Today's Viewpoint: A MarshBerry Publication

AON ANNOUNCES STRONG 3Q22 EARNINGS

Aon PLC reported 3Q22 adjusted Earnings Per Share of $2.02, a 16% increase compared to the prior year period, on flat year-over-year (YoY) revenue of $2.7 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 earnings report.

Aon PLC (NYSE: AON) reported 3Q22 adjusted Earnings Per Share (EPS) of $2.02, a 16% increase compared to the prior year period, on flat year-over-year (YoY) revenue of $2.7 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. AON’s overall organic revenue growth rate across all business lines was 5% in 3Q22. This compares to 8% growth in 2Q22 and 12% in 3Q21. This rate was partially offset by increased expenses and long-term investments.
  2. AON’s largest business segment, Commercial Risk Solutions, had organic growth of 5% in the 3Q22 (vs. 13% in the 3Q21). The Reinsurance Solutions line saw organic revenue growth of 7% (vs. 8% in 3Q21). The Health Solutions line delivered 5% organic revenue growth (vs. 16% in 3Q21). And Wealth Solutions delivered 2% organic revenue growth (vs. 4% in 3Q21).  
  3. Total operating expenses in the third quarter decreased 40% to $2.1 billion compared to the prior year period due primarily to the $1 billion payment made in connection with the termination of the proposed combination with Willis Towers Watson (and certain transaction costs incurred related to the termination) in the prior year period.
  4. Free cash flow increased $902M (to $2.05B), or 79%, reflecting an increase in cash flows from operations, partially offset by a $24 million increase in capital expenditures. AON expects to deliver double-digit free cash flow growth in 2022 and over the long-term.
  5. 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. Christa Davies, CFO 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 Q3 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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