokers like Aon plc (AON - Free Report) , Arthur J. Gallagher & Co. (AJG - Free Report) and Brown & Brown, Inc. (BRO - Free Report) have gained 10.6%, 16.6% and 3.2%, respectively, in the past three months.
WTW's Average Target Price Suggests UpsideBased on short-term price targets offered by 20 analysts, the Zacks average price target is $377.40 per share. The average suggests a potential upside of 13% from the last closing price.
Image Source: Zacks Investment Research
WTW’s ValuationWillis Towers Watson's shares are trading at a discount compared with the industry. Its forward price-to-earnings multiple of 15.56X is lower than the industry average of 16.6X. The company, however, has a Value Score of C.
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WTW’s Growth Projection EncouragesThe Zacks Consensus Estimate for Willis Towers Watson's 2026 earnings per share (EPS) indicates a year-over-year increase of 15.8%. The consensus estimate for 2026 revenues is pegged at $10.51 billion, implying a year-over-year improvement of 8.2%. The consensus estimate for 2027 EPS and revenues indicates an increase of 14.1% and 5%, respectively, from the corresponding 2026 estimates.
Optimistic Analyst Sentiment on WTWThe company has witnessed nine upward earnings estimate revisions for 2026 over the past 30 days, while 2027 has observed eight upward earnings estimates against no downward revisions. Thus, the Zacks Consensus Estimate for 2026 and 2027 moved 1.6% and 2.8% north, respectively, over the same period.
WTW's Efficient Use of Shareholder FundsWillis Towers Watson’s return on equity of 22.2% for the trailing 12 months compared favorably with the industry’s 18.8%, reflecting the company’s efficiency in utilizing shareholders’ funds.
Factors That Benefit WTWWTW continues to benefit from solid organic growth across its key businesses, supported by strong client retention, new business wins and demand for risk-management and advisory services. A strong specialty business pipeline and growing demand for specialized risk solutions should further support organic growth, while expansion in higher-value specialty offerings is expected to improve the overall business mix.
WTW's AI strategy and margin expansion remain key long-term growth drivers. The company is extending its efficiency program through Propel, a two-year plan to embed AI and automation across its operations. Management expects AI-driven automation and analytics to improve productivity, strengthen client engagement and expand margins.
The company’s acquisition of Newfront adds a technology-enabled, middle-market broker operating across both Health, Wealth & Career and Risk & Broking, aligning with WTW’s focus on specialization, innovation and efficiency. Management expects Newfront to contribute about $250 million of post-close revenues in 2026 with an adjusted EBITDA margin of nearly 26%, though it is expected to have an approximately 10-cent impact on adjusted EPS in 2026.
Rising healthcare costs and increasing benefit complexity are driving demand for WTW's health consulting. During the second quarter of 2026, the health segment revenue grew 8%. Management expects high-single-digit growth for 2026.
Willis Towers Watson's solid balance sheet and steady cash flow are expected to help the company deploy capital through buybacks, dividend payouts, debt repayments and acquisitions. Operating cash flow totaled $474 million during the first six months of 2026, up 45.4% from the prior-year period. Free cash flow increased 65.9% year over year to $360 million, primarily driven by operating margin expansion. WTW repurchased about 1.7 million shares for $450 million during the second quarter and expects share repurchases of $1 billion or greater in 2026.
Risks for WTWWTW faces intense competition and softer insurance rates, which could pressure commission growth and increase client acquisition costs.
Unfavorable exchange-rate movements could also negatively impact earnings and operating results despite the company's hedging programs. Management expects foreign currency to provide an additional 5-cent tailwind in the second half of 2026, bringing the full-year benefit to approximately 35 cents.
ConclusionWTW boasts growth through AI initiatives, specialty insurance expansion, the Newfront acquisition, effective capital deployment and continued margin improvement. However, intense competition, softer insurance pricing and foreign exchange volatility remain key risks.
Given its solid growth projections, optimistic analyst sentiment, cheap valuations and favorable ROE, it is wise to add this Zacks Rank #2 (Buy) to the portfolio now. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Aon Plc remains a fundamentally strong insurance broker but is currently too expensive for value-oriented investors. AON's premium valuation (19-22x P/E) is not justified by its modest organic growth (~5%) and sub-1% dividend yield. Recent results highlight structural growth limitations, pressured margins, and client retention headwinds, despite temporary merger-driven boosts.
Assenagon Asset Management S.A. lifted its holdings in Aon plc (NYSE:AON – Free Report) by 2,197.1% in the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 188,821 shares of the financial services provider’s stock after buying an additional 180,601 shares during the period. Assenagon Asset Management S.A. owned about 0.09% of AON worth $62,630,000 as of its most recent SEC filing.
Other large investors have also recently bought and sold shares of the company. Wealth Watch Advisors INC purchased a new position in AON in the third quarter valued at about $25,000. University of Texas Texas AM Investment Management Co. acquired a new position in AON in the fourth quarter worth approximately $27,000. Kemnay Advisory Services Inc. acquired a new position in AON in the fourth quarter worth approximately $29,000. Eagle Bay Advisors LLC bought a new position in AON during the fourth quarter valued at approximately $30,000. Finally, Strive Asset Management LLC acquired a new stake in AON in the third quarter valued at approximately $35,000. 86.14% of the stock is owned by institutional investors and hedge funds.
AON Stock Performance AON opened at $357.68 on Friday. The stock has a market cap of $75.87 billion, a PE ratio of 19.72, a P/E/G ratio of 1.86 and a beta of 0.69. Aon plc has a 1 year low of $304.59 and a 1 year high of $382.34. The stock’s 50 day simple moving average is $345.11 and its 200-day simple moving average is $332.52. The company has a current ratio of 1.54, a quick ratio of 1.54 and a debt-to-equity ratio of 1.34.
AON (NYSE:AON – Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The financial services provider reported $3.81 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.80 by $0.01. The firm had revenue of $4.25 billion for the quarter, compared to analyst estimates of $4.28 billion. AON had a net margin of 22.27% and a return on equity of 42.13%. The business’s revenue for the quarter was up 2.2% on a year-over-year basis. During the same quarter in the previous year, the firm posted $3.49 EPS. Sell-side analysts forecast that Aon plc will post 19.06 EPS for the current year.
AON Announces Dividend The business also recently announced a quarterly dividend, which will be paid on Friday, August 14th. Stockholders of record on Monday, August 3rd will be issued a $0.82 dividend. The ex-dividend date of this dividend is Monday, August 3rd. This represents a $3.28 dividend on an annualized basis and a dividend yield of 0.9%. AON’s dividend payout ratio is presently 18.08%.
Wall Street Analysts Forecast Growth AON has been the topic of several analyst reports. Roth Capital restated a “buy” rating and set a $420.00 price target on shares of AON in a research note on Friday, July 31st. Piper Sandler upped their price objective on shares of AON from $377.00 to $391.00 and gave the stock a “neutral” rating in a report on Thursday, July 30th. UBS Group boosted their price target on AON from $383.00 to $387.00 and gave the stock a “neutral” rating in a research report on Monday. Morgan Stanley increased their price objective on AON from $370.00 to $380.00 and gave the company an “overweight” rating in a report on Monday, July 6th. Finally, JPMorgan Chase & Co. boosted their target price on AON from $396.00 to $412.00 and gave the stock an “overweight” rating in a report on Monday, July 13th. Twelve analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $410.75.
Read Our Latest Report on AON
Insider Activity at AON In related news, General Counsel Darren Zeidel sold 1,950 shares of the firm’s stock in a transaction that occurred on Friday, July 17th. The stock was sold at an average price of $372.05, for a total transaction of $725,497.50. Following the completion of the transaction, the general counsel owned 13,404 shares in the company, valued at $4,986,958.20. This trade represents a 12.70% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. In the last ninety days, insiders sold 4,450 shares of company stock worth $1,659,242. 1.00% of the stock is owned by company insiders.
AON Profile (Free Report)
Aon plc is a global professional services firm that provides a broad suite of risk, retirement and health solutions to corporations, institutions and individuals. The company operates primarily as an insurance broker and risk adviser, helping clients identify, quantify and transfer risk across property, casualty, cyber and other areas. Aon also offers reinsurance brokerage and capital market solutions that connect insurers, reinsurers and corporate buyers.
In addition to traditional brokerage activities, Aon delivers consulting and outsourcing services in areas such as human capital, benefits, and retirement plan design and administration.
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CHICAGO--(BUSINESS WIRE)--Aon plc (NYSE: AON) today announced the appointment of Darren Van’t Hof to serve as Head of Tax Credit Financing, Transaction Solutions, effective August 17, 2026.
Van’t Hof will join Aon’s North America tax insurance practice where he will focus on advancing tax credit insurance solutions that support tax equity investments and the transfer of renewable energy tax credits and other tax incentives. He will help clients navigate an evolving market and pursue opportunities across tax credit finance, M&A and other transactions with greater confidence.
“We are thrilled to have Darren join Aon, bringing with him a breadth of experience that will further strengthen our already specialized tax team,” said Gary Blitz, Global CEO of Transaction Solutions for Aon. “We have built a team with significant depth across tax, transactional risk and complex deal execution and Darren’s expertise will add another valuable dimension to the way we support clients in this dynamic market.”
Van’t Hof joins Aon as a nationally recognized leader in the renewables industry with years of experience in financing renewable energy projects and companies. Most recently, he served as the interim President and CEO at the Solar Energy Industries Association, where he worked closely with corporate leaders, policymakers and investors during a period of rapid industry growth. Previously, he founded and led U.S. Bancorp's Impact Finance business, building a leading renewable energy tax credit investment platform. His experience across renewable energy finance, tax credit investing and public policy brings valuable expertise to Aon's clients as they navigate complex tax, M&A and transaction risks.
“Darren’s leadership and market experience will be a tremendous asset to our clients and colleagues,” said Jessica Harger, Head of the North America Tax Insurance Practice for Aon. “As organizations seek to manage risk and unlock value in the evolving tax credit market, Darren’s perspective will help us continue delivering exceptional outcomes for clients around the world.”
About Aon
Aon plc (NYSE: AON) exists to shape decisions for the better — to protect and enrich the lives of people around the world. Through actionable analytic insight, globally integrated Risk Capital and Human Capital expertise, and locally relevant solutions, our colleagues provide clients in over 120 countries with the clarity and confidence to make better risk and people decisions that protect and grow their businesses.
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Goldman Sachs is the acknowledged leader in the investment landscape on Wall Street and worldwide. The firm’s top-notch research department continues to provide institutional and high-net-worth clients with the best ideas across the investment spectrum and is likely to do so for years to come. Founded in 1869, Goldman Sachs is the world’s second-largest investment bank by revenue and is ranked 36th on the Fortune 500 list of the largest U.S. corporations by total revenue.
The Wall Street white-glove giant offers financing, advisory services, risk distribution, and hedging for the firm’s institutional and corporate clients. In addition, it provides advice, investing, and execution for institutions and individuals across public and private markets. At 24/7 Wall St., we have followed the company’s research for 15 years to bring our readers top stock ideas. One of our favorite avenues is the firm’s Conviction List of top picks, which is reviewed and updated monthly. The August addition may be a perfectly timed idea, given that interest rates are heading higher. Plus, Goldman Sachs has two additional financial services names on the Conviction List that look like outstanding ideas for the rest of the year and beyond.
Why We Recommend Goldman Sachs Stocks
Goldman Sachs Research is widely regarded as among the best in the industry for its exceptional breadth and depth, covering over 3,000 securities, more than 45 economies, and every major market, with cutting-edge, data-driven insights. The firm’s team produces thousands of proprietary forecasts, models, and unique indicators that help clients anticipate market shifts. At the same time, its original thought leadership on macroeconomics, industries, and global trends draws from a global network of top-tier analysts and economists. This combination of rigorous fundamental analysis, innovative proprietary tools, and a long-standing reputation for high-quality output—often recognized in industry awards and surveys—consistently positions Goldman Sachs as a trusted resource for institutional investors and sophisticated market participants.
