Aon Reports Second Quarter 2024 Results
Aon reported Q2 2024 results with total revenue increasing 18% to $3.8 billion, including 6% organic revenue growth. Adjusted EPS rose 6% to $2.93, while GAAP EPS decreased 9% to $2.46. The company completed the $13 billion acquisition of NFP, a middle-market risk and benefits advisory firm. Key highlights include:
- Commercial Risk Solutions organic revenue grew 6%
- Reinsurance Solutions organic revenue up 7%
- Health Solutions organic revenue increased 6%
- Wealth Solutions organic revenue rose 9%
- Adjusted operating margin expanded 10 basis points to 27.4%
- Repurchased 0.8 million shares for ~$250 million
Aon's CEO Greg Case noted strong progress on the company's 3x3 plan and expressed optimism for the remainder of 2024 and long-term outlook.
- Total revenue increased 18% to $3.8 billion
- Organic revenue growth of 6% across all major segments
- Adjusted EPS increased 6% to $2.93
- Adjusted operating income grew 19% to $1.029 billion
- Adjusted operating margin expanded 10 basis points to 27.4%
- Completed $13 billion acquisition of NFP, expanding middle-market presence
- Strong growth in core health and benefits brokerage globally
- GAAP EPS decreased 9% to $2.46
- Operating margin decreased 910 basis points to 17.4%
- Cash flows from operations decreased 27% to $822 million for first six months
- Free cash flow decreased 27% to $721 million for first six months
- Total operating expenses increased 33% to $3.1 billion
- Interest expense increased $95 million due to higher debt levels
Aon's Q2 2024 results present a mixed picture with some positive highlights but also areas of concern. The 18% increase in total revenue to $3.8 billion, including 6% organic revenue growth, is impressive and demonstrates the company's ability to grow both organically and through acquisitions. The completion of the NFP acquisition for $13 billion is a significant move that expands Aon's presence in the middle market.
However, there are some concerning trends in the financial metrics:
- Operating margin decreased 910 basis points to 17.4%, though adjusted operating margin increased slightly by 10 basis points to 27.4%.
- EPS decreased 9% to
$2.46 , while adjusted EPS increased 6% to$2.93 . - Cash flows from operations for the first six months decreased 27% to
$822 million and free cash flow also decreased 27% to$721 million .
The decline in operating margin and cash flows is concerning, as it may indicate challenges in integrating the NFP acquisition and managing expenses. The increase in total operating expenses by
The company's organic revenue growth across all segments is positive, particularly the 9% growth in Wealth Solutions. However, the flat aggregate pricing in Commercial Risk Solutions suggests a challenging market environment.
Overall, while Aon shows strong top-line growth, investors should closely monitor expense management and cash flow generation in the coming quarters to ensure the NFP acquisition delivers the expected benefits without overly straining the company's financials.
Aon's Q2 2024 results reveal interesting market dynamics across its business segments. The 6% organic revenue growth in Commercial Risk Solutions, despite flat aggregate pricing, indicates Aon's ability to win new business and retain clients in a competitive environment. This suggests that Aon's value proposition remains strong, even as the insurance pricing cycle softens.
The 7% organic growth in Reinsurance Solutions is particularly noteworthy. With the reinsurance market facing challenges from climate change and increased catastrophe losses, Aon's ability to grow in this segment demonstrates its strong market position and the ongoing demand for reinsurance solutions.
In Health Solutions, the 6% organic growth reflects the continued importance of employee benefits in a tight labor market. However, the decline in the Talent business due to lower demand for discretionary project work could be an early indicator of companies becoming more cautious about spending in anticipation of potential economic headwinds.
The 9% organic growth in Wealth Solutions, driven by advisory demand and pension de-risking projects, highlights the ongoing trend of companies looking to manage long-term pension liabilities. This trend is likely to continue as interest rates remain elevated and companies seek to reduce financial volatility.
The announcement of a public-private solution to build insurance capacity for Ukraine with
Overall, Aon's results suggest a resilient demand for risk management and advisory services across various sectors, even as economic uncertainties persist. The company's ability to grow organically in all segments positions it well to navigate potential market challenges ahead.
