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Sep 30, 2024
Aon Q3 2024 Earnings Report
Aon reported strong third quarter 2024 results with significant revenue growth and increased adjusted EPS, driven by organic growth across all solution lines and contributions from the NFP acquisition.
Key Takeaways
Aon plc delivered a strong third quarter in 2024, with total revenue increasing by 26% to $3.7 billion, including 7% organic revenue growth. Adjusted operating margin expanded to 24.6%, and adjusted EPS grew by 17% to $2.72. The NFP acquisition significantly contributed to revenue and operating expenses, while the company continued to repurchase shares and lead in catastrophe bond placements.
Total revenue increased 26% to $3.7 billion, with organic revenue growth of 7%.
Adjusted operating margin increased to 24.6%, reflecting strong operational performance.
Adjusted EPS grew 17% to $2.72, demonstrating improved profitability.
The company repurchased 0.9 million class A ordinary shares for approximately $300 million in the third quarter.
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 is well-positioned to deliver full-year results in line with financial guidance, driven by the success of its 3x3 Plan to enhance client solutions.
Positive Outlook
- Continued strong organic revenue growth across all Solution Lines.
- Expected positive impact from the NFP acquisition on future revenue and growth synergies.
- Ongoing benefits from the Accelerating Aon United restructuring program, including cost savings.
- Strong demand for talent analytics and advisory services in Wealth Solutions.
- Continued leadership in catastrophe bonds with increased issuance volumes.
Challenges Ahead
- Unfavorable impact of foreign currency translation on adjusted operating income.
- Higher interest expense due to increased total debt and interest rates.
- Increased operating expenses due to NFP inclusion and long-term growth investments.
- Potential for slower growth in executive benefits within Health Solutions.
- Ongoing transaction and integration costs related to the NFP acquisition.