AON This is the newest addition to the Goldman Sachs Conviction List for August, and it pays a 0.83% dividend. AON (NYSE:AON | AON Price Prediction) is an Ireland-based professional services company providing a range of risk capital and human capital solutions. Goldman Sachs analyst Rob Cox has this to say about the stock.
AON is poised to deliver stronger-than-consensus 2026 organic growth and free cash flow (9% above Visible Alpha consensus for 2026 and 2027), supported by talent investments (more brokers), NFP acquisition synergies (acquired in 2024), and an eventual capital markets recovery, combined with an attractive valuation.
The company operates through two segments. The Risk Capital segment supports clients through its commercial risk and reinsurance solution lines. Its commercial risk includes insurance and specialty brokerage, global risk consulting, captives management, and affinity programs. Its reinsurance includes treaty reinsurance, facultative reinsurance, strategy and technology group, and capital markets.
The Human Capital segment supports clients through its health and wealth solution lines. Health includes consulting and brokerage, consumer benefits solutions, and talent advisory services. Wealth includes retirement consulting, pension administration, and investment consulting. Its commercial risk solutions include insurance and specialty brokerage, global risk consulting, captives management, and others.
The Goldman Sachs target price is $430, representing a 21% gain for the shares.
Bank of America This quality financial giant remains an exceptional long-term holding with a solid 1.81% dividend yield. Bank of America (NYSE:BAC) is a bank holding company that reported impressive Q2 results. Berkshire Hathaway owns 513,624,165 shares, which is 7.9% of the portfolio and 7.2% of the float. Berkshire did lower its Bank of America position in Q1 2026, but only modestly. According to the Q1 2026 13F filing, it was reduced by just 0.71%, a tiny cut compared to other positions.
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Its segments include:
Consumer Banking offers a range of credit, banking, and investment products and services to consumers and small businesses. Global Wealth & Investment Management comprises two businesses: Merrill Wealth Management, which offers tailored solutions to meet clients’ needs through a comprehensive suite of investment management, brokerage, banking, and retirement products Bank of America Private Bank, which provides comprehensive wealth management solutions Global Banking offers a range of lending-related products and services, including integrated working capital management and treasury solutions, as well as underwriting and advisory services. Global Markets offers sales and trading services, as well as research services, to institutional clients across fixed income, credit, currency, commodity, and equity markets. Goldman Sachs has a Buy rating, and its $56 target price would be an 18% gain.
Capital One Financial The well-known banking giant has significant upside potential to the Goldman Sachs target and pays a 1.43% dividend. Capital One Financial (NYSE: COF) is a diversified financial services holding company with banking and non-banking subsidiaries. The company offers a broad spectrum of financial products and services to consumers, small businesses, and commercial clients through various channels. It operates through three segments.
The Credit Card segment comprises domestic consumer and small business card lending, as well as international card businesses in the United Kingdom and Canada.
The Consumer Banking segment includes deposit gathering and lending activities for consumers and small businesses, as well as national auto lending.
The Commercial Banking segment provides treasury management services to commercial real estate and commercial and industrial customers. Its principal operating subsidiary is Capital One, National Association, which offers banking products and financial services.
The Goldman Sachs target price is $276, representing a 28% increase from current levels.
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Ashton Thomas Securities LLC acquired a new position in shares of Aon plc (NYSE:AON – Free Report) during the first quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund acquired 6,030 shares of the financial services provider’s stock, valued at approximately $1,947,000.
Several other hedge funds have also modified their holdings of the stock. NewEdge Advisors LLC grew its position in shares of AON by 28.4% during the second quarter. NewEdge Advisors LLC now owns 14,704 shares of the financial services provider’s stock worth $5,246,000 after buying an additional 3,253 shares in the last quarter. Treasurer of the State of North Carolina raised its holdings in AON by 9.1% in the second quarter. Treasurer of the State of North Carolina now owns 98,084 shares of the financial services provider’s stock valued at $34,992,000 after acquiring an additional 8,216 shares in the last quarter. Alliancebernstein L.P. boosted its stake in AON by 35.2% during the 2nd quarter. Alliancebernstein L.P. now owns 292,210 shares of the financial services provider’s stock valued at $104,249,000 after acquiring an additional 76,061 shares during the last quarter. Diversify Advisory Services LLC grew its holdings in AON by 27.1% during the 2nd quarter. Diversify Advisory Services LLC now owns 2,734 shares of the financial services provider’s stock worth $995,000 after acquiring an additional 583 shares in the last quarter. Finally, Quantinno Capital Management LP increased its position in shares of AON by 46.1% in the 2nd quarter. Quantinno Capital Management LP now owns 40,044 shares of the financial services provider’s stock worth $14,286,000 after purchasing an additional 12,631 shares during the last quarter. 86.14% of the stock is currently owned by hedge funds and other institutional investors.
More AON News Here are the key news stories impacting AON this week:
Positive Sentiment: Underlying growth and profitability remained healthy. Aon reported second-quarter earnings of $3.81 per share, above the $3.77–$3.80 consensus range and up from $3.49 a year earlier. Total revenue increased 2% year over year, organic revenue grew 5%, and operating margins expanded. Aon Reports Second-Quarter 2026 Results Positive Sentiment: Commercial risk management and new business wins supported results. Strong client retention, organic growth and demand for commercial risk solutions helped offset softer-than-expected reported revenue. The performance suggests Aon continues to benefit from pricing, account expansion and resilient demand for insurance and risk advisory services. Aon quarterly profit jumps on commercial risk management strength Positive Sentiment: Analyst sentiment and shareholder returns remain supportive. Several analysts recently raised their price targets, and the average target cited by MarketBeat is $404.56 versus recent trading levels. Aon also declared a quarterly dividend of $0.82, equivalent to a $3.28 annualized payout and an approximately 0.9% yield. Neutral Sentiment: Aon launched an AI Risk Diagnostic. The new offering could create opportunities in the expanding market for artificial-intelligence risk consulting, although its near-term financial contribution is not yet clear. Aon launches AI Risk Diagnostic Negative Sentiment: Revenue missed expectations. Quarterly revenue was $4.25 billion versus the $4.28 billion consensus estimate. With the earnings beat only slightly above forecasts, investors may view the results as good but not strong enough to justify the stock’s elevated valuation near its 52-week high. Negative Sentiment: Insider selling adds a minor cautionary signal. General Counsel Darren Zeidel sold 1,950 shares for approximately $725,500, reducing his holdings by 12.7%. The transaction is small relative to Aon’s market value and does not necessarily indicate a change in business outlook. Darren Zeidel Sells AON Shares AON Trading Down 1.3% NYSE:AON opened at $376.30 on Thursday. The firm has a market capitalization of $80.37 billion, a P/E ratio of 20.65, a P/E/G ratio of 2.00 and a beta of 0.71. The business has a 50 day simple moving average of $339.64 and a 200 day simple moving average of $331.76. The company has a debt-to-equity ratio of 1.36, a current ratio of 1.95 and a quick ratio of 1.95. Aon plc has a 12-month low of $304.59 and a 12-month high of $382.34.
AON (NYSE:AON – Get Free Report) last issued its earnings results on Wednesday, July 29th. The financial services provider reported $3.81 earnings per share for the quarter, topping the consensus estimate of $3.80 by $0.01. The firm had revenue of $4.25 billion for the quarter, compared to analyst estimates of $4.28 billion. AON had a return on equity of 43.50% and a net margin of 22.54%.The firm’s revenue for the quarter was up 2.2% on a year-over-year basis. During the same period last year, the company earned $3.49 earnings per share. Equities research analysts predict that Aon plc will post 19.09 EPS for the current year.
AON Announces Dividend The company also recently disclosed a quarterly dividend, which will be paid on Friday, August 14th. Investors of record on Monday, August 3rd will be given a $0.82 dividend. The ex-dividend date is Monday, August 3rd. This represents a $3.28 annualized dividend and a yield of 0.9%. AON’s dividend payout ratio (DPR) is currently 18.00%.
Analyst Upgrades and Downgrades Several analysts recently weighed in on the company. Morgan Stanley boosted their price objective on AON from $370.00 to $380.00 and gave the company an “overweight” rating in a report on Monday, July 6th. Cantor Fitzgerald lifted their target price on AON from $416.00 to $445.00 and gave the stock an “overweight” rating in a research report on Thursday, July 9th. UBS Group upped their price target on AON from $360.00 to $383.00 and gave the company a “neutral” rating in a research report on Wednesday, July 8th. Keefe, Bruyette & Woods decreased their price objective on shares of AON from $404.00 to $400.00 and set an “outperform” rating for the company in a report on Wednesday, July 8th. Finally, Piper Sandler lowered shares of AON from an “overweight” rating to a “neutral” rating and boosted their target price for the company from $355.00 to $377.00 in a research note on Wednesday, July 15th. Twelve equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $404.56.
Get Our Latest Research Report on AON
Insider Transactions at AON In other AON news, General Counsel Darren Zeidel sold 1,950 shares of the business’s stock in a transaction dated Friday, July 17th. The shares were sold at an average price of $372.05, for a total transaction of $725,497.50. Following the completion of the transaction, the general counsel directly owned 13,404 shares of the company’s stock, valued at $4,986,958.20. The trade was a 12.70% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 1.00% of the stock is owned by insiders.
AON Profile (Free Report)
Aon plc is a global professional services firm that provides a broad suite of risk, retirement and health solutions to corporations, institutions and individuals. The company operates primarily as an insurance broker and risk adviser, helping clients identify, quantify and transfer risk across property, casualty, cyber and other areas. Aon also offers reinsurance brokerage and capital market solutions that connect insurers, reinsurers and corporate buyers.
In addition to traditional brokerage activities, Aon delivers consulting and outsourcing services in areas such as human capital, benefits, and retirement plan design and administration.
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Key Takeaways Aon beat Q2 EPS estimates as organic revenues rose 5% and adjusted operating margin expanded 70 bps.AON reaffirmed 2026 guidance for mid-single-digit or higher organic revenue growth and EPS growth.Aon returned $775 million via buybacks and dividends, with $7.7 billion left for repurchases. Aon plc (AON - Free Report) reported second-quarter 2026 adjusted earnings of $3.81 per share, which surpassed the Zacks Consensus Estimate by 1.1%. The bottom line advanced 9% year over year.
Total revenues of $4.2 billion grew 2% year over year. The top line missed the consensus mark by 0.4%. Organic revenue growth was 5%.
The quarterly results were supported by strong organic revenue growth, healthy client retention, operating margin expansion and disciplined execution. Solid performance across the Commercial Risk, Reinsurance and Health Solutions businesses was partly offset by weakness in Wealth Solutions.
Aon plc Price, Consensus and EPS SurpriseAON’s Q2 OperationsTotal operating expenses inched up 1% year over year to $3.3 billion due to higher expenses related to organic revenue growth, investments in long-term growth and unfavorable foreign currency translation. This was partly offset by lower expenses associated with the sale of NFP Wealth. The metric was in line with our estimate.
Adjusted operating income amounted to $1.2 billion, up 5% year over year and in line with our estimate. The metric benefited from organic revenue growth, scale improvements in ABS and net restructuring savings, partially offset by growth investments. Adjusted operating margin improved 70 basis points year over year to 28.9%.
Q2 Segmental PerformanceRisk CapitalCommercial Risk Solutions: Organic revenues rose 5% year over year in the second quarter on the back of new business and strong retention rates across North America and EMEA. Revenues in this solution line advanced 5% year over year to $2.3 billion, in line with the Zacks Consensus Estimate.
Reinsurance Solutions: Organic revenues grew 5% year over year, driven by increased treaty placements, new business wins and strong client retention, along with growth in facultative placements. Revenues amounted to $711 million, which improved 3% year over year but missed the consensus mark by 1%.
Human CapitalHealth Solutions: Organic revenues inched up 5% year over year as a result of new business growth, strong retention rates and positive market impact. The solution line’s revenues increased 6% year over year to $818 million, which beat the Zacks Consensus Estimate by 0.4%.
Wealth Solutions: Organic revenue growth of 5% was driven by expansion in Retirement and continued demand for advisory services in the UK and EMEA amid ongoing regulatory changes. Revenues totaled $426 million, down 18% year over year. The metric lagged the consensus mark by 3.2%.
