Aon Reports Third Quarter 2024 Results
Aon (NYSE: AON) reported Q3 2024 results with total revenue increasing 26% to $3.7 billion, including 7% organic revenue growth. Operating margin was 16.7%, while adjusted operating margin increased to 24.6%. EPS decreased to $1.57 from $2.23, though adjusted EPS grew 17% to $2.72.
The company completed 6 middle-market acquisitions and reported strong performance across all solution lines. Cash flows from operations for the first nine months reached $1,835 million, with free cash flow at $1,672 million. The company repurchased 0.9 million shares for approximately $300 million and maintained $2.5 billion in remaining share repurchase authorization.
Aon (NYSE: AON) ha riportato i risultati del terzo trimestre 2024, con un aumento del fatturato del 26% a $3,7 miliardi, inclusa una crescita organica del fatturato del 7%. Il margine operativo era del 16,7%, mentre il margine operativo rettificato è aumentato al 24,6%. L'EPS è diminuito a $1,57 da $2,23, sebbene l'EPS rettificato sia cresciuto del 17% a $2,72.
La società ha completato 6 acquisizioni nel mercato intermedio e ha riportato un'ottima performance in tutte le linee di soluzione. I flussi di cassa dalle operazioni nei primi nove mesi hanno raggiunto $1.835 milioni, con un flusso di cassa libero di $1.672 milioni. La società ha riacquistato 0,9 milioni di azioni per circa $300 milioni e ha mantenuto un'autorizzazione rimanente per il riacquisto di azioni di $2,5 miliardi.
Aon (NYSE: AON) informó resultados del tercer trimestre de 2024, con un aumento del 26% en ingresos totales a $3.7 mil millones, incluyendo un crecimiento orgánico de ingresos del 7%. El margen operativo fue del 16.7%, mientras que el margen operativo ajustado aumentó al 24.6%. El EPS disminuyó a $1.57 desde $2.23, aunque el EPS ajustado creció un 17% a $2.72.
La compañía completó 6 adquisiciones en el mercado medio y reportó un sólido desempeño en todas las líneas de solución. Los flujos de efectivo de las operaciones durante los primeros nueve meses alcanzaron $1,835 millones, con un flujo de caja libre de $1,672 millones. La empresa recompró 0.9 millones de acciones por aproximadamente $300 millones y mantuvo $2.5 mil millones en autorización de recompra de acciones restante.
Aon (NYSE: AON)은 2024년 3분기 실적을 발표하며 총 수익이 26% 증가한 $37억에 도달했으며, 여기에는 7%의 유기적 수익 성장도 포함됩니다. 운영 마진은 16.7%이고, 조정된 운영 마진은 24.6%로 증가했습니다. EPS는 $2.23에서 $1.57로 감소했지만, 조정된 EPS는 17% 증가하여 $2.72에 달했습니다.
회사는 중간 시장에서 6건의 인수를 완료하고 모든 솔루션 라인에서 강력한 성과를 보고했습니다. 첫 9개월 동안의 운영으로 인한 현금 흐름은 $1,835백만에 달하며, 자유 현금 흐름은 $1,672백만입니다. 회사는 약 $3억에 90만 주를 재매입했고, 남은 재매입 승인 권한은 $25억입니다.
Aon (NYSE: AON) a publié les résultats du troisième trimestre 2024, avec un chiffre d'affaires total en hausse de 26% à 3,7 milliards de dollars, y compris une croissance organique des revenus de 7%. La marge opérationnelle était de 16,7%, tandis que la marge opérationnelle ajustée a augmenté à 24,6%. Le BPA a diminué à 1,57 $ contre 2,23 $, bien que le BPA ajusté ait crû de 17 % pour atteindre 2,72 $.
La société a finalisé 6 acquisitions sur le marché intermédiaire et a rapporté de solides performances dans toutes les lignes de solutions. Les flux de trésorerie d'exploitation pour les neuf premiers mois ont atteint 1.835 millions de dollars, avec un flux de trésorerie disponible de 1.672 millions de dollars. L'entreprise a racheté 0,9 million d'actions pour environ 300 millions de dollars et a maintenu une autorisation de rachat d'actions restante de 2,5 milliards de dollars.
