10-KPeriod: FY2022

Aon plc Annual Report, Year Ended Dec 31, 2022

Filed February 17, 2023For Securities:AON

Summary

Aon plc reported a strong financial performance for the fiscal year ended December 31, 2022, with total revenue reaching $12.5 billion, a 2% increase year-over-year. This growth was primarily driven by organic revenue growth of 6%, demonstrating resilience in its core business segments: Commercial Risk Solutions, Reinsurance Solutions, Health Solutions, and Wealth Solutions. Net income attributable to Aon shareholders saw a significant increase of 102% to $2.6 billion, translating to diluted earnings per share of $12.14. This performance was bolstered by a substantial decrease in operating expenses, largely due to the absence of the termination fee and associated transaction costs incurred in the prior year related to the terminated combination with Willis Towers Watson (WTW). The company continued to focus on its 'Aon United' strategy, aiming to unite its capabilities through data and analytics for enhanced client insight and operational efficiency. Aon also demonstrated a commitment to shareholder returns, repurchasing $3.2 billion of its own stock during the year, underscoring its confidence in its financial position and future prospects. The company's liquidity remains strong, with significant cash flows from operations and substantial debt capacity available.

Financial Highlights

51 data points
Beta

Revenue

$12.48B

Net Income

$2.59B

20.7% Net Margin

EPS (Diluted)

$12.14

Total Assets

$32.70B

Cash & Equivalents

$690.00M

Free Cash Flow

$3.02B

Financial Statements
Beta
Revenue$12.48B
Operating Expenses$8.81B
Operating Income$3.67B
Interest Expense$406.00M
Net Income$2.59B
EPS (Basic)$12.23
EPS (Diluted)$12.14
Shares Outstanding (Basic)211.70M
Shares Outstanding (Diluted)213.20M

Key Highlights

  • 1Total revenue increased by 2% to $12.5 billion in 2022, driven by 6% organic revenue growth across all business segments.
  • 2Net income attributable to Aon shareholders increased by 102% to $2.6 billion, with diluted EPS rising to $12.14.
  • 3Operating margin significantly improved to 29.4% from 17.1% in the prior year, largely due to lower operating expenses.
  • 4Cash flow from operations increased by 48% to $3.2 billion, reflecting strong operating performance and prior year transaction cost impacts.
  • 5The company repurchased $3.2 billion of its ordinary shares in 2022, demonstrating a commitment to returning capital to shareholders.
  • 6Adjusted operating margin remained strong at 30.8%, a slight increase from 30.1% in 2021.
  • 7Adjusted diluted earnings per share increased by 12% to $13.39, indicating robust underlying operational performance.

Frequently Asked Questions

Aon plc reported total revenue of $12.5 billion for the year ended December 31, 2022, representing a 2% increase compared to 2021. This growth was primarily driven by a 6% organic revenue increase, partially offset by unfavorable foreign currency translation impacts.

Aon's net income attributable to shareholders significantly increased by 102% to $2.6 billion in 2022, resulting in diluted earnings per share of $12.14. This improvement was largely due to a significant decrease in operating expenses, particularly the absence of the substantial termination fee and transaction costs incurred in the prior year.

Aon demonstrated a strong commitment to capital return in 2022 by repurchasing $3.2 billion of its ordinary shares. This activity aligns with its strategy to enhance shareholder value and reflects confidence in its financial health and operational performance.

Aon successfully reduced its operating expenses by 13% in 2022. This reduction was primarily attributed to the non-recurrence of the $1 billion termination fee and related transaction costs from the prior year, along with favorable foreign currency impacts and disciplined cost management.