Aon (AON) 28 Oct 222022 Q3 Earnings call transcript

Good morning and thank you for holding. Welcome to the Aon plc's Third Quarter 2022 Conference Call. At this time, all parties will be in a listen-only mode until the question-and-answer portion of today's call. 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.

Private note constitute of forward-looking certain as by to today's comments in important of defined may Act call statements the is that the some in nature XXXX. It Reform Securities that are Such that cause statements from results actual uncertainties anticipated. materially could or differ are those certain to and to historical subject risks results on quarter concerning our having press release the risk described are in as factors Information site. well our Web that XXXX third differences been as could posted cause such results covering

it my pleasure to Now Greg the Case, turn plc. to is call CEO over of Aon

morning, quarter by Eric joined Good to Welcome CFO; our Andersen, everyone. our conference call. and our Davies, third I'm President. Christa

As we presentation a our in financial detailed posted quarters, Web previous on site.

delivering bottom top quarter We begin another by strong line thanking and for of our growth. colleagues Aon

concluded brand all all receive continue we and with overall of survey team reinforces engagement, exceptional feedback engagement or to our of colleague colleague strength the ways commitment at and Our XX% resilience greater. as and from benefit recently working

More our more to clients have support Aon while to better where them the work, flexibility and connected work better businesses. in their United power helping we preserve approach we of than the smart and how embraced enabling strategy capable and to understand of be and ever, colleagues make developed decisions

team recently this Ian. The Hurricane our and response executive released our of on by importance support illustrated survey our of tremendous and the of exceptional is nature the leadership

Taken on reinforce together, our Aon relevance two these data strategy. points United the return and

window third, feel of leading horizon, Risk that volatility impact surveyed needs. underscores global but organizations Executive XX% and to the the increased offers surveyed fully from a only A companies their mindset First, manage C-suite volatility survey, XXX XX% a which into volatility. majority our just prepared facing executives on and the XXXX

relevance reinforce Most important, attributes fundamental very capabilities. their that prepared feel three our of that share leadership those

their of source agree very to First, current potential risk has increased XX% in advantage. response a competitive that prepared company's they see appetite embracing leaders the of conditions. risk for economic as

to better leaders nearly invest more leaders new to disruptive to a And enterprise out and look twice business long willing make advisor on help and These and concerns approaches provide partners for can expert they're them tail perspective Prepared emerging risks. cyber to likely are value address looking they like insight to on chain. Second, an supply protect categories, in from are their decisions decisions. businesses. as counsel third, risks grow to that and around external holistic call focus

the excellent Now relevance these want that of findings highlights to in by impacted Hurricane reinforce our To strategy, those our sympathies an we value Ian deepest survey action. extend to example begin, of of communities as that we event. and firm help endure actions this businesses tremendous In can challenges, times our loss the and recover. believe damage, life respond communities and of these tragic a

needs. client were risk respond our during our effort X,XXX only holistic ensure a of to collaborative possible used took clients, clients P&L prepared and toward single the resource to united because As view promotional our the always, that in and surge we Pre-event, and was team after our This models our event. colleagues to world development serving approach. before, around a a global mindset

our impact can clients use and paths are to potential In they those so alert risk hurricane forecasting our share addition, early we of for able business game commercial team continuity potential exposures, to to allowing with out from reinsurance plans. colleagues activation models insights

on is is at on how leveraging Aon actual harm insight technology-driven drone scale. our service of another Services reshaping event, provided innovation technology the by we satellite provided through emphasis imagery Business and our This partnerships enabled During real-time by team. client example

of beginning view around with to back clients' Solutions workforce focused Solutions colleagues how plans, Human they exploring on our an management. work, obviously means can Capital Health conversations apply what to their the for resolution working our team clients about new own hurricane return think but their we're stepping we smart also and accelerating leveraging enterprise Post-event, how strategy and learnings benefit taking from our

is This provides break meet engine into action, client possible barriers Aon the the necessary because to and business in us United our across Aon we've decade investment Business made and Services plus of build to only skill insight an down needs. and that