Aon (NYSE: AON) hat die Ergebnisse für das dritte Quartal 2024 berichtet, mit einem Anstieg des Gesamtumsatzes um 26% auf 3,7 Milliarden Dollar, einschließlich eines organischen Umsatzwachstums von 7%. Die operative Marge betrug 16,7%, während die bereinigte operative Marge auf 24,6% anstieg. Der EPS sank von $2,23 auf $1,57, während der bereinigte EPS um 17% auf $2,72 wuchs.
Das Unternehmen hat 6 Übernahmen im Mittelstand abgeschlossen und eine starke Leistung in allen Lösungslinien gemeldet. Die Cashflows aus dem operativen Geschäft beliefen sich in den ersten neun Monaten auf 1.835 Millionen Dollar, mit einem freien Cashflow von 1.672 Millionen Dollar. Das Unternehmen hat 0,9 Millionen Aktien für etwa 300 Millionen Dollar zurückgekauft und über 2,5 Milliarden Dollar verbleibende Genehmigung für den Aktienrückkauf behalten.
- Total revenue increased 26% to $3.7 billion
- Organic revenue growth of 7% across all solution lines
- Adjusted EPS grew 17% to $2.72
- Adjusted operating margin expanded to 24.6%
- Strong performance in catastrophe bonds with $6 billion in limit placement
- Net income per share decreased 30% to $1.57 from $2.23
- Operating income decreased 10% to $623 million
- Cash flows from operations decreased $339 million compared to prior year
- Interest expense increased $94 million due to higher debt levels
- Operating margin declined 670 basis points to 16.7%
Insights
This earnings report shows mixed results for Aon. Total revenue increased 26% to
Key positives include strong organic growth in Health Solutions (
Concerning points include decreased operating cash flows and higher debt expenses. Free cash flow declined
The market impact analysis reveals important trends. Commercial Risk Solutions saw modestly positive exposures globally with flat aggregate pricing, suggesting a stabilizing insurance pricing environment. The
The company's strategic positioning in middle-market M&A through NFP and continued investment in data analytics capabilities (Radford McLagan integration) demonstrate focus on high-growth segments. The
Third Quarter Key Metrics
- Total revenue was
, including organic revenue growth of$3.7 billion 7% - Operating margin was
16.7% , and adjusted operating margin increased to24.6% - EPS was
, and adjusted EPS increased to$1.57 $2.72 - For the first nine months of 2024, cash flows from operations was
, and free cash flow was$1,835 million $1,672 million
Third Quarter Highlights
- Repurchased 0.9 million class A ordinary shares for approximately
$300 million - Completed 6 middle-market acquisitions across Commercial Risk, Health and Wealth, continuing to capitalize on the opportunity in fast-growing middle market with execution of NFP's M&A strategy
- Leading in catastrophe bonds with year-to-date placement work on
in limit across 25 deals, reflecting a$6 billion 13% increase in issuance volumes over the prior year period - Advanced data and analytics capabilities for Human Capital clients with launch of integrated Radford McLagan compensation database
Net income attributable to Aon shareholders decreased
"Our global team delivered another quarter of excellent results in the third quarter, with
THIRD QUARTER 2024 FINANCIAL SUMMARY
Total revenue in the third quarter increased
Total operating expenses in the third quarter increased
Foreign currency translation in the third quarter had a
Effective tax rate was
Weighted average diluted shares outstanding increased to 218.4 million in the third quarter compared to 204.6 million in the prior year period due to the issuance of 19.0 million shares in the second quarter of 2024 to fund the NFP acquisition. The Company repurchased 0.9 million class A ordinary shares for approximately
