10-KPeriod: FY2024

Aon plc Annual Report, Year Ended Dec 31, 2024

Filed February 18, 2025For Securities:AON

Summary

Aon plc (AON) reported its 2024 annual results, highlighting a 17% increase in total revenue to $15.7 billion, primarily driven by the acquisition of NFP and a 6% organic revenue growth. The company has successfully realigned its reporting segments into Risk Capital and Human Capital, which aligns with its "Aon United" strategy. While net income saw a modest increase, diluted earnings per share remained relatively flat year-over-year. The company continues to focus on strategic initiatives like the Accelerating Aon United (AAU) program to streamline operations and achieve cost savings. The acquisition of NFP has significantly impacted the financial performance, contributing substantially to revenue growth and also increasing operating expenses and intangible asset amortization. Management emphasized its focus on core performance metrics, including organic revenue growth, adjusted operating margin, adjusted diluted earnings per share, and free cash flow, with positive trends in these areas. Aon's liquidity remains strong, supported by robust operating cash flows and available credit facilities.

Financial Highlights

49 data points
Beta

Revenue

$15.70B

Net Income

$2.65B

16.9% Net Margin

EPS (Diluted)

$12.49

Total Assets

$48.97B

Cash & Equivalents

$1.08B

Free Cash Flow

$2.82B

Financial Statements
Beta
Revenue$15.70B
Operating Expenses$11.86B
Operating Income$3.83B
Net Income$2.65B
EPS (Basic)$12.55
EPS (Diluted)$12.49
Shares Outstanding (Basic)211.40M
Shares Outstanding (Diluted)212.50M

Key Highlights

  • 1Total revenue increased by 17% to $15.7 billion, driven by the NFP acquisition and 6% organic growth.
  • 2The company reported a net income of $2.7 billion, a 4% increase year-over-year.
  • 3Diluted earnings per share were $12.49, a slight decrease from $12.51 in the prior year.
  • 4Aon realigned its business segments into Risk Capital and Human Capital, reporting revenues of $10.5 billion and $5.2 billion respectively.
  • 5Operating margin decreased to 24.4% from 28.3% due to the impact of the NFP acquisition and increased expenses.
  • 6Adjusted diluted earnings per share (a non-GAAP measure) increased by 10% to $15.60.
  • 7Cash flow from operations was $3.0 billion, a decrease of 12% from the prior year, impacted by higher cash taxes and integration costs.

Frequently Asked Questions

The acquisition of NFP, completed in April 2024, was a significant driver of revenue growth, contributing substantially to the 17% increase in total revenue. However, it also led to an increase in operating expenses and amortization of intangible assets, which impacted the overall operating margin.

The AAU program, initiated in Q3 2023, aims to streamline operations, optimize leadership, and reduce real estate footprint. The company incurred $389 million in program expenses in 2024 and expects to achieve annualized savings of approximately $350 million by the end of 2026. In 2024, $110 million in expense savings were realized from these actions.

Free cash flow for 2024 was $2.8 billion, a decrease of 11% from $3.2 billion in 2023. This decrease was primarily due to lower cash flows from operations, partly offset by reduced capital expenditures. Management expects operating cash flows to be sufficient to meet its obligations and fund its strategic priorities.