Aon Announces Additional $7.5 Billion Share Repurchase Authorization and 10% Increase to Quarterly Cash Dividend

Rhea-AI Summary

Aon plc (NYSE: AON) announced a $7.5 billion increase in its share repurchase program, raising total authorization to approximately $9.2 billion. This comes alongside a 10% increase in its quarterly cash dividend to $0.56 per share. CEO Greg Case emphasized the company’s confidence in its Aon United strategy and strong free cash flow generation, aiming to maximize total returns for shareholders.

Positive

• Authorization for an additional $7.5 billion in share repurchases, totaling $9.2 billion.
• 10% increase in quarterly cash dividend to $0.56 per share.
• Indicates strong free cash flow and commitment to shareholder value.

Negative

• None.

DUBLIN, Feb. 18, 2022 /PRNewswire/ -- Aon plc (NYSE: AON), a leading global professional services firm, today announced that the Board of Directors has authorized an additional $7.5 billion in share repurchases. This is in addition to Aon's existing share repurchase program, which had approximately $1.7 billion of remaining authorization as of December 31, 2021. Total authorization increased to approximately $9.2 billion, before any share repurchase in the first quarter. Aon intends to complete the existing authorization before repurchasing shares under the new authorization.

The Board of Directors has also authorized a 10% increase to its quarterly cash dividend on Aon's outstanding Class A Ordinary Shares to $0.56 per share.

"Today's announcement reinforces our conviction in our Aon United strategy, strong free cash flow generation outlook, and continued focus on maximizing total return for shareholders," said Greg Case, Chief Executive Officer. "We continue to build momentum and believe our disciplined approach to return on invested capital will result in substantial long-term shareholder value creation."

Including the new authorization, up to $9.2 billion, before any share repurchase in the first quarter, of Aon's Class A ordinary shares may be purchased from time to time on the open market, in block trades, in privately negotiated transactions, pursuant to Rule 10b5-1 plans or otherwise, depending on market conditions or other factors. The program does not obligate Aon to acquire any particular amount of shares and may be suspended or discontinued at any time.

About Aon
Aon plc (NYSE: AON) exists to shape decisions for the better — to protect and enrich the lives of people around the world. Our colleagues provide our clients in over 120 countries with advice and solutions that give them the clarity and confidence to make better decisions to protect and grow their business. 

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Investor Contact
Investor Relations
investor.relations@aon.com
+1 312 381 3310

Media Contact
Nadine Youssef
mediainquiries@aon.com
+1 312 381 3024

Safe Harbor Statement
This communication contains certain statements related to future results, or states Aon's intentions, beliefs and expectations or predictions for the future which are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from either historical or anticipated results depending on a variety of factors. These forward-looking statements include information about possible or assumed future results of Aon's operations and the uncertainty surrounding the COVID-19 pandemic. All statements, other than statements of historical facts that address activities, events or developments that Aon expects or anticipates may occur in the future, including such things as its outlook, future capital expenditures, growth in commissions and fees, changes to the composition or level of its revenues, repurchase of shares, payment of dividends, cash flow and liquidity, expected tax rates, business strategies, competitive strengths, goals, the benefits of new initiatives, growth of its business and operations, plans, and references to future successes, are forward-looking statements. Also, when Aon uses the words such as "anticipate", "believe", "estimate", "expect", "intend", "plan", "probably", "potential", "looking forward", or similar expressions, it is making forward-looking statements.

The following factors, among others, could cause actual results to differ from those set forth in or anticipated by the forward looking statements: general economic and political conditions in different countries in which Aon does business around the world, including the U.K.'s withdrawal from the European Union; changes in the competitive environment or damage to Aon's reputation; fluctuations in exchange and interest rates that could influence revenue and expenses; changes in global equity and fixed income markets that could affect the return on invested assets; changes in the funding status of Aon's various defined benefit pension plans and the impact of any increased pension funding resulting from those changes; the level of Aon's debt limiting financial flexibility or increasing borrowing costs; rating agency actions that could affect Aon's ability to borrow funds; volatility in Aon's tax rate due to a variety of different factors, including U.S. tax reform; changes in estimates or assumptions on Aon's financial statements; limits on Aon's subsidiaries to make dividend and other payments to Aon; the impact of lawsuits and other contingent liabilities and loss contingencies arising from errors and omissions and other claims against Aon; the impact of, and potential challenges in complying with, legislation and regulation in the jurisdictions in which Aon operates, particularly given the global scope of Aon's businesses and the possibility of conflicting regulatory requirements across jurisdictions in which Aon does business; the impact of any investigations brought by regulatory authorities in Ireland, the U.K., the U.S. and other countries; the impact of any inquiries relating to compliance with the U.S. Foreign Corrupt Practices Act and non-U.S. anti-corruption laws and with U.S. and non-U.S. trade sanctions regimes; failure to protect intellectual property rights or allegations that Aon infringes on the intellectual property rights of others; the effects of Irish law on Aon's operating flexibility and the enforcement of judgments against Aon; the failure to retain and attract qualified personnel; international risks associated with Aon's global operations; the effects of natural or man-made disasters, including the effects of COVID-19 and other health pandemics and the impacts of climate change; the potential of a system or network breach or disruption resulting in operational interruption or improper disclosure of personal data; Aon's ability to develop, implement, update and enhance new technology; the actions taken by third parties that perform aspects of Aon's business operations and client services; the extent to which Aon manages certain risks created in connection with the services, including fiduciary and investments, consulting, and other advisory services, among others, that Aon currently provides, or will provide in the future, to clients; Aon's ability to continue, and the costs and the costs and risks associated with, growing, developing and integrating companies that it acquires or new lines of business; Aon's ability to secure regulatory approval and complete transactions, and the costs and risks associated with the failure to consummate proposed transactions; changes in commercial property and casualty markets, commercial premium rates or methods of compensation; changes in the health care system or Aon's relationships with insurance carriers; Aon's ability to implement initiatives intended to yield cost savings, and the ability to achieve those cost savings; Aon's ability to realize the expected benefits from its restructuring plan; and adverse effects on the market price of Aon's securities and/or operating results.

Any or all of Aon's forward-looking statements may turn out to be inaccurate, and there are no guarantees about Aon's performance. The factors identified above are not exhaustive. Aon and its subsidiaries operate in a dynamic business environment in which new risks may emerge frequently. Accordingly, you should not place undue reliance on forward-looking statements, which speak only as of the dates on which they are made. In addition, results for the years ended December 31, 2020 and 2021 are not necessarily indicative of results that may be expected for any future period, particularly in light of the continuing effects of the COVID-19 pandemic. Further information concerning Aon and its businesses, including factors that potentially could materially affect Aon's financial results, is contained in Aon's filings with the SEC. See Aon's Annual Report on Form 10-K for the year ended December 31, 2021 for a further discussion of these and other risks and uncertainties applicable to Aon and its businesses. These factors may be revised or supplemented in subsequent reports filed with the SEC. Aon is not under, and expressly disclaims, any obligation to update or alter any forward-looking statement that it may make from time to time, whether as a result of new information, future events or otherwise.

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SOURCE Aon plc

FAQ

What is Aon's new share repurchase authorization amount?

Aon has authorized an additional $7.5 billion in share repurchases.

What is the total amount available for Aon's share buyback program?

The total authorization for share buybacks is approximately $9.2 billion.

How much has Aon increased its quarterly dividend?

Aon has increased its quarterly cash dividend by 10% to $0.56 per share.

What impact does the share repurchase have on Aon's stock price?

The increased share buyback program typically signals confidence in the company, which may positively impact the stock price.