Aon plc Quarterly Report for Q2 Ended Jun 30, 2021

Summary

Aon plc's Q2 2021 results show solid top-line growth, with total revenue increasing 16% year-over-year to $2.9 billion, driven by an 11% organic revenue growth. This growth was broad-based across its key segments, including Commercial Risk Solutions, Reinsurance Solutions, Retirement Solutions, Health Solutions, and Data & Analytic Services. Despite revenue growth, net income attributable to Aon shareholders for the quarter decreased by 4% to $379 million, or $1.66 per diluted share, compared to the prior year. This was influenced by increased operating expenses, including costs related to the terminated combination with Willis Towers Watson (WTW) and a $1 billion regulatory termination fee paid in July 2021. For the first six months of 2021, however, net income attributable to shareholders increased by 10% to $1,292 million, or $5.66 per diluted share, demonstrating resilience over a longer period.

Key Highlights

• 1Total revenue increased by 16% to $2.9 billion in Q2 2021, driven by 11% organic revenue growth.
• 2Operating income increased by 13% year-over-year for the quarter, reflecting strong revenue growth.
• 3Net income attributable to Aon shareholders decreased by 4% to $379 million ($1.66/share) in Q2 2021, impacted by higher operating expenses and transaction costs.
• 4For the first six months of 2021, net income attributable to Aon shareholders increased by 10% to $1,292 million ($5.66/share).
• 5The company paid a $1 billion Regulatory Termination Fee to Willis Towers Watson in July 2021, following the termination of their business combination agreement.
• 6Free cash flow for the first six months of 2021 increased by 13% to $1.275 billion.
• 7Aon maintained strong liquidity with $1.09 billion in cash and cash equivalents and $1.65 billion in available credit facilities at June 30, 2021.

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