YEAR TO DATE 2024 CASH FLOW SUMMARY
Cash flows provided by operations for the first nine months of 2024 decreased
Free cash flow, defined as cash flows from operations less capital expenditures, decreased
THIRD QUARTER 2024 REVENUE REVIEW
The third 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 September 30, | ||||||||||||||
(millions) | 2024 | 2023 | % Change | Less: | Less: | Less: | Organic | |||||||
Revenue | ||||||||||||||
Commercial Risk Solutions | $ 1,852 | $ 1,585 | 17 % | — % | — % | 11 % | 6 % | |||||||
Reinsurance Solutions | 503 | 465 | 8 | — | 1 | — | 7 | |||||||
Health Solutions | 870 | 552 | 58 | (1) | — | 50 | 9 | |||||||
Wealth Solutions | 499 | 352 | 42 | 1 | — | 34 | 7 | |||||||
Eliminations | (3) | (1) | N/A | N/A | N/A | N/A | N/A | |||||||
Total revenue | $ 3,721 | $ 2,953 | 26 % | — % | — % | 19 % | 7 % |
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
THIRD QUARTER 2024 EXPENSE REVIEW
Three Months Ended September 30, | ||||||||
(millions) | 2024 | 2023 | $ Change | % Change | ||||
Expenses | ||||||||
Compensation and benefits | $ 2,150 | $ 1,685 | $ 465 | 28 % | ||||
Information technology | 141 | 135 | 6 | 4 | ||||
Premises | 88 | 74 | 14 | 19 | ||||
Depreciation of fixed assets | 47 | 42 | 5 | 12 | ||||
Amortization and impairment of intangible assets | 174 | 20 | 154 | 770 | ||||
Other general expense | 429 | 300 | 129 | 43 | ||||
Accelerating Aon United Program expenses | 69 | 6 | 63 | 1,050 | ||||
Total operating expenses | $ 3,098 | $ 2,262 | $ 836 | 37 % |
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 increased
THIRD QUARTER 2024 INCOME SUMMARY
Certain noteworthy items impacted adjusted operating income and adjusted operating margin in the third 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 September 30, | ||||||
(millions) | 2024 | 2023 | % Change | |||
Revenue | $ 3,721 | $ 2,953 | 26 % | |||
Expenses | 3,098 | 2,262 | 37 % | |||
Operating income | $ 623 | $ 691 | (10) % | |||
Operating margin | 16.7 % | 23.4 % | ||||
Adjusted operating income | $ 915 | $ 717 | 28 % | |||
Adjusted operating margin | 24.6 % | 24.3 % |
Operating income decreased
Interest income decreased
Other income was
Net income attributable to Aon shareholders decreased
Conference Call, Presentation Slides, and Webcast Details
The Company will host a conference call on Friday, October 25, 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 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 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 | Nine Months Ended | |||||||||||
(millions, except per share data) | 2024 | 2023 | % | 2024 | 2023 | % Change | ||||||
Revenue | ||||||||||||
Total revenue | $ 3,721 | $ 2,953 | 26 % | 15 % | ||||||||
Expenses | ||||||||||||
Compensation and benefits | 2,150 | 1,685 | 28 % | 6,163 | 5,231 | 18 % | ||||||
Information technology | 141 | 135 | 4 % | 397 | 403 | (1) % | ||||||
Premises | 88 | 74 | 19 % | 241 | 217 | 11 % | ||||||
Depreciation of fixed assets | 47 | 42 | 12 % | 136 | 119 | 14 % | ||||||
Amortization and impairment of intangible assets | 174 | 20 | 770 % | 318 | 70 | 354 % | ||||||
Other general expense | 429 | 300 | 43 % | 1,232 | 949 | 30 % | ||||||
Accelerating Aon United Program expenses | 69 | 6 | 1,050 % | 320 | 6 | 5,233 % | ||||||
Total operating expenses | 3,098 | 2,262 | 37 % | 8,807 | 6,995 | 26 % | ||||||
Operating income | 623 | 691 | (10) % | 2,744 | 3,006 | (9) % | ||||||
Interest income | 4 | 9 | (56) % | 63 | 19 | 232 % | ||||||
Interest expense | (213) | (119) | 79 % | (582) | (360) | 62 % | ||||||
Other income (expense) | 35 | (21) | 267 % | 346 | (105) | 430 % | ||||||
Income before income taxes | 449 | 560 | (20) % | 2,571 | 2,560 | — % | ||||||