momentum delivered excellent performance. to year-to-date financial quarter, third our the Turning continued and against progress results In colleagues metrics. our demonstrating key

was adjusted quarter, growth organic year XXX on was revenue QX, and operating basis XX%. in margin up points prior up the adjusted EPS For was X% XX% top of

quarter These generated ongoing X% year EPS results expansion operating delivered we QX and our guidance, note are XX consistent for is organic smallest revenue. basis and over seasonally adjusted we full margin adjusted growth, financial XX% flow. revenue growth with Year-to-date, free billion of would cash points, in of that our X

in X% XX% and of prior we quarter, revenue help to clients by quarter X% as this driven grow delivered retention, generation strong revenue organic year-to-date, Turning business on solution new businesses. highlighting continue of the Commercial resilience contributed business to growth core risk the growth organic protect ongoing renewal year and their lines. top our

which in our transaction organic results, delivered As and and clients QX last especially capabilities. business, particularly current to in the previously help the X% X% as continues quarter, by in volume the mentioned, in market bringing significant solutions we solutions M&A growth decrease was to our team strong with Reinsurance year-to-date, compared revenue new QX. year's impacted

modeling is in instance, driving acquisition established gained efficiency growth, Tyche. through in For This have is Strategy we've our by been analytics strengthened the never time resilience, and our Technology and capability Group the newly of important. clients advice, all strategic and our further with and consulting, more provides data-driven tools

the strategies particularly X% employees organic for engaged. making in to QX top but contributed prior people their X% valued growth, delivered feel workforce sure Solutions Capital in health, scale Health structure those growth year and revenue Across organizational in see quarter, we clients optimize while on assessing to Solutions. of year-to-date strong XX% Human growth and

address pension team Wealth on delivered regulatory help ongoing of X% continues to and in Finally, organic plans our has as X% year-to-date potential risk of advised two milestones, to year the advantage UK billion in Solutions top clients market continue challenges pension and team over last U.S. conditions. XXX volatility, execute and transfer risk In derisk transfers. QX our talk as exciting growth X% market transactions and of take

in our strength United Services plan, Aon lines. costs, assets Aon clients year-to-date delivered solutions and security performance the we our helps for Overall, employer commitments X for in pooled platform employees lower regions And and QX our mark and enhance reached strong Business client smaller and strategy which cover helps organizations. at billion and of for reflects the retirement across

or mid-single to and For the we remain full margin improvement, in greater growth. our growth, revenue digit organic confident year, free cash double commitment digit flow

are own on As our businesses, improve economic liquidity, increased many capital impact looking clients to new their volatility their often capital. assess and by accessing working the of sources of

Aon drawing provide client one technologies. regulatory United a a Latin example, awarded client contract guarantee, financial our In was essentially that on in a and they multi-billion had contractual reduction manufacturing incorporates in The construction facility. an Asia recent requirement innovative America dollar based facility own a carbon credit example, their performance that for

bespoke strategy bank while credit our experts flexibility. using capital understanding guarantee design was has a team surety and risk client. terms sheet more for a our our than facility, and able Rather their own client lower at balance access cost to attractive maintaining strength position commercial LatAm who client local our in to address our of bond a local deep financial and collaborated To solution with closely

how done we as growth objectives. Just lending capital pitching we've this with to clients and example help new access solutions, those and reduce their risk another intellectual transfer of drive property is own

and results, to progress In against key year-to-date we our summary, bottom a metrics. quarter, delivered strong contributed line top

growth. double deliver growth, continue digit digit greater full to be year flow of financial to on expansion commitments We stronger free margin cash revenue positioned or organic our mid-single and

We help as and steps operationalize clients address our to and platform Business us our confidence needs and our Aon we've United clients' their see grow in emerging increasing gives ability they Aon to continue protect taken to Services to and businesses. existing our opportunity the

