Aon (AON) 25 Oct 242024 Q3 Earnings call transcript

Good morning, and thank you for holding. Welcome to Aon plc's Third 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 third quarter

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

first conference here especially CFO; earnings morning, Andersen, and quarterly quarter our our everyone, leading delighted by CFO. joined President. to welcome I'm Good we're to Eric Edmund have Edmund his and And our as third call. Reese, call our

As on in in webcast Edmund previous financial quarters, we posted reference our slides, a detailed will his presentation the remarks. website and which

our world, To loss businesses dedication this times of deepest communities disasters, particularly on and respond sympathies do and clients. tragic and tremendous begin, especially Milton. recent of all and in your our endure flooding natural the focus damage, to including and by we To hard extend to our from challenge, colleagues firm you those the our and as hurricanes for as life tireless In want Helene communities these and thank a you impacted XX,XXX commitment hurricanes, who around to typhoons helping actions recover. possible, make

our performance the results. is over goals a great financial XXXX our in track Business each operating executing through and and and term. Year-to-date Aon well in it pillars, effort, long Human on scaled platform. we're the model, of Capital puts achieve This Aon XxX Together, to Services Plan monumental seeing we're progress delivering our our on by solutions X the Risk represents us Capital client leadership and

revenue with the team revenue X% delivered total With year-to-date, QX, organic at greater, increase of margin XX% we an XXXX XX growth our growth, in growth, baseline. combined income operating and lines year-over-year and from from and Aon Highlighting adjusted NFP. this quarter and solution operating NFP, organic or and consistent key X% from of points addition and of total organic our growth, growth results messages all delivered revenue margin the XX.X%, our adjusted XX% basis

growth, Year-to-date, of we XX% and adjusted NFP, growth income share. including contributing growth organic baseline, roughly revenue delivered from growth months X% X XX in XX% and adjusted earnings expansion basis to total operating revenue with our margin operating points X% per

strategy. cash to progress made M&A $XXX of also million executing activity, top cost We continues or our executed independent fully delevering, organic ongoing long share line connected for expectations all guidance free growth, free perform M&A, all shareholders in cash for buyback of capital financial track and achieve greater mid-single operating capital disciplined and by attractive supported through on exceptionally management. over expansion well, returning margin digit line and and term, double-digit flow growth, Overall, on to exactly year-to-date. NFP to flow with synergies, revenue with growth revenue we the remain our

risk and demand us clients as As innovative complex, They becomes stronger observations. make solutions. more insights, our getting decisions industry that volatility people future few on increasing deeper a issues. our and it's harder would across decision-making offer we and region, we reflect every are momentum, client requires In partnerships telling to face and more

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across Our recent pillars client of example plan. highlights this X all opportunity our

our program across consisted regional enhanced with one inefficiencies, who for supported data which could together a the needed of with global growing insights do team brought connection placements, from To their business support company, service them multiple insurance regional help construction geographies. tools delivery. this, and global placement largest marketplace our seamless of efficient client's leading Historically, creating contractors, by programs and a global client, the rapid own partner the analytic our place growth. Our we're a in and multiple more

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taken steps Business new that are our with climate our to build making risk to and Services, enable evolve us deliver the ensure data can clients, medical develop them. insight capabilities tools these we AI Aon like today and platform, and future, strengthening can risk The we've of and relationships our the do develop tools Because to with analyzer. claims use effectively helping analytic one with investments in and around and to property analyzer and value for capabilities advanced further demographics innovation, health continue we're differentiated we more and

closed NFP's quarter by strength more in remain to thesis, NFP to even content, expectations. our the team. we Finally, tools and work on relationships by highlighting continues when NFP. with deal, this combined reinforce seeing where than exactly and We additional and teams. on building great bringing the excited track performance is NFP's One area that our capabilities our strong remain really we're client reflecting we're announced

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Finally, operating their of our and part with our our NFP NFP who operating resonating and can is appreciate connected strategy M&A colleagues and independent that potential bring the targets value with hires, new talented additional and to with clients. understand being flexibility Aon and pipeline

Business ensuring QX against relevant our our solutions bring through financial summary, strong capability to demonstrate and meaningful to our great all Aon we confident in creation enabled our our Plan, and clients, Services. and We We're drive our through deliver clients, and guidance clients to taking remain our results strategy, for our In shareholders. continue guidance. colleagues value our steps our ability long-term to financial year-to-date progress to XxX outlook,

financial Now his to outlook. thoughts on our let results Edmund? and Edmund for turn me

increased. good the this excited and model, cash in ago, long opportunities only everyone. to Aon Greg, margin part growth, given company ahead you, be X double-digit expansion over a Thank morning, revenue of a months term couldn't be of financial free delivering over little and the us. joined confidence has flow I organic the more and I My

immediate and me jumping term, third matters the quarter detail, before let the be into delivering results, what I'm most. In here pleased elevate the to

or our to to repurchases. full shareholders First, in right and to organic flow allows share cash objectives after adjusted year through simultaneously while that a including with $X mid-single-digit revenue guidance, strong in returning generation margin deliver us capital line free track and greater a QX, XXXX on we're expansion growth, billion delever