Income tax expense (1) | 94 | 93 | 1 % | 585 | 439 | 33 % | ||||||
Net income | 355 | 467 | (24) % | 1,986 | 2,121 | (6) % | ||||||
Less: Net income attributable to redeemable and non-redeemable noncontrolling interests | 12 | 11 | 9 % | 48 | 55 | (13) % | ||||||
Net income attributable to Aon shareholders | $ 343 | $ 456 | (25) % | $ 1,938 | $ 2,066 | (6) % | ||||||
Basic net income per share attributable to Aon shareholders | $ 1.58 | $ 2.25 | (30) % | $ 9.24 | $ 10.10 | (9) % | ||||||
Diluted net income per share attributable to Aon shareholders | $ 1.57 | $ 2.23 | (30) % | $ 9.20 | $ 10.03 | (8) % | ||||||
Weighted average ordinary shares outstanding - basic | 217.4 | 202.9 | 7 % | 209.7 | 204.6 | 2 % | ||||||
Weighted average ordinary shares outstanding - diluted | 218.4 | 204.6 | 7 % | 210.6 | 206.0 | 2 % |
(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 September 30, | ||||||||||||||
(millions) | 2024 | 2023 | % | Less: | Less: | Less: | Organic | |||||||
Revenue | ||||||||||||||
Commercial Risk Solutions | $ 1,852 | $ 1,585 | 17 % | — % | — % | 11 % | 6 % | |||||||
Reinsurance Solutions | 503 | 465 | 8 | — | 1 | — | 7 | |||||||
Health Solutions | 870 | 552 | 58 | (1) | — | 50 | 9 | |||||||
Wealth Solutions | 499 | 352 | 42 | 1 | — | 34 | 7 | |||||||
Elimination | (3) | (1) | N/A | N/A | N/A | N/A | N/A | |||||||
Total revenue | $ 3,721 | $ 2,953 | 26 % | — % | — % | 19 % | 7 % | |||||||
Nine Months Ended September 30, | ||||||||||||||
(millions) | 2024 | 2023 | % Change | Less: Impact (1) | Less: Investment | Less: Acquisitions, | Organic | |||||||
Revenue | ||||||||||||||
Commercial Risk Solutions | $ 5,675 | $ 5,137 | 10 % | — % | — % | 5 % | 5 % | |||||||
Reinsurance Solutions | 2,305 | 2,149 | 7 | — | 1 | (1) | 7 | |||||||
Health Solutions | 2,265 | 1,670 | 36 | — | — | 29 | 7 | |||||||
Wealth Solutions | 1,332 | 1,054 | 26 | 1 | — | 18 | 7 | |||||||
Elimination | (26) | (9) | N/A | N/A | N/A | N/A | N/A | |||||||
Total revenue | $ 11,551 | $ 10,001 | 15 % | — % | — % | 9 % | 6 % |
(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 September 30, 2024 and 2023 was |
(3) | Organic revenue growth includes the impact of certain intercompany activity and excludes the impact of changes in foreign exchange rates, fiduciary investment income, acquisitions (provided that organic revenue growth 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 disposal groups, if any), transfers between revenue lines, and gains or losses on derivatives accounted for as hedges. |
Free Cash Flows (Unaudited) | ||||||
Nine Months Ended September 30, | ||||||
(millions) | 2024 | 2023 | % Change | |||
Cash Provided by Operating Activities | $ 1,835 | $ 2,174 | (16) % | |||
Capital Expenditures | (163) | (203) | (20) % | |||
Free Cash Flows (1) | $ 1,672 | $ 1,971 | (15) % |
(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 | Nine Months Ended | |||||||||||
(millions, except percentages) | 2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||
Revenue | $ 3,721 | $ 2,953 | 26 % | $ 11,551 | $ 10,001 | 15 % | ||||||
Operating income | $ 623 | $ 691 | (10) % | $ 2,744 | $ 3,006 | (9) % | ||||||
Amortization and impairment of intangible assets | 174 | 20 | 318 | 70 | ||||||||
Change in the fair value of contingent consideration | 14 | — | 32 | — | ||||||||
Accelerating Aon United Program expenses (2) | 69 | 6 | 320 | 6 | ||||||||
Transaction and integration costs (3) | 35 | — | 145 | — | ||||||||
Adjusted operating income | $ 915 | $ 717 | 28 % | $ 3,559 | $ 3,082 | 15 % | ||||||
Operating margin | 16.7 % | 23.4 % | 23.8 % | 30.1 % | ||||||||
Adjusted operating margin | 24.6 % | 24.3 % | 30.8 % | 30.8 % | ||||||||