Now our continued shareholder to outlook Christa? to on for the in and the thoughts Christa quarter call I'd long-term turn performance year-to-date, creation. value for as our well like over her as

and good everyone. morning, Greg, much, so Thanks

Greg continued on financial key both year-to-date. and our we quarter As the progress highlighted, metrics, delivered

into first the to quarter nine XXXX. the basis points XX% share, into For growth this and adjusted billion months on we building head XX of look of of growth margin last forward translated expansion and revenue generated X X% flow. momentum in year, earnings We organic we per the free cash as over adjusted in

growth I organic on was as performance year-to-date, As our X% quarter X% noted, and Greg year-to-date. revenue in the third reflect

year-to-date, long the changes [ph] growth would for was X% term. organic versus and includes stronger year-to-date. $XX QX organic greater that or million digit X% XXXX mid-single expect note to in unfavorable driven in and U.S. dollar growth QX in income, the revenue full a of reported for not our most year calculation, And continue from impact million and revenue which investment highlight I’d over FX also an is fiduciary flat currencies. QX growth X% $XX in and by revenue year-to-date included primarily We I

in Services, We XX and margins Aon by and technology colleagues the of revenue growth, growth performance. with growth to first basis long-term T&E. delivered XX%, of including year, driven strong of through operating expense an points overcoming ongoing to from operating and investment improvement months increase nine resumption operational Moving Business adjusted of drive organic the some efficiencies

of expansion long-term expect as in to track record we in managing XXXX long cost continue on an Looking the over margin discipline and ROIC our forward, basis. term investments deliver growth we and

as And continued colleagues about communicated, previously year. ongoing of well course full throughout expect as investment of we've a T&A As investments like resumption ongoing technology year. the over in and in margins we think growth the long-term we

a market. Aon a margin competitive to in Business highly especially and a inflationary is key advantage, Services represents expansion contributor

Our continues improved and increased Aon innovation quality efficiency Business service Services scale. at gains, and to drive platform

around Aon operated platform share a as Reinsurance broking me processes of Let service Services we how improvement, since fantastic XXXX. platform supports automate single day-to-day has one firm. model client Business global example on and the ongoing

by the five automated our XX% reduce past of cost has moved now accuracy, has the clients are of increasing digitized speed and to XX get low which average XX carriers days from number and takes transactions helped years, XX% to days. from the workflows processed to processes, it work claims to locations. Over paid team digitally,

Increase better colleagues a impressive Aon support are over outcome wage and complex each with clients. in recent throughput, outcome our enabled more enables costs considering dealing platform enhanced transactions, an the and And that the trends. while allows our to while costs up provide to just inflation when five X% services capacity United XX% more other particularly years, team

driver a and to Aon be expect and quality this efficiency opportunities improvements of find Business for efficiency and like improvements, We ongoing Services service innovation firm continue increased capture clients. continue will and the around to

We growth year-to-date. income translated and strong operating EPS growth of XX% double XX% adjusted digit QX into in

FX $X.XX XXXX. an unfavorable or noted was If approximately rates, share As impact translation unfavorable expect currency in $X.XX in in we the share materials, at year-to-date. per QX per an of $XX stable earnings would share operating income approximately and in remain per million $X.XX fourth or of today's to impact approximately our decrease quarter

cash billion prior cash capital the in termination flow primarily free increased flow the from $X increase flow in an to reflecting year-to-date Turning X,XXX period. XX% payment operations Free to allocation. due cash fee million, year and to

cash As flow I’d note is our can and quarter-to-quarter, generation. flow we've cash free free strongest be seasonally before, QX lumpy for communicated

double deliver growth We working by the and free long year and to full term, continue driven capital income to the cash growth operating expect digit over for flow improvements.

remain free on capital highest Given opportunity in our outlook expect flow our and share we beyond, strong cash to growth repurchases for return allocation. capital to continue XXXX for

significantly believe the market the quarter share year-to-date. today, and repurchases undervalued we of We X.X X.X are in by highlighted the billion billion in approximately

record and to regulatory risk in and expect GMP organically helping levels address in changes utilizing We've UK, interest content to also and content rates pension We retirement as the clients business, in capabilities our to needs. of invest unmet inorganically such navigate continue expertise drive client and transfers. invested in higher to we're where

areas scalable bring our will Our on continuously growing and M&A our to challenges. priority clients evolving that pipeline focused solutions

on a We continue decisions to capital allocation on actively the will portfolio balance basis. assess manage and return all capital

