AI interpretation based on checked source excerpts. Issuer assertions and evidence limitations remain explicit.
Policy quality-scores-2: six equally weighted categories. The overall score requires full coverage. Missing inputs are not zero. Qualitative grades are sourced interpretations, not probabilities. 6/6 · 18/10/2026
Moat56
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
structural advantage · 3/4 · Specialized analytical capabilities and multinational delivery are supported by retention-led growth across several businesses. This demonstrates a current differentiated position, although exclusivity and relative superiority are unproven.
durability · 2/4 · Comparable international capabilities persist across the supplied years and retention remains strong into 2026. The demonstrated outcome history is limited, and alternative distribution and technology can erode differentiation.
customer dependency · 2/4 · Customized multinational programs and strong reported retention support customer attachment. Switching costs are inferred; essential exclusivity, contractual lock-in and quantified transition burdens are absent.
erosion resilience · 2/4 · Reinsurance grew organically despite unfavorable market effects, supporting resilience. Soft advisory demand and a realized Vesttoo-related charge show limits; generic technology and security risks remain potential rather than realized erosion.
Pricing power56
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
realized pricing · 2/4 · Observed revenue-related market outcomes are mixed: Commercial Risk benefited slightly while Reinsurance faced unfavorable effects, and soft markets have historically hurt commission revenue. These establish pricing exposure, but do not demonstrate discretionary increases in Aon's own fees.
retention · 3/4 · Reported strong retention supports organic growth in 2025 and across Commercial Risk, Reinsurance and Health in 2026. This is qualitative operating evidence of repeat demand; no numerical retention rate or response to own-price increases is supplied.
margin resilience · 3/4 · First-half 2026 GAAP operating margin increased to 28.3% from 26.1%, with improvement in both segments. The 2025 segment outcomes were mixed, and restructuring savings and lower incentive compensation contributed, so resilience cannot be attributed solely to pricing.
contractual freedom · 1/4 · Carrier willingness constrains commission compensation and client preference for flat fees can remove inflation protection. Hourly, project and fixed-fee contracts provide multiple compensation formats, but unilateral repricing or automatic escalation rights are not established.
Predictability100
Five consecutive annual periods. Equal weights: nondeclining revenue frequency; revenue-growth volatility (5–40pp); positive FCF frequency; FCF-margin volatility (3–20pp). Stability indicator, not a growth forecast.
- Nondeclining revenue years (%)
- 100.00
- Revenue growth volatility (pp)
- 5.42
- Positive FCF years (%)
- 100.00
- FCF margin volatility (pp)
- 3.10
Financial strength38
Equal-weight grades: debt/FCF (1–8x), net debt/earnings before interest and tax (0–5x), interest service (1–12x), current ratio (0.75–2x). Earnings use reported operating income, or reported pretax profit plus reported interest expense when operating income is unavailable. Interest service uses earnings/interest expense; if unavailable, it uses reported operating cash flow/cash interest paid, without relabeling cash paid as accrued expense. Nonpositive cash flow/earnings score 0 for their service component; reported zero interest with a positive numerator scores 100. Net cash scores 100 for net leverage. Missing disclosures remain unavailable. General nonfinancial-company rubric, not a credit rating; exceptional and nonoperating gains are not normalized out. IFRS finance-cost and cash-flow classifications retain their reported scope.
- debtFcfGrade
- 46.59
- netDebtEbitGrade
- 35.29
- interestCoverageGrade
- 39.36
- currentRatioGrade
- 28.78
- Debt / FCF (x)
- 4.74
- Net debt / operating income (x)
- 3.24
- Interest coverage (x)
- 5.33
- Current ratio (x)
- 1.11
Capital allocation95
Three-year equal-weight indicators: pretax return on average invested capital (0–25%; equity + debt − cash, each year and its prior year), share-count growth (0–5%, lower better), share-based cost/revenue (2–20%, lower better), consolidated FCF/net income (0–1x). Return uses reported operating income or, if unavailable, EBIT calculated from reported pretax profit plus reported interest expense; exceptional/nonoperating gains are not normalized out. Share-based cost uses the reported cash-flow add-back or, if absent, separately reported recognized compensation expense; the latter never becomes an FCF adjustment. Nonpositive net income scores 0 for cash conversion; absent income/FCF stays unavailable. Nonpositive invested capital has no defined return and remains unavailable. Does not establish acquisition quality or buyback timing.