Second, organic in our third revenue reached growth quarter. X% the

Plan growth revenue Importantly, the in to investment further that line and higher was with specialty we're XxX our growth, each is X% talent cyber performance areas, result group analyzers XXX expanding this our strong executing across expanding casualty, the data clients, investments risk making organic predictive of client-facing now in client drive our top integrated in lines. beginning of property, a our solution and enterprise and health. with of across direct This D&O, to nearly our and higher or

organic in start with With remains or metrics NFP the on performing measure to than year-to-date. And better finally, pipeline, and top since humming thesis M&A Retention growth we're recruiting a middle engine year-to-date in market strong. months off NFP's acquisition, as that solid NFP is the case. is last EBITDA the of business growth the million year than is a better on results having $XX investment revenue line in X acquired strong we the

a in near- double-digit an high acquired delivering These flow and on capabilities, execution connected margin our capacity restructuring are and service of our from our financial model. delivering and creating and connected momentum, CAGR XxX independent distribution to objectives, firms independent long-term to including expansion of content and XXXX. and free saves seeing level in investment model, our Overall strategy have Aon XXXX maintaining on confidence cash we while continued gives the value and me X-year a by in

I'll one note logistical the before turning results. to add

notice intention took opportunity performance and between into connection expectations, and and to better transparency add providing understand content that help the our You'll to our of with performance. the the we and clarity additional strategy you

calls You can greater our our expect next engagement to refine investors our to with that we'll material and support have over analysts. the minor few adjustments

third Slide So on the results now to quarter and summary the turning financial X.

NFP. to margin remind up that And quarter. in cash you generated in was EPS And XX we X% Adjusted operating was quarters expanded the total XX.X%, when at we up growth in finally, a X $XXX our XX $X.XX. to the see delivered quarter. that we baseline XX% expansion million doing bringing basis relative $X.X points. XXXX our includes free to Adjusted billion. so, operating revenue third points organic flow, You margin And margin look that to I'll basis

revenue above our guidance double-digit growth well results, or in was X%. in Growth as of again, was X%, details Slide continued in of M&A performance growing the of 'XX in the strong to by organic at was all Organic X% North in these Risk, strength range. new end at P&C with and retention reflected business, In our driven with and starting mid-single-digit and or at EMEA. core growth X% in strong strong high growth services Getting lines American revenue Risk QX business net the Commercial greater Commercial solution growth revenue as of X. QX organic on

treaty of that and growth growth a worth was 'XX. lower an our placements. the revenue with impact Reinsurance led for outlook revenue, facultative quarter It's contribution X% smaller given elevated seasonally noting and fourth growth in to on over low our QX organic fac growing the by from was single-digit balanced QX

digit We year expect greater objectives. or our mid-single growth organic to full achieve growth

and new core our in positive over sales impacts continues health talent growth, Health Solutions trends to from also QX in delivered environment growing mention with an increased business the X% levels. our The data enrollment organic fourth business. and 'XX. in double-digit demand that analytics-driven be I'll from quarter, international and growth health revenue and markets reflect benefits cost market we'll elevated

growth for also provide additional color and finally, NFP X%, line is and mid-single-digit NFP. on Wealth continued was and by accretive me to both and Solutions EMEA, case. Aon transfer And and risk And contribution U.K. in pension organic business and NFP are across driven strong positive Wealth performing NFP. organic let growth the in demand Risk our NFP growth, producing regulatory Commercial mid-single-digit revenue with a changes from and Health. some Solutions delivered was revenue

and driven to growth little market by color deliver business And our strong a helped organic organic growth. continues on us and new growth retention. revenue revenue be provide impact how new net I'll Overall, business X% net

from was As logos in net Wealth. to the on impact points about business and retention, rate you market and rate limited growth flat growth. XX with and existing contributed rate impacts from business benefit Commercial, growth. with Health clients We points net recurring increases new X X contributed across exposures high saw new The continued points. to Reinsurance organic and new X%, think And

well also and construction, acquisition, we priority health, that client pause make specialty our our in I'll progress energy continue great as group. in as with hiring here talent and talent note enterprise continuing on to on focus

XX digit organic organic to growth mid-single revenue. or new our months, We XX season final point to on better to objectives. And colleagues expect within one to contribute which these growth contributes and

And quarter fiduciary up investment we income revenue growth last do calculation. not a include Third as X% million. our reminder, organic fiduciary was to income $XX in investment over year

we decline, rates impact $X.X balances, income trailing the interest months. fiduciary which average as an over course, XX billion expect Of from on

impact approximately point you purposes, of modeling XXX has $XX full year remind For on a I'll that basis a on income. investment million impact rates

As adjusted does interest lower rates however, expansion. income lower expect margins, decline, we investment our margin to operating still drive

our on underpins cash is will of impact earnings the deliver we interest loan of term our our lower that irrespective growth outlook by top double-digit model out bottom partially for line point movements. our interest expectations I'll offset and business debt. Additionally, expense flow growth that strength rate The and free

Adjusted XX, Slide XX.X% third and was operating were to XX.X% XX% up quarter income the in operating year-to-date. On $XXX million. margins

with For in margins up XX the baseline basis expanded year-to-date. the quarter NFP were and points combined margins quarter, From XX our basis points.