QX. the continue sheet manage balance we'll senior well-laddered debt maturity our debt confident of we've risk Now turning in to said million while a And liquidity in to issued XXX remain of We current add capacity. our profile. sheet balance and our as investment credit through as and XX-year notes grade grows EBITDA debt We ratings. maintaining strength before,

note with note liability a a also years. approximately all and liability this rates XX that fixed as debt I'd interest our approximately to pension interest average rates, taken volatility. improves and rates, average and of weighted derisk I'd we've our X.X% increase, interest is With steps respect that term weighted to historically maturity rate reduce

summary, in year-to-date and continued In results financial progress our quarter against demonstrate the financial key our momentum strong and metrics.

we we're of is United confident firm our and guidance in Overall, uncertainty, our economic our in remain gives signs our While scenario. ability for confidence us in Aon seeing strength economic and resilient any our results the business 'XX. to financial of deliver strategy

that, I’ll delighted back turn the over to With and questions. operator be take the call your to we’d

At conducting question-and-answer a Instructions]. session. you. time, be this we'll Thank [Operator

proceed with Our Jimmy of question comes with question. first JPMorgan. Bhullar Please your from the line

Hi. Good morning.

the risk on business. first, just a So had commercial I question

at you mentioned was elaborate strong what grew the a Can that transaction Asia, in organic slowdown a you slowed Your U.S. comps of business? and there retail America sequentially. business lower UK more in because volumes. of seeing were pretty and But Obviously, you're U.S. well. pace sort and that Latin as growth on difficult

going The Yes, and you exceptional. and capability then Eric, Eric, but next Jimmy, any very, core highlight plays very organic year year-to-date it maybe a was is transaction finish just really Affinity, and we real year-to-date, talk into year, different not in little we geographies last across that. our question. to strong we really overall, XX% as but on repeat and that that's And was about momentum strong as M&A year want extraordinary. year. board, highlighted thanks And a this thoughts specifically, commercial for only And there obviously can really quarter what’s firm this gets really for XX%, highlight highlighted bit little across the we the X% thing to out again the levels and year, overall as the that? the the on and strength last that. move all P&C in But year Listen, were

are and Sure, perspective, solid in question. we had U.S. and very retention in from overall your new would industry on and great a numbers, transaction remarks. say, services, mentioned serving I Greg, look, the industry make Greg, private would and rollover corporate as I an say, divestitures. just prepared you as the the risk commercial business numbers, acquisitions And they solid equity very

with today also changes. slower, it it's a we and where we so that with feel their have time back But sure hard And very generation clients with ready reinsurance markets, during fantastic. strategy comes this out -- the like period making when like are ultimately next spending a little team the economic got product the they're or markets, our the working bit building when we the environment we've the with is for clients,

Can dislocation your we talk a and you you there lot mentioned pricing reinsurance obviously think And if that least as from I affect positive few this last on think about results? And do you there. greater a from the to should tailwind reinsurance well. at of pricing, expect And there's be how business, Okay. modestly benefit quarters the the quarter side? about

time, out. is impact the and the pricing is impacts just as evolving. it values a quarter with start up over want market impact the Overall, look We about highlighted, Eric, here. pick how for think I'll and modest will think at in lasting about the Over value Eric on reinsurance expect kind The market dynamic in And you overall, on that? you reinsurance insured year. Obviously, expect impact. piece highlight insured it. see to of time. overall up. front, particular. we price. you That's pick the Maybe includes modest we That impact as creep important then and we the up actually will to begin we'll have and But changes how sustained can