AON’s Q2 Financial PositionAon exited the second quarter with cash and cash equivalents of $1.1 billion, which declined 11.1% from the 2025-end level. Total assets of $53.3 billion increased 5% from the 2025-end figure.
Long-term debt amounted to $12.9 billion, down 11.7% from the figure as of Dec. 31, 2025. Short-term debt and the current portion of long-term debt totaled $2 billion.
Aon generated cash flow from operations of $556 million, which decreased 30% year over year. Adjusted free cash flow decreased 34% year over year to $483 million.
Aon’s Capital Deployment UpdateAon bought back 1.9 million Class A ordinary shares for roughly $600 million in the second quarter of 2026. It also returned $175 million to shareholders through dividends. As of June 30, 2026, the company had approximately $7.7 billion remaining under its share repurchase authorization.
AON Reaffirms Its 2026 OutlookRevenues are expected to witness mid-single-digit or higher organic growth in 2026. The company anticipates adjusted operating margin expansion of 70-80 basis points. It projects strong growth in adjusted EPS for the year. Free cash flow is likely to grow at a double-digit rate, while the tax rate is expected to be in the 19.5-20.5% range.
AON’s Zacks Rank & Key PicksAON currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other InsurersOf the insurance industry players that have reported second-quarter 2026 results so far, the bottom-line figures of RenaissanceRe Holdings Ltd. (RNR - Free Report) , Chubb Limited (CB - Free Report) and First American Financial Corporation (FAF - Free Report) beat their respective Zacks Consensus Estimate.
RenaissanceRe reported second-quarter 2026 operating income of $12.92 per share, which surpassed the Zacks Consensus Estimate by 12.9%. The bottom line also improved 5.1% year over year. Total operating revenues declined 6.7% year over year to $2.64 billion. The top line missed the consensus mark by 1%. Net premiums earned declined 8.8% year over year to $2.2 billion. Net investment income of $432.5 million advanced 4.7% year over year. RenaissanceRe's underwriting income declined 0.4% year over year to $599.1 million. The combined ratio improved to 72.8% from 75.1% in the year-ago quarter. The Property segment’s net premiums earned of $881.6 million increased 1.6% year over year.
Chubb’s second-quarter 2026 core operating earnings of $7.26 per share beat the Zacks Consensus Estimate of $6.63 by 9.5%. The bottom line increased 18.2% year over year. Revenues rose 2.7% year over year to $15.77 billion but missed the consensus mark of $15.90 billion by 0.8%. P&C underwriting income increased 18.8% year over year to $1.94 billion. The combined ratio improved 180 basis points to 83.8%.Consolidated net premiums written increased 3.6% year over year to $14.71 billion. Pre-tax net investment income increased 12.3% to a record $1.76 billion. Chubb’s Global P&C net premiums written, excluding agriculture, advanced 2.8% to $11.99 billion. Life insurance net premiums written grew 7.5% to $1.94 billion.
First American Financial reported second-quarter 2026 operating earnings of $2.08 per share, which beat the Zacks Consensus Estimate by 15.6% and rose 35.9% year over year. Operating revenues climbed 15% to $2.1 billion. The top line surpassed the consensus estimate by 4.4%. Direct premiums and escrow fees reached $794.1 million, marking a 14.8% increase from the prior-year level. First American’s Investment income totaled $183.7 million, up 14.7% year over year. In the Title Insurance and Services unit, total revenues rose 16.9% year over year to $2 billion. Investment income increased 11% to $164 million. Adjusted pretax margin expanded 310 bps to 15.7%. Title open orders increased 0.7% to 188,200, while closed orders declined 0.7% to 137,300.
Buffett's latest portfolio additions, trims and cuts in Q3AON NYSE: AON reported second-quarter 2026 organic revenue growth of 5%, adjusted operating margin expansion of 70 basis points and adjusted earnings-per-share growth of 9%, as the professional services firm cited broad-based demand for its risk, capital and workforce advisory capabilities.
Total revenue rose 2% from a year earlier to $4.2 billion. Adjusted operating income increased 5% to $1.2 billion, while adjusted operating margin reached 28.9%. Aon generated $483 million of free cash flow during the quarter.
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3 Stocks Hedge Funds Scooped Up in Q1President and CEO Greg Case said the company’s results reflected execution of its “Aon United” strategy and its 3x3 Plan, which are designed to connect its Risk Capital and Human Capital operations through Aon Business Services. He said clients are seeking more integrated advice as geopolitical uncertainty, cyber threats, climate-related risks and workforce changes make business decisions more complex.
Growth Across All Solution Lines Chief Financial Officer Edmund Reese said each of Aon’s four solution lines posted 5% organic revenue growth in the second quarter. New business contributed 10 percentage points to organic growth, supported by new client wins and increased share of wallet among existing clients. Net new business contributed five points, while net market impact was modestly positive despite softer pricing in property-casualty insurance and reinsurance.
Commercial Risk: Organic revenue grew 5%, aided by core property-casualty business in North America and EMEA, higher retention and continued construction growth. Construction recorded its fifth consecutive quarter of double-digit growth, driven in part by data center activity. M&A services declined from the prior-year period, which had benefited from elevated closed-deal activity, though Aon said announced transaction volumes were up more than 60% and should support its second-half pipeline. Reinsurance: Organic revenue rose 5% despite rate pressure. Treaty new business, including new client wins, offset rates that were 15% to 20% lower, Reese said. Facultative placements performed well globally, and the company’s Strategy and Technology Group posted double-digit growth. Health Solutions: Revenue grew 5%, led by core health and benefits work, particularly global benefits demand in EMEA. Improved Talent Solutions performance and contributions from NFP, including executive benefits, also supported growth. Wealth Solutions: Revenue increased 5%, reflecting regulatory and valuation work in the U.K. and EMEA, as well as U.S. pension risk-transfer demand. Reese said Aon’s new-business contribution has ranged from 9 to 11 points for nine consecutive quarters. Retention remained in the mid-90% range, with Commercial Risk retention improving 40 basis points and Reinsurance retention rising 20 basis points.
Data Centers and Alternative Capital Aon highlighted digital infrastructure as a significant opportunity. The company last week increased capacity in its Data Center Lifecycle Insurance Program to $5 billion and expanded the integrated risk solutions offered through the program.
During the question-and-answer session, Reese said Aon’s facility includes more than 30 carriers and that a single data center project can now be supported with $13 billion to $15 billion of capacity. He said some facilities may cost $40 billion to $50 billion, requiring capital beyond traditional insurance markets.
Case said Aon is seeking to bring capital from pension funds, sovereign funds, private equity firms and other sources into the sector by using its analytics and expertise to help investors understand potential risk and return. He described the company’s data center work as spanning construction, operations, financing and risk management.
The company also said it has deployed more than $350 million in capital year to date to expand its middle-market platform, including acquisitions that enhance its managing general underwriter and managing general agent capabilities. In the second quarter alone, Aon allocated $29 million to targeted middle-market tuck-in acquisitions.
Technology, AI and Operating Leverage Case said Aon’s expansion of Claims Copilot across North America, Asia-Pacific and EMEA brings a substantial portion of its global claims-management information onto one technology platform. The company said the platform can provide clients with a more consistent claims experience and generate insights for placement, negotiation and broader risk strategies.
Aon said it has helped clients recover more than $10 billion over the past decade from overturned claim declinations through advocacy. Case said the company views generative AI as an accelerator of prior investments in connected data, analytics and client-facing expertise rather than as a separate strategy.
Reese said Aon Business Services and AI-enabled productivity gains supported operating leverage and lower unit costs. Restructuring savings totaled $25 million in the quarter and added about 60 basis points to adjusted operating margin. The company remains on track to produce $100 million in restructuring savings during 2026 and is targeting $450 million in total savings by 2027.
Capital Returns and Full-Year Outlook Aon returned $775 million to shareholders during the second quarter, including $600 million in share repurchases. The company said it has exceeded its objective of at least $1 billion in annual share repurchases after accelerating buybacks during the first half amid market dislocation.
Free cash flow during the quarter included a $267 million tax impact associated with proceeds from the sale of NFP Wealth. Free cash flow was up 4% through the first six months of 2026, and Reese said the company remains confident in delivering double-digit free-cash-flow growth for the full year.
Aon reaffirmed its 2026 guidance for mid-single-digit or greater organic revenue growth, 70 to 80 basis points of adjusted operating margin expansion, strong adjusted earnings growth and double-digit free-cash-flow growth. The company expects its full-year effective tax rate to be between 19.5% and 20.5%.
About AON (NYSE:AON)Aon plc is a global professional services firm that provides a broad suite of risk, retirement and health solutions to corporations, institutions and individuals. The company operates primarily as an insurance broker and risk adviser, helping clients identify, quantify and transfer risk across property, casualty, cyber and other areas. Aon also offers reinsurance brokerage and capital market solutions that connect insurers, reinsurers and corporate buyers.
In addition to traditional brokerage activities, Aon delivers consulting and outsourcing services in areas such as human capital, benefits, and retirement plan design and administration.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Aon plc (AON) Q2 2026 Earnings Call July 29, 2026 8:30 AM EDT
Company Participants
Gregory Case - President, CEO & Executive Director
Edmund Reese - Executive VP & Chief Financial Officer
Conference Call Participants
David Motemaden - Evercore ISI Institutional Equities, Research Division
Robert Cox - Goldman Sachs Group, Inc., Research Division
Tracy Benguigui - Wolfe Research, LLC
Jian Huang - Morgan Stanley, Research Division
Katie Sakys - Autonomous Research US LP
Presentation
Operator
Good morning, and thank you for holding. Welcome to Aon plc's Second Quarter 2026 Conference Call. [Operator Instructions] I would also like to remind all parties that this call is being recorded. If anyone has an objection, you may disconnect your line at any time.
It is important to note that some of the comments in today's call may constitute certain statements that are forward-looking in nature as defined by the Private Securities Reform Act of 1995. Such statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or those anticipated. For information concerning these risk factors, please refer to our earnings release for this quarter and to our most recent quarterly or annual SEC filings, all of which are available on our website.
Now it is my pleasure to turn the call over to Greg Case, President and CEO of Aon plc.
Gregory Case
President, CEO & Executive Director
Thanks, Dylan, and good morning, everyone. Thank you for joining our second quarter earnings call. I'm here today with Edmund Reese, our CFO. And as always, the financial presentation, which Edmund will reference, is available on our website. Consistent execution, the strength of our Aon United strategy accelerated through the 3x3 plan and the resilience of our business model produced second quarter and first half results in line with objectives. In addition, our investments in talent, technology and innovative capital solutions continue to strengthen
For the quarter ended June 2026, Aon (AON - Free Report) reported revenue of $4.25 billion, up 2.2% over the same period last year. EPS came in at $3.81, compared to $3.49 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $4.26 billion, representing a surprise of -0.39%. The company delivered an EPS surprise of +1.06%, with the consensus EPS estimate being $3.77.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Aon performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Commercial Risk Solutions - Organic Revenue Growth: 5% compared to the 5.2% average estimate based on seven analysts.Reinsurance Solutions - Organic Revenue Growth: 5% versus 3.6% estimated by seven analysts on average.Wealth Solutions - Organic Revenue Growth: 5% versus 4.1% estimated by seven analysts on average.Consolidated - Organic Revenue Growth: 5% versus the seven-analyst average estimate of 4.7%.Health Solutions - Organic Revenue Growth: 5% versus 4.3% estimated by seven analysts on average.Revenue- Eliminations: $-4 million compared to the $-4 million average estimate based on seven analysts. The reported number represents a change of +100% year over year.Revenue- Health Solutions: $818 million versus the six-analyst average estimate of $814.87 million. The reported number represents a year-over-year change of +6%.Revenue- Wealth Solutions: $426 million compared to the $440.13 million average estimate based on six analysts. The reported number represents a change of -17.9% year over year.Revenue- Reinsurance Solutions: $711 million versus $717.97 million estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +3.3% change.Revenue- Commercial Risk Solutions: $2.3 billion versus the six-analyst average estimate of $2.29 billion. The reported number represents a year-over-year change of +5.4%.View all Key Company Metrics for Aon here>>>
Shares of Aon have returned +14.9% over the past month versus the Zacks S&P 500 composite's +1.9% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Aon (AON - Free Report) came out with quarterly earnings of $3.81 per share, beating the Zacks Consensus Estimate of $3.77 per share. This compares to earnings of $3.49 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +1.06%. A quarter ago, it was expected that this insurance brokerage would post earnings of $6.33 per share when it actually produced earnings of $6.48, delivering a surprise of +2.37%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Aon, which belongs to the Zacks Insurance - Brokerage industry, posted revenues of $4.25 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.39%. This compares to year-ago revenues of $4.16 billion. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Aon shares have added about 8% since the beginning of the year versus the S&P 500's gain of 8.5%.
