Today's Viewpoint: A MarshBerry Publication

AON ANNOUNCES STRONG 2Q22 EARNINGS

Aon PLC reported 2Q22 adjusted Earnings Per Share today of $2.63 on revenue of $3 billion. AON’s quarterly and full year results were driven by continued strong client retention and new business generation. Read the five things you should know about this call.

Aon PLC (NYSE: AON) reported 2Q22 adjusted Earnings Per Share (EPS) today of $2.63 on revenue of $3 billion. AON’s quarterly and full year results were driven by continued strong client retention and new business generation.

Here are five things you should know about this earnings call:

  1. Total revenue increased 8%, with overall organic growth of 8% year-to-date in 2Q22 (vs. 11% year-over-year), driven by ongoing strong retention and net new business generation. This contributed to the adjusted operating margin increasing 40 basis points from last year to 26.2%.
  1. AON’s largest business segment, Commercial Risk Solutions, had organic growth of 7% in the first quarter (vs. 9% in the 1Q22.) Growth continues across every major geography driven by strong retention and management of the renewal book portfolio. On average globally, exposures and pricing were modestly positive, resulting in a slightly positive market impact.
  1. Reinsurance Solutions delivered organic revenue growth of 9% in 2Q22 (vs. 7% in 1Q22). While Health Solutions delivered 11% organic revenue growth (vs. 8% in 1Q22), with strong growth in core health and benefits driven by client demand, increasing health care costs and continued growth in advisory work related to regulatory changes, well-being and resilience.
  2. The company highlighted their commitment and investment in Climate, including AON’s own commitment to Zero Carbon which is striving to get the company to be net zero by 2030. CEO Gregory Case stated: “We’re pleased to report that we’ve made great progress so far and reduced our 2021 carbon emissions 12% from our 2019 baseline, as we decarbonized our supply chain, reduced our real estate footprint with smaller greener space and reduced travel, in part with the impact of COVID-19.” Additionally, Case spoke on AON’s commitment to their clients, to help them understand and quantify their climate risk.
  1. Looking forward for the remainder of 2022, AON is confident in their ability to deliver mid-single-digit or greater organic revenue growth, margin improvement and double-digit free cash flow growth. CFO Christa Davies stated: “While we’re seeing signs of economic uncertainty, we remain confident in the strength of our firm and our financial guidance for 2022. Overall, our business is resilient, and our Aon United strategy gives us confidence in our ability to deliver results in any economic scenario.”

To learn more visit: AON Q2 2022 Results

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This earnings summary has been prepared by Marsh, Berry & Co., LLC. and is not intended to provide investment recommendations on any company. It is not a research report, as such term is defined by applicable laws and regulations, and it does not contain sufficient information upon which to make an investment decision. It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any securities, financial instruments or to participate in any particular trading strategy. These materials are based solely on information contained in publicly available documents and Marsh, Berry & Co., LLC has not independently attempted to investigate or to verify such information.

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