Aon (AON) 26 Jul 242024 Q2 Earnings call transcript

Good morning, and thank you for holding. Welcome to Aon plc's Second Quarter 2024 Conference Call. [Operator Instructions] I would also like to remind all parties that this call is being recorded. [Operator Instructions] 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. posted that release such XXXX covering well having factors in are results risk as press website. the our been concerning could differences cause described as Information our on first quarter

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

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

by On Edwin CFO call Reese, initial will highlight steps Additionally, be report officially we're I as XX. to a in he succeed usual and QX. and on Christa joined July our prepared our delighted today, Christa few provide Edmund before to who will observations remarks, will

solutions begin plan, leadership by Business our our the deliver previous capital and X,XXX who to pillars including X around Services do of quarters, capital our clients, the colleagues thanking the for posted world, delivering in they from great the Aon financial risk work of we the We scale by NFP presentation each for through welcome detailed Aon colleagues As website. a XxX on platform. on human model, client our

to turn we're to and on role CFO you behalf Edmund. of Welcome. thrilled as team on Global your step on Aon, our investor day the into Edmund, have first call now officially Let's you on Monday.

excited here. be I'm to Greg, you, incredibly morning, good Thank everyone. and

our I've is warm momentum, have the 'XX 'XX on great and really for corresponding month. to is the which and want deliver our XxX with last say of to and colleagues energy welcome. very over term. in we I growth and start 'XX. hundreds deliver First, fully significant commitment connected the in building seeing over with to as creation and everyone compelling their exciting of Aon will by 'XX experience and shareholders meet my opportunity been the deliver on is the the XxX over in Aon, beyond equally long the for plan plans, literally place XXXX, thanking opportunity it's And the that to me most clients, And firsthand a that the enthusiasm I investment colleagues and the for colleagues value

model the and positioned to and company double-digit financial is long-term the to cash Finally, deliver strong, performing flow well is continue free growth.

investments also and, meeting investors the discipline, sell-side want invest looking with quarter we of to time. talking return, continue deliver and high-return fielding capital allocate I in reporting and through at add capital that to our and course, our on their forward and I'm will guidance third that how to on focused and questions results

So Greg, you. to back

to very Thanks, Edmund, have we're and here. excited you

economy. and match This and the that expertise, a a global million $XXX in solutions facilitates to recover to results in example can reconstruction in provides product standing last and needed Before the in and new major speaking rebuild. and created which war reinsurance until knowledge and the first-of-its-kind local compelling Ukranian addressing capital helps market that and economic rebuilding risk across want we example structure encompassing new they're because insurance without of carriers with structure a our of analytics, united public our impact solution of there and positive capital, a resilience to relationships challenges month, and innovative firm have structure This the connectivity, have rapid the and enables ability insurers, has risk activity investment created the economic market a where to more in already proven much data U.S. been private exclusions. insurance investments recovery. great and helps protect of in Ukraine, get capital power to due during detail, the we deliver on-the-ground reinsurance no people coverage In greatly. and global was and to sectors. highlight couldn't low grow economy couldn't functioning It's governments, that Ukrainian Ukraine war This Working industry term. and longer brought

QX, Turning or now to team and X% lines our and solution with Aon mid-single-digit both revenue current organic delivering growth delivered organic at quarter revenue results. In all X% total greater, NFP growth.

only growth, X% addition without X% the Aon organic revenue of of months transparency, XX% growth combined in NFP, increase total XXXX and is operating delivered clarification for growth we growth, earnings baseline, XX.X%, operating in operating income an income to X% growth and and growth XX adjusted XX% we With Year-to-date, share. points X% our NFP. margin organic year-over-year margins per contributing this X revenue revenue For and growth margin adjusted from organic points XX% NFP. of basis total adjusted and including delivered XX of performance XX% basis expansion,

resulting the growing. capital impact. M&A our services markets, and pipeline and driven in Turning America, starting And business North had growth to in strong revenue growth new turnaround average, LatAm, quarter, our growth EMEA although solution the in of in available moderately remains impact lines. strong Risk, In we're by positive retention. double-digit growth X% in Commercial the modest growth external generally market and pricing, exposures in business strong a while with reflects saw On organic flat we net and to positive see

months was strong for a X For consistent result. growth with NFP, American our North Overall, the business.

acquisitions and contribute continuing to in we're expect making on over new these with progress this priority time. colleagues focus further talent growth area to Finally, great

was space, and in with Turning the expertise, X% revenue and ongoing to their growth team's analytics in QX reflects U.S. by delivered LatAm, trend by an health optimize coverage property new supported wins. our business and strength contribution was Aon's in X% the an X%, impact result market organic of reinsurance. which midst for an capacity opportunity NFP's ongoing benefits, in with real internationally saw growth environment result, in cat consistent revenue data positive levels. retirement. performance, reflects executive to reflecting insight. from enrollment finally, cost derisking, driven benefits health provides organic globally outstanding and revenue strength clients closing. Solutions core impressive And leading and in T&E, increased EMEA pension growth Wealth APAC. and growth We growth care and in single-digit Health high in our and the increase with core The strength strong Solutions organic consumer-facing increased

early we're NFP Further, expectations. all after bottom are we also against track, driven Overall, is growth on fully and continue delivered by only and performance. top as strong NFP, deliver X ahead months with the inflows both asset the fronts. plan growth, in quarter line on of to market XxX our pleased progress of

key value this Four strong creation growth highlight and opportunities start.