What's Next for Aon?While Aon has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Aon was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $3.40 on $4.1 billion in revenues for the coming quarter and $19.09 on $17.94 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Insurance - Brokerage is currently in the bottom 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Oxbridge Re Holdings Limited (OXBR - Free Report) , is yet to report results for the quarter ended June 2026.
This company is expected to post quarterly earnings of $0.04 per share in its upcoming report, which represents a year-over-year change of +116%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Oxbridge Re Holdings Limited's revenues are expected to be $1.1 million, up 66.7% from the year-ago quarter.
, /PRNewswire/ -- Aon plc (NYSE: AON) today reported results for the three months ended June 30, 2026.
Aon delivered another quarter of strong performance, including 2% total revenue growth, 5% organic revenue growth and operating margin expansion. We continue to execute our Aon United strategy, accelerated by the 3x3 Plan, to meet rising client demand Our free cash flow generation and robust balance sheet position support substantial financial flexibility. We returned $775 million to shareholders during the quarter through $600 million of share repurchases — exceeding our full-year objective of at least $1 billion — and $175 million of dividends We are reaffirming 2026 guidance of mid-single-digit or greater organic revenue growth, 70-80 basis points of adjusted operating margin expansion, strong adjusted EPS growth and double-digit free cash flow growth
Second Quarter 2026
First Half 2026
(millions, except percentages and per share data)
2026
2025
Change
2026
2025
Change
Total revenue
$4,246
$4,155
2 %
$9,280
$8,884
4 %
Organic revenue growth (Non-GAAP)
5 %
5 %
Operating income
$915
$859
7 %
$2,630
$2,320
13 %
Adjusted operating income (Non-GAAP)
$1,227
$1,171
5 %
$3,193
$2,987
7 %
Operating margin
21.5 %
20.7 %
80bps
28.3 %
26.1 %
220bps
Adjusted operating margin (Non-GAAP)
28.9 %
28.2 %
70bps
34.4 %
33.6 %
80bps
Diluted EPS
$2.58
$2.66
(3) %
$8.22
$7.10
16 %
Adjusted EPS (Non-GAAP)
$3.81
$3.49
9 %
$10.29
$9.17
12 %
Cash provided by operations
$556
$796
(30) %
$986
$936
5 %
Free cash flow (Non-GAAP)
$483
$732
(34) %
$846
$816
4 %
"Our second-quarter results demonstrate the consistency of our execution and the strength of our business model," said Greg Case, president and CEO. "We delivered 5% organic revenue growth, operating margin expansion, and 9% adjusted EPS growth, reflecting robust client demand, disciplined execution, and durable through-the-cycle performance."
"The structural advantage created by our Aon United strategy, coupled with AI-enabled analytical insights and innovative capital solutions, continues to differentiate Aon in the marketplace," Case added. "As clients navigate increasing complexity, we are expanding our addressable market, creating new opportunities with both traditional and non-traditional sources of capital, and generating the financial flexibility to invest for growth while returning significant capital to shareholders. We remain confident in our strategy, our outlook, and our ability to deliver sustainable long-term value."
Net income attributable to Aon shareholders in the second quarter decreased 3%, to $2.58 per share on a diluted basis, compared to $2.66 per share on a diluted basis, in the prior-year period. Adjusted net income per share attributable to Aon shareholders increased 9% to $3.81 on a diluted basis, including a de minimis impact if prior-year period results were translated at current period foreign exchange rates ("foreign currency translation"), compared to $3.49 in the prior-year period. Certain items that impacted second-quarter results and comparisons with the prior-year period are detailed in "Reconciliation of Non-GAAP Measures - Operating Income, Operating Margin and Diluted Earnings Per Share" on page 11 of this press release.
SECOND-QUARTER 2026 FINANCIAL SUMMARY
Total revenue in the second quarter increased 2% to $4.2 billion compared to the prior-year period, reflecting 5% organic revenue growth and a 1% favorable impact from foreign currency translation, partially offset by a 4% unfavorable impact primarily from divestitures. Risk Capital revenue increased $140 million, or 5%, to $3.0 billion and Human Capital revenue decreased $47 million, or 4%, to $1.2 billion.
Total operating expenses in the second quarter increased 1% to $3.3 billion compared to the prior-year period due primarily to an increase in expense associated with 5% organic revenue growth and investments in long-term growth, as well as an unfavorable impact from foreign currency translation, partially offset by lower expenses associated with the sale of the NFP Wealth business, $25 million of net restructuring savings, and lower compensation expense. Risk Capital operating expenses increased $88 million, or 4%, and Human Capital operating expenses decreased $97 million, or 8%.
Foreign currency translation had a de minimis impact on both diluted EPS and adjusted EPS in the second quarter. If currency were to remain stable at today's rates, the Company would expect a de minimis impact on adjusted EPS in the third quarter of 2026 and a favorable impact on adjusted EPS of approximately $0.42 per share for the full year 2026.
Effective tax rate was 22.0% in the second quarter compared to 15.5% in the prior-year period. After adjusting to exclude the applicable tax impact associated with certain non-GAAP adjustments, the adjusted effective tax rate for the second quarter of 2026 was 20.1% compared to 16.5% in the prior-year period. The primary drivers of the change in the effective tax rate were changes to the geographical distribution of income and an unfavorable impact from discrete items compared to a favorable impact in the prior-year period. The primary drivers of the change in the adjusted effective tax rate were changes to the geographical distribution of income and a lower favorable impact from discrete items.
Weighted average diluted shares outstanding decreased to 213.9 million in the second quarter compared to 217.3 million in the prior-year period. The Company repurchased 1.9 million class A ordinary shares for approximately $600 million in the second quarter. As of June 30, 2026, the Company had approximately $7.7 billion of remaining authorization under its share repurchase program.
YEAR-TO-DATE 2026 CASH FLOW SUMMARY
Cash flows provided by operations for the first six months of 2026 increased $50 million, or 5%, to $986 million compared to the prior-year period, as strong adjusted operating income growth offset the cash tax payment related to NFP Wealth and impact of working capital.
Free cash flow, defined as cash flow from operations less capital expenditures, increased 4%, to $846 million for the first six months of 2026 compared to the prior-year period, reflecting an increase in cash flows provided by operations, partially offset by a $20 million increase in capital expenditures.
SECOND-QUARTER 2026 REVENUE REVIEW
The second-quarter revenue reviews provided below include supplemental information related to organic revenue growth, which is a non-GAAP measure that is described in detail in "Reconciliation of Non-GAAP Measures - Organic Revenue Growth and Free Cash Flow" on page 10 of this press release.
Three Months Ended June 30,
(millions)
2026
2025
%
Change
Less:
Currency
Impact
Less:
Fiduciary
Investment
Income
Less:
Acquisitions,
Divestitures
& Other
Organic
Revenue
Growth
Risk Capital Revenue:
Commercial Risk Solutions
$ 2,295
$ 2,178
5 %
1 %
— %
(1) %
5 %
Reinsurance Solutions
711
688
3
—
—
(2)
5
Human Capital Revenue:
Health Solutions
818
772
6
1
—
—
5
Wealth Solutions
426
519
(18)
1
—
(24)
5
Eliminations
(4)
(2)
N/A
N/A
N/A
N/A
N/A
Total revenue
$ 4,246
$ 4,155
2 %
1 %
— %
(4) %
5 %
Total revenue increased $91 million, or 2%, compared to the prior-year period, reflecting 5% organic revenue growth, driven by net new business and ongoing strong retention, and a 1% favorable impact from foreign currency translation, partially offset by a 4% unfavorable impact primarily from divestitures largely due to the sales of the NFP Wealth business and Stroz Friedberg. Risk Capital revenue increased $140 million, or 5%, and Human Capital revenue decreased $47 million, or 4%.
Risk Capital
Commercial Risk Solutions Organic revenue growth of 5% reflects growth in EMEA and North America, driven by net new business and ongoing strong retention. Net market impact was modestly positive. Within North America, performance was highlighted by strong growth in U.S. core P&C and double-digit growth in construction.
Reinsurance Solutions Organic revenue growth of 5% reflects growth in treaty placements, driven by net new business and strong retention, and double-digit increases in facultative placements and our Strategy and Technology Group. Net market impact was unfavorable in the quarter.
Human Capital
Health Solutions Organic revenue growth of 5% reflects strong growth in core health and benefits, including particular strength internationally, driven by net new business and ongoing strong retention, as well as growth in Talent Solutions driven by strong growth in talent analytics. Net market impact was slightly negative.
Wealth Solutions Organic revenue growth of 5% reflects strong growth in Retirement, driven by continued demand for advisory work in the UK and EMEA related to the ongoing impact of regulatory change.
SECOND-QUARTER 2026 EXPENSE REVIEW
Three Months Ended June 30,
(millions)
2026
2025
$ Change
% Change
Expenses
Compensation and benefits
$ 2,271
$ 2,360
$ (89)
(4) %
Information technology
162
136
26
19
Premises
85
85
—
—
Depreciation of fixed assets
49
47
2
4
Amortization and impairment of intangible assets
174
201
(27)
(13)
Other general expense
494
373
121
32
Accelerating Aon United Program expenses
96
94
2
2
Total operating expenses
$ 3,331
$ 3,296
$ 35
1 %
Compensation and benefits expense decreased $89 million, or 4%, compared to the prior-year period, due primarily to lower expenses from the sale of the NFP Wealth business and savings from Accelerating Aon United restructuring actions, partially offset by the unfavorable impact of foreign currency translation and expenses associated with 5% organic revenue growth and investments in long-term growth.
Information technology expense increased $26 million, or 19%, compared to the prior-year period, due primarily to Aon Business Services investments in ongoing technology initiatives.
Premises expense was flat compared to the prior-year period, as we continued to optimize our real estate footprint and recognize savings from Accelerating Aon United restructuring actions.
Depreciation of fixed assets increased $2 million, or 4%, compared to the prior-year period.
Amortization and impairment of intangible assets decreased $27 million, or 13%, compared to the prior-year period, due primarily to the decrease in intangible assets associated with the sale of the NFP Wealth business.
Other general expense increased $121 million, or 32%, compared to the prior-year period, due primarily to non-recurring gains including sales of portfolios in the prior-year period, partially offset by lower expenses associated with the sale of the NFP Wealth business.
Accelerating Aon United Restructuring Program expense increased $2 million, or 2%, compared to the prior-year period, due primarily to costs related to workforce optimization.
SECOND-QUARTER 2026 INCOME SUMMARY
Certain noteworthy items impacted adjusted operating income and adjusted operating margin in the second quarters of 2026 and 2025, which are also described in detail in "Reconciliation of Non-GAAP Measures - Operating Income, Operating Margin and Diluted Earnings Per Share" on page 11 of this press release.
Three Months Ended June 30,
(millions)
2026
2025
% Change
Revenue
$ 4,246
$ 4,155
2 %
Expenses
3,331
3,296
1 %
Operating income
$ 915
$ 859
7 %
Operating margin
21.5 %
20.7 %
Adjusted operating income
$ 1,227
$ 1,171
5 %
Adjusted operating margin
28.9 %
28.2 %
Operating income increased $56 million and operating margin increased 80 basis points to 21.5%, each compared to the prior-year period. Adjusted operating income increased $56 million, or 5%, and adjusted operating margin increased 70 basis points to 28.9%, each compared to the prior-year period. The increase in adjusted operating income reflects organic revenue growth, scale improvements in ABS and net restructuring savings, partially offset by investments for growth.