- 3-year pre-tax operating return (%)
- 27.40
- 3-year average dilution (%)
- 0.71
- 3-year average SBC / revenue (%)
- 2.94
- cashConversionGrade
- 100.00
Management63
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
capital discipline · 2/4 · Completed divestiture proceeds, positive cash generation, debt reduction and a recent share-count decline support discipline. First-half 2026 repurchases exceeded that period's free cash flow, debt remained $15 billion, and 2023–2025 share counts increased despite repurchases. Acquisition returns and repurchase value creation are unproven.
incentive alignment · 2/4 · Actual incentives combine financial performance with people measures and include equity or performance units. The approved $50 million special CEO grant has a five-year performance period, but its size, discretionary elements and use of adjusted metrics warrant a mixed assessment. Future vesting and executive ownership are unverified.
execution · 3/4 · Organic growth, reported retention, realized restructuring savings, higher operating income and cash generation support strong execution. This assessment uses operating outcomes rather than CEO reputation; soft advisory demand and realized transaction-related losses temper the record.
governance · 3/4 · Disclosed practices include an independent chair since 2008, all directors independent except the CEO, annual majority-vote elections and approved enhancements to committee oversight. These support strong governance structures, without proving exceptional oversight effectiveness or eliminating operational failures.
Evidence
Strategy and Technology Group combines strategic advice with data-driven consulting, analytics, and modeling tools, including Capital Insights Explorer, ReMetrica, and PathWise, to help clients deploy capital efficiently and effectively.
Business — Strategy and Technology Group analytical capabilities · Filed 13/02/2026
Consulting and brokerage also advises multinational companies on global benefits programs, including program design and management, financing optimization, and enhanced employee experience, as well as assists in navigating global regulatory and compliance requirements in over 120 countries.
Business — multinational benefits design, management and compliance · Filed 13/02/2026
Organic revenue growth was 5% in the second quarter of 2026, reflecting growth in EMEA and North America, driven by net new business and ongoing strong retention.
MD&A — second-quarter 2026 Commercial Risk organic growth and retention · Filed 29/07/2026
Organic revenue growth was 4% in the first six months of 2026, reflecting growth in treaty placements, driven by net new business and strong retention, and double-digit increases in facultative placements and our Strategy and Technology Group.
MD&A — first-half 2026 Reinsurance organic growth and retention · Filed 29/07/2026
Organic revenue growth was 5% in the second quarter of 2026, reflecting strong growth in core health and benefits, including particular strength internationally, driven by net new business and ongoing strong retention, as well as growth in Talent Solutions driven by strong growth in talent analytics.
MD&A — second-quarter 2026 Health organic growth and retention · Filed 29/07/2026
In addition to movements in premium rates, our ability to generate premium-based commission revenue has been and could in the future be challenged by: •the growing availability of alternative methods for clients to meet their risk-protection needs, including a greater willingness on the part of corporations to “self-insure,” the use of so-called “captive” insurers, and the development of capital markets-based solutions and other alternative capital sources for traditional insurance and reinsurance needs that increase market capacity, increase competition, and put pressure on premiums; •decreases in available underwriting capacity for insurance and reinsurance; •fluctuation in the need for, or relevancy of, insurance; •the level of compensation, as a percentage of premium, that insurance carriers are willing to compensate brokers for placement activity; •the growing desire of clients to move away from variable commission rates and instead compensate brokers based upon flat fees, which can negatively impact us as fees are not consistently indexed for inflation and therefore, may not offer the same financial performance; •competition from insurers seeking to sell their products directly to consumers, including online sales, without the involvement of an insurance broker; and •the growing number of technology-enabled competitors offering new risk-transfer solutions that eliminate the traditional broker-client relationship in both insurance and reinsurance markets.
Risk factors — alternative distribution, commissions and fixed-fee inflation exposure · Filed 13/02/2026
Ms. Stevens’s efforts in 2025 drove alignment across the firm’s global leadership and achieved record-high colleague engagement and continued strong colleague retention amidst a competitive talent market where measures being used by competitors to recruit professional talent are increasingly aggressive.
Compensation discussion — reported colleague retention and aggressive talent recruitment · Filed 28/04/2026
We have implemented various measures to manage our risks related to system and network security and disruptions, but a security breach or a significant or extended disruption in the functioning of our information technology systems could damage our reputation, cause us to lose clients, adversely impact our operations, sales, and operating results, and require us to incur significant expense (in connection with incident response, remediation efforts, or otherwise) and divert resources to address and remediate or otherwise resolve such issues.