First, how into connected, NFP outlining bringing on independent we're and Aon.

client-first mindset, they're Our with teams Aon building shared vision a coming and across are and NFP. and connectivity together

close to early momentum Aon our as clients. the from is we best and bring and Our work NFP increasing to together deliver wins

We're seeing organic noting line net from NFP. growth. deliver NFP's And on top impact revenue we're modeled Second, in synergy colleague strong that growth XXXX, X commitments, though early, to we strong revenue retention. and our track client

And connected is in independent We've deals weighted very is commercial Third, operating multiples strong. attractive. distinctive at value proposition well far XXXX remains and our the and and and pipeline exceptionally toward we're attractive completed health. so risk XX highly NFP's M&A that finding engine

cash deliver line practices through combination And aspects impact free all in with of efficiencies, guidance fourth, the synergies on bottom leveraging Aon Business line to track and operational growth. cost Services. from fully flow We're on best

and client colleagues for risk our against content capital deliver will will the shareholders. QX and year-to-date creation and time, Aon progress leadership, clients, Aon and summary, across performance Services. superior guidance all and long-term demonstrate solutions XxX capability In relevant results all client ensuring through human through Business bring our compelling financial enabled our plan, we deliver This value which capital

turn and financial time, I moment final to to over to for to leadership Christa for our building results invaluable outlook. firm. thank and and commitment great I your Before and our again long-term on inspiring take for want our to friendship, you a Christa, a partnership, for thoughts her one

continue time us of forward be creation look thank support remain career. was Thank XxX the about much to much, and My highlight the you have so to so incredibly partnership. the Aon my transition. ensure value an Greg, and and to adviser smooth Edmund, at potential team thrilled welcome you and of to the a will excited as through for ahead serving I the I'm to we I plan.

now Turning quarter. to the

and Greg results X% X% growth highlighted, wealth wealth delivered revenue reinsurance. in in sorry, X% As exceptional we the quarter, organic in second highlighted in in X% -- X% with and by

of revenue growth does April the include the the Our 'XX closed we impact NFP, beginning overall not does impact -- when organic from acquisition. include

per growth. These and us adjusted the contributed case all line in which operating of margins results share results to as growth, months performance. of NFP's X revenue against the performance a had total growth. term. earnings driving in X% the NFP drive XX% XxX revenue position well XXXX elements progress into also only income mid-single-digit we per the to over with XX% and delivered organic business it plan, was So the quarter, long translated XX.X% growth adjusted in QX share

QX, revenue on As was our in of retention. ongoing and driven half X% the by new year, I Greg noted, as strong net reflect generation for business growth organic performance the first

or We XXXX for the long continue year revenue greater mid-single-digit and over expect the full organic growth to term.

with progress we're As NFP. Greg making excellent described,

including firm's $XXX overall contribute revenue We of net million by continue and revenue to growth, growth expect through XXXX from will inorganic that revenue the synergies organic ongoing M&A. NFP growth to

down in achieve It's line attrition and with early, track deal. NFP exactly announced is no worth we in to is we're that from it's when the year-over-year. with on the impact and synergies guidance positive colleague deal revenue XXXX. While noting cost XXXX gave in we voluntary XXXX This at and synergies also net impact

second by portfolio NFP, NFP's We the growth, shift, operating an Aon adjusted in Services growth. through Aon XX.X% ongoing expanded savings, technology XxX Aon points operating through which of contributes basis savings. historic think quarter long-term XX margins including of basis to and is margin restructuring growth, Business from margin investments how meaningful to first we points about of margins restructuring XX and strategy, margin helps overcoming and efficiencies operational adjusted Services the Moving making If XXXX, expansion improvement points, on progress with colleagues results in expense consider year-to-date, We're performance. including our revenue X/X XX Business in basis increase driven QX profile including drive net combined operating the half, delivered of our and of our strong and we to expansion. to accelerate plan from program, mix which

to and D&O, casualty, property, client cyber continue improve locations powerful operational and work streamline enhancing with health as to and the best experience colleague analyzers. our such and new processes, We moving tools risk

year-to-date savings of restructuring in quarter savings in second generate far resulting operating Restructuring adjusted completed year-to-date. $XX in were million to $XX of XX margin the of basis actions to million, and points Restructuring savings expected $XX million so XXXX. are contribution

savings fall we Services Business to and in restructuring business. time, expect line. XXXX to At this savings for accelerate our expect to of the bottom plans realized We $XXX Aon will we continue our million as continue

As and basis, and through the forward, full we efficiencies operating the expect of growth, adjusted operating areas Aon portfolio higher to to think over a growth, margin Services. to drive Business the year long moving expansion higher term portfolio, continue revenue firm we about on ongoing margin mix margins from shift revenue adjusted combined

from point As XXXX, the the basis growth baseline close from XXXX we from -- that April margin previously adjusted which is XX.X% operating communicated, 'XX the NFP end the to right for period XXXX. the measure from from Calculated XX.X%. through less drag XXX we is of think

year-over-year also flat relatively expect investment to on income based be interest fiduciary expectations. rate current We

half the seen first the the expect reduced be in we've tailwind year half. So of we in will the back