Interest income increased $5 million compared to the prior-year period, primarily reflecting higher cash balances due to the sale of the NFP Wealth business. Interest expense decreased $33 million compared to the prior-year period, reflecting lower total debt.
Other expense was $17 million compared to other income of $56 million in the prior-year period, primarily due to the absence of deferred consideration recognized in the prior-year period related to the 2017 sale of our outsourcing business. Adjusted other expense was $17 million compared to $32 million in the prior-year period, primarily reflecting a favorable impact of foreign currency remeasurement of assets and liabilities in non-functional currencies and a decrease in non-cash pension expense.
Net income attributable to Aon shareholders decreased 5% to $551 million compared to $579 million in the prior-year period. Adjusted net income attributable to Aon shareholders increased 7% to $814 million compared to $759 million in the prior-year period.
Conference Call, Presentation Slides, and Webcast Details
The Company will host a conference call on Wednesday, July 29, 2026 at 7:30 a.m., central time. Interested parties can listen to the conference call via a live audio webcast and view the presentation slides at ir.aon.com.
About Aon
Aon plc (NYSE: AON) exists to shape decisions for the better — to protect and enrich the lives of people around the world. Through actionable analytic insight, globally integrated Risk Capital and Human Capital expertise, and locally relevant solutions, our colleagues provide clients in over 120 countries with the clarity and confidence to make better risk and people decisions that protect and grow their businesses.
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Safe Harbor Statement
This communication contains certain statements related to future results, or states Aon's intentions, beliefs and expectations or predictions for the future, all of which are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from either historical or anticipated results depending on a variety of factors. These forward-looking statements include information about possible or assumed future results of Aon's operations. All statements, other than statements of historical facts, that address activities, events or developments that Aon expects or anticipates may occur in the future, including such things as our outlook, market and industry conditions, including competitive and pricing trends, the development and performance of our services and products, our cost structure and the outcome of cost-saving or restructuring initiatives, including the impacts of the Accelerating Aon United Program, the integration of NFP, actual or anticipated legal settlement expenses, future capital expenditures, growth in commissions and fees, changes to the composition or level of our revenues, cash flow and liquidity, expected tax rates, expected foreign currency translation impacts, business strategies, competitive strengths, goals, the benefits of new initiatives, growth of our business and operations, plans, references to future successes, and expectations with respect to the benefits of the acquisition of NFP are forward-looking statements. Also, when Aon uses words such as "anticipate", "believe", "continue", "confidence", "could", "estimate", "expect", "forecast", "intend", "looking forward", "may", "might", "plan", "potential", "opportunity", "commit", "probably", "project", "positioned", "should", "will", "would" or similar expressions, it is making forward-looking statements.
The following factors, among others, could cause actual results to differ from those set forth in or anticipated by the forward-looking statements: changes in the competitive environment, due to macroeconomic conditions or otherwise, or damage to Aon's reputation; fluctuations in currency exchange, interest, or inflation rates that could impact our financial condition or results; changes in global equity and fixed income markets that could affect the return on invested assets; changes in the funded status of Aon's various defined benefit pension plans and the impact of any increased pension funding resulting from those changes; the level of Aon's debt and the terms thereof reducing Aon's flexibility or increasing borrowing costs; rating agency actions that could limit Aon's access to capital and our competitive position; volatility in Aon's global tax rate due to being subject to a variety of different factors, including the application of the OECD's Pillar Two tax regime by Ireland, the U.K., Singapore, and many E.U. member states, among others, or other pending proposals in those and other countries, which could create volatility in that tax rate; changes in Aon's accounting estimates or assumptions on Aon's financial statements; limits on Aon's subsidiaries' ability to pay dividends or otherwise make payments to Aon; the impact of legal proceedings and other contingencies, including those arising from or related to acquisition or disposition transactions, errors and omissions and other claims against Aon (including proceeding and contingencies relating to transactions for which capital was arranged by Vesttoo Ltd. or related to actions we may take in being responsible for making decisions on behalf of clients in our investment business or in other advisory services that we currently provide, or may provide in the future); the impact of, and potential challenges in complying with, laws and regulations in the jurisdictions in which Aon operates, particularly given the global nature of Aon's operations and the possibility of differing or conflicting laws and regulations, or the application or interpretation thereof, across jurisdictions in which Aon does business, including but not limited to in the areas of cybersecurity, data privacy and artificial intelligence; the impact of any regulatory investigations brought in Ireland, the U.K., the U.S. and other countries; failure to protect intellectual property rights or allegations that Aon infringes on the intellectual property rights of others; general economic and political conditions in different countries in which Aon does business around the world; the failure to retain, attract and develop experienced and qualified personnel; international risks associated with our global operations, including geopolitical conflicts, tariffs, sanctions, or changes in trade policies; the effects of natural or human-caused disasters, including the effects of health pandemics and the impacts of climate related events; any system or network disruption or breach resulting in operational interruption or improper disclosure of confidential, personal, or proprietary data, and resulting liabilities or damage to our reputation; Aon's ability to develop, implement, update and enhance new technology; the actions taken by third parties that perform aspects of Aon's business operations and client services; Aon's ability to continue, and the costs and risks associated with, growing, developing and integrating acquired business, and entering into new lines of business or products; Aon's ability to secure regulatory approval and complete transactions, and the costs and risks associated with the failure to consummate proposed transactions; changes in commercial property and casualty markets, commercial premium rates or methods of compensation; Aon's ability to develop and implement innovative growth strategies and initiatives intended to yield cost savings (including the Accelerating Aon United Program), and the ability to achieve such growth or cost savings; the effects of Irish law on Aon's operating flexibility and the enforcement of judgments against Aon; and adverse effects on the market price of Aon's securities and/or operating results for any reason, including, without limitation, because of a failure to realize the expected benefits of the acquisition of NFP (including anticipated revenue and growth synergies) in the expected timeframe, or at all.
Any or all of Aon's forward-looking statements may turn out to be inaccurate, and there are no guarantees about Aon's performance. The factors identified above are not exhaustive. Aon and its subsidiaries operate in a dynamic business environment in which new risks may emerge frequently. Accordingly, you should not place undue reliance on forward-looking statements, which speak only as of the dates on which they are made. In addition, results for prior periods are not necessarily indicative of results that may be expected for any future period. Further information concerning Aon and its businesses, including factors that could materially affect Aon's financial results, is contained in Aon's filings with the SEC. See Aon's Annual Report on Form 10-K for the year ended December 31, 2025 for a further discussion of these and other risks and uncertainties applicable to Aon and its businesses. These factors may be revised or supplemented in subsequent reports filed with the SEC. Aon is not under, and expressly disclaims, any obligation to update or alter any forward-looking statement that it may make from time to time, whether as a result of new information, future events or otherwise.
Explanation of Non-GAAP Measures
This communication includes supplemental information not calculated in accordance with generally accepted accounting principles in the United States ("U.S. GAAP"), including organic revenue growth, free cash flow, adjusted operating income, adjusted operating margin, adjusted earnings per share, adjusted net income attributable to Aon shareholders, adjusted diluted net income per share ("EPS"), adjusted effective tax rate, adjusted other income (expense), and adjusted income before income taxes that exclude the effects of intangible asset amortization and impairment, Accelerating Aon United Program expenses, contingent consideration, NFP integration costs, certain pension settlements, capital expenditures, and certain other noteworthy items that affected results for the comparable periods. Organic revenue growth includes the impact of intercompany activity and excludes foreign exchange rate changes, acquisitions (provided that organic revenue growth includes organic growth of an acquired business as calculated assuming that the acquired business was part of the combined company for the same proportion of the relevant prior-year period), divestitures (including held for sale disposal groups, if any, which are adjusted from organic revenue growth upon classification as held-for-sale), transfers between revenue lines, fiduciary investment income, and gains or losses on derivatives accounted for as hedges. Currency impact represents the effect on prior-year period results if they were translated at current period foreign exchange rates. Reconciliations to the closest U.S. GAAP measure for each non-GAAP measure presented in this communication are provided in the attached appendices. Supplemental organic revenue growth information and additional measures that exclude the effects of certain items noted above do not affect net income or any other U.S. GAAP reported amounts. Free cash flow is cash flows from operating activity less capital expenditures. The adjusted effective tax rate excludes the applicable tax impact associated with adjustments previously described, generally at the estimated annual effective tax rate or jurisdictional rate, where appropriate. Beginning in the third quarter of 2024, the adjusted effective tax rate also excludes interest accruals for income tax reserves related to the termination fee payment made in connection with the Company's terminated proposed combination with Willis Towers Watson. Management believes that these measures are important to make meaningful period-to-period comparisons and that this supplemental information is helpful to investors. Management also uses these measures to assess operating performance and performance for compensation. Non-GAAP measures should be viewed in addition to, not in lieu of, Aon's Consolidated Financial Statements. Industry peers provide similar supplemental information regarding their performance, although they may not make identical adjustments. Aon does not provide a reconciliation of forward-looking non-GAAP measures, such as adjusted operating margin, adjusted other income (expense) and adjusted effective tax rate, where Aon believes such a reconciliation would imply a degree of precision and certainty that could be misleading and is unable to reasonably predict certain items contained in the corresponding GAAP measures without unreasonable efforts. This is due to the inherent difficulty of forecasting the timing or amount of various items that have not yet occurred and are out of Aon's control, or cannot be reasonably predicted. For these reasons, Aon is also unable to address the probable significance of the unavailable information.
Investor Contact:
Media Contact:
Hallie Miller
Will Dunn
[email protected]
Toll-free (U.S., Canada and Puerto Rico): +1 833 751 8114
International: +1 312 381 3024
[email protected]
Aon plc
Condensed Consolidated Statements of Income (Unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
(millions, except per share data)
2026
2025
%
Change
2026
2025
%
Change
Revenue
Total revenue
$ 4,246
$ 4,155
2 %
$ 9,280
$ 8,884
4 %
Expenses
Compensation and benefits
2,271
2,360
(4) %
4,664
4,609
1 %
Information technology
162
136
19 %
306
272
13 %
Premises
85
85
— %
166
167
(1) %
Depreciation of fixed assets
49
47
4 %
95
93
2 %
Amortization and impairment of intangible assets
174
201
(13) %
326
400
(19) %
Other general expense
494
373
32 %
905
819
11 %
Accelerating Aon United Program expenses
96
94
2 %
188
204
(8) %
Total operating expenses
3,331
3,296
1 %
6,650
6,564
1 %
Operating income
915
859
7 %
2,630
2,320
13 %
Interest income
5
—
100 %
17
5
240 %
Interest expense
(179)
(212)
(16) %
(358)
(418)
(14) %
Other income (expense)
(17)
56
(130) %
(12)
46
(126) %
Income before income taxes
724
703
3 %
2,277
1,953
17 %
Income tax expense (1)
159
109
46 %
473
377
25 %
Net income
565
594
(5) %
1,804
1,576
14 %
Less: Net income attributable to redeemable and
nonredeemable noncontrolling interests
14
15
(7) %
41
32
28 %
Net income attributable to Aon shareholders
$ 551
$ 579
(5) %
$ 1,763
$ 1,544
14 %
Basic net income per share attributable to Aon
shareholders
$ 2.58
$ 2.68
(4) %
$ 8.25
$ 7.14
16 %
Diluted net income per share attributable to Aon
shareholders
$ 2.58
$ 2.66
(3) %
$ 8.22
$ 7.10
16 %
Weighted average ordinary shares outstanding - basic
213.2
216.2
(1) %
213.8
216.3
(1) %
Weighted average ordinary shares outstanding - diluted
213.9
217.3
(2) %
214.6
217.6
(1) %
(1)
The effective tax rate was 22.0% and 15.5% for the three months ended June 30, 2026 and 2025, respectively, and 20.8% and 19.3% for the six months ended June 30, 2026 and 2025, respectively.