Business Adjusted our management to operating in XxX shift well margin scale initiative continued our importantly, and discipline, benefit Aon from particularly expense ABS, as restructuring in Services to benefit ongoing Plan. portfolio as accelerate to continued higher-margin from our the business, businesses, or our the

points in Specifically, resulting million, quarter XX third savings the adjusted year-to-date and contribution in operating $XX restructuring savings million margins. basis were $XX of to

track million achieve XXXX. on expect we continue $XXX of million of to in savings goal well ahead, run savings Looking XXXX are stated our of in rate $XXX to and

momentum term the our as margin the our continued from operating standardize year gives XX.X. in remain integrate NFP full XXXX long XXXX us expansion ABS to operations term long confidence adjusted platforms. committed baseline the in over Additionally, of adjusted we and and expansion We driving over the in margin

of and other higher taxes Interest the NFP $X reflecting $XX XX. versus last million was interest, income up acquisition. to million year, Slide in by $XXX Moving billion on driven debt expense

$XX increase portfolio. And was driven $XXX real divested of income estate million with globe. focus in growth policy of unfavorable Other was on lines interest higher-margin and a our result impact of tax assets. year-over-year continued The We we rate million as expect management noncore was advisory XX%, and QX. the higher in year-over-year changes higher portfolio expense the tax by discrete personal in items, geographies, across QX growth the higher finally,

expect forward, we tax year-end As provide XXXX further earnings we our color rates look call. to on during

free reflecting continued now flow. $X.X improvements. of and operating billion free income working We strong to capital flow cash year-to-date, generated Turning growth cash

legal flow previously integration charges, we and Our is restructuring by settlement items, extraordinary free cash communicated. impacted and being transaction NFP including expenses

We of on have free in items cash these sight underlying growth. line remain and flow confident

double-digit are billion $X.X on cash to expectations in expect down And to XXXX our flow, XXXX. free a to on well continue X-year XXXX. debt flow positioned free We CAGR pay from cash given we in

in we forward, reduce have XXXX. QX from look to to confidence to we our As continue X.X ratio debt-to-EBITDA in our leverage ability to X.X Xx

to first the billion in $X.X also we million of dividend repurchases. highlight I'll shareholders and months returned the through the through share $XXX year, that X have in capital

We continue for approximately in estimate $X billion to repurchases share XXXX.

guidance prepared the and concluding my X% growth end some I'll and our remarks on Slide continued XX margin expansion, third reflects with thoughts. in business. continued organic quarter With momentum

on come that We are results. in pleased XxX and Plan our see execution our are through executing to

'XX. or reaffirming 'XX year from to mid-single-digit are above baseline, restructuring cash XX.X% contributing adjusted including initiative, our full over greater flow expansion in We revenue all XXXX double-digit of organic growth XXXX for $XXX our guidance XXXX, operating to free savings million margin growth, our

making growth, to free long-term financial growth we're ability over margin This sustainable growth long our areas expansion with generating meeting to XXXX cash model in organic model and financial driving while of balance investments and our higher-in-priority strength 'XX in confidence driving Additionally, sustainable and flow that term. our objectives gives to growth. double-digit the investments us highlights the the

of XX,XXX I'm CFO Aon's you the of My colleagues performance. track of Aon, why working long my gives prepared a remarks excited on build with to be sense to record

a have We clear growth. for strategy

top driving third on that can strong ABS and bottom line. performance. quarter executing in middle our growth are year-to-date And and results, hires both We sustain as priority the in you making market strategy execution see XXXX investments the that on to in is and the that and

So I'll that, questions. into jump to turn your it Melissa, you. back let's with

question from first Our the Kligerman Instructions] Andrew TD [Operator line comes of with Cowen.

you've So very And brought construction, growth in see that energy, the talent Solutions. Commercial enterprise. exciting health Risk in to in Edmund mentioned

a your there -- So a sense net of Are in to terms hiring? on of maybe Any to could producer add staffing? is these are more give color hirings. you they producers? go And little hiring and high-level those positive net

step and and and health where energy back really about appreciate we this few to then content described Human a approach, add capability XxX an as a Risk Capital, opportunities, moment say, Andrew, can think construction that we back support Capital listen, of to very with we've and And and Aon and Plan additive? enterprise focused. step Business again a leadership in Services, And standpoint in very from all the that put we the the place enterprise truly through well, Edmund delivered be selected areas, we and done really saw and other took and could as question.

very been to see it's we've a develop continue show priority We'll we've it And will that. months, in start we'll up really XX It great described. terrific over in talent. do And the over to some next bringing been But in fortunate add to areas. as XX time some results. really

But do of want these leaders? you specifically some to about more talk Eric,

on Yes. lot picking draw that our say in industry clients. with investment these analytics certainly, your commentary leaders to there, opportunity the exists Sure, over an I firm, their and it talent give would with the to of up ability Greg. just to the do in more to has tools a client that do

see clients. we're those to investments to said, to real an priority continue opportunity those make you to as where value going So in deliver we areas our

our X,XXX the don't cetera investment in health about client independent those the construction drives is where provide NFP care this though, like specialty capability, their to Certainly, colleagues capability trying bases. and relationships or volume we're of addition to of significant more connected to really marketplace. the et strategy or we're underpinning capability That that want inorganic our expertise in also, a point lose talent the the I with making. of

