Aon plc

What they do

Aon operates through two reportable segments: Risk Capital and Human Capital. Risk Capital provides commercial risk brokerage, reinsurance solutions, and capital markets services. Human Capital offers consulting and outsourcing related to workforce, compensation, and benefits. These services are delivered to clients in more than 120 countries.

Revenue drivers

• Risk Capital — Largest segment, generating $11.3 billion in 2025 revenue (66% of total). Includes Commercial Risk Solutions (insurance brokerage, risk consulting, captives, affinity programs) and Reinsurance Solutions (treaty, facultative, strategy and technology, capital markets).
• Human Capital — Generated $5.9 billion in 2025 revenue (34% of total). Grew 13% in 2025, driven largely by the acquisition of NFP.
• Organic revenue growth — A key driver; 2025 organic growth was 6% and 5% for both Q2 2026 and first half 2026, reflecting new business and strong retention.

Recent performance

Second quarter 2026 total revenue increased 2% to $4.25 billion, with 5% organic growth offset by a 4% unfavorable impact from divestitures (NFP Wealth, Stroz Friedberg). Operating income rose 7% to $915 million; diluted EPS decreased 3% to $2.58, but adjusted EPS rose 9% to $3.81. For the first half of 2026, revenue rose 4% to $9.28 billion, operating income increased 13% to $2.63 billion, and diluted EPS was $8.22 versus $7.10 in the prior year.

Strategy

Management is advancing the 'Aon United' strategy, supported by the '3x3 Plan,' to operate as one globally connected firm. The company is focusing on higher-margin, capital-light professional services with recurring revenue, and using data and analytics, including AI-enabled insights, to expand its addressable market. Recent divestitures of non-core businesses (NFP Wealth, Stroz Friedberg) align with portfolio high grading. Capital allocation prioritizes shareholder returns, evidenced by $600 million of share repurchases in Q2 2026 (exceeding a $1 billion full-year target) and $175 million of dividends.

Risks

• Economic downturn — An overall decline in economic and business activity could materially adversely affect financial condition and results.
• Competitive pressures — Significant competition from traditional and non-traditional competitors could affect market share and margins.
• Commission revenue volatility — Revenue from commission arrangements may fluctuate due to cyclical or permanent changes in insurance and reinsurance markets.
• Currency and interest rate exposure — Fluctuations in currency exchange rates and changes in interest rates can negatively impact financial results, cash flows, and investment returns.

Outlook

Management reaffirmed 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. The company expects to continue its focus on innovation and capital-light growth, while returning significant capital to shareholders.