Aon plc
Segment Results (Unaudited)
Three Months Ended June 30,
Risk Capital
Human Capital
Corporate/Eliminations
(1)
Total Consolidated
(millions, except percentages)
2026
2025
2026
2025
2026
2025
2026
2025
Revenue
Total revenue
$ 3,006
$ 2,866
$ 1,244
$ 1,291
$ (4)
$ (2)
$ 4,246
$ 4,155
Expenses
Compensation and benefits
1,528
1,541
715
796
28
23
2,271
2,360
Information technology
106
88
51
45
5
3
162
136
Premises
56
54
28
30
1
1
85
85
Other expenses (2)
400
319
283
303
130
93
813
715
Total operating expenses
2,090
2,002
1,077
1,174
164
120
3,331
3,296
Operating income
$ 916
$ 864
$ 167
$ 117
$ (168)
$ (122)
$ 915
$ 859
Operating margin
30.5 %
30.1 %
13.4 %
9.1 %
21.5 %
20.7 %
Six Months Ended June 30,
Risk Capital
Human Capital
Corporate/Eliminations
(1)
Total Consolidated
(millions, except percentages)
2026
2025
2026
2025
2026
2025
2026
2025
Revenue
Total revenue
$ 6,508
$ 6,057
$ 2,783
$ 2,836
$ (11)
$ (9)
$ 9,280
$ 8,884
Expenses
Compensation and benefits
3,160
3,002
1,474
1,570
30
37
4,664
4,609
Information technology
202
178
97
90
7
4
306
272
Premises
109
106
55
59
2
2
166
167
Other expenses (2)
739
710
547
597
228
209
1,514
1,516
Total operating expenses
4,210
3,996
2,173
2,316
267
252
6,650
6,564
Operating income
$ 2,298
$ 2,061
$ 610
$ 520
$ (278)
$ (261)
$ 2,630
$ 2,320
Operating margin
35.3 %
34.0 %
21.9 %
18.3 %
28.3 %
26.1 %
(1)
Corporate expenses/eliminations include governance costs, post-retirement benefits, and other costs that are not directly attributable to a specific segment.
(2)
Includes expenses related to depreciation of fixed assets, amortization and impairment of intangible assets, Accelerating Aon United Program expenses, and other general expenses.
Aon plc
Reconciliation of Non-GAAP Measures - Organic Revenue Growth and Free Cash Flow (Unaudited)Organic Revenue Growth (Unaudited)
Three Months Ended June 30,
(millions, except percentages)
2026
2025
%
Change
Less:
Currency
Impact (1)
Less:
Fiduciary
Investment
Income (2)
Less:
Acquisitions,
Divestitures
& Other
Organic
Revenue
Growth (3)
Risk Capital Revenue:
Commercial Risk Solutions
$ 2,295
$ 2,178
5 %
1 %
— %
(1) %
5 %
Reinsurance Solutions
711
688
3
—
—
(2)
5
Human Capital Revenue:
Health Solutions
818
772
6
1
—
—
5
Wealth Solutions
426
519
(18)
1
—
(24)
5
Eliminations
(4)
(2)
N/A
N/A
N/A
N/A
N/A
Total revenue
$ 4,246
$ 4,155
2 %
1 %
— %
(4) %
5 %
Six Months Ended June 30,
(millions, except percentages)
2026
2025
%
Change
Less:
Currency
Impact (1)
Less:
Fiduciary
Investment
Income (2)
Less:
Acquisitions,
Divestitures
& Other
Organic
Revenue
Growth (3)
Risk Capital Revenue:
Commercial Risk Solutions
$ 4,518
$ 4,180
8 %
3 %
— %
(1) %
6 %
Reinsurance Solutions
1,990
1,877
6
2
—
—
4
Human Capital Revenue:
Health Solutions
1,937
1,798
8
3
—
—
5
Wealth Solutions
846
1,038
(18)
2
—
(23)
3
Eliminations
(11)
(9)
N/A
N/A
N/A
N/A
N/A
Total revenue
$ 9,280
$ 8,884
4 %
3 %
— %
(4) %
5 %
(1)
Currency impact represents the effect on prior-year period results if they were translated at current period foreign exchange rates.
(2)
Fiduciary investment income for the three months ended June 30, 2026 and 2025 was $58 million and $66 million, respectively. Fiduciary investment income for the six months ended June 30, 2026 and 2025 was $113 million and $133 million, respectively.
(3)
Organic revenue growth includes the impact of certain intercompany activity and excludes the impact of changes in foreign exchange rates, fiduciary investment income, acquisitions (provided that organic revenue growth includes organic growth of an acquired business as calculated assuming that the acquired business was part of the combined company for the same proportion of the relevant prior-year period), divestitures (including held for sale disposal groups, if any), transfers between revenue lines, and gains or losses on derivatives accounted for as hedges.
Free Cash Flow (Unaudited)
Three Months Ended June 30,
(millions)
2026
2025
% Change
Cash Provided by Operating Activities
$ 556
$ 796
(30) %
Capital Expenditures
(73)
(64)
14 %
Free Cash Flow (1)
$ 483
$ 732
(34) %
Six Months Ended June 30,
(millions)
2026
2025
% Change
Cash Provided by Operating Activities
$ 986
$ 936
5 %
Capital Expenditures
(140)
(120)
17 %
Free Cash Flow (1)
$ 846
$ 816
4 %
(1)
Free cash flow is defined as cash flows from operations less capital expenditures. This non-GAAP measure does not imply or represent a precise calculation of residual cash flow available for discretionary expenditures.
Aon plc
Reconciliation of Non-GAAP Measures - Operating Income and Operating Margin (Unaudited) (1)
Three Months Ended June 30,
Risk Capital
Human Capital
Corporate/Eliminations
(2)
Total Consolidated
(millions, except percentages)
2026
2025
2026
2025
2026
2025
2026
2025
Revenue
$3,006
$2,866
$1,244
$1,291
$ (4)
$ (2)
$4,246
$4,155
Operating income
$ 916
$ 864
$ 167
$ 117
$ (168)
$ (122)
$ 915
$ 859
Amortization and impairment of intangible assets
88
86
86
115
—
—
174
201
Change in the fair value of contingent consideration
3
(9)
6
(1)
—
—
9
(10)
Accelerating Aon United Program expenses (3)
14
32
(1)
6
83
56
96
94
Integration costs (4)
7
3
10
9
16
15
33
27
Adjusted operating income
$1,028
$ 976
$ 268
$ 246
$ (69)
$ (51)
$1,227
$1,171
Operating margin
30.5 %
30.1 %
13.4 %
9.1 %
21.5 %
20.7 %
Adjusted operating margin
34.2 %
34.1 %
21.5 %
19.1 %
28.9 %
28.2 %
Six Months Ended June 30, 2026
Risk Capital
Human Capital
Corporate/Eliminations
(2)
Total Consolidated
(millions, except percentages)
2026
2025
2026
2025
2026
2025
2026
2025
Revenue
$6,508
$6,057
$2,783
$2,836
$ (11)
$ (9)
$9,280
$8,884
Operating income
$2,298
$2,061
$ 610
$ 520
$ (278)
$ (261)
$2,630
$2,320
Amortization and impairment of intangible assets
161
170
165
230
—
—
326
400
Change in the fair value of contingent consideration
(2)
(3)
6
10
—
—
4
7
Accelerating Aon United Program expenses (3)
33
51
4
10
151
143
188
204
Integration costs (4)
8
14
12
21
25
21
45
56
Adjusted operating income
$2,498
$2,293
$ 797
$ 791
$ (102)
$ (97)
$3,193
$2,987
Operating margin
35.3 %
34.0 %
21.9 %
18.3 %
28.3 %
26.1 %
Adjusted operating margin
38.4 %
37.9 %
28.6 %
27.9 %
34.4 %
33.6 %
(1)
Certain noteworthy items impacting operating income in the three and six months ended June 30, 2026 and 2025 are described in this reconciliation. The items shown with the caption "adjusted" are non-GAAP measures.
(2)
Corporate expenses/eliminations include governance costs, post-retirement benefits, and other costs that are not directly attributable to a specific segment.
(3)
Total Accelerating Aon United Program expenses include technology-related costs to facilitate streamlining and simplifying operations, headcount reduction costs, and costs associated with asset impairments, including real estate consolidation.
(4)
The NFP transaction has continued to result in certain non-recurring integration costs associated with colleague severance, retention bonus awards, termination of redundant third-party agreements, costs associated with legal entity rationalization, and professional or consulting fees related to alignment of management processes and controls, as well as costs associated with the assessment of NFP information technology environment and security protocols. Integration costs related to the NFP acquisition were substantially completed at June 30, 2026.
Aon plc
Reconciliation of Non-GAAP Measures - Diluted Earnings Per Share (Unaudited) (1)
(millions, except percentages)
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
%
Change
2026
2025
%
Change
Operating income
$ 915
$ 859
7 %
$ 2,630
$ 2,320
13 %
Adjusted operating income (2)
1,227
1,171
5 %
3,193
2,987
7 %
Interest income
5
—
100 %
17
5
240 %
Interest expense
(179)
(212)
(16) %
(358)
(418)
(14) %
Other income (expense) (3)
(17)
56
(130) %
(12)
46
(126) %
Less: Certain deferred consideration (4)
—
88
(100) %
—
108
(100) %
Less: Gains from disposition of certain business (5)
—
—
— %
20
—
100 %
Adjusted other income (expense)
$ (17)
$ (32)
(47) %
$ (32)
$ (62)
(48) %
Adjusted income before income taxes
1,036
927
12 %
2,820
2,512
12 %
Adjusted income tax expense (6)
208
153
36 %
570
485
18 %
Adjusted net income
828
774
7 %
2,250
—
2,027
11 %
Less: Net income attributable to redeemable and nonredeemable
noncontrolling interests
14
15
(7) %
41
32
28 %
Adjusted net income attributable to Aon shareholders
$ 814
$ 759
7 %
$ 2,209
$ —
$ 1,995
11 %
Adjusted diluted net income per share attributable to Aon shareholders
$ 3.81
$ 3.49
9 %
$ 10.29
$ 9.17
12 %
Weighted average ordinary shares outstanding - diluted
213.9
217.3
(2) %
214.6
217.6
(1) %
Effective tax rates (6)
U.S. GAAP
22.0 %
15.5 %
20.8 %
19.3 %
Non-GAAP
20.1 %
16.5 %
20.2 %
19.3 %
(1)
Certain noteworthy items impacting operating income in the three and six months ended June 30, 2026 and 2025 are described in this schedule. The items shown with the caption "adjusted" are non-GAAP financial measures.
(2)
Refer to the previous page for a reconciliation of Operating income and Adjusted operating income.
(3)
Other Income (expense) includes $15 million and $21 million of net periodic pension expense for the three months ended June 30, 2026 and 2025, respectively. Other Income (expense) includes $30 million and $44 million of net periodic pension expense for the six months ended June 30, 2026 and 2025, respectively.
(4)
During the three and six months ended June 30, 2025, gains of $88 million and $108 million were recognized, respectively. These gains related to deferred consideration from the affiliates of The Blackstone Group L.P. and the other designated purchasers related to a divestiture completed in a prior year period and were excluded from Adjusted other income (expense).
(5)
During the six months ended June 30, 2026, Aon recognized a $20 million gain related to the prior-year sale of a significant majority of NFP's Wealth business, all of which was recognized in the first quarter of 2026.
(6)
Adjusted items are generally taxed at the estimated annual effective tax rate, except for the applicable tax impact associated with Accelerating Aon United Program expenses, deferred consideration from a prior year sale of business, certain integration costs related to the acquisition of NFP, additional gain from the disposal of the NFP Wealth business, and changes in the fair value of contingent consideration, which are adjusted at the related jurisdictional rate. The tax adjustment also excludes interest accruals for income tax reserves related to the termination fee payment made in connection with the Company's terminated proposed combination with Willis Towers Watson.