XX.X%. driving we adjusted full XXXX the remain this long over operating committed expansion of adjusted term margin So to and against in year baseline

partially fund of Turning Adjusted adjusted acquisition X% expense, higher shares the NFP grew XX a QX of year-to-date, EPS million X% reflecting by the in and operating to ongoing tax and to share issuance income growth offset double-digit EPS. and buyback, rate. interest higher

of tax million by offset reflecting cash $XXX payments we've charges, income generated lower We CapEx, cash communicated. legal expense, strong settlement transaction and flow integration flow. year-to-date, higher to growth and previously cash NFP free free to as payments now related restructuring Turning operating and

cash based higher operating growth long-term restructuring, near look strong in free opportunity remains be our a As free impacted interest that integration million flow and strong we We've communicated in outlook capital. expense cash forward, working expected our NFP income $XXX will the term, and deal flow and costs. on by

expectation cash through and In XXXX We is long-term our based share incremental business and time through value add of flow core million contributing growth. which allocate to creation, overall ROIC M&A. free and to of NFP we've on and $XXX done double-digit investment, capital long-term XXXX, flow, cash expected million buyback respectively, $XXX free

track investment, our As our investment ROIC to balancing basis. record we share we continue an historically, we and organic a of as successful priority have acquisitions, portfolio buyback areas optimize divestitures against on

very firm, the and based strong of buyback will opportunity. expect long-term the we free half substantial of continue Given flow expect to $XXX or remain the our current ROIC rest million the first M&A for the share repurchase completed more in We for share at in $X billion cash outlook expectations to be highest our XXXX year. on buyback

address inorganically client to expect invest needs. and organically unmet can that continue We also capabilities scale to in to we

Regarding M&A.

evolving the including solutions acquisition in we and Our mid-market attractive M&A our bringing continues Known to an that new on and scalable our France quarter, bring and geographies capabilities areas, priority specialist to and growing be benefits health pipeline challenges. this Aon. that into clients' closed will focused high

also from NFP's annualized completed beginning see to of health, risk are representing XX has the We in impressive commercial and acquisitions million weighted continuing at engine. multiples towards NFP $XX attractive success revenue. M&A XXXX, Since

space expect in As are framework. record of executing to to our XXXX. within M&A they for their on we strong look communicated, NFP do per and this pipeline track growth ROIC million We million $XX year building future established creation year, track $XX value full the of against comprised we previously to forward on drive the to and and EBITDA

basis, we'll actively to Going allocation portfolio manage buyback, an the and all delevering. and ROIC capital decisions assess on contemplating continue M&A forward,

balance to sheet our remain sheet. now capacity. strength in Turning and We balance the debt of confident our

by with to bring our the from as credit to current cash managing over ratings. we line record leverage communicated, our with previously and profile, we levels flow our back noting be in EBITDA ratios our leverage consistent free expect of effectively our ratios growth, incremental substantial As driven XX XX credit elevated capacity track generation within next debt months,

the building In and our summary, all over in and our driving XXXX of this results against position progress XxX term. momentum. the quarter in We us financial plan strong year-to-date long driving and look continue to on to results well elements forward

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

comes question Fargo. Instructions] Greenspan line And [Operator the Wells of first Elyse our from with

impacted hold also extend Greg, just I is on in into get I from Christa, went wasn't by my what you within guess then it's you risk? also on statement quarter saw career at just doubling expand successful said congrats growth that to Before a also Aon. the maybe, true parts, to questions, segment first NFP. just the turned your growth want the to And overall commercial Would just guys I My question you organic X% you quarter? for the of X%, that risk. in can on two commercial

Elyse, your but NFP Christa question, important Listen, months. to X too. first be clear input first has to here, is we of start, I'll really and then want Eric's all, been Maybe about Yes. yes, to get

solution So all X% the been you same take exactly without NFP the and NFP. line would results out completely, the have

hard delivered firm. client exactly across way to in And plan. going that to 'XX then demand and So we Aon taking correct. with commercial context make understanding momentum some organic, and is progress the what In a maybe going real is again, And about wouldn't risk again, NFP, the strength the the really performance quarter-to-quarter all address really because all think new to that's expect specifically, in need X% the be And quarters we're very And we really in you generation and risk bit, you're plan, and that's in think this commercial the the exactly little you expect into driven major commercial that what better position growth And seeing in with to put geographies. strong risk, held a to 'XX, what And consistent we're The probably put is Elyse the on the expansion without a should build it between them. different better of really even a was and the continue and what by get on different. business know growth. specific mix steps, this strong 'XX starts retention. and solutions we the net X% of set margin that's are. in XxX seeing distinctive the XxX are across elements

expect won't we repeat, generally didn't exposures, didn't growth QX, factors in impact. As to And likely back, there going step modestly we external some that and repeat. in market we and positive last wherever we resulting said they average, in quarter on saw were flat repeat, pricing, see they

rest starting incredibly well caliber pipeline months consistent, in X areas our highlight But really, growing further the services is said, we're really that it's with are But now. expect contribute then we're And But on and into going 'XX say a the team advantage overall, then higher in to But markets. over we growth And with what described. M&A that you play of our we're take the to we've just and that As the and to and like you're the quarter. that? beyond. pipeline, see continue see and of starting had and also continuation services, would investments the capability there available energy and time. what would and XxX of and to these the to add plan colleagues is progress 'XX as positive and the positioned Eric, made expect turnaround the the we what year team, look, the to and I with we're said, for in external was capital a doing of again, really, impact what is QX construction modest Christa NFP out for out Elyese went priority making with great really new growth trying to the M&A that

Yes, Greg.

So first other if specialty in been second, you say quarter. an we investment. a We people hires, priority at that those mentioned, are bring just little that broker-led work energy, with talent going touch outcome analytics. to to bit and other want all, of We're the in there like and key the on do business looking the of out I about, new strong new areas. investments tools some of a But the the retention for the support talked the the analyzers that could, best whether that's would on it's any I areas, is construction, in them industry in best strong as really Christa to analytics,

tell bringing to we've but clients reinsurance unlock who capital And can client experience access get tools say investment broken experience. our new the of match at those client the with of providing the capability, to colleague people. or right you to client New and and on and actually right, talking things. the who I ecosystem our starting insurance whether talent, what in that really doing better and structure the new news it a side. or already business how really the wins talent billion provide and around in that client like clients, automated here $X that client trying how give client that's make ability program stronger you risk we're you see to better themselves how are, really capital actually a better ABS events to But capital, existing whole and is analyzers, first in of tools, seen the Aon, we're business and insight they talent then the other the we're new around and that share a to it's you a from fit the to into when and different understand understands it talent, see access what see we've you begin been these clients that we've tools I us property really going excitement events, colleagues with health new would it RIMS with wins. those better, helping really, are risks whole on are the global have the about, the been at sure great symposium the they But analyzers half fully their strategy stories match to different leader certificates the could talent the for to show retention experience. And analytics been some and The them who also their year, that drive in us from where tools. you also their who the also around a and to serve begin net clients