Greg. on general Sure, environment just one just side. And primary the comment maybe the pricing on

about I to need of using we've a data and this with kind the I think clients But think also right. our make. out, they laid talked We spend understand of before. you to time choices it analytics lot

be all against retentions, and from those perspective, try them, of what's they're facing as and we business. think sort captive pricing while economic So while their moving their they're that it's them and sit whether best at through them tools, utilization, this help They're they don't inflation it's whether looking navigating limit, still. may for deductibles, changes in

deployed. have holding you expecting supply I who's it of from losses. the I differently you those we a our we they from working structure on back. and So while the get think the worth get French right pricing clients that ultimate global hail, very the They've those affected market to albeit like supply to said, But we're be in that they property how I shows losses as pricing, are property an them, have for think that of going but And around it effects do say, have, marketplace. ultimately, North retentions, I more focused losses be we're take risk higher -- sourced remember, Ian, need company in effect the Ian are it's insurers parts whether the reinsurance certainly with as the market and of they mission the in view back has think capital to like it's continue other And happened insurance with different effect European to European account the the stepping is, Managing and to also Certainly just geographically, that got client look Greg, cetera. But move clients the the They clarity create it over away as of And And the facultative There primary on just clients as happening around cat They going of will going look Hurricane dynamics can a are certain [ph]. they if more you challenges, at the match now is capital that to facultative portfolio their primary takes on et America, the on our some we that with capital and is challenging. there inflation it’s forced instead world. this decisions. because tools, up is forward. need, three years, think look I those have and difficulties. right? treaty cat think region is negotiation. make help with on the uncertainty to a different going they then floods, that for of what tools also side. them little capital. in where reinsurance help got last business effects creating specific That about inflation, inflation lot terms that's they'll German would to start certainly step to remaining And derisk. they protection and want continues options, it Europe, will is they've into reinsurance, also actually that on, the of so use on

can derisk bear So get clients out shift, there market for and protection there that them while are does that we need. bring levers the to they the actually that help our

is it technology done our data on going What for added the that with our we today. psyche that is now to and where leave a reinsurance all and us. this unique Jimmy, we world we've more last with built before. and this side added on with in activity extraordinary, effort I just of this, point, we've mentioned This analytics just capabilities ton strategy is and that And is to live. with tremendous before thing highlight There have I are want the on colleagues

Eric the in love the clients it's we're our XX but perfectly, clients, next us, And for wheelhouse. respects, It And So is opportunity a all bear. solutions manage many our the support described to bringing opportunity market months. creates great helping XX to it. for boy, this times. challenging We to tremendous and

you. Thank

you. Thank

proceed with from comes your with question. of question Wells line the Elyse Greenspan next Fargo. Our Please

Hi, is on thanks. question the morning. first Good side. My margin

of in guys the the basis improvement. fell the line, improvement So sense If a of fiduciary to sense basis you that in much split fiduciary investment a XXX. give the trying XX all assume in of the in quarter, between the to I'm a improvement points. get margin bottom pickup versus that tailwind XXX core of income you saw came points you just could how leverage? from Can that give margin margin investment income operating us I

as for terms the what investment And think $XX from we Elyse. million about a this benefit year-to-date, say in Thanks we of income. would look, question, and we year-to-date, Sure. had

impact margins. it's on a basis point XX about So full year

Elyse. as And big not so you it's nearly as numbers the highlighted,

organic as about for we Business we the higher and areas, which really growing the committed higher to full us, the to in portfolio productivity Aon for so growth, doing, Services. from revenue are margin completely continuing growth, And think revenue margin about benefits year, expansion we're getting drive it's mix

on track fully deliver full And year expansion. margin so we're to

to As continuing fiduciary right, go from about should that rates higher investment so we here. think income rise,

versus we're not line, the extra letting of you balance just as fall benefits bottom thinking guys dollars So to how think looking some to 'XX well. the fall to most you but do take internally? it will invest or Do QX,

Yes.