Aon plc
Condensed Consolidated Statements of Financial Position
As of
(Unaudited)
(millions)
June 30,
2026
December 31,
2025
Assets
Current assets
Cash and cash equivalents
$ 1,062
$ 1,195
Short-term investments
205
1,603
Receivables, net
5,348
4,209
Fiduciary assets (1)
20,698
17,889
Other current assets
801
878
Total current assets
28,114
25,774
Goodwill
15,884
15,797
Intangible assets, net
5,657
5,727
Fixed assets, net
761
702
Operating lease right-of-use assets
750
677
Deferred tax assets
770
748
Prepaid pension
596
603
Other non-current assets
815
756
Total assets
$ 53,347
$ 50,784
Liabilities, redeemable noncontrolling interests, and equity
Liabilities
Current liabilities
Accounts payable and accrued liabilities
$ 2,266
$ 2,861
Short-term debt and current portion of long-term debt
2,020
589
Fiduciary liabilities
20,698
17,889
Other current liabilities
2,242
1,887
Total current liabilities
27,226
23,226
Long-term debt
12,947
14,660
Non-current operating lease liabilities
730
641
Deferred tax liabilities
342
340
Pension, other postretirement, and postemployment liabilities
1,002
1,084
Other non-current liabilities
1,390
1,285
Total liabilities
43,637
41,236
Redeemable noncontrolling interests
24
89
Equity
Ordinary shares - $0.01 nominal value
Authorized: 500.0 shares (issued: at June 30, 2026 - 212.0; at December 31, 2025 - 214.5)
2
2
Additional paid-in capital
13,500
13,438
Retained earnings (Accumulated deficit)
82
(245)
Accumulated other comprehensive loss
(3,986)
(3,843)
Total Aon shareholders' equity
9,598
9,352
Nonredeemable noncontrolling interests
88
107
Total equity
9,686
9,459
Total liabilities, redeemable noncontrolling interests and equity
$ 53,347
$ 50,784
(1)
Includes cash and short-term investments of $8.0 billion and $7.4 billion as of June 30, 2026 and December 31, 2025, respectively.
Aon plc
Condensed Consolidated Statements of Cash Flows (Unaudited)
Six Months Ended June 30,
(millions)
2026
2025
Cash flows from operating activities
Net income
$ 1,804
$ 1,576
Adjustments to reconcile net income to cash provided by operating activities:
Gain from sales of businesses
(20)
—
Depreciation of fixed assets
95
93
Amortization and impairment of intangible assets
326
400
Share-based compensation expense
204
266
Deferred income taxes
(90)
(242)
Other, net
1
(111)
Change in assets and liabilities:
Receivables, net
(1,180)
(902)
Accounts payable and accrued liabilities
(605)
(738)
Accelerating Aon United Program liabilities
24
15
Current income taxes
(69)
(73)
Pension, other postretirement and postemployment liabilities
(23)
(12)
Other assets and liabilities
519
664
Cash provided by operating activities
986
936
Cash flows from investing activities
Proceeds from investments
33
71
Purchases of investments
(36)
(42)
Net sales (purchases) of short-term investments - non fiduciary
1,394
(153)
Acquisition of businesses, net of cash and funds held on behalf of clients
(322)
(143)
Sale of businesses, net of cash and funds held on behalf of clients
21
119
Capital expenditures
(140)
(120)
Cash provided by (used for) investing activities
950
(268)
Cash flows from financing activities
Share repurchase
(1,100)
(500)
Proceeds from issuance of shares
28
33
Cash paid for employee taxes on withholding shares
(141)
(194)
Commercial paper issuances, net of repayments
297
480
Repayment of debt
(593)
(300)
Increase in fiduciary liabilities, net of fiduciary receivables
710
569
Cash dividends to shareholders
(337)
(308)
Redeemable and nonredeemable noncontrolling interests, and other financing activities
(163)
(153)
Cash used for financing activities
(1,299)
(373)
Effect of exchange rates on cash and cash equivalents and funds held on behalf of clients
(147)
696
Net increase in cash and cash equivalents and funds held on behalf of clients
490
991
Cash, cash equivalents and funds held on behalf of clients at beginning of period
8,573
8,333
Cash, cash equivalents and funds held on behalf of clients at end of period
$ 9,063
$ 9,324
Reconciliation of cash and cash equivalents and funds held on behalf of clients:
Cash and cash equivalents
$ 1,062
$ 1,008
Cash and cash equivalents and funds held on behalf of clients classified as held for sale
—
1
Funds held on behalf of clients
8,001
8,315
Total cash and cash equivalents and funds held on behalf of clients
Aon PLC (AON) released its 8-K filing on July 29, 2026, reporting a total revenue growth of 2% with an adjusted earnings per share (EPS) growth of 9% for the se
The results of the Q3 2026 Insurance Labor Market Study will be shared in a complimentary webinar presentation at 1 p.m. CDT on August 13, 2026. The semi-annual
Investors in Aon plc (AON - Free Report) need to pay close attention to the stock based on moves in the options market lately. That is because the Aug. 21, 2026 $350 Call had some of the highest implied volatility of all equity options today.
What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?Clearly, options traders are pricing in a big move for Aon shares, but what is the fundamental picture for the company? Currently, Aon is a Zacks Rank #3 (Hold) in the Insurance – Brokerage industry that ranks in the Bottom 36% of our Zacks Industry Rank. Over the last 60 days, one analyst has increased the earnings estimates for the current quarter, while five have dropped their estimates. The net effect has taken our Zacks Consensus Estimate for the current quarter from $3.80 per share to $3.77 in that period.
Given the way analysts feel about Aon right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
Arrowstreet Capital Limited Partnership grew its stake in shares of Aon plc (NYSE: AON) by 74.7% during the first quarter, according to the company in its most recent disclosure with the SEC. The fund owned 797,418 shares of the financial services provider's stock after buying an additional 340,866 shares during the quarter. Arrowstreet
Key Takeaways AON is expected to post Q2 revenue growth, led by Commercial Risk Solutions and Health Solutions.AON's four straight earnings beats and favorable retention rates point to potential upside this quarter.Higher compensation, IT and other costs, plus weaker Wealth Solutions demand, may weigh on results. Leading global insurer Aon plc (AON - Free Report) is set to report second-quarter 2026 results on July 29, 2026, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at $3.77 per share on revenues of $4.26 billion.
The second-quarter earnings estimate has witnessed two upward revisions and five downward movements over the past 60 days. The bottom-line projection indicates a year-over-year increase of 8%. The Zacks Consensus Estimate for quarterly revenues suggests year-over-year growth of 2.6%.
Image Source: Zacks Investment Research
AON beat the consensus estimate for earnings in each of the last four quarters, with the average surprise being 3.1%.
Q2 Earnings Whispers for AONOur proven model predicts a likely earnings beat for the company this time around as well. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That’s precisely the case here.
AON has an Earnings ESP of +0.24% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
What’s Shaping AON’s Q2 Results?The Zacks Consensus Estimate for the Commercial Risk Solutions line’s revenues indicates 5.3% growth from $2.18 billion a year ago, whereas our model predicts a 5% increase. We expect the unit to witness 5% organic revenue growth in the quarter under discussion.
The consensus mark for the Health Solutions line’s second-quarter revenues suggests nearly 6% growth from the year-ago level, while our model estimate indicates an 8% increase. The segment is likely to have been supported by new business growth, strong retention rates and positive market impact.
The Zacks Consensus Estimate for Reinsurance Solutions' revenues indicates growth of 4.4% from $688 million recorded a year ago, while our model estimate suggests a 7% increase. Favorable retention rates, new business generation and facultative placement growthare expected to have benefited the unit.
The factors mentioned above are expected to have contributed to the company's year-over-year growth, positioning it for an earnings beat. However, the positives are likely to have been partially offset by high expenses due to significant investments in priority areas for long-term growth, coupled with an uptick in certain discretionary and other costs.
Our model predicts total operating expenses for the second quarter at above $3.3 billion, attributed to increased costs related to higher compensation and benefits and information technology. Specifically, the estimate for other general expenses is set at more than $400 million, while compensation and benefits costs are pegged at nearly $2.4 billion.
Moreover, the consensus estimate for second-quarter revenues in the Wealth Solutions segment suggests a 15.2% decrease from the previous year’s $519 million, whereas our model indicates a 15% decline. The unit is likely to have been affected by weaker advisory demand in the United States.
How Did AON’s Peers Perform?Several insurance companies, including Marsh & McLennan Companies, Inc. (MRSH - Free Report) , AMERISAFE, Inc. (AMSF - Free Report) and RenaissanceRe Holdings Ltd. (RNR - Free Report) , have already reported their financial results for the June quarter of 2026. Here’s how they performed:
Marsh reported second-quarter 2026 adjusted earnings per share of $2.96, which surpassed the Zacks Consensus Estimate by 2.8%. The bottom line advanced 8.8% year over year.Its strong quarterly results benefited from solid growth in the Risk and Insurance Services and Consulting units. However, the upside was partially offset by Marsh’s elevated operating expenses, primarily due to increased compensation and benefits.
AMERISAFE reported second-quarter adjusted earnings per share of 44 cents, missing the Zacks Consensus Estimate by 17%. The bottom line also declined 17% year over year. The quarterly result was affected by higher expenses and weaker underwriting margins, with additional pressure from lower investment income. AMSF’s strong premium growth partly offset these headwinds.
RenaissanceRe reported second-quarter 2026 operating income of $12.92 per share, which surpassed the Zacks Consensus Estimate by 12.9%. The bottom line also improved 5.1% year over year. The quarterly earnings benefited from lower expenses, higher net investment income and an improved total combined ratio. However, the upside was partly offset by lower net premiums earned, weaker underwriting results in RNR’s Casualty & Specialty segment and lower fee income.
Wall Street analysts forecast that Aon (AON - Free Report) will report quarterly earnings of $3.77 per share in its upcoming release, pointing to a year-over-year increase of 8%. It is anticipated that revenues will amount to $4.26 billion, exhibiting an increase of 2.6% compared to the year-ago quarter.
Over the past 30 days, the consensus EPS estimate for the quarter has remained unchanged. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.
Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.
Given this perspective, it's time to examine the average forecasts of specific Aon metrics that are routinely monitored and predicted by Wall Street analysts.
Analysts predict that the 'Revenue- Health Solutions' will reach $814.87 million. The estimate indicates a year-over-year change of +5.6%.
The consensus estimate for 'Revenue- Wealth Solutions' stands at $440.13 million. The estimate points to a change of -15.2% from the year-ago quarter.
It is projected by analysts that the 'Revenue- Reinsurance Solutions' will reach $717.97 million. The estimate suggests a change of +4.4% year over year.
Analysts expect 'Revenue- Commercial Risk Solutions' to come in at $2.29 billion. The estimate indicates a year-over-year change of +5.3%.
The consensus among analysts is that 'Commercial Risk Solutions - Organic Revenue Growth' will reach 5.2%. Compared to the current estimate, the company reported 6.0% in the same quarter of the previous year.
According to the collective judgment of analysts, 'Reinsurance Solutions - Organic Revenue Growth' should come in at 3.6%. Compared to the present estimate, the company reported 6.0% in the same quarter last year.
The collective assessment of analysts points to an estimated 'Wealth Solutions - Organic Revenue Growth' of 4.1%. The estimate compares to the year-ago value of 3.0%.
Analysts forecast 'Consolidated - Organic Revenue Growth' to reach 4.6%. Compared to the current estimate, the company reported 6.0% in the same quarter of the previous year.
The combined assessment of analysts suggests that 'Health Solutions - Organic Revenue Growth' will likely reach 4.3%. The estimate compares to the year-ago value of 6.0%.
View all Key Company Metrics for Aon here>>>
Over the past month, Aon shares have recorded returns of +12.6% versus the Zacks S&P 500 composite's +0.6% change. Based on its Zacks Rank #3 (Hold), AON will likely exhibit a performance that aligns with the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
The market expects Aon (AON - Free Report) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on July 29, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis insurance brokerage is expected to post quarterly earnings of $3.77 per share in its upcoming report, which represents a year-over-year change of +8%.
Revenues are expected to be $4.26 billion, up 2.6% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.03% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Aon?For Aon, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.24%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that Aon will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Aon would post earnings of $6.33 per share when it actually produced earnings of $6.48, delivering a surprise of +2.37%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Aon appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
An Industry Player's Expected ResultsBrown & Brown (BRO - Free Report) , another stock in the Zacks Insurance - Brokerage industry, is expected to report earnings per share of $1.08 for the quarter ended June 2026. This estimate points to a year-over-year change of +4.9%. Revenues for the quarter are expected to be $1.72 billion, up 34% from the year-ago quarter.