Second Quarter Key Metrics
- Total revenue increased
18% to , including organic revenue growth of$3.8 billion 6% - Operating margin decreased 910 basis points to
17.4% , and adjusted operating margin increased 10 basis points to27.4% - EPS decreased
9% to , and adjusted EPS increased$2.46 6% to$2.93 - For the first six months of 2024, cash flows from operations decreased
27% to , and free cash flow decreased$822 million 27% to$721 million
Second Quarter Highlights
- Completed the acquisition of NFP, a leading middle-market provider of risk, benefits, wealth and retirement plan advisory solutions, for
enterprise value, and are on-track to deliver financial commitments$13.0 billion - Repurchased 0.8 million class A ordinary shares for approximately
$250 million - Appointed Edmund Reese to serve as next CFO, effective July 29, 2024
- Announced a first-of-its-kind, public-private solution to build insurance capacity and accelerate new capital investments and economic recovery in
Ukraine , bringing total capacity of$350 million
Net income attributable to Aon shareholders decreased
"Our colleagues delivered excellent results in the second quarter, with
SECOND QUARTER 2024 FINANCIAL SUMMARY
Total revenue in the second quarter increased
Total operating expenses in the second quarter increased
Foreign currency translation in the second quarter had a
Effective tax rate was
Weighted average diluted shares outstanding increased to 213.3 million in the second quarter compared to 206.3 million in the prior year period due to the issuance of 19.0 million shares to fund NFP. The Company repurchased 0.8 million class A ordinary shares for approximately
YEAR TO DATE 2024 CASH FLOW SUMMARY
Cash flows provided by operations for the first six months of 2024 decreased
Free cash flow, defined as cash flows from operations less capital expenditures, decreased
SECOND QUARTER 2024 REVENUE REVIEW
The second quarter revenue reviews provided below include supplemental information related to organic revenue growth, which is a non-GAAP measure that is described in detail in "Reconciliation of Non-GAAP Measures - Organic Revenue Growth and Free Cash Flow" on page 9 of this press release.
Three Months Ended | ||||||||||||||
(millions) | 2024 | 2023 | % | Less: | Less: | Less: | Organic | |||||||
Revenue | ||||||||||||||
Commercial Risk Solutions | $ 2,015 | $ 1,774 | 14 % | (1) % | — % | 9 % | 6 % | |||||||
Reinsurance Solutions | 635 | 607 | 5 | (2) | — | — | 7 | |||||||
Health Solutions | 662 | 447 | 48 | — | — | 42 | 6 | |||||||
Wealth Solutions | 463 | 352 | 32 | — | — | 23 | 9 | |||||||
Eliminations | (15) | (3) | N/A | N/A | N/A | N/A | N/A | |||||||
Total revenue | $ 3,760 | $ 3,177 | 18 % | (1) % | — % | 13 % | 6 % |
Total revenue increased
Commercial Risk Solutions organic revenue growth of
Reinsurance Solutions organic revenue growth of
Health Solutions organic revenue growth of
Wealth Solutions organic revenue growth of
SECOND QUARTER 2024 EXPENSE REVIEW
Three Months Ended June 30, | ||||||||
(millions) | 2024 | 2023 | $ Change | % Change | ||||
Expenses | ||||||||
Compensation and benefits | $ 2,130 | $ 1,754 | $ 376 | 21 % | ||||
Information technology | 132 | 129 | 3 | 2 | ||||
Premises | 82 | 68 | 14 | 21 | ||||
Depreciation of fixed assets | 45 | 39 | 6 | 15 | ||||
Amortization and impairment of intangible assets | 128 | 25 | 103 | 412 | ||||
Other general expense | 455 | 320 | 135 | 42 | ||||
Accelerating Aon United Program expenses | 132 | — | 132 | 100 | ||||
Total operating expenses | $ 3,104 | $ 2,335 | $ 769 | 33 % |
Compensation and benefits expense increased
Information technology expense increased
Premises expense increased
Depreciation of fixed assets increased
Amortization and impairment of intangible assets increased
Other general expense increased
Accelerating Aon United Program expenses were
SECOND QUARTER 2024 INCOME SUMMARY
Certain noteworthy items impacted adjusted operating income and adjusted operating margin in the second quarters of 2024 and 2023, which are also described in detail in "Reconciliation of Non-GAAP Measures - Operating Income, Operating Margin and Diluted Earnings Per Share" on page 10 of this press release.