Risk factors — potential client and reputational effects of security disruptions · Filed 13/02/2026
In 2025, we delivered strong performance, including across each of these four metrics: • Total revenue growth was 9%, and 6% organic revenue growth was driven by net new business and ongoing strong retention.
2025 business highlights — organic growth, net new business and retention · Filed 28/04/2026
We depend, to a large extent, on our relationships with our clients and our reputation for high-quality advice and solutions.
Risk factors — dependence on client relationships and advisory reputation · Filed 13/02/2026
If these are not adequately identified and managed, this could then lead to failure or perceived failure to protect the client’s interests, with consequential regulatory and reputational risks, including litigation or enforcement actions that could adversely affect us and our operations.
Risk factors — potential consequences of inadequately managed conflicts · Filed 13/02/2026
Organic revenue growth was 1% in the first quarter of 2026, reflecting growth in Retirement, driven by continued demand for advisory work in the UK and EMEA related to the ongoing impact of regulatory change, partially offset by continued soft advisory demand in the U.S.
MD&A — first-quarter 2026 Wealth growth and soft U.S. advisory demand · Filed 01/05/2026
Market impact had an unfavorable impact in the first half of the year.
MD&A — unfavorable first-half 2026 Reinsurance market impact · Filed 29/07/2026
Market impact was slightly positive in the first half of the year.
MD&A — slightly positive first-half 2026 Commercial Risk market impact · Filed 29/07/2026
Downward fluctuations in the year-over-year insurance premiums charged by insurers to protect against the same risk, referred to in the industry as softening of the insurance market, has and could adversely affect these businesses as a significant portion of our revenue is determined as a percentage of premiums charged to our clients.
Risk factors — historical and potential adverse commission effects of soft insurance markets · Filed 13/02/2026
Fees paid by customers for consulting services are typically charged on an hourly, project or fixed-fee basis, and revenue for these arrangements is typically recognized based on time incurred, days elapsed, or reports delivered.
Revenue recognition — hourly, project and fixed-fee consulting arrangements · Filed 13/02/2026
The increase in adjusted operating margin primarily reflects organic revenue growth of 6%, $160 million of additional net restructuring savings and a decrease in incentive compensation, partially offset by the addition of NFP, an increase in operating expenses as previously described and lower fiduciary investment income.
2025 results — adjusted margin drivers and restructuring savings · Filed 13/02/2026
Risk Capital adjusted operating margin decreased to 34.3% in 2025 from 34.6% in 2024 and Human Capital adjusted operating margin increased to 32.2% in 2025 from 29.5% in 2024.
2025 results — differing segment adjusted operating margin outcomes · Filed 13/02/2026
34 REVIEW OF CONSOLIDATED RESULTS Summary of Results Our consolidated results (unaudited) are as follows (in millions): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Revenue Total revenue $ 4,246 $ 4,155 $ 9,280 $ 8,884 Expenses Compensation and benefits 2,271 2,360 4,664 4,609 Information technology 162 136 306 272 Premises 85 85 166 167 Depreciation of fixed assets 49 47 95 93 Amortization and impairment of intangible assets 174 201 326 400 Other general expense 494 373 905 819 Accelerating Aon United Program expenses 96 94 188 204 Total operating expenses 3,331 3,296 6,650 6,564 Operating income 915 859 2,630 2,320 Interest income 5 — 17 5 Interest expense (179) (212) (358) (418) Other income (expense) (17) 56 (12) 46 Income before income taxes 724 703 2,277 1,953 Income tax expense 159 109 473 377 Net income 565 594 1,804 1,576 Less: Net income attributable to redeemable and nonredeemable noncontrolling interests 14 15 41 32 Net income attributable to Aon shareholders $ 551 $ 579 $ 1,763 $ 1,544 Diluted net income per share attributable to Aon shareholders $ 2.58 $ 2.66 $ 8.22 $ 7.10 Weighted average ordinary shares outstanding - diluted 213.9 217.3 214.6 217.6 Our