And question, which went have to there then we follow-up the Or structurally rate above one-off typically guided right X-year run about thinking your average. that higher tax when quarter guys is rate Is is tax think about something NFP? I like is the XX%. to tax rate -- the with there rate? should my the XX.X%, in something know you

give and it for but discrete. about going the the don't therefore, be tax do I going lumpy be impact would geographic or really a any driven Elyse, was We of rate and forward, much in favorable income so over you discrete of X In guidance unfavorable QX, quarter-to-quarter. And that accurate the can full similar the we quarter, Elyse. rate is mix unfavorable said, note can by the historical think QX, as Thanks year. a to question, that backwards. rate

And then quick one Christa. more one,

in M&A, was EBITDA there I track you're revenue you year, think million to NFP and $XX think expected million $XX this million $XX far. of I but said on of so

are that weighted would it than be half -- first that just back see more So half guys a probably is terms pipeline transactions? in you of

they they NFP little we've us obvious But strong as million for fully what back the think incredibly to slowed negotiating half EBITDA and reasons. of really the are million -- deliver the down to the that in seen year, right, is pipeline track were $XX acquisition Elyse. That activities And we of is $XX with on XXXX. exactly a looks the acquisition in

next Securities. line of Andrew comes question Our TD from Kligerman the with

a on operationally, exceptional had at the I just you've of unparalleled leadership to an a just also phase congratulations CFO. Christa Aon, And technologically, career. run her mean, next What as awesome

So phase. watching but we'll the miss you congrats in on next action,

and Then was Commercial you take I elaborate moving were back Aon. where Greg, guess back. energy a and out hires step to Could mean, mentioned negative mentioned And actually, and of Solutions. there new net area. the -- me Risk in maybe Eric you I a a little bit there on hires lot let that concern

talk positive second how you'll producer could So that that big influence see Do on Was half of the you be you do net And positive? was year? out playing hiring you XQ the a negative? net XQ? the about in or staffing think

Yes.

perspectives. your So really appreciate it, I thank Andrew. appreciate and I you,

First, overall. take step back a

It's our around do attrition, reflected very help really currently clients. the to our of firm. can forever. support and really our engagement we example the to to that's have leading basically and the to generates of lower if And evolve a can understanding function had firm so engagement Just it's and why the started story about and our have, highest colleagues high. that we've pre-pandemic. and ability really for our a us And and is in we back what voluntary our a than of attrition a That's think powerful today, it impact you off energy That's -- build. to low, is positive lot continues example be remind, in almost really contributing to we continues with and that

It's that areas priority context, opportunities. others about against the to So also, is capability. great one, are standpoint. one, bringing point Construction's this listen, energy fortune though, we there very, this some numbers, just And very there we've think said, But a isn't is in positive et some are from colleagues we are had -- we're not there that that. cetera. really that few I in think around about drive Eric's And where firm.

So And make and great really these think, in is arming no and mistake these Aon it's invest with accelerate it. capability. our remember, them the see it colleagues by practitioners supported you're we starting about with up, also and we beginnings the And Business $X is to also unpopular of that capabilities, made to the platform then show bringing of done Services unique. billion to What analytics, that. unique then we've analyzers, with decision set that

You second it third in quarter the the see XXXX. saw it in XXXX and and and the quarter, fourth into you'll

in So of Eric, see our And continue and terms where else that's firm that strengthens are. on going as what's you'll you it client-serving got? But really we the us make what to investment capability.

I the -- would would also bit I about a aperture broaden little around just thinking producers. Greg.

talk for of or client being be production. manager clients, the just industry right. the to does energy an about when broker, But about that people areas think do sort the risks just of than a it's Does analytics sciences life a match broader It's and investments construction risk pharmaceuticals, it's the we what producer. client than able executive like So are talk to if understand You talked the are the is expertise? energy about or more people when claims about broker, it able client? or the Or really in industry? the we absolutely you which to tools, client --

risk and the You and on actually the on and serve through that client so the way have well. wealth be talent chain the and skill side health to to set more more all have to able as that side

and progresses. as investments the we where investing to we those So continue year those plan see in we are growth, to make areas

-- So of kind as X% come it in fits I It really organic objective, this strategy your that it digit with guess with framing surprise, it a bit, and right? just higher revenue kind you're a of shouldn't mid-single putting this growth, the or describing. fits little

great Yes. time, we're trend XxX industry to organization with if and particular, a look the on down in what were. is Andrew, is been pure we core not way ability at know describing this where you step that's just look conceptual. an make a capability think connecting which quarter-to-quarter, clients. ever the And everyone in in means we to before. about risk and with difference over double at the commercial reinsurance capital, plan, we're around overall a our skill I connected This back, is tends our serious in risk

driven talent On the Aon as raised, if the Business Services. about, set Walmart like some think by capital well our Google you with a reinforced combination and we you the and Eric and talent things never Business from like And have our together talent, been candidly, unique question has outside Accenture, -- about retirement, Conagra talent, they've that industry, human do health that like supported been but done. then brought side, come talked and very Aon that of from and firms like and industry, of and skills and Services.