Three Months Ended June 30, | ||||||
(millions) | 2024 | 2023 | % Change | |||
Revenue | $ 3,760 | $ 3,177 | 18 % | |||
Expenses | 3,104 | 2,335 | 33 % | |||
Operating income | $ 656 | $ 842 | (22) % | |||
Operating margin | 17.4 % | 26.5 % | ||||
Adjusted operating income | $ 1,029 | $ 867 | 19 % | |||
Adjusted operating margin | 27.4 % | 27.3 % |
Operating income decreased
Interest income increased
Net income attributable to Aon shareholders decreased
Conference Call, Presentation Slides, and Webcast Details
The Company will host a conference call on Friday, July 26, 2024 at 7:30 a.m., central time. Interested parties can listen to the conference call via a live audio webcast and view the presentation slides at www.aon.com.
About Aon
Aon plc (NYSE: AON) exists to shape decisions for the better — to protect and enrich the lives of people around the world. Through actionable analytic insight, globally integrated Risk Capital and Human Capital expertise, and locally relevant solutions, our colleagues provide clients in over 120 countries and sovereignties with the clarity and confidence to make better risk and people decisions that protect and grow their businesses.
Follow Aon on LinkedIn, X, Facebook, and Instagram. Stay up-to-date by visiting the Aon Newsroom and sign up for News Alerts.
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, all of 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. 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, market and industry conditions, including competitive and pricing trends, the development and performance of our services and products, our cost structure and the outcome of cost-saving or restructuring initiatives, including the impacts of the Accelerating Aon United Program, the integration of NFP, actual or anticipated legal settlement expenses, future capital expenditures, growth in commissions and fees, changes to the composition or level of its revenues, cash flow and liquidity, expected tax rates, expected foreign currency translation impacts, business strategies, competitive strengths, goals, the benefits of new initiatives, growth of its business and operations, plans, references to future successes, and expectations with respect to the benefits of the acquisition of NFP are forward-looking statements. Also, when Aon uses words such as "anticipate", "believe", "continue", "could", "estimate", "expect", "forecast", "intend", "looking forward", "may", "might", "plan", "potential", "opportunity", "commit", "probably", "project", "should", "will", "would" 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: changes in the competitive environment, due to macroeconomic conditions (including impacts from instability in the banking or commercial real estate sectors) or otherwise, or damage to Aon's reputation; fluctuations in currency exchange, interest, or inflation rates that could impact our financial condition or results; changes in global equity and fixed income markets that could affect the return on invested assets; changes in the funded 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 and the terms thereof reducing Aon's flexibility or increasing borrowing costs; rating agency actions that could limit Aon's access to capital and our competitive position; volatility in Aon's global tax rate due to being subject to a variety of different factors, including the adoption and implementation in the European Union,
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 prior periods are not necessarily indicative of results that may be expected for any future period. 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, 2023 and the risk factors set forth under the headings "Risks Related to Aon and the NFP business after Completion of the Transaction" and "Risks Related to NFP's Business" in Aon's registration statement on Form S-4 filed on April 23, 2024 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.