Three Months Ended | Nine Months Ended | |||||||||||
(millions, except percentages) | 2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||
Adjusted operating income | $ 915 | $ 717 | 28 % | $ 3,559 | $ 3,082 | 15 % | ||||||
Interest income | 4 | 9 | (56) % | 63 | 19 | 232 % | ||||||
Interest expense | (213) | (119) | 79 % | (582) | (360) | 62 % | ||||||
Other income (expense): | ||||||||||||
Adjusted other income (expense) - pensions (4) | (14) | (18) | (22) % | (35) | (51) | (31) % | ||||||
Adjusted other income (expense) - other (5)(6)(7) | 47 | (3) | 1,667 % | 46 | (27) | 270 % | ||||||
Adjusted other income (expense) | 33 | (21) | 257 % | 11 | (78) | 114 % | ||||||
Adjusted income before income taxes | 739 | 586 | 26 % | 3,051 | 2,663 | 15 % | ||||||
Adjusted income tax expense (8) | 133 | 101 | 32 % | 652 | 494 | 32 % | ||||||
Adjusted net income | 606 | 485 | 25 % | 2,399 | 2,169 | 11 % | ||||||
Less: Net income attributable to redeemable and nonredeemable noncontrolling interests | 12 | 11 | 9 % | 48 | 55 | (13) % | ||||||
Adjusted net income attributable to Aon shareholders | $ 594 | $ 474 | 25 % | $ 2,351 | $ 2,114 | 11 % | ||||||
Adjusted diluted net income per share attributable to Aon shareholders | $ 2.72 | $ 2.32 | 17 % | $ 11.16 | $ 10.26 | 9 % | ||||||
Weighted average ordinary shares outstanding - diluted | 218.4 | 204.6 | 7 % | 210.6 | 206.0 | 2 % | ||||||
Effective tax rates (8) | ||||||||||||
20.9 % | 16.6 % | 22.8 % | 17.1 % | |||||||||
Non-GAAP | 18.0 % | 17.2 % | 21.4 % | 18.6 % |
(1) | Certain noteworthy items impacting operating income in the three and nine months ended September 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) | During the three and nine months ended September 30, 2024, gains of |
(6) | Adjusted other income (expense) excluded gains from dispositions of |
(7) | Adjusted other income (expense) excluded |
(8) | Adjusted items are generally taxed at the estimated annual effective tax rate, except for the applicable tax impact associated with certain pension settlements, Accelerating Aon United Program expenses, deferred consideration 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. The tax adjustment also excludes interest accruals for income tax reserves related to the termination fee payment made in connection with the Company's terminated proposed combination with Willis Towers Watson. |
Aon plc | ||||
Condensed Consolidated Statements of Financial Position | ||||
As of | ||||
(Unaudited) | ||||
(millions) | September 30, | December 31, | ||
Assets | ||||
Current assets | ||||
Cash and cash equivalents | $ 1,103 | $ 778 | ||
Short-term investments | 196 | 369 | ||
Receivables, net | 4,004 | 3,254 | ||
Fiduciary assets (1) | 17,596 | 16,307 | ||
Other current assets | 754 | 996 | ||
Total current assets | 23,653 | 21,704 | ||
Goodwill | 15,612 | 8,414 | ||
Intangible assets, net | 6,789 | 234 | ||
Fixed assets, net | 650 | 638 | ||
Operating lease right-of-use assets | 737 | 650 | ||
Deferred tax assets | 1,209 | 1,195 | ||
Prepaid pension | 650 | 618 | ||
Other non-current assets | 585 | 506 | ||
Total assets | $ 49,885 | $ 33,959 | ||
Liabilities, redeemable noncontrolling interests, and equity (deficit) | ||||
Liabilities | ||||
Current liabilities | ||||
Accounts payable and accrued liabilities | $ 2,588 | $ 2,262 | ||
Short-term debt and current portion of long-term debt | — | 1,204 | ||
Fiduciary liabilities | 17,596 | 16,307 | ||
Other current liabilities | 1,914 | 1,878 | ||
Total current liabilities | 22,098 | 21,651 | ||
Long-term debt | 17,090 | 9,995 | ||
Non-current operating lease liabilities | 712 | 641 | ||
Deferred tax liabilities | 1,086 | 115 | ||
Pension, other postretirement, and postemployment liabilities | 1,168 | 1,225 | ||