the of way transaction insurance manage actually premiums on lot in doing the processing then paying is all, Elyse, on of of the we're the would to X and that. for in and basis what line doing on But, fiduciary investment every and of I manage top points is first Elyse, bottom increase line. we billion way work middle actually income, and all XXX clients out. So a We're say claims accounting paying million XX

fiduciary XX. Just not the basis income quarter of in impact The Elyse. XX one is investment correction, points,

also the third there question quarter going business guys comments fourth last for last I transactions see potentially we you as growth know heavier the or then Was the impact the back well? commercial within And risk. quarter in year Thanks. was of that will on that to Okay. highlighted volume. lower my transaction

over free -- hasn't QX, think year, back, changed the was or in activity talked to form, didn't for or where of described, any as cash flow year-to-date, both But it we expansion over job about I shape, and of growth. step year, QX digit if really strength now the levels Christa we a able X% to tremendous been overall we And mid-single Elyse, The I take we Yes, a sort really way, just overall, just would greater of that and highlight that's emphasize been Eric's margin the what look team, X% our points and quarter they've activity double do really us have are again, and how strong. around time. year-to-date, across at it board. the it's last really as M&A for about strength extraordinary described exactly digit and exceptionally evolved seems

they're positioned the back. comes market exceptionally So well as

Thank you.

Thank you.

Our next Please Mike Markets. question proceed comes from your the Zaremski with line BMO of question. Capital with

clearly bit about thinking a to capital free you flow, last Happy side? noise on You pretty XQ is helped us that with, maybe any want Are this a Maybe there call out as year, quarter. items mentioned, you Christa, improvement that there's you feel guys morning. Friday. of cash out Good Hi. strong the usually working year.

level. flow I'm a free example. percentage this for missing year not I'm want of healthy sure So to very make looking at something. cash just It's a revenues, I as

Mike, missing think I don't you're anything.

thing particularly free on That's of lower we XX%. because mention acceleration XXXX. free in of capital only QX up in growth say, Nothing growth, QX We performance double expansion, we're then would extraordinary then So improvements. flow to cash did in general, I would on margin working incentive levels X,XXX cash had million in flow higher flow digits comp unusual. And year-to-date, the and and to based based I free going drive continued note. that continue cash revenue

days. did see, on to to down days receivables 'XX. days from XX two look the at that from It sheet, 'XX XX QX DSO the by external divided QX balance improved by if you went You revenue

progress our working with And in so we're continued very capital. pleased

And the as for to if capital next stated lever working below over get that time, is down you or the over XX years? the low goal main few the

Yes.

excess improve is zero. to what will said, continue have get sitting have that over of on And sheet. DSO that Mike, we million we XXX XXX receivables So that our time, to essentially balance million we to

And is over free growth upside big a that so coming in flow the years. cash

gears, of are curious if one still, comment I intellectual property marketplace. guys maybe seeing rates more. hear you buying also lot traction? leaders are to in or the on are we're Thank cyber cyber the insurance, market, whether be But you. market. up you That’s Maybe I’d great. as still you Okay, can helpful. Clearly, but a And about curious any the just switching are clients is of think which of, the pioneers gaining guys one the much

Sure. take This is Eric. Maybe I'll a shot it. at

would months anything is to say last continue So in the if over changed what several see renewed focus the I on And really has cyber we business. underwriting. growth market on the great quality the

so risk all at risk product, about it was that management, you if remember the very risk of and then identification, transfer. And beginning risk management,

risk without of transfer enough risk the quality to I the to immediately they and what mitigation happened focus the on risk is think went market the management.

essentially think As the they reacted due basics. losses, went be healthier back ultimately it. has market to And to for the will I market

real position bear join are but on So in our actually great to about broader more see we we market a flow, that. markets I deal with like first excited symbol our how for the there great IP quarter. product. we're and supporting that I capability would to see that develops. not and did we're to where We work couldn't big We Continue similar. our say clients. growth. intellectual it as invest really getting very property, dollars, the product reinsurance bringing a continue Certainly treaty this on be doing to in globally

great about those both way. going a invest we've of and broader markets a with our really think in And to lead capability. to in got the market So develop excited and push them we're to continue

been has call extraordinary. I’d can I And to just help Mike, -- out progression IP with the

in If back we in about sort XX, of go colleagues bring this. you years think four XX ago, to