that's happens. doing that. amplified that, that set to just down. That you and that And described, is continuing Eric So gets foundation manifestation seeing and on of the then been to you're focus a in the has us, quarter as bring all when second is in capability, we're as

to even alluded us and is, if the it's put but years next beyond that's not this story. unique to over came build that again, 'XX only momentum, X a XXXX. build commitments clients, X So our a Edmund momentum to in, to succeed he think the And 'XX, we with 'XX. view It's in position

exactly to in So and you do, to -- expect second we're the can half see of track that's year continuation the that out. play on what

Is market in $XX of real or million to Got about something sizable is down or year more that digest quickly Or million then Christa, something in year. acquisition? start each maybe about that you middle road, X that? cards? a you the the NFP. it. And acquired need on How mentioned a $XX just it thinking maybe you to NFP X

and also do first done framework step for and we're our return Christa but invested Listen, outcome to always our all, on ROIC, as around you shareholders. our what has clients to sort for of always maximize described capital back of trying

We fantastic. This expectations exceeded. very NFP had we love platform. coming is So and been everything they've that. the construct of high been this Listen, in of has in

have months, platform, it's this Doug, can Eric, do. team but and We fantastic. working with platform X this Edmund love fantastic absolutely the Now been only what

to Christa bring about concentrate. that Aon way M&A a that's So as into and market middle in and Business where the we're on going Services to really focus going We're the plan reinforce talked really capability that well. unique

If you understand, our and had to in great think want a capability before. about franchise it, we NFP colleagues

Aon, even Now that group. with wow, for additional for producer more capability

absolutely true. also to or we're NFP So has that form. in global this be across is way, shape focal is our going resonates And And that's every point Aon. actually capability what finding really

going is context both really sort it. it ways So of the of in

and to So of 'XX our right, look complete sort on going into and focus mission that we really that for that's and us be to obsession to get XXXX. our as

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

given course, M&A that that higher market I can the Back to of wrong now to ROIC recently spend the of the you curious the of in M&A when -- of it but you smaller the do -- be opportunity, so platform Am about and acquisitions. multiples just I size say Aon NFP assuming Or a term. math a and would M&A math, the you all can't opportunity. assume incorrectly, amount the the am repurchases paid just for ROIC near thinking the -- share is on highest on

question. much for so Thanks the

Aon that a plan on investment phenomenal phenomenal say across the return made phenomenal XxX The highs. and is share at return NFP, and return. the remains first the capital and as return our a you today's all-time model a thing is, Aon, It's substantial a at is return price. we've of flow buyback. the It's free cash of result the which I'd restructuring It on if accelerating and highest growth of

growth billion $X because in share and free debt And us cash so over cash costs do, on despite flow the we will buyback, paying in of and of and really disproportionately driving to and allocate transaction which the for therefore, over flow share in shareholders. amazing uses you've seen and XXXX XXXX, we've XXXX delevering to commit other commitments cash is buyback and got long what that's term amazing capital down free NFP we'll some per growth do

Okay. Interesting.

you're I optimistic on Some of out. without the probably more maybe margins guess peers, your modeling

of lines, Would know environment the that's bit. macro growth. -- and of to -- eventually a overall organic. of I past organic given just the those drag. of pricing M&A know kind the this fair where is to just picking see want a in it the is on? lines a of financial gears kind improvement that market you've bit Risk still leaders in but of up us to is provide extent the impact So be drag, you an Solutions you switching normalizes pricing some it other cyber a that color on I one in environment a be that's to characterize the Great of Any is mean, kind And a would lesser been say, to kind just that an I going we

it think Sure. This flat. a is, that, Eric. as see don't we're XXX look I Why where of across you'd platform there's at this is you global pricing essentially mini it within But call the I take describing market, it we Aon, markets. one? transitioning

got seeing you've around you're still you Overall, fiber cetera. specialty, casualty, asked D&O. You've lines, et and property, got as

a of buyer's very in pricing much but seeing buyer, You're is pricing a market, that favor moderating.

steep as it's So earlier. it was not as

it, On say are of we're mentioned that of happening. the would I services, Greg appropriate just pipeline an that share transaction but the seeing things

attention Property towards price for better that. for average. it's would pricing still with the there out opportunity especially now, little needs. pretty that's challenging the was area bit. on is and reserve based maybe is, pandemic, on there's about heading I been So most good a getting have we right, maybe a risks, sort probably an flat risk, for right of of feel But the say, coming Casualty the decrease more up

around increasing this would a anything get client's and with would you that say, make actually say, also standpoint. I So still develop. into questions decisions. But I different when But actually changes, there's but they that wheels, around from market pricing casualty, an will like, behavior especially is auto a scenario

of save coverage, made where in thing. they the they able that as that the to a way, reduced insurance, will type So some challenging X because took during other actually areas, years market, certain invest decisions they last the elsewhere going premium they're narrower of higher potentially retentions, of

revisit to some of those a this able of they're market. so kind in decisions And

actually, our to And client is it's going So rest year, go expectation you're ultimately, see the that as market But we the one is different go decisions to of the comment, to right risk behavior of it's continue change it back them in one and of now. changes. capital make actually transition through it way Christa where -- the to insurance side, new deploy on programs structure. as of compares existing analyzer the themselves to the allows to this to beauties risk trading our analyzer that protect and the

opportunity build they So where them it is for clients a financial forward. going they reevaluate for how to are today great the right and protection

comes question JPMorgan. the Bhullar from next of Jimmy with Our line

on So first, year. quarter I the growth I you've over best think, was, a just commercial had a risk. in organic question in This had

might markets activity, don't X the give it could or few were several X.X, pickup? what X quarters? in you -- drivers driven but are versus the items extent have large seen that uptick maybe that have last I of onto capital on was you hiring if what the the that you've So what the might or color any items like

macro These What volatility that and Jimmy, From add is talked and in two the that? Those strong The are And about the across we year where you that. on on analyzers. about about are in risk examples can just is question unique. bit about I'll is a What drivers. Eric as with prior at isn't the coverage unit doing was literally sort So coal they last risk net Eric really a Jimmy, start it additional and standpoint, the we color. I differently place capital think clients. what human and market Jimmy, price. risk are of This make us causes overall the put see what investments, help we causes we're clients thanks pieces mean unit capital the position about business different retention. for the new price. client this talked lines. putting question. generation how overall reinforces literally the choices. This and really about,