And seeing seeing also too. hiring. France just lot it but way, organic hiring, NFP, the in health by both there, certainly, us in inorganic we you're space, So talk a gives we the in the U.S. acquisition capability it's did not more about you're

we're what our the and opportunity It So with excited really base, is us talent. existing of the talent in merges well about about addition really excited future. for new the

some to season. XX I those only it hires you well, months before said reach think know Eric the XX levels thing is, of I'd peak Andrew, for revenue. you takes priority to to just We And the think add what to start time

these look and is in that we mid-single-digit When greater contributing. we're lines to level the quality level. at the our Eric mentioned, the or overall, growth comfortable. we're comfortable will But But at just growth talent that top that line contribute

we continue this So focus as on to for priority a us. area

even Yes, as I America, out called that's Latin for a this Aon? in mature Is you are that and also, is Solutions, in double-digit really compelling. out years? markets EMEA, the at expect continue not growth just in potentially -- Asia, look and double-digit the to big can we growth as And Health Pacific opportunity these

we it And an the and where we again, across more that and about area is when is it's more you're every this got of just seeing positions We've overall, are area reflected. an day. clients you Health, Listen, is which true strong think talked before, all demand facing Andrew, love. about a geographies. category uniquely across world,

Edmund come that as they in, and behalf Business around numbers in day described it's of Eric would I can us, Services, is they about priority this described more be the what Even his do that effective emphasize capability. the and analyzers, every quality colleagues capability not our then in for hires means comments clients. on Aon this about And these investment before

locally, why have And understanding, space address analytics. can in capability the demand, great a bear we lot why see local sort of got global these here. see it, to we've we so is that's a of they to which a And we bring with capability opportunity plus high and region, very leaders with

help. to to in globally Greg, looking on logos sort pile I for us thoughts. quick continuing of A of would couple just that. is as new we're come clients One win

within growth the the nationalized of are some you're there different go One And to is U.K. these And where or U.S., think Netherlands, health, private is systems around the nascent markets or them. just those around back significant in pretty buckets. X seeing for to say, about U.S., is outside countries the under there question we'd financial listen, the X pressure.

et And insight so cetera. that of creates program need a analytics, around construction, on for lot

country as the seeing global trying also are You're their link and this together colleagues it care than clients strategy where to really around take of they rather just looking country. by wave by their benefit understand their world do spend to global country

end they're the markets, as clients but to you've the spending clients own allow so everything to what certainly execute specific segment, nationalized around upper you've on handle trying good a to But their countries. I world, the nascent forming got, the within which strategies and private you get the health, with And that global outside these are at also got markets give us colleagues U.S. see for if start actually help insight them to really of

a Yes. confidence growth call across as taking the did in The and I level. Andrew, that is or have, is think that digit about. opportunity us advantage the think something diversity just fast-growing out mid-single And international us, Eric gives health of, our solutions we're talked as you I markets, international for in business greater different the we because or

levels growing it's in diversity some term at that see us or at And those growing markets gives of sustainability than higher confidence that might solutions levels. others. you the the So long think I

next Scott line Alex question Barclays. the comes Our with of from

growth think anything see, I quicker looks progress there anything the in coming would just we was had is And cash It have end some I there one of should or First about headed year? the like is of we on expected. into to free timing-wise the than flow. abnormal in wanted

to to with we expected. on right at about think thing billion track $X.X we our when be objective, we level and the XXXX, first to in double-digit in our right about what Like end is coming in think line Free a XXXX. expect cash flow think is where we've we're

And numbers as it, timing extraordinary by items, I United. what called right the legal costs in we NFP Aon costs, restructuring a out, run impacting know and be settlement about the the X There year this and you we part expected. annual an on know between it's in of but with quarters, year, impacted basis, full when integration line company. or quarterly movement X, could some I those it this think company charges being is We

And thing most return repurchases and that's that in and us the the type capital debt pay year. important dividends the gives continue very able that importantly, confidence to for both share being the to to the the have to down of we've committed to

out So expectations that. nothing of the from on our ordinary

Got some the other ask then into I pretty I seen wanted you've different is businesses? talk success new that of of about Can about the the business. the down it. you kind result. there we as places like And dive mean net thing most sounded to strong a

Sure. whether care. guys? activity that of Listen, sort a lot priority the in There's a our North priority Why seeing one, so in would take reason not that of it's say I a health I the hiring in areas. don't in just or across And space, at shot America. it's hiring they're globe, why we're there's construction areas, that

weather and say which are are would around enterprise dealing around their and there about workforce, clients, of climate, our the that around think technology, client certainly, these trade, trends largest they around big global I as look you if out with some across space, step are back complicated. needs the segments,

talk the more really insight analytics, do to these them our analyzers and lot we opportunity to bring about them. led our has with so ability a give And real to

But seeing more we're seeing are that So as as the with existing in seeing across it's firm. segments, doing it both it well globe. across and new clients we're the priority the new to them clients areas, we're it

the really a was it all way for around. us So quarter strong

I here. I'd characterize points from that -- for business of growth Those the business drives that it us the And as are you and levers retention. of for Aon growth to history, continue Alex, course XX have to net strong the look a drive at would new when that characterize normal

said, Eric we're as in So nothing seeing these new. different just it across countries. And segments, different

the I for think to the be that driver will top key on growth of continue line. us

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

guys the the to have Where first Commercial on Risk Risk SPAC are markets out was we, that And how you that you growth sense double-digit quarter. benefit within just Commercial question peak from know as in I here? of levels? I start a incrementally could called My M&A that there rebound, business in to activity. was guess, and do those compared