Explanation of Non-GAAP Measures
This communication includes supplemental information not calculated in accordance with generally accepted accounting principles in
Investor Contact: | Media Contact: | |
Leslie Follmer | Will Dunn | |
+1 847-442-0622 | Toll-free (U.S., Canada and Puerto Rico): +1-833-751- 8114 | |
investor.relations@aon.com | International: +1 312 381 3024 | |
mediainquiries@aon.com |
Aon plc | ||||||||||||
Condensed Consolidated Statements of Income (Unaudited) | ||||||||||||
Three Months Ended | Six Months Ended | |||||||||||
(millions, except per share data) | 2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||
Revenue | ||||||||||||
Total revenue | $ 3,760 | $ 3,177 | 18 % | $ 7,830 | $ 7,048 | 11 % | ||||||
Expenses | ||||||||||||
Compensation and benefits | 2,130 | 1,754 | 21 % | 4,013 | 3,546 | 13 % | ||||||
Information technology | 132 | 129 | 2 % | 256 | 268 | (4) % | ||||||
Premises | 82 | 68 | 21 % | 153 | 143 | 7 % | ||||||
Depreciation of fixed assets | 45 | 39 | 15 % | 89 | 77 | 16 % | ||||||
Amortization and impairment of intangible assets | 128 | 25 | 412 % | 144 | 50 | 188 % | ||||||
Other general expense | 455 | 320 | 42 % | 803 | 649 | 24 % | ||||||
Accelerating Aon United Program expenses | 132 | — | 100 % | 251 | — | 100 % | ||||||
Total operating expenses | 3,104 | 2,335 | 33 % | 5,709 | 4,733 | 21 % | ||||||
Operating income | 656 | 842 | (22) % | 2,121 | 2,315 | (8) % | ||||||
Interest income | 31 | 5 | 520 % | 59 | 10 | 490 % | ||||||
Interest expense | (225) | (130) | 73 % | (369) | (241) | 53 % | ||||||
Other income (expense) | 236 | (59) | 500 % | 311 | (84) | 470 % | ||||||
Income before income taxes | 698 | 658 | 6 % | 2,122 | 2,000 | 6 % | ||||||
Income tax expense (1) | 160 | 83 | 93 % | 491 | 346 | 42 % | ||||||
Net income | 538 | 575 | (6) % | 1,631 | 1,654 | (1) % | ||||||
Less: Net income attributable to redeemable and non- | 14 | 15 | (7) % | 36 | 44 | (18) % | ||||||
Net income attributable to Aon shareholders | $ 524 | $ 560 | (6) % | $ 1,595 | $ 1,610 | (1) % | ||||||
Basic net income per share attributable to Aon | $ 2.47 | $ 2.74 | (10) % | $ 7.75 | $ 7.84 | (1) % | ||||||
Diluted net income per share attributable to Aon | $ 2.46 | $ 2.71 | (9) % | $ 7.72 | $ 7.79 | (1) % | ||||||
Weighted average ordinary shares outstanding - basic | 212.5 | 204.7 | 4 % | 205.8 | 205.4 | — % | ||||||
Weighted average ordinary shares outstanding - diluted | 213.3 | 206.3 | 3 % | 206.7 | 206.7 | — % |
(1) | The effective tax rate was |
Aon plc | ||||||||||||||
Reconciliation of Non-GAAP Measures - Organic Revenue Growth and Free Cash Flow (Unaudited) | ||||||||||||||
Organic Revenue Growth (Unaudited) | ||||||||||||||
Three Months Ended | ||||||||||||||
(millions) | 2024 | 2023 | % | Less: | Less: | Less: | Organic | |||||||
Revenue | ||||||||||||||
Commercial Risk Solutions | $ 2,015 | $ 1,774 | 14 % | (1) % | — % | 9 % | 6 % | |||||||
Reinsurance Solutions | 635 | 607 | 5 | (2) | — | — | 7 | |||||||
Health Solutions | 662 | 447 | 48 | — | — | 42 | 6 | |||||||
Wealth Solutions | 463 | 352 | 32 | — | — | 23 | 9 | |||||||
Elimination | (15) | (3) | N/A | N/A | N/A | N/A | N/A | |||||||
Total revenue | $ 3,760 | $ 3,177 | 18 % | (1) % | — % | 13 % | 6 % | |||||||
Six Months Ended | ||||||||||||||
(millions) | 2024 | 2023 | % | Less: | Less: | Less: | Organic | |||||||
Revenue | ||||||||||||||
Commercial Risk Solutions | $ 3,823 | $ 3,552 | 8 % | — % | 1 % | 3 % | 4 % | |||||||
Reinsurance Solutions | 1,802 | 1,684 | 7 | — | 1 | (1) | 7 | |||||||