We longer. sort that. new continue the clients. you a progress beginning why chance and more why 'XX. about why you clients into highlighted 'XX All to are them to you to and do And year for things up. half can That's win That's with talk logos. That's of have to of you show we've those what back to that is expect the keep

is few great Eric, really demand. construction There are throw that's are driving in others, priority investments drivers. making the big set baseline. anything overall is some This We've really this name that checked see top these add areas the there? those what's the you pieces. you of on in in So and of doing. we we're we're When but what a that energy. the of And capability else

a report tech, happening major Greg, it that recently pick that like just maybe in on a outage around X X up these bit -- attack trends put little of are decisions trade, is that the and and to system me out business feel level. We prepared week leaders this around workforce focused let weather. a a to report how all mind. or -- happened And deal that they're it this brings not better example with cyber

are to the clients globally looking so us hard that them to an give as help of opportunity a And firm some their at analytics be really these able exposures connected topics. risk right navigate with

America, around client growth in been Europe, this world. we've of need so and strong in Latin strong growth terms connected in in And opportunities everywhere seeing building client the

begun Aon feel where in a United the have significant our of to really and effect lot been underpinnings that take strategy a period need. So clients have

just tax And to items, in versus last an discrete get on much Okay. the mix just geographic the would some have of of tax versus product the the been rate uptick otherwise. idea the and then maybe item, on it where was because maybe year how

question. Yes. Thanks for the

say it the the favorable we the given would over year. makes rate of can about actually back way full to lumpy quarter, scripts and unfavorable quarter, would or go in is is that tax terms the consistent in one it but the haven't unfavorable be income two We the I QX the discrete. are And which and with any that it really mix detail I saying geographic of the of by things in split, driving think course

Rob from Goldman next line of comes with the Sachs. Katz Our question

But of So a necessarily and around quarter. were guys things kind of been yes, couple last there's new organic. a It questions last quarter. in on I were don't commercial business a little turned think North risk, I here of you one bit have looks America those net business the bit, like on on nonrecurring think would net cautious I U.S., think specifically new been which don't more that

on how that net have U.S.? new So And that the . meaningfully, in driven any additional quarter-over-quarter? what it color if business would trends improved

progression of stronger that also, the really X a we're it's careful Yes, are. they commercial back quarter, leverages net we the in Rob, with of ways the for over risk with of last and the compare our firm doing Be sort exactly said leverage doing means seeing for X, thanks board. off of across quarter-to-quarter, is what the It Step capital where retention versus things capital is by new actually sort 'XX, a so we're and the we human of And second. comparable we're you're of you quarter. as that it's in of about way, connectivity kind And are are. question. then a Think fundamentals sort capital business. capital, QX risk It's clients, better, well. human more and risk really,

see we around and that. year as plan, you're momentum as the closed year, starting we that's And really the last so the And this into dug to progression. began XxX

think as in enhancements we capability that You the and of pick the service analyzers and as it's QX, and that in QX talked to all introduce now to up much you as has see to continue going didn't continue we Eric about. see the

So This global, lines think U.S. the that really our all than solution lines. greater, U.S. so outside X% or the even was all the are our of geographic strength is really is at To global, really it, though. driver. even about the of And more solution inside

It's that and continue so execution, priority -- we're just progress. hiring and standpoint. by it's to And amplified execute will in but And that's really continue we from not a bringing complicated. then to capability --

Okay. Got hiring on it. pipeline. this And then priority

I the X are priority growth. think with to construction do growth maybe energy you this strong margin areas be current us those pipeline. see size continuing you from maybe areas and impact strong? And help in guess I could hiring

and Sure. And you what I just I think would trends said the go about back say, listen, trade those you X to about reshoring. and

supply usually of that's to nearer global significant as of in become manifest global home construction So our construction. sort chains as a basis, amount industry you see

where client are but client It's a America very able those also capital. management or on work Certainly, into we enterprise exposures. North specific we're they traditional strategy a capture to they energy, connecting with the a energy, as Our world sort and to clients draw but both or brokerage expertise around areas, build capability to those clients be energy. not with there of into just build Mexico on renewable other

strategically needed those investment the risk. to important. provide match able and ability to Our forget to there capital well manage invest to the is how analytic around insight ultimately that be Don't to risks that's as

we So industry that the spectrum within are across investing of framework. capability

institutions. You could put financial

where areas as so are can and we but tangible there not But they're through production other all You could construction investing just the people because capability analytics. put pharmaceutical. but energy it We and highlight way what's happening, through see across goes well. certainly are

adjusted wanted That for I be time color NFP you could Okay. XXXX? there? is to sneak line of the could just to in And if And any more. lot accretive to provide one a updated ask still if makes EPS sense. if

Yes.

accretive all per in follows note deal, breakeven that would including we flow track exactly So in returns free Dilutive I on are and in that on trajectory. same accretion. financials And with and 'XX, share deal EPS the 'XX cash 'XX.

synergies million $XXX early and revenue And on XXXX million cash cost excited, and days, so months of on the the free in $XXX delivering in albeit are flow the we synergies, super X in XXXX.