The consensus EPS estimate for Brown & Brown has been revised 0.2% lower over the last 30 days to the current level. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of +0.31%.
When combined with a Zacks Rank of #3 (Hold), this Earnings ESP indicates that Brown & Brown will most likely beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Dimensional Fund Advisors LP lifted its holdings in shares of Aon plc (NYSE:AON – Free Report) by 20.5% in the first quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 1,253,769 shares of the financial services provider’s stock after acquiring an additional 213,051 shares during the quarter. Dimensional Fund Advisors LP owned 0.59% of AON worth $404,709,000 at the end of the most recent quarter.
Several other hedge funds and other institutional investors have also bought and sold shares of AON. Balefire LLC grew its stake in AON by 11.2% in the 1st quarter. Balefire LLC now owns 765 shares of the financial services provider’s stock valued at $247,000 after purchasing an additional 77 shares during the period. Parallel Advisors LLC increased its position in shares of AON by 6.0% during the 1st quarter. Parallel Advisors LLC now owns 2,081 shares of the financial services provider’s stock valued at $672,000 after purchasing an additional 117 shares during the last quarter. True North Advisors LLC raised its stake in shares of AON by 21.2% during the 1st quarter. True North Advisors LLC now owns 1,315 shares of the financial services provider’s stock worth $424,000 after purchasing an additional 230 shares during the period. SEB Asset Management AB purchased a new position in shares of AON in the 1st quarter worth about $21,594,000. Finally, Swiss National Bank grew its position in AON by 6.8% during the first quarter. Swiss National Bank now owns 599,260 shares of the financial services provider’s stock valued at $193,429,000 after buying an additional 37,920 shares during the period. Hedge funds and other institutional investors own 86.14% of the company’s stock.
AON Stock Performance Shares of AON stock opened at $358.82 on Wednesday. The stock has a market capitalization of $76.64 billion, a P/E ratio of 19.69, a PEG ratio of 1.90 and a beta of 0.71. The company has a current ratio of 1.95, a quick ratio of 1.95 and a debt-to-equity ratio of 1.36. The firm’s 50 day moving average is $334.06 and its 200 day moving average is $331.10. Aon plc has a 12 month low of $304.59 and a 12 month high of $381.00.
AON (NYSE:AON – Get Free Report) last released its quarterly earnings data on Saturday, May 2nd. The financial services provider reported $6.48 earnings per share for the quarter, beating analysts’ consensus estimates of $6.37 by $0.11. AON had a net margin of 22.54% and a return on equity of 43.50%. The business had revenue of $5.03 billion during the quarter, compared to analyst estimates of $4.97 billion. During the same period in the previous year, the business earned $5.67 EPS. AON’s revenue was up 6.4% compared to the same quarter last year. On average, sell-side analysts anticipate that Aon plc will post 19.09 earnings per share for the current year.
AON Announces Dividend The business also recently declared a quarterly dividend, which will be paid on Friday, August 14th. Stockholders of record on Monday, August 3rd will be issued a $0.82 dividend. This represents a $3.28 dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date of this dividend is Monday, August 3rd. AON’s dividend payout ratio (DPR) is presently 18.00%.
Wall Street Analyst Weigh In Several analysts have commented on the stock. JPMorgan Chase & Co. lifted their price objective on shares of AON from $396.00 to $412.00 and gave the stock an “overweight” rating in a research report on Monday, July 13th. Mizuho lifted their price target on shares of AON from $389.00 to $426.00 and gave the stock an “outperform” rating in a report on Thursday, July 9th. Morgan Stanley upped their price objective on AON from $370.00 to $380.00 and gave the company an “overweight” rating in a research note on Monday, July 6th. Keefe, Bruyette & Woods reduced their price objective on AON from $404.00 to $400.00 and set an “outperform” rating for the company in a report on Wednesday, July 8th. Finally, Barclays raised their target price on AON from $372.00 to $382.00 and gave the stock an “equal weight” rating in a research report on Tuesday, July 7th. Twelve investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $404.56.
Read Our Latest Research Report on AON
Insider Buying and Selling at AON In related news, General Counsel Darren Zeidel sold 600 shares of the business’s stock in a transaction on Tuesday, July 7th. The stock was sold at an average price of $360.00, for a total transaction of $216,000.00. Following the sale, the general counsel directly owned 15,354 shares in the company, valued at approximately $5,527,440. The trade was a 3.76% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Company insiders own 1.00% of the company’s stock.
About AON (Free Report)
Aon plc is a global professional services firm that provides a broad suite of risk, retirement and health solutions to corporations, institutions and individuals. The company operates primarily as an insurance broker and risk adviser, helping clients identify, quantify and transfer risk across property, casualty, cyber and other areas. Aon also offers reinsurance brokerage and capital market solutions that connect insurers, reinsurers and corporate buyers.
In addition to traditional brokerage activities, Aon delivers consulting and outsourcing services in areas such as human capital, benefits, and retirement plan design and administration.
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Key Takeaways Aon raised Data Center Lifecycle Insurance Program capacity to $5B from $3.5B for digital projects.Aon combines engineering, risk intelligence and insurance planning through its Reliable by Design approach.Aon expanded coverage across construction, property, cyber, liability and operational risk solutions. Aon plc (AON - Free Report) has expanded the capacity of its proprietary Data Center Lifecycle Insurance Program (DCLP) to $5 billion, up from $3.5 billion, strengthening its ability to support increasingly complex digital infrastructure projects. The enhancement comes as investments in artificial intelligence, cloud computing and hyperscale data centers continue to rise, creating greater demand for comprehensive insurance and risk management solutions that span the entire lifecycle of these assets.
The upgraded program combines higher insurance capacity with Aon's Reliable by Design approach, which integrates engineering expertise, risk intelligence and insurance planning early in the project lifecycle. The expanded offering includes up to $5 billion in Construction All Risks, Delay in Start-Up, Property Damage and Business Interruption coverage. It also provides enhanced cyber, liability, project cargo and terrorism protection, alongside advisory services covering climate risk, operational resilience and risk engineering.
The expansion comes at a time when AI-driven infrastructure spending continues to accelerate worldwide. Hyperscale operators and enterprise clients are investing billions in new facilities that require reliable power, advanced cooling systems and resilient network connectivity. As projects become larger and more capital intensive, securing adequate insurance capacity has become a critical requirement for developers, lenders and investors seeking to manage construction and operational risks.
The initiative strengthens Aon's position in a fast-growing specialty insurance segment where technical expertise can be a significant competitive advantage. By combining insurance placement with consulting and engineering capabilities, the company is building a more integrated value proposition that could support higher client retention and cross-selling opportunities beyond traditional brokerage services.
The initiative also aligns with Aon's broader strategy of expanding its Risk Capital offerings in high-growth industries. As global AI adoption fuels sustained investment in digital infrastructure, demand for specialized lifecycle risk solutions is likely to rise, positioning Aon to benefit from long-term growth while reinforcing its leadership in complex commercial insurance markets.
AON’s Price PerformanceOver the past year, AON shares have risen 2.5% against the industry’s fall of 26.4%.
Image Source: Zacks Investment Research
AON’s Zacks Rank & Key PicksAON currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader finance space are Alerus Financial Corporation (ALRS - Free Report) , Acadian Asset Management Inc. (AAMI - Free Report) and BlackRock, Inc. (BLK - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Alerus Financial’s current-year earnings of $3.03 per share has witnessed two upward revisions in the past 30 days against none in the opposite direction. ALRS’ earnings beat estimates in each of the trailing four quarters, with the average surprise being 35.8%. The consensus estimate for current-year revenues is pegged at $307.1 million, suggesting a 4.2% year-over-year jump.
The consensus estimate for Acadian Asset Management’s current-year earnings is pegged at $5.11 per share, which signals 57.2% year-over-year growth. Its earnings beat estimates in three of the trailing four quarters and missed once, with the average surprise being 8.6%. The consensus mark for AAMI’s current-year revenues of $785.9 million implies 42.7% year-over-year growth.
The consensus estimate for BlackRock’s current-year earnings is pegged at $55.24 per share, which has witnessed six upward revisions in the past seven days against none in the opposite direction. Its earnings beat estimates in each of the trailing four quarters, with the average surprise being 7.3%. The consensus estimate for BLK’s current-year revenues is pegged at $28.6 billion, which implies an 18% year-over-year rise.
Expanded capacity and integrated risk solutions help clients build, operate and scale digital infrastructure with greater confidence
, /PRNewswire/ -- Aon plc (NYSE: AON), a leading global professional services firm, today announced the next evolution of its proprietary Data Center Lifecycle Insurance Program (DCLP), expanding program capacity to $5 billion while broadening the integrated risk solutions that support digital infrastructure assets from development through long-term operations.
"Digital infrastructure has become one of the most important and capital-intensive asset classes in the global economy," said Joe Peiser, CEO of Risk Capital for Aon. "As clients build larger and more complex data center portfolios, they need access to greater insurance capacity alongside solutions that strengthen resilience throughout the asset lifecycle. Expanding DCLP to $5 billion demonstrates our ability to help clients access capital, manage risk and scale with confidence."
Reliable by Design Approach to Digital Infrastructure
The expanded program reflects Aon's Reliable by Design approach to digital infrastructure and extends DCLP beyond traditional insurance placement. By bringing together insurance capacity, engineering expertise and risk intelligence earlier in the development process, Aon helps clients reduce transition risk, improve resilience and build digital infrastructure assets that are bankable, insurable at scale and resilient under stress.
The enhanced DCLP now provides:
Up to $5 billion in Construction All Risks (CAR), Delay in Start-Up (DSU) and Property Damage and Business Interruption coverage, backed by a panel of A-rated insurers from Lloyd's and company markets, together with other leading facilities and products. Expanded liability, cyber and project cargo capabilities, including up to $200 million in third-party liability (outside the U.S.), $100 million within the U.S., $400 million in Cyber and Technology Errors and Omissions and $500 million in project cargo coverage. Up to $1 billion of terrorism capacity through existing Aon facilities. Expanded lifecycle risk, resilience and advisory capabilities through Aon Global Risk Consulting, including climate risk advisory, environmental risk solutions, Owners Protective Professional Indemnity, security risk consulting, risk engineering and operational resilience expertise, supporting clients across the full asset lifecycle. The expansion comes as investment in artificial intelligence, cloud computing and hyperscale data centers accelerates, increasing demand for insurance solutions capable for supporting larger, more complex and more capital intensive-projects through their lifecycle. The program builds on previous enhancements that increased DCLP capacity to $3.5 billion and expanded support for operational data centers.
About Aon
Aon plc (NYSE: AON) exists to shape decisions for the better — to protect and enrich the lives of people around the world. Through actionable analytic insight, globally integrated Risk Capital and Human Capital expertise, and locally relevant solutions, our colleagues provide clients in over 120 countries with the clarity and confidence to make better risk and people decisions that help protect and grow their businesses.
Follow Aon on LinkedIn, X, Facebook and Instagram. Stay up-to-date by visiting Aon's newsroom and sign up for news alerts here.
Media Contact
[email protected]
Toll-free (U.S., Canada and Puerto Rico): +1 833 751 8114
International: +1 312 381 3024
Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Aon (AON - Free Report) , which belongs to the Zacks Insurance - Brokerage industry, could be a great candidate to consider.
When looking at the last two reports, this insurance brokerage has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 2.13%, on average, in the last two quarters.
For the last reported quarter, Aon came out with earnings of $6.48 per share versus the Zacks Consensus Estimate of $6.33 per share, representing a surprise of 2.37%. For the previous quarter, the company was expected to post earnings of $4.76 per share and it actually produced earnings of $4.85 per share, delivering a surprise of 1.89%.
With this earnings history in mind, recent estimates have been moving higher for Aon. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Aon has an Earnings ESP of +0.24% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #3 (Hold), it shows that another beat is possibly around the corner. The company's next earnings report is expected to be released on July 29, 2026.
Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric.
Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