Other non-current liabilities | 1,178 | 1,074 | ||
Total liabilities | 43,332 | 34,701 | ||
Redeemable noncontrolling interests | 135 | — | ||
Equity (deficit) | ||||
Ordinary shares - | 2 | 2 | ||
Additional paid-in capital | 13,045 | 6,944 | ||
Accumulated deficit | (2,682) | (3,399) | ||
Accumulated other comprehensive loss | (4,121) | (4,373) | ||
Total Aon shareholders' equity (deficit) | 6,244 | (826) | ||
Nonredeemable noncontrolling interests | 174 | 84 | ||
Total equity (deficit) | 6,418 | (742) | ||
Total liabilities, redeemable noncontrolling interests and equity (deficit) | $ 49,885 | $ 33,959 |
(1) | Includes cash and short-term investments of |
Aon plc | ||||
Condensed Consolidated Statements of Cash Flows (Unaudited) | ||||
Nine Months Ended September 30, | ||||
(millions) | 2024 | 2023 | ||
Cash flows from operating activities | ||||
Net income | $ 1,986 | $ 2,121 | ||
Adjustments to reconcile net income to cash provided by operating activities: | ||||
Gain from sales of businesses | (333) | — | ||
Depreciation of fixed assets | 136 | 119 | ||
Amortization and impairment of intangible assets | 318 | 70 | ||
Share-based compensation expense | 361 | 321 | ||
Deferred income taxes | (146) | (232) | ||
Other, net | (126) | 28 | ||
Change in assets and liabilities: | ||||
Receivables, net | (384) | (290) | ||
Accounts payable and accrued liabilities | (36) | (357) | ||
Accelerating Aon United Program liabilities | 43 | — | ||
Current income taxes | (119) | 58 | ||
Pension, other postretirement and postemployment liabilities | (25) | 3 | ||
Other assets and liabilities | 160 | 333 | ||
Cash provided by operating activities | 1,835 | 2,174 | ||
Cash flows from investing activities | ||||
Proceeds from investments | 186 | 59 | ||
Purchases of investments | (136) | (61) | ||
Net sales of short-term investments - non fiduciary | 182 | 274 | ||
Acquisition of businesses, net of cash and funds held on behalf of clients | (3,011) | (18) | ||
Sale of businesses, net of cash and funds held on behalf of clients | 686 | 1 | ||
Capital expenditures | (163) | (203) | ||
Cash provided by (used for) investing activities | (2,256) | 52 | ||
Cash flows from financing activities | ||||
Share repurchase | (800) | (1,950) | ||
Proceeds from issuance of shares | 61 | 63 | ||
Cash paid for employee taxes on withholding shares | (190) | (232) | ||
Commercial paper issuances, net of repayments | (591) | (274) | ||
Issuance of debt | 7,926 | 744 | ||
Repayment of debt | (4,878) | — | ||
Increase in fiduciary liabilities, net of fiduciary receivables | 609 | 870 | ||
Cash dividends to shareholders | (416) | (366) | ||
Redeemable and non-redeemable noncontrolling interests, and other financing activities | (156) | (56) | ||
Cash provided by (used for) financing activities | 1,565 | (1,201) | ||
Effect of exchange rates on cash and cash equivalents and funds held on behalf of clients | 177 | (57) | ||
Net increase in cash and cash equivalents and funds held on behalf of clients | 1,321 | 968 | ||
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 | $ 9,043 | $ 8,044 | ||
Reconciliation of cash and cash equivalents and funds held on behalf of clients: | ||||
Cash and cash equivalents | $ 1,103 | $ 808 | ||
Cash and cash equivalents and funds held on behalf of clients classified as held for sale | — | 6 | ||
Funds held on behalf of clients | 7,940 | 7,230 | ||
Total cash and cash equivalents and funds held on behalf of clients | $ 9,043 | $ 8,044 |
View original content:https://www.prnewswire.com/news-releases/aon-reports-third-quarter-2024-results-302286570.html
SOURCE Aon plc
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