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

the and you Also, on wish to to my congratulations next chapter. Christa, I luck wanted extend good

is question last the a thinking sort here -- I And really I as of improvement X the bigger seen of the headcount Over you Greg, Aon. balance historically, so mentioned as of this think most productivity opposed it's So over I growth we've at it's a hiring X, how my productivity call just about than well picture had . coming set sort now change. between from level last and adding past, -- back and growth I as maybe expectations looking in of to drivers look going are question just welcome headcount. organic wanted the I the adding if more organic forward? when just as guys to call, just a years improvement the which

about. forever appreciate leverage talked delivering team, maximum we that Yes. clients. the if means David. really that thesis client support way, haven't We productivity, better you send capability about and Listen, need is consistent this and content this mega And back, By these that seen the analysis, continue trend I love and for do just client. talked effectiveness, you to one will we've time that copy. at Eric a you call to to whether with is question, step it the again, better a you this how solutions, around and it really create it

client genius, at invest to with ability the do on to clients, is that. our of mega even this what with double that firm. that of is this. trends look right take to done is the capability, in we way, seen you've our more "I better We our from we to a the U.S. And around we've to We're really that and X And XXX a we mega And of And world risk This -- what integrated colleagues means XxX we're report of know and actually we of is this that. I are to of bet last are actually again, report, looking blunt, do. down don't billion coming about if to global of don't And aren't we're of out No, that. talking to And said, exactly on to need investment clients out by alarm greater. a facing? out survey strengthen other, is you give You've think the Aon in colleagues $X to Aon opportunity, to how these we're said investment. not you going that need. do X serve fires, call Services. now them a these to each operate they client and see the us someone's top on." an the better around got were us the talked so they productivity you really this not the again, think it, as which going bring and Europe We going is it over for. the capability the This analytics. do need, arm insight. number productivity, And it. X our have about of been trends hearing is then you served down. look, And coming a C-suite megatrends. integrating on that. behalf that, to really our capability. and that's did need then went colleagues and a executives talent, all say, basically what whether now call really got current connected David, be part investment. kind you what years, if now, way doubling And help Against To is This Business and in well.

to both capability, individuals, just high. have isn't is actually And which whom each delivering they reason also bodies. And behalf. it their so It's it's see way in more come in opportunity in, the additional individuals, but we the a we in are doubt, when more more analytics, on really no need bring is talent greater but of

all you of cuts doing now. lines. what see right us across our And solution is really this it So

is sort or do is backing of up it what our translation happening is commitments. greater, flow flow. an you, strengthen nice really a Mid-single-digit we just on and And going double-digit to margins the free is think going to So free to revenue decade-plus of cash on to going be take it The and cash us, be for terms what's for able to we're clear, is really flow and quite for where free opportunity we unique are, been and of a free it's and it. which us XxX without into growth, improved has in this cash cash flow. combination

And so capability, additional magnified additional with by individuals. that's

And so and so why capability market, other, opportunity. so really attractive over -- it's there corporate called into NFP. NFP now for arena, it us. doing not We incredible capability with just in on really but bring this we one the and It's at doubling the this creates isn't we're David, down also do and both, was the can the large platform middle can so,

that combination. that's the -- really So

But really throughout what you'll and almost duplicate. what year. see and that's the that's to say and you're to QX, and easy mission. love, impossible that's That's the Now to in to see starting do, we hard

quick follow-up And on a helpful. then Great. just that. maybe That's

middle is guess, define how just You mentioned the risk guys I you as middle much market market it? NFP, could business the of business. commercial would now you with

we're there a client real to risk. the these still be leaders middle front use that such as XXX are team. is market. space. sits it's of see a of for bringing cetera, NFP, to relatively philosophy is we're but And the to doing middle opportunity the or NFP been for a We're of their great cyber, getting and what of et do think challenges base closer to activity they've to one talking of more I middle they're Aon Aon for client room we've what their significant ability that you still we Independent that we're excited call opportunity serve risks content, NFP about, for It that more that grow market is historically middle seeing base. amount salespeople that some why want to business of runway connected being this able Aon reasons market But to lot in billion producers been us certainly still still used to within continuing would and market content $XX a in a their us on and the whether in the drive -- us some around and market. we is underweight about the so client Look, to independent actually

there's lot And room run here. a good to so of

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

to footprint except Aon never including congratulate say legacy to want also different to over one. NFP me, question the take earnings, Christa for another last having Is than I of decade? safe to it on that taxes geographic from with is regard this the

is are U.S. definitely more more true We NFP weighted. U.S.-weighted. That is because

already unusual timeline of terms -- can Okay. give has And to of Perfect. timeline? what you And regard the with investments like compared talent That's effort this to the timeline in been does much us been a hiring how of in how I the productivity tell about, the wanted or sense confirm. to that talking you've done?

the I for outlined we real Listen, the strategy we us XxX thought would end need to last at the back there ourselves we launched priority for investments we of where -- was when middle of clients. to the a say year, that make, wanted serve

looking your over so actually week, build essentially how XX something How last started that in take parallel you you we you if as pipeline on that's actually that's been going them existing get something well, into question. talent. deploy talent, of them, outside and to them it at Aon the is you -- the We've those months. growth into been how areas bringing firm, onboard last And not how there's a been it clients

an talent just outside not discussion. it's So

identified it's the for in we next that out invest as X well the as laid the something to So something we real years plan. as opportunity firm over we X to It's XxX growth. see a

you doesn't It productivity. Mark, time. to evolves immediately, as productivity over on your know. Listen, question happen And

it's much Limited, But in. they ramp XXXX? are the faster folks way, the do build they their in a just to they right? of content going which coming Eric's come clients, it's going because portfolio. describing up them clients, give you by capability capability and to hiring our new existing able yourself not of have skills to and ask If These you how and love and QX shows be in when the lot to

field So for in powerful the us, our play across what's the this current 'XX driving have we and amplification meantime, is going way. 'XX But out a capability to in really results. in is

comes of next the from Our line with of Carter Grace question Bank America.