segment results (unaudited) are as follows (in millions): Three Months Ended June 30, Risk Capital Human Capital Corporate/Eliminations (1) Total Consolidated 2026 2025 2026 2025 2026 2025 2026 2025 Revenue Total revenue $ 3,006 $ 2,866 $ 1,244 $ 1,291 $ (4) $ (2) $ 4,246 $ 4,155 Expenses Compensation and benefits 1,528 1,541 715 796 28 23 2,271 2,360 Information technology 106 88 51 45 5 3 162 136 Premises 56 54 28 30 1 1 85 85 Other expenses (2) 400 319 283 303 130 93 813 715 Total operating expenses 2,090 2,002 1,077 1,174 164 120 3,331 3,296 Operating income $ 916 $ 864 $ 167 $ 117 $ (168) $ (122) $ 915 $ 859 Operating margin 30.5 % 30.1 % 13.4 % 9.1 % 21.5 % 20.7 % 35 Six Months Ended June 30, Risk Capital Human Capital Corporate/Eliminations (1) Total Consolidated 2026 2025 2026 2025 2026 2025 2026 2025 Revenue Total revenue $ 6,508 $ 6,057 $ 2,783 $ 2,836 $ (11) $ (9) $ 9,280 $ 8,884 Expenses Compensation and benefits 3,160 3,002 1,474 1,570 30 37 4,664 4,609 Information technology 202 178 97 90 7 4 306 272 Premises 109 106 55 59 2 2 166 167 Other expenses (2) 739 710 547 597 228 209 1,514 1,516 Total operating expenses 4,210 3,996 2,173 2,316 267 252 6,650 6,564 Operating income $ 2,298 $ 2,061 $ 610 $ 520 $ (278) $ (261) $ 2,630 $ 2,320 Operating margin 35.3 % 34.0 % 21.9 % 18.3 % 28.3 % 26.1 % (1)Corporate expenses/eliminations include governance costs, post-retirement benefits, and other costs that are not directly attributable to a specific segment.
MD&A — first-half 2026 GAAP consolidated and segment operating results · Filed 29/07/2026
•Free cash flow, a non-GAAP measure defined under the caption “Review of Consolidated Results — Free Cash Flow,” was $846 million in the first six months of 2026, an increase of $30 million, or 4%, from the prior-year period, as the $50 million increase in cash flows from operations, primarily driven by strong operating income growth, which more than offset the cash tax payment related to NFP Wealth, impact of working capital and a $20 million increase in capital expenditures.
MD&A — first-half 2026 free cash flow and capital expenditures · Filed 29/07/2026
The following table summarizes the Company’s share repurchase activity (in millions, except per share data): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Shares repurchased 1.9 0.7 3.4 1.3 Average price per share $ 320.77 $ 361.25 $ 321.61 $ 376.76 Repurchase costs recorded to Retained Earnings $ 600 $ 250 $ 1,100 $ 500 At June 30, 2026, the remaining authorized amount for share repurchases under the Repurchase Program was approximately $7.7 billion.
Shareholders' equity — actual first-half 2026 repurchases · Filed 29/07/2026
Borrowings Total debt at June 30, 2026 was $15.0 billion, a decrease of $282 million compared to December 31, 2025.
Borrowings — June 2026 debt and reduction from year-end · Filed 29/07/2026
Total proceeds received on closing was $2.3 billion, and a pre-tax gain of $1.2 billion was recognized within Other income (expense) on the Consolidated Statement of Income for the year ended December 31, 2025.
Acquisitions and dispositions — completed NFP Wealth sale proceeds and gain · Filed 01/05/2026
Weighted Average Ordinary Shares Weighted average ordinary shares outstanding are as follows (in millions): Years Ended December 31 2025 2024 2023 Basic weighted average ordinary shares outstanding 215.9 211.4 203.5 Dilutive effect of potentially issuable shares 1.2 1.1 1.5 Diluted weighted average ordinary shares outstanding 217.1 212.5 205.0 Potentially issuable shares are not included in the computation of Diluted net income per share attributable to Aon shareholders if their inclusion would be antidilutive.
Weighted average ordinary shares — 2023–2025 share-count increase · Filed 13/02/2026
Weighted Average Ordinary Shares Weighted average ordinary shares outstanding are as follows (in millions): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Basic weighted average ordinary shares outstanding 213.2 216.2 213.8 216.3 Dilutive effect of potentially issuable shares 0.7 1.1 0.8 1.3 Diluted weighted average ordinary shares outstanding 213.9 217.3 214.6 217.6 22 Potentially issuable shares are not included in the computation of Diluted net income per share attributable to Aon shareholders if their inclusion would be antