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Aon plc
NYSE: AON Financials Insurance 🔎 Screen
S&P 500
$72.4B
Market Cap
20.7
P/E
1.85
PEG
7.5%
ROCE
46.9%
ROE
1.66
D/E
25.3%
OPM
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🌏 Global Investor Returns
Currency-adjusted total returns for AON including FX impact
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📈 Price History
Ratio Health
Excellent
Good
Average
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By Category
Shareholding
About

Aon plc operates as a professional services firm in the United States, rest of the Americas, the United Kingdom, Ireland, rest of Europe, the Middle East, Africa, and the Asia Pacific.

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📈 Growth Pattern
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⭐ Superinvestors Holding AON
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Manager Shares Value % of Fund Period
Andreas Halvorsen Viking Global Investors 1.09M $350.9M 0.98% Mar 2026
Seth Klarman Baupost Group 769.0K $248.2M 4.85% Mar 2026
Steve Cohen Point72 Asset Management 33.3K $10.7M 0.01% Mar 2026
Jim Simons Renaissance Technologies LLC 11.6K $3.7M 0.01% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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3-Statement Financial Model
Bear / Base / Bull projections · DCF fair value · Reverse-DCF
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🎙 Management Tone Mixed → Stable 4 quarters Full tone analysis in Intelligence →
Good quarter Investor Presentation One-Pager? Q1 2026
Revenue
$5.0B
+6% YoY
Adjusted Operating Income
$1.966B
+8% YoY
Adjusted Operating Margin
39.1%
+70pp YoY
Diluted EPS (GAAP)
$5.63
+27% YoY
What Went Right
  • Commercial Risk organic growth 7% for fourth consecutive quarter at or above 6%
  • Adjusted EPS up 14% to $6.48, driven by operating leverage and share repurchases
  • Free cash flow surged 332% to $363M, enabling $662M returned to shareholders
What to Watch
  • Health Solutions grew only 4% as Talent Solutions discretionary spending remained soft
  • Wealth Solutions managed just 1% growth due to softer advisory demand in the U.S.
  • Reinsurance faces 15-20% rate decline at April 1 renewals, partly offset by higher demand
Management Guidance
  • Reaffirmed full-year 2026 organic revenue growth of mid-single-digit or greater
  • Maintained 70-80 bps adjusted operating margin expansion target for FY 2026
  • Expects at least $1 billion in share repurchases for the full year
Investor Lens
The thesis is strengthened after this call. Aon delivered another quarter of consistent execution with broad-based Commercial Risk growth, margin expansion, and strong cash generation. The strategic investments in AI-embedded analytics and talent are clearly translating into both top-line momentum and productivity gains, while capital allocation (including an increased dividend and opportunistic buybacks) signals management's confidence in the firm's intrinsic value. The reaffirmed guidance across all metrics provides visibility, and the expanding addressable market (e.g., data centers) offers a long-term growth tailwind. Risks around Health/Wealth deceleration and reinsurance pricing are manageable given the diversified portfolio.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Aon delivers solid Q1: 5% organic growth, reaffirms FY guidance
Revenue
Total revenue was $5.0B, up 6% YoY, with organic growth of 5%. Commercial Risk drove the beat with 7% organic growth (fourth consecutive quarter at or above 6%), led by double-digit growth in North America and strong performance in P&C, construction, and M&A services. Reinsurance grew 4% organically, Health Solutions 4% (core health + mid-single-digit, Talent Solutions soft), and Wealth only 1% (regulatory/valuation work in EMEA offset softer U.S. advisory).
Profitability
GAAP net income attributable to Aon was $5.63 per diluted share, up 27% YoY. Adjusted EPS rose 14% to $6.48, supported by operating leverage and a lower share count from $500M of buybacks in the quarter.
Margins
Adjusted operating margin expanded 70 bps to 39.1%, driven by $25M of restructuring savings (50 bps contribution) and productivity gains from Aon Business Services (e.g., 50% reduction in invoicing cycle time, 95% reduction in certificate handling time). The company is on track to deliver $100M in restructuring savings in 2026, targeting $450M total by 2027.
Balance Sheet
Aon generated $363M of free cash flow in Q1, up 332% YoY, reflecting strong operating income growth and lower cash taxes. Capital allocation included $500M in share repurchases, $349M in M&A (tuck-in middle-market acquisitions), and a 10% dividend increase to $0.82/share (sixth consecutive year of double-digit growth). Leverage stood at 2.7x, within the target range.
Key Risks
Management flagged three specific risks: (1) Health and Wealth growth is below the mid-single-digit objective due to soft discretionary spending (Talent Solutions) and U.S. advisory demand; (2) Reinsurance faces significant rate pressure (down 15-20% at April 1 renewals), though new business and higher demand are offsetting; (3) The Middle East conflict introduces uncertainty, but Aon's exposure is small (over 50% of Middle East revenue is Health, locked in before escalation), and the region's double-digit growth shows resilience.
Outlook
Aon reaffirmed full-year 2026 guidance: mid-single-digit or greater organic revenue growth, 70-80 bps adjusted operating margin expansion, strong adjusted EPS growth, and double-digit free cash flow growth. The company expects Q2 2026 interest expense of ~$180M and other income/expense between $15-20M. Management also reiterated at least $1B in share repurchases for the year, with $500M already completed in Q1.
Generated by AI · Q1 2026 results · Not investment advice
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📊 Analysis Methodology

This comprehensive investment analysis was conducted using The Finmagine™ Stock Analysis & Ranking Methodology, a proprietary framework that systematically evaluates stocks across five critical dimensions: Financial Health, Growth Prospects, Competitive Positioning, Management Quality, and Valuation.

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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This analysis does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a licensed financial advisor or an SEC-registered investment adviser before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

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Information Sources:
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