I on, have guess, acquisition. I one talent more

how guess, talent versus I for competition played think talent acquisition -- some you historically I larger worked far? when The maybe have market people how found, a And advantage have so historically that NFP. in And the market? market looking you're organization? in middle joining in an your guess, receptive I be the that capabilities how in to to middle mentioned might you've hire where are

would there the everywhere. war say good there So a is for where talent is talent for I thanks question.

it's whether or mid-market in the health segment, wealth it's whether and the segment, large whether risk. it's small the So segment,

that assume chasing good people, safely can people. good there people you think I are there those where are So

that integration NFP to did we individual and And valuable of would the the is for under colleague that with so premise independent the be that give them NFP of and but used their guys to them when able they Aon understanding we that connected, personal strong around in be content out give client relationship format the to serve laid over same better in tools the time. at serve to better terms them

do early in how broking client. or you able -- client to are ABS complementary deliver middle how our side, that the on client health piece be to how which with through very beginning out data to Base. the process, giving -- to them can connecting scale map give market the at do do into insight the so quickly, programs facilities, showing analytics on to centers, our actually content to access connecting them to you we sets, aggregate be you begin the And better

with do They a them we're that seeing team of already make better that think M&A areas are relationships. better resonating will draw tools NFP have. more. more allow they So are serve It's that because these those piece. firms have the the for to don't the clients better terms is do and us want for make that their They them give with capability that We're already to to we really up connected great really they colleague independent what quality trying ultimately looking individual the on that want seeing is is people in this pipeline the who in. to pipeline in relationship how clients. NFP We

of think we're of relationships. in firm that's finding be relationships firm and way outcomes, being able mid-market a a finding those content, the And strong use able being the the that capabilities while I in but technology and lot big the to that with best so able a for better still analytics, connection, to use to drives use and them a maintaining

what how -- days, that's said, as the but we've that's good started. and early goal, So pretty we're months in, about Christa X we feel

to digits, there like might the business was It just single digits. to forward? the remind Is be wanted forward? of that a NFP in the that growth. maybe also anything trended, I results And change of bit higher anything there in us maybe low in mid-single it's quite that going organic unusual are this ask wealth about kind historically you than And would the sustainable what do extent quarter? Or if these acquisition there's you can mix going how

of done the brief, the helpful offline, any about a risk business and The team the it's big, -- transfer be a Appreciate it's an Listen, been as the if these job. is part world detail we U.K. in to into you amazing pension just particularly just this has it. question. and a has big U.S. can think terrific And go days,

have position in an strong incredibly We that. leading

play You're challenges and changes. that the through, seeing regulatory

seeing we're an these fit, of too, and capability things NFP and as this arena, incredibly sort that in strong all So has well.

in to exceptionally is what the in you out, see the see X% that's current playing emphasize an So -- overall, and team but NFP, Aon even you the strong environment. results without what again, just

question comes Cave from our And Deutsche with line of next Montazeri the Bank.

tools up access going on the you are want Or Aon? a just The comments the is that's something to? last question. give the them on already to using that NFP legacy follow your NFP made to they producers, take new -- from Just to bit longer

little take access opening will with client year. opening process to started So think started up since XX laying to connect the of days to we're have to closed, as in we've capabilities in that the then center, planning work them thing analytic of capabilities, the in a we through health, provide a with. and that's products and products amount And bit to be we get their and time an go risk, to programs we've easiest offer wealth to put with the I be or both significant in have and leading then the them first in health which we base. our to to risk the affinity we because But close the able broking able track

that started with we're of we've more easier are So do plans laying to things to the the around connect, the structural things analytics. and sort

time of question outage given basis, that interconnected the cyber halt case is. the or third a insurance, fact be and Makes the the it's we to light last in from something software have corporate have do cyber think the to business your is already amount of protection right to see systemic insurance party due like? they type In outage, you of sense. week's world do right to place On you how that the think glitch and my last of unlikely who And comes a in this cyber. on CrowdStrike second clients

terms historically have. always that malicious to does front Sure. question look a answer been basis new they by people maybe a that's system cyber type That's has in see of been the cover the but honestly, kind outage form intent assault macro hack, think not focus of cyber Certainly, driven does as but Listen, I what of on is at on client on exposure. certainly that hard a each a a there, mind risk of of the create have. to now

we, in that's scope growing But marketplace. at insurance a cover, of, I is that a from think the going taker for price certainly look all healthy risk to part overall, the part of coverage, the you, technology mentioned just out. as AI or that survey clients certainly, mind or of in both cyber of have we it's Greg it's and what put certainly whether I front our

with to and an to able And provide and area so analyzer will continue to be clients be that I do cyber capability to we're certainly, think invest it we to the our when where of clients that to want understanding happen, the profile it platform look this understand and own launching. carefully risk it. like at raises pretty But causes things each certainly their our

turn for to the back remarks. like closing now would call Greg Case over to I

to Just things. wanted do two

to ready awesome so be call. Edmund, will to Edmund. our just forward leadership and lead our around our looking go to up welcome and the and together. mission recognize the again, work have you and First, table, for And QX to teed

for Talk on leader, Aon an that, everyone. behalf And And you are Thank extraordinary even Christa, and years true, Global compelling you. an to XX thank Thanks true of individual. course, you excellence. thanks So so so to then, much much. soon, you of more Christa. of for Edmund.

and participation. you And you lines this today's time. this for Thank your at concludes your disconnect conference, may