Aon plc is a British-American multinational professional services firm that provides a range of risk, retirement, and health consulting services. The company is listed on the New York Stock Exchange (NYSE) under the ticker symbol AON and is a constituent of the S&P 500 index. As of 2022, Aon is one of the largest insurance brokerage and consulting firms in the world, with over 50,000 employees in more than 120 countries.
Company Overview
Aon was formed in 1982 through the merger of Ryan Insurance Group and Combined International Corporation. The company has since grown through a series of acquisitions, including the purchase of Hewitt Associates in 2010 and Willis Towers Watson in 2020. Today, Aon provides a range of services to clients, including risk management, insurance brokerage, retirement consulting, and health consulting. The company’s clients include many of the world’s largest and most complex organizations, across a range of industries.
Business Segments
Aon’s business is organized into three main segments: Commercial Risk Solutions, Reinsurance Solutions, and Health Solutions. The Commercial Risk Solutions segment provides risk management and insurance brokerage services to clients, including property and casualty insurance, cyber insurance, and workers’ compensation insurance. The Reinsurance Solutions segment provides reinsurance brokerage and advisory services to insurers and reinsurers. The Health Solutions segment provides health and benefits consulting services to clients, including health insurance, wellness programs, and employee benefits.
| Business Segment | Revenue (2022) |
|---|---|
| Commercial Risk Solutions | $4.3 billion |
| Reinsurance Solutions | $1.4 billion |
| Health Solutions | $1.2 billion |
Financial Performance
Aon’s financial performance has been strong in recent years, driven by growth in its core business segments and the acquisition of Willis Towers Watson. In 2022, the company reported revenue of 12.1 billion, up 10% from the previous year. Net income was 1.4 billion, up 15% from the previous year. Aon’s profitability is driven by its high-margin consulting businesses, as well as its ability to generate significant revenue from its insurance brokerage operations.
Key Metrics
Aon’s key metrics include revenue growth, operating margin, and return on equity (ROE). The company’s revenue growth has been driven by a combination of organic growth and acquisitions. Operating margin has been stable in recent years, reflecting the company’s ability to manage costs and maintain pricing power. ROE has been strong, reflecting the company’s ability to generate significant profits from its businesses.
| Metric | 2022 | 2021 | 2020 |
|---|---|---|---|
| Revenue Growth | 10% | 8% | 6% |
| Operating Margin | 15.1% | 14.9% | 14.5% |
| Return on Equity (ROE) | 25.1% | 23.4% | 21.9% |
What is Aon's business model?
+Aon's business model is based on providing a range of risk, retirement, and health consulting services to clients. The company's services include risk management, insurance brokerage, retirement consulting, and health consulting.
What are Aon's key metrics?
+Aon's key metrics include revenue growth, operating margin, and return on equity (ROE). The company's revenue growth has been driven by a combination of organic growth and acquisitions. Operating margin has been stable in recent years, reflecting the company's ability to manage costs and maintain pricing power. ROE has been strong, reflecting the company's ability to generate significant profits from its businesses.
Industry Trends and Outlook
The insurance brokerage and consulting industry is subject to a range of trends and factors, including changes in the global economy, advances in technology, and evolving client needs. In recent years, the industry has experienced significant consolidation, driven by the need for scale and the desire to provide a broader range of services to clients. Aon’s acquisition of Willis Towers Watson is a notable example of this trend.
Key Trends
Key trends in the insurance brokerage and consulting industry include the use of data analytics and digital platforms to enhance client services and improve operational efficiency. The industry is also experiencing a shift towards more sustainable and environmental, social, and governance (ESG)-focused practices, driven by changing client needs and regulatory requirements.
Aon is well-positioned to benefit from these trends, given its strong brand and reputation, its diversified business model, and its significant investments in technology and innovation. The company's global reach and scale also provide a significant competitive advantage, enabling it to provide a broad range of services to clients and to negotiate favorable terms with insurers and other providers.