IP We’re be category. had XXX ever can prime an actually that it in this stack one now against actually No strong such that valued in a such insured [ph] borrower. loan stack a

Now we've done XX plus deals.

this we talked lending said, think And have even last Eric involved. we we've crossed billion quarter reinsurance in and I now as multiple markets about involved front. on $X

very, still opportunity. this is out days. job tremendous So progression. of a team's building done But the this It's a early sort very

Thank you. Best of luck.

you. Thank

Evercore the comes line from next Our with of ISI. question. David proceed your Motemaden question Please with

I question morning. a the Wealth Business. Hi. on Thanks. had just Good

delegated Just the that of how as was we give an down management how AUM under as you headwind. going idea base AUM Could base on remain pressure? should us much the forward think investment was and cited about markets the AUM, a that

It we was it. businesses the way is you're We right. in But of impact which didn't delegated The earn AUM. in percentage absolutely David. on give down, fees that

fantastic U.S. rise, by pension it's do And are the in that in our we And the PEP how work have regulatory side excited so in interest depends remarks. the as fantastic our GMP last retirement We're best to I growth XX transfers mentioned UK, global side, as call, forward. how management We've really decline years. it space. the we enormous got on markets growth well. on prepared the doing rates change, position on going on particularly then talked see happened and about going this. in product And the Greg was I as exceptionally the And then, our of global very say in the that is we there go to that dealing the team. offsetting one with that environments risk the leader as about on on would progressing But investment very,

And opportunities great retirement have else on many the where growth. so areas Eric, would we there what side add are so you for But here?

No, great because on you've of going business The clients. great I UK, really manage solution PEP the which our expense there clients really U.S. employer really and the retirement is excited that it. think as assets. the retirement as We're particular, about But plan, a in value is all some pooled great our certainly watching to well. activity covered just they look product, for the smaller to add

covered quarter So it them. for solid a and really you've well,

retail’s that all commercial then Did tougher? wondering exclude you And maybe by talk comp just compared slowdown back maybe how driven any about, versus tougher to Got if it guess quarter? comp? sequentially, or that it. I guess was I a risk, helpful. could we just U.S. retail’s say was just bit U.S. really the last just was was were -- that retail going that see what I And That's the we to just growth there if

really tremendous listen, on tremendous described, And we you as sort about the where continues opportunity we going what's across to the solution but board back, be transaction would as commercial happening But really we progress of if it's side. really that’s step an we across board. the the think to described time build and momentum David, just on over before. strong if highlighted, restaurant overall, see we

Okay, you. great. Thank

Thank you.

Please with of proceed Our your next Shields question question. Meyer from the with KBW. comes line

can. I if questions, quick Two Thanks.

was And work more rising the I about little how bit impact reinsurance in capital? capacity context Eric, the hoping the First, more does the shortfalls talk of of rates actually on in much interest for entail that U.S. could you unit? a

it inflation battle structure, not -- So do as price long is point of they tail that think at about to pricing -- products. their own supply. this continuing you're more cat to which the substantial They're the if understanding property I is don't assuming much I'm while it's reinsurance talking is market [indiscernible] around about tend talk about, people industry. about you challenged, a on basis think part but

cat challenged of for hurricane, the traditional on wildfire but as years. reasons. things also in I or substantial One, storms, the been both a reinsurers perils five the significant be think U.S. last hit property couple you've about you listen, to over think to continues like got the as secondary losses have So a

they there certainly confidence in their capital crisis deploy our and So a for underwriting of is how clients.