Elyse, question. appreciate the

to Just said context love the space, for start, developed just before, we we overall, space as time. this over we

behind. downturn. We developed connections, really It's a the in and of lot continue derivative to invest it we've got

as By way, for M&A just, the banking on below much context, would XX% way, remind, I just last was to it volume, still you've than that's heard XX-year year-to-date. year, that. is which by the the investment calls, better average the much, was than worse

that described a well. see show Edmund very, very that to bit, up. back you're it's come starting So

powder But out all substantial. dry know, as is the time, there, we over

Risk will in the our that even lines way. well, that, get so an with deliver positive across show beyond solution up a And we will Commercial activity. a this -- as of can as in M&A and real very area view But such, us for lot is be value of because connected our other client things across

Edmund overall very So made and described to time. where we've expect progress, as continue over well, we it

the And know you is then question get into call. tax that the XXXX can said you on you tax. discussion just But on us Edmund, would think my year-end second help I about of that update and to to I few you through and going in kind factors, the that tax you're negative us think give relative you're considering guess, months? as the a positive

QX XX% that is there's QX, Yes. -- the a variability fact quarter-to-quarter. Look, here, in out that's rate the in XX you it thing call When XX% then first and I'd Elyse, the that that QX have items gives sense in impacted changed. give very the think on us that guidance year-over-year I item, of there's the you we're we cautious have about this quarter. Recently, variability exact for some because why don't and

the In Before item changes Two, is my happening one tax time quarter, growth globe happens in as rate driver higher and on in see across to positive even your what there this tax geographies this the the to in certainly here last policy was has the of rates. right a time, tax different this now, quarter, in answer we geographies QX the now. particular specifically, year an impact discrete during well. question particular that are

we key my business. have that the of give that the point -- both 'XX the here, aware a And any on get over tax that as rate of I get think insight and fiscal discrete allows baseline months finalize the tax from in year call, when we we'll more insight us we're on finalize perspective on invest is XXXX you'll and to next at we'll that, we couple into time. the QX items

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

Thank on you organic. the the components high-level of some the of X% unpacking for color

would XX%, maybe able so I the there math, of you would of Or -- more assume be to I'm year-to-date, from wrong. helpful. be new could organic more lower stable, XX share as the previously? points Any from willing kind I a growth was -- curious, I I kind be backing think that's has to I'm accelerated business kind or bit if the retention has of but color Just do X exposure come or points it than

X logos. adding existing from solutions, it exactly the The adding earlier, and that selling have clients right you it is as -- retention. Eric means into talking you Mike, points, more new you I And from growth mean, business new exactly just about coming new have right. on mean, that logos. right. existing was I number from backed

levels about from by that. business retention strong So it and was in above Offset the are talking that QX on. and XX%, strong you're largely new

the rate to the the the that -- contribution X impact points and is a we us it net And new was control points to that impact X-point pricing. was to of, only X market less that The thing get business overall.

So the with I again, expect forward moving here. what efforts we that's been. in think what the our is history drivers growth And of line has are

different too the of Okay. That Got kind X than it. isn't points meaningfully historical.

Okay. Got it.

line. in Yes. That's

revenue synergies. And potential switching you of clearly Okay. fairly the some deal time curious, going talk about announced, a At gears, acquisition, just material NFP on for the the did well. was maybe

some a in minds, investors' synergies work. revenue of think lot I are hard

comments you those deal? Just curious any going forward? the on revenue to about make think us updating from like be if synergies you'd Or you'll

a or clearly performance right That's it's of months QX, line a case. a accretive digit in Wealth. mid-single the in the better clearly focus sure, ours. than to business because of in It's ours, great And for with X accretive to the focus Commercial, quarter, question,

financial As from about can million to I here, cross-sell one objectives revenue and jump Eric we on about of million put our XXXX. that I'd of there And and expectations to say the We tracking I we better there, the OpEx we're synergies very to going $XX talk coming in during it than time. talked XXXX well. point as neutral accretion as that. about synergies and of be in but better, the NFP. in X line what was And I about think or that talked the about by NFP good EPS $XXX feel OpEx I'd them. being is we think about that's out XXXX

give those But Eric, as I happening So NFP to numbers updates color in the the on flow any want that's free as we'll the... M&A well. don't know cash well and you if performance as definitely on add

yes. Sure,

it. of color add on a little me bit Let

we I more think we was X,XXX The become of on about and part can of NFP so other. each to would the using Aon deliver opportunity we couple talked connected the how talking philosophy I to talent approach -- about about people capability this. question a ways independent those sort for of actually when really a around we're

relationship an credit really the Greg CyQu or it's used. example or are we what-have-you transaction needs D&O that it's And expertise, matter or whether services client NFP that additional trade subject seeing or whether

we where to relationships already So expertise and the we've got relationship, business gather really a And partner that that's Risk side. are just on the ability seeing momentum.

very clients, analyzer side, it's bring Health health able to the able the being On tools to connectivity. being able to global bring bring benefit, the being pharmacy our their similar to

looked we that revenue at pull So recognizing are really in were synergies, off. those to we hard also how conservative very

across and driving up actually and this. And relationships partner talent that, the segment more in ability understand that of education one our we complicated NFP And way it's capability of digest risky of the think we're with aspects that we sort months is value, our hypotheses X really was a towards to together, going that together more segment bring strategy, and Edmund why our of Health wanted one said, begin this ability into showcase And Risk, this NFP. of But to to our Aon Wealth. sort can an to into to key mid-market and bring and thought segment into that ability it with independent use was capability, connected process. work as that I client

opportunity do the we fruit bear for I is that so starting us as go down think to And road.

