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Jun 30, 2024
Aon Q2 2024 Earnings Report
Aon reported a significant increase in total revenue, driven by acquired revenues from NFP and organic growth, despite a decrease in GAAP operating margin and EPS, while adjusted metrics showed improvement.
Key Takeaways
Aon plc announced its Second Quarter 2024 results, with total revenue increasing 18% to $3.8 billion, including 6% organic revenue growth. Operating margin decreased 910 basis points to 17.4%, but adjusted operating margin increased 10 basis points to 27.4%. EPS decreased 9% to $2.46, while adjusted EPS increased 6% to $2.93. The company completed the acquisition of NFP and repurchased $250 million in shares.
Total revenue increased 18% to $3.8 billion, with 6% organic revenue growth.
Adjusted operating margin increased 10 basis points to 27.4%, while GAAP operating margin decreased.
Adjusted EPS increased 6% to $2.93, despite a 9% decrease in GAAP EPS.
Aon completed the acquisition of NFP for $13.0 billion enterprise value and repurchased $250 million of class A ordinary shares.
Aon
Aon
Aon Revenue by Segment
Revenue by Segment
Commercial Risk Revenue
CapyFin.comReinsurance Revenue
CapyFin.comHealth Solutions Revenue
CapyFin.comWealth Solutions Revenue
CapyFin.com Forward Guidance
The company expects an unfavorable impact from foreign currency translation on adjusted operating income for the third and fourth quarters of 2024, resulting in an estimated $21 million decrease for the full year.
Positive Outlook
- On-track to deliver financial commitments from the NFP acquisition.
- Well-positioned for the remainder of 2024 and the long term, supported by progress against the 3x3 plan.
- Strong adjusted operating income growth and adjusted operating margin expansion.
- Continued strong retention and net new business generation across revenue segments.
- Ongoing investments in Aon Business Services-enabled technology platforms to drive long-term growth.
Challenges Ahead
- Expected unfavorable impact of approximately $0.01 per share, or $3 million decrease in adjusted operating income, in the third quarter of 2024 from foreign currency translation.
- Expected unfavorable impact of approximately $0.02 per share, or $6 million decrease in adjusted operating income, for the fourth quarter of 2024 from foreign currency translation.
- Total unfavorable impact of approximately $0.07 per share, or $21 million decrease in adjusted operating income, for full year 2024 from foreign currency translation.
- Potential for volatility in global tax rate due to various factors, including new tax proposals.
- Risks associated with integrating acquired businesses and potential for unknown or inestimable liabilities from acquisitions.