damage ability exactly say capital creates trying to up, hard interest And is interest as their is there's which out And affect time. We to scenarios is. effects over One that ILS the figure their are, just think on the at risk with go them something the what be people trapped relative what rates there's assets capital really where what the so to They Ian risk of exactly losses find of that are essentially rates return now. question The for as other I they're market, also understand making don't repricing investment are ILS two two is a market, offering I right happening. would the models has of some and headwinds the have really -- identification. to better. which sort have sure focus

as creates create us, again season But and lead then and right of and middle we're April so returns. doesn't the renewal the in to And think July. it necessarily the now market It for in I the understanding that of X/X up big dynamics work. we

of know can I market reinforces has this against behalf in really you've unique way analytics the and come something pick about rest of the got it, Meyer, as to to apart topic. another what Eric this does, have really the do is such the When that. drive the us Eric and question world clients, you position But I'll a the on this described, solutions described And, on opportunity. puts

again, day, very a us it every unique it love in we out lot puts very, So there position. and a on going because

maybe. Thanks. I I helpful. understand then very for that's guess a Christa No, that. question And

So going transfer you there's more how talked risk pension on. about

transfer there in for from wondering, benefit there's You are but rate people interest interest to also less liabilities Aon’s higher take rates interest that higher mentioned willingness how environment, funding. if pension understand And wouldn't I rates be pension more I'm a demand higher?

without out, to it make fully given transfers to to to the buy there's sense always funded. made economics you challenge, able to be The actually haven't been execute haven't Meyer, to able able cash So the being add get the capacity. because is real been

in rates this do interest they And transfer. increase the which actually so means that is fully plans getting can funded,

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growth So exciting it's very a for area us.

much. Okay, phenomenal. Thank so you

and gentlemen, the comes Ladies morning Shanker America. question question. from line Bank final you. of of Please our Josh with this Thank proceed your with

Yes. me the Thank you at in end getting here. for

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Yes. Thanks for Josh. question, the

we're say we've from very that engagement you best how XXXX levels, And obviously where has want about because driving to and different survey. to on Eric? is XXXX them, number of thoughtful things work talked engagement that's in to levels. the the would we're up where clients. employee know we doing thoughtful really the are about I It's So a and I history, which the very and T&E not talk relation of working, place, about one our impact smart higher there ways do XXXX a Eric might in is it in actually Greg we're areas, It's levels implemented highest work. about our because and

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to the with they're But value want. feel They the that importantly, get in actually And global way finding really it show saves in And to markets absolutely do more us colleagues so so it. getting they like place schedule. that money. traveling to clients are again, that our focused saves off allows you place you're -- and connection on a don't time, colleagues our when

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of clients your itself? manage is and going with than similar cost is the rising can add just faster your is on in understanding Aon’s is to this experience, for And clients or this can crack what your spend managers team you -- company your obviously

to So how time clients say I Capital with working working. a our do our on would spends Human lot Business of smart

them to want the And and come They're they much further we the normal new for. also finding use -- people job and that to outcomes teams that manage [ph]. that leverage actually so further think a And D&E in a our because pandemic looking to with engage are we are the our the during looking so to do ways looking technology the same think they're get that also the their thing, clients are in great in pandemic all they're clients way create is productivity. structure I mirror, our I doing and as helping able rearview

the to in how environment, it action, work can smart we they which but their standpoint. is really, enrichment. health talent perfect it, drive and talent phenomena try incredibly it across but acquisition, with really so highlighting, from engagement how our talent us. connects the up a understand for impacts example Aon for best it wellness ends describe we it whole combines multiple And response, opportunity it help It's own more solution United really -- described address very really for multiple our cutting think another as more beauty they it's connects clients group of and it as the clients. broadly, our and lines. but hasn't Josh, working us, [indiscernible] if issues it, even you're it Eric integrated even And challenges, Aon the significant before. -- is being And that It's real just solution example lines, it substantial retention, of a you the across about United well, whole And how

Thank much. you very

Ladies our Thank that gentlemen, and I'll any to back final question-and-answer Mr. session. the floor concludes for turn you. comments. Case

very for joining and next us. look everybody talking say to Just want much. forward Thanks appreciate thanks We to quarter. to it

conference. you. This Thank concludes today's

at may you your for participation. disconnect your time. this Thank You lines