we we the how a of other into bring go example. in marketplace, has offer whether when are it's of premium then rate would I how concrete the than better is commission on the And side the that X example actually -- risk into X our also volume the all ability, is of standardization, sort piece certainly market

to NFP teams but progress the is huge sorry, jointly, saw have And the not with in to given demand made issues that really listen, through content combination. of what the market, opportunity all middle that Eric to pile We an fundamentally, relationships exceptional. client the our described, just table. ability NFP the and demand. incredibly on that of this set actually the bring strong really And is They're brings just that's and

in opening it just the piece it we the is mentioned business would day-to-day not highlight, just last exists. as and currently The I comments, in

additional and part value in in want be capability. showing independent think you who of about all in talent terms actually up it. operating has real connected there connected and with of M&A that pipeline, to If And that's also and the come hires the describing independent we're meaningful flexibility

months. time. everything Edmund a But more We it's a we're ever. as So than time, piece to step said, a and start X excited been at a at process, the good a run really it's

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

on just question growth NFP. organic the of had and contribution First, a

growth I NFP. would with been that mentioned consistent have think, Greg, you

same said think part would thing fairly being us. a unpack little business a guess the be you with business. legacy economy I of that, I and the for faster. you for your of I growing larger organization, have But is being last positive that maybe quarter bit then NFP But assumed strong as economic that a which could sort would -- well,

-- should Greg, but you simply back I pile it think comes I months it's in. think on, to we're X

growth, As Aon, earlier what to we come levels, baseline levels which the in to you'll have Greg's fruition, is the you're see as from you'll line referencing is is strong start I at revenue through, what what synergies growth. have at mid-single-digit think comments, which come higher I with revenue the synergies think of

as that had $XX of And to as earnings the million as the million that objective and an online acquisition that well. growth as will revenue accelerate NFP EBITDA from $XX acquisition, in comes we does, well,

So in well, The X revenue would on deliver. baseline able it's those we would to come come then as acquisition synergies growth like those the we're from what -- to be that's and I components. think from it about and track right feel

year. for just firm meaningful progress. improvement and Jimmy, listen, X% growth. progress, we X%. That's of Aon throughout overall We posted the the -- again, progression a quarter organic

it's accretive with then core in, And And so obviously, relatively and NFP. was but an that's Aon, as by is driven part, months NFP and important you that's know, it smaller X X%.

Aon then the standpoint, and solution But lines, as you we Eric just with capabilities Aon, you our of formula. from the So the fundamental all good described. add have start, described, strength a this is and across really Edmund that strength of

the again, reinforcing progression free greater, over and we're mid-single-digit cash flow growth So or really term. and improved good the about margins very double-digit long thesis, feeling

saw then NFP that So for to you thesis. progress additive just and us, saw quarter you a of

Okay. just then on following up And margins.

forward, income mentioned you about spending discretionary headwind? fiduciary especially should time. expansion is steady a think that as an margin investment like should slow? would But rate we There you assume or margin would floating You've like becomes from well? had Or expansion lower as offset How debt. over margins improving other we going control items

we we answer this the you margin start expansion Well, I here, made short but is expect is history that think point question well, margin of that to with the have long which the as expansion. I'll continued actually

decade, I basis of those in points That was and after XX you -- restructuring and by the think over largely we XXX that with showed, piece margin is year-to-date the last there the that periods. net that's expansion. in -- points release at driven both driven page the basis QX a has That for in XX largely time everything out, of have. continued

integrate will drive that. to for of forward that business, expansion But that with number margin drive one. we have, get we're platforms, portfolio just it primarily number in to because standardize the the the we margin and expansion That us. that. also runway continue There's think moving the discipline. ABS, operations earlier, active one, said we scale But as long then a from the continued continues that And expense management we

contribution margin it margin call use of XX one in less that estimate capacity this and its the our basis income, levers than expansion. terms investment of It's investment to expansion. Fiduciary drive we points create to is year

sort of it. able have that despite away, think, we So going continue be to that we'll to

us want ABS, Eric really the priority investment What that do for capacity margin still of focused to that think create And we expansion. we're the that to about model it expansion drive allows talking which in hires was and isn't allows to us, we deliver create for our margin to flow double-digit expansion, margin earlier. to just us invest in free on. And financial the capacity sake is invest cash

Jimmy, the We didn't We 'XX, last strengthening construct. over the there context and we've And income, Risk state of into current Just in Client a its sort X fiduciary nor punchline accelerating basis are of Aon were been on in, year, X points XXX billion process have 'XX a investing we that, in the again, Capital. we have as a was and times XX there a and done Edmund's that. XX didn't point, didn't And Enterprise we it's Business year. have in of listen, 'XX years, invested years, last Plan that. Services, at XxX Capital had Human $X nor were with

not it's add on So margin, to margin. up creating we we come reflect zero-sum to shows more more we of momentum, lots line and And we're again, more there's as that a for we us, game. think value capability value. lots top When to clients, but add clients, more

as of to standpoint. And is an intended. out you're our we an invest Edmund to had described, context the And back as and capacity play seeing from and the efficiency the improve that, have so the into view capacity that exactly in business, we operating margin

with And more forward go, looking we XxX even Plan through to long so excited to and traveled, have coming about exiting momentum we're had building way and in. XXXX distance far we're momentum but a the we our than