Health Solutions | 1,395 | 1,118 | 25 | — | — | 19 | 6 | |||||||
Wealth Solutions | 833 | 702 | 19 | 1 | — | 12 | 6 | |||||||
Elimination | (23) | (8) | N/A | N/A | N/A | N/A | N/A | |||||||
Total revenue | $ 7,830 | $ 7,048 | 11 % | — % | 1 % | 5 % | 5 % |
(1) | Currency impact represents the effect on prior year period results if they were translated at current period foreign exchange rates. |
(2) | Fiduciary investment income for the three months ended June 30, 2024 and 2023 was |
(3) | Organic revenue growth includes the impact of intercompany activity and excludes foreign exchange rate changes, acquisitions (provided that organic revenue growth with includes organic growth of an acquired business as calculated assuming that the acquired business was part of the combined company for the same proportion of the relevant prior year period), divestitures (including held for sale businesses), transfers between revenue lines, fiduciary investment income, and gains or losses on derivatives accounted for as hedges. |
Free Cash Flows (Unaudited) | ||||||
Six Months Ended June 30, | ||||||
(millions) | 2024 | 2023 | % Change | |||
Cash Provided by Operating Activities | $ 822 | $ 1,131 | (27) % | |||
Capital Expenditures | (101) | (145) | (30) % | |||
Free Cash Flows (1) | $ 721 | $ 986 | (27) % |
(1) | Free cash flow is defined as cash flows from operations less capital expenditures. This non-GAAP measure does not imply or represent a precise calculation of residual cash flow available for discretionary expenditures. |
Aon plc | ||||||||||||
Reconciliation of Non-GAAP Measures - Operating Income, Operating Margin, and Diluted Earnings Per Share (Unaudited) (1) | ||||||||||||
Three Months Ended | Six Months Ended | |||||||||||
(millions, except percentages) | 2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||
Revenue | $ 3,760 | $ 3,177 | 18 % | $ 7,830 | $ 7,048 | 11 % | ||||||
Operating income | $ 656 | $ 842 | (22) % | $ 2,121 | $ 2,315 | (8) % | ||||||
Amortization and impairment of intangible assets | 128 | 25 | 144 | 50 | ||||||||
Change in the fair value of contingent consideration | 18 | — | 18 | — | ||||||||
Accelerating Aon United Program expenses (2) | 132 | — | 251 | — | ||||||||
Transaction and integration costs (3) | 95 | — | 110 | — | ||||||||
Adjusted operating income | $ 1,029 | $ 867 | 19 % | $ 2,644 | $ 2,365 | 12 % | ||||||
Operating margin | 17.4 % | 26.5 % | 27.1 % | 32.8 % | ||||||||
Adjusted operating margin | 27.4 % | 27.3 % | 33.8 % | 33.6 % | ||||||||
Three Months Ended | Six Months Ended | |||||||||||
(millions, except percentages) | 2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||
Adjusted operating income | $ 1,029 | $ 867 | 19 % | $ 2,644 | $ 2,365 | 12 % | ||||||
Interest income | 31 | 5 | 520 % | 59 | 10 | 490 % | ||||||
Interest expense | (225) | (130) | 73 % | (369) | (241) | 53 % | ||||||
Other income (expense): | ||||||||||||
Adjusted other income (expense) - pensions (4) | (11) | (16) | (31) % | (21) | (33) | (36) % | ||||||
Adjusted other income (expense) - other (5)(6)(7) | (4) | (16) | (75) % | (1) | (24) | (96) % | ||||||
Adjusted other income (expense) | (15) | (32) | (53) % | (22) | (57) | (61) % | ||||||
Adjusted income before income taxes | 820 | 710 | 15 % | 2,312 | 2,077 | 11 % | ||||||
Adjusted income tax expense (8) | 182 | 125 | 46 % | 519 | 393 | 32 % | ||||||
Adjusted net income | 638 | 585 | 9 % | 1,793 | 1,684 | 6 % | ||||||
Less: Net income attributable to redeemable and nonredeemable | 14 | 15 | (7) % | 36 | 44 | (18) % | ||||||
