Aon plc Quarterly Report for Q2 Ended Jun 30, 2024

Summary

Aon plc reported solid revenue growth in the second quarter and first half of 2024, driven significantly by the acquisition of NFP and strong organic growth across its solution lines. Total revenue for Q2 2024 rose 18% year-over-year to $3.8 billion, with organic revenue growth at 6%. For the first six months, revenue increased 11% to $7.8 billion, with 5% organic growth. Despite revenue increases, net income attributable to Aon shareholders declined in the second quarter to $524 million ($2.46 per diluted share) from $560 million ($2.71 per diluted share) in the prior year. This decrease was primarily due to higher operating expenses, including significant transaction and integration costs related to the NFP acquisition and charges from the Accelerating Aon United Program. The company continues to focus on its non-GAAP metrics, with adjusted diluted earnings per share showing a positive trend. Liquidity remains strong, supported by operating cash flows and available credit facilities.

Key Highlights

• 1Revenue increased by 18% in Q2 2024 to $3.8 billion, driven by the NFP acquisition and 6% organic growth.
• 2Net income attributable to Aon shareholders decreased by 6% to $524 million in Q2 2024, impacted by increased operating expenses.
• 3The acquisition of NFP for $9.1 billion (cash and stock) was completed on April 25, 2024, significantly contributing to revenue.
• 4Operating expenses rose 33% in Q2 2024 due to NFP integration, restructuring charges, and investments.
• 5Adjusted diluted earnings per share increased to $2.93 in Q2 2024 from $2.76 in the prior year period.
• 6Free cash flow for the first six months of 2024 was $721 million, a decrease from $986 million in the prior year period.
• 7The company repurchased $250 million of its shares in Q2 2024 and has approximately $2.8 billion remaining under its repurchase program.

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