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

it missed Commercial NFP impact? organic quarter. growth all and think I Risk sorry but that in I that I'm Wealth be if earlier, would said was quantify this to possible this accretive you to

our want Yes, is look, that important parse folks new I important acquisition, fact start solution think our it's a though just and the strategy. growth. fact solution it's line I in for that us business. It's to We the -- about include it overall Aon that United out we that think our our in to that with and intend overall appreciate numbers included to

XX growth now. of of out the any basis we've strong added to growth single-digit and Health that well. was as points to in Risk, terms contribution, any early, than Commercial growth still positive parsing that the in it right solutions it it was Since Wealth Again, it had. solution we mid-single-digit to accretion positive of with are And -- than it's we less

good So the we very performance about far... thus feel

out on comment in. independent with the on went pile time one, connected the not bucket whole spend one maybe does what this idea of this a Edmund, fall the we when lot and figuring revenue that is model, to into was

belongs Aon. an work on in really whether not we belongs focused in Aon on with opportunity when X NFP capability, an Y producer So and NFP or client we're a

and And business, we focus bring so more really it felt important was opportunity-wise, business separate, kind of opportunity to that, because it do capability, the on didn't that keep to the to the do the want work. win culturally just client we

the teams the way becomes really kind over so to as really time parse difficult ability more And that connect. it of

whether in segments the remind And I Health the Wealth, addition offerings at or bucket discretionary of us of versus has you noticeably forward and could that and NFP mix going looking bucket not? that more under impacted the you. those guess, mix the Thank of fall defensive might

is overall, start, Eric the a commentary on couple like Commercial and well. business and this pieces from side, these are businesses. a retention seen are the And that. and project the high Health color across I'll on as Risk as advice And Listen, here well business we can us add board. of discrete side it our very net-net, business then Yes, across our on of universal really you've the basis, certainly very There but provide Wealth areas where benefit Reinsurance retenant are board. very, businesses

new long And in new them areas Health to add months But our like logos has logos for especially last where adding been in time. the ability over -- we new a exceptional. we're we add logos, XX keep

Demand profile absolutely and very, characteristics fantastic. So are here exceptional. is very the retention, good

to year. And work plans work recur some themselves that would it's by, whether project minimum Netherlands, Yes, the it maybe continue adapt there goes work you benefit Wealth with U.K., particular, in in does them, bespoke work that the and around creates theoretically that said each to side, year change add, the when that Greg, Greg, then each But actuarial those create thing does on the the to pensions regulatory just I time in plans, could seemingly regulatory work about Health well. business, in maybe as happen, the has happen the defined global is only with rules discretionary. be similar think and you the change projects it as pension the or U.S., the significant have to changes

honestly, that the benefit it of regulatory it pharmacy repeat. salary offering, year, a as whether and and think work talent health is theoretically work around the lot there's core us that for each to tends in discretionary. creates work the happens But even just transparency, I opportunity framework

group, to they have as Health so in accretive benefits, highlight I'm and is and X,XXX to not on NFP, and and We're great a but And extraordinary then so accretive who you It's what Eric part really and just ways. going I it's Wealth, Aon. of back said, about them, content insight in be client both performance, would pieces. Aon. colleagues is NFP bring relationships asked content, bringing both to come this and it's excited NFP content to and

perspective. So a our positive from

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

that Edmund, acquired middle guys in I $XX the think market. through of mentioned you you terms EBITDA have million

the to the a year. $XX on million million you Could achievability $XX guys just you of that's have So below target? comment that that targeted the little for bit

earlier, in more about over team I coming capital the now. to development was us there. mentioning than corporate spending I I'm of under NFP going to deployment am right and over the so team close number worried the the terms number

picked up you comment, should maybe Eric, and emphasize how there, market really this and it on pipeline the The big And opportunities. is independent rich. and is attractive to is Eric's hopefully pipeline you it, connected a out and others strategy driving of

in year-to-date, objectives with XXXX, in in XXXX, So at the confident -- think on $XX and look have it which right million into I pipeline we're the we in spills that I or some whether line happens EBITDA that front. when we're over M&A think I all if

Commercial the detail impact total there the any Great. really segment That's you new way gave of appreciate Edmund, net terms that you company. the share as then for well I could for helpful. detail Risk as specifically? market And Is in same the