Adjusted net income attributable to Aon shareholders | $ 624 | $ 570 | 9 % | $ 1,757 | $ 1,640 | 7 % | ||||||
Adjusted diluted net income per share attributable to Aon | $ 2.93 | $ 2.76 | 6 % | $ 8.50 | $ 7.93 | 7 % | ||||||
Weighted average ordinary shares outstanding - diluted | 213.3 | 206.3 | 3 % | 206.7 | 206.7 | — % | ||||||
Effective tax rates (8) | ||||||||||||
22.9 % | 12.6 % | 23.1 % | 17.3 % | |||||||||
Non-GAAP | 22.2 % | 17.6 % | 22.4 % | 18.9 % |
(1) | Certain noteworthy items impacting operating income in the three and six months ended June 30, 2024 and 2023 are described in this schedule. The items shown with the caption "adjusted" are non-GAAP measures. |
(2) | Total charges are expected to include technology-related costs to facilitate streamlining and simplifying operations, headcount reduction costs, and costs associated with asset impairments, including real estate consolidation costs. |
(3) | On April 25, 2024, the Company completed the acquisition of NFP. As part of the acquisition, Aon incurred |
(4) | To further its pension de-risking strategy, the Company settled certain pension obligations in |
(5) | In the first quarter of 2024, the Company earned |
(6) | Adjusted other income (expense) excluded gains from dispositions of |
(7) | Adjusted other income (expense) excluded approximately |
(8) | Adjusted items are generally taxed at the estimated annual effective tax rate, except for the applicable tax impact associated with the anticipated sale of certain assets and liabilities classified as held for sale, certain pension settlements, Accelerating Aon United Program expenses, deferred compensation from a prior year sale of business, certain gains from dispositions, certain transaction and integration costs related to the acquisition of NFP, and changes in the fair value of contingent consideration, which are adjusted at the related jurisdictional rate. |
Aon plc | ||||
Condensed Consolidated Statements of Financial Position | ||||
As of | ||||
(Unaudited) | ||||
(millions) | June 30, | December 31, | ||
Assets | ||||
Current assets | ||||
Cash and cash equivalents | $ 974 | $ 778 | ||
Short-term investments | 182 | 369 | ||
Receivables, net | 4,459 | 3,254 | ||
Fiduciary assets (1) | 18,865 | 16,307 | ||
Other current assets | 1,063 | 996 | ||
Total current assets | 25,543 | 21,704 | ||
Goodwill | 15,281 | 8,414 | ||
Intangible assets, net | 6,794 | 234 | ||
Fixed assets, net | 636 | 638 | ||
Operating lease right-of-use assets | 723 | 650 | ||
Deferred tax assets | 1,218 | 1,195 | ||
Prepaid pension | 629 | 618 | ||
Other non-current assets | 629 | 506 | ||
Total assets | $ 51,453 | $ 33,959 | ||
Liabilities, redeemable noncontrolling interests, and equity (deficit) | ||||
Liabilities | ||||
Current liabilities | ||||
Accounts payable and accrued liabilities | $ 2,319 | $ 2,262 | ||
Short-term debt and current portion of long-term debt | 4 | 1,204 | ||
Fiduciary liabilities | 18,865 | 16,307 | ||
Other current liabilities | 2,310 | 1,878 | ||
Total current liabilities | 23,498 | 21,651 | ||
Long-term debt | 17,610 | 9,995 | ||
Non-current operating lease liabilities | 702 | 641 | ||
Deferred tax liabilities | 1,177 | 115 | ||
Pension, other postretirement, and postemployment liabilities | 1,173 | 1,225 | ||
Other non-current liabilities | 1,135 | 1,074 | ||
Total liabilities | 45,295 | 34,701 | ||
Redeemable noncontrolling interests | 130 | — | ||
Equity (deficit) | ||||
Ordinary shares - | 2 | 2 | ||
Additional paid-in capital | 12,910 | 6,944 | ||
Accumulated deficit | (2,574) | (3,399) | ||
Accumulated other comprehensive loss | (4,478) | (4,373) | ||