-- -- more think of in heard about you it comments me that we'll look, The information thing move about forward. we're we my sharing beginning mention as the

is. see So it we'll what exactly

solution there's is and Eric the terms valuable, change articulate customers areas growth. be The and and where our look except quite when net retention to the about composition impact, in advisory, retention in that our across talking piece was from together lines new business and with drive just you business market sort able of the together, Wealth or similar numbers are Health opportunity find to actually this contribution like that of value new we that there from where -- benefit of versus

exactly what and share we're we're across disclose lines. similar Outside of the quite different moving to through And on solution forward able that, working that. it is

with from of next Dean comes the Our KBW. line Criscitiello question

market going that larger on aggregate the assumptions you noted if middle this I guys quarter, and any but was between pricing? differences guys forward You pricing was flat accounts if -- there that any curious had and were

guys? that of one, always saying don't I it but fits think actually before, into the Why said the pricing work Listen, I take think and -- think I've sort where it's do. I worth we that I

them, clients we first start do actually around manage how what our through risk, to to that? ultimately, that they them how it the use past. identify then to options are it's have And we with understand we So the you are risk talked and actually finance help think in we've the it's then business. with you to your decide And whether whether transfer about yourself, the if in captives going do to what volatility,

or U.S. whether the say bent segment it's then segments, was and industry out there, and you whether Europe as And Asia, then cetera. -- markets outside I with Latin sort ask multiple is U.S. if and there's of America, And would question the the there's it's in there bent. et

of So bucket it based market get I for were happen, premium on deserve approaches risks their the based on those are individual if continue you, would clients. say, But decreases that different that. the property see of risk would expect a exposure, say, on that and seeing to to to clients variety we I we for a are I basis, what you

inflation, from America, the driving between up cost, because really North D&O, social down you thing of for that increases that we're whether in capital is called of about, is insurers. pricing sort restriction this it's there's things type different continuing continues in surplus bucket clients pressure, know of the premium some And see and especially casualty, see a to think specialty of that's space their to of risks. I a appetite segment, of relief and cyber, to and for opportunities and increased casualty so well then sort obtain that loss

the segments. all capital But listen, ultimately there is in

a And capital some clients, to a opportunity buying a we an choices to client in able small actually for whether of be client, areas. large client do midsized on see the some make or based surplus key you're so

the Health for then as if and rates on growth expectation my And any lower cuts Wealth I -- have additional interest implications interest rate or outlook in the the the follow-up, segment. was curious either

my the impact illustratively, big business. impact we income about has rate in basis approximately said that million I on impacts is And remarks, investment expect I interest a on experience fiduciary $XX line. think from points the to XXX prepared as that

that the course, Less Of in they're growth as in expense think to of think loan the you the well in about we because term located. need balances, you U.S. to and currencies you about those XX% about our are debt have are then euro need GBP. where than and lower the think

impact the interest rate on we hit our each still And That's to lines across despite to be environment. the of able as our across our the expect earlier, I biggest business. solution firm, said objectives

call that's So I'd out you. to what

unbelievably health Think the on be up. about fundamentally is the similar is solution both the Listen, in demand unlimited up this Health side. the for clients, if challenged things profile risk This side. think inflation. Wealth transfer strong. to our X%, that side, is the come, and of the and demand other changing that care environments, 'XX, an XX% on is And both Health is has to really it and Wealth. rate overall again exceptionally gone about the profile Health in relates This profile as And is the categories, lines, this some driver projected opportunity pension we on

Our Rob Sachs. with Cox the Goldman question of line comes from final

had reinsurance I on First brokerage. question

know muted on into next but be was property Some of market demand on view might more peers the quite sure And not centering pricing it your strong year. I reinsurance cat this is your I'm year. what have growth, said reinsurance changes that

be So you I'm environment reinsurance might brokerage think conducive curious into the how XXXX.

why Listen, was market somebody There's like thought exists. for great going events some reinsurance us with handle to that expected that That's work. overarching at Milton. maybe is Helene I into I'll just area ask money flowing to question. open point. the question and doing reconstruction. Great it the an constructed It's

that So front. it's good on all

the say were going you from had were market attachment where pricing we changes as will and definitely had there reinsurers was fall, the clients, of significant years, on based the around way which program pressure that, applied think last over into X moved rightly as changed sort the I their around position. points I

of it however post is that's sit point pricing, the the they I descent, Certainly, certainly, flatten happening around, rate still you want substantial to it. hard phrase would And marketplace. are slow There events, Europeans for sit. conversations capital and pushing the these would on that depending you relief say that, does the where world, does in in price it's I there on where it is decreases the X attachment say And based are early.

see the attachment look I turns talking it think next as negotiations for And to about relief push out. the firmer XX continue see take these I X to we're you of time to weeks, And going point together. next we'll I over to going And sort rate think structure forward. to forward you're where clients or either for it

really on press follow Could putting help cat reinsurance release. appreciate Aon brokerage? That's versus of a in year-to-date the I cat question us cat issuance could XX% the guys bond you helpful. to traditional bonds. bond with up growth think placement the If you I in economics about

So of for listen, paid it's for of very we clients, we the and get form proposition what here value, the what brokerage, around cat bonds. goal a form have structure. value step second. is clients, in a discussions our whether sophisticated are in -- In our the for to sophisticated very the bonds it's whether reinsurance in is those a These end, let up take me for deliver

does. to in our because they have terms in capital which in of that use, that the out a agnostic And are figure their stack certain that each in we're belong the one are there help the they goal the risks tool to certain risks it market. there capital is role So markets, belong clients reinsurance

for each around we're of a a our the assured, value them with the we're But agnostic conversation clients placement. what traditional and open bond, for whether doing cat it's whether it's rest So very us, to reinsurance is transparent. for

the so value matter goes because, trying provide just level ultimately, to our And really right to doesn't it for it of us, which way we're clients.

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

thanks want time. for Just part of and say call day, today. forward great us, to you And to we next and joining appreciate look our call again, being a have the

concludes Thank you. conference This call. today's

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