Total Aon shareholders' equity (deficit) | 5,860 | (826) | ||
Nonredeemable noncontrolling interests | 168 | 84 | ||
Total equity (deficit) | 6,028 | (742) | ||
Total liabilities, redeemable noncontrolling interests and equity (deficit) | $ 51,453 | $ 33,959 |
(1) | Includes cash and short-term investments of |
Aon plc | ||||
Condensed Consolidated Statements of Cash Flows (Unaudited) | ||||
Six Months Ended June 30, | ||||
(millions) | 2024 | 2023 | ||
Cash flows from operating activities | ||||
Net income | $ 1,631 | $ 1,654 | ||
Adjustments to reconcile net income to cash provided by operating activities: | ||||
Gain from sales of businesses | (257) | — | ||
Depreciation of fixed assets | 89 | 77 | ||
Amortization and impairment of intangible assets | 144 | 50 | ||
Share-based compensation expense | 247 | 226 | ||
Deferred income taxes | (122) | (168) | ||
Other, net | (112) | 28 | ||
Change in assets and liabilities: | ||||
Receivables, net | (959) | (704) | ||
Accounts payable and accrued liabilities | (251) | (515) | ||
Accelerating Aon United Program liabilities | 61 | — | ||
Current income taxes | 60 | 53 | ||
Pension, other postretirement and postemployment liabilities | (17) | (3) | ||
Other assets and liabilities | 308 | 433 | ||
Cash provided by operating activities | 822 | 1,131 | ||
Cash flows from investing activities | ||||
Proceeds from investments | 146 | 54 | ||
Purchases of investments | (91) | (29) | ||
Net sales of short-term investments - non fiduciary | 189 | 255 | ||
Acquisition of businesses, net of cash and funds held on behalf of clients | (2,780) | (8) | ||
Sale of businesses, net of cash and funds held on behalf of clients | 352 | 1 | ||
Capital expenditures | (101) | (145) | ||
Cash provided by (used for) investing activities | (2,285) | 128 | ||
Cash flows from financing activities | ||||
Share repurchase | (500) | (1,100) | ||
Proceeds from issuance of shares | 27 | 33 | ||
Cash paid for employee taxes on withholding shares | (176) | (216) | ||
Commercial paper issuances, net of repayments | (591) | (217) | ||
Issuance of debt | 7,926 | 744 | ||
Repayment of debt | (4,328) | — | ||
Increase in fiduciary liabilities, net of fiduciary receivables | 283 | 999 | ||
Cash dividends to shareholders | (269) | (241) | ||
Redeemable and non-redeemable noncontrolling interests, and other financing activities | (108) | (41) | ||
Cash provided by (used for) financing activities | 2,264 | (39) | ||
Effect of exchange rates on cash and cash equivalents and funds held on behalf of clients | (202) | 203 | ||
Net increase in cash and cash equivalents and funds held on behalf of clients | 599 | 1,423 | ||
Cash, cash equivalents and funds held on behalf of clients at beginning of period | 7,722 | 7,076 | ||
Cash, cash equivalents and funds held on behalf of clients at end of period | $ 8,321 | $ 8,499 | ||
Reconciliation of cash and cash equivalents and funds held on behalf of clients: | ||||
Cash and cash equivalents | $ 974 | $ 952 | ||
Cash and cash equivalents and funds held on behalf of clients classified as held for sale | 38 | 9 | ||
Funds held on behalf of clients | 7,309 | 7,538 | ||
Total cash and cash equivalents and funds held on behalf of clients | $ 8,321 | $ 8,499 |
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SOURCE Aon plc
FAQ
What was Aon's organic revenue growth in Q2 2024?
How much did Aon's adjusted EPS increase in Q2 2024?
What major acquisition did Aon complete in Q2 2024?
How did Aon's Commercial Risk Solutions segment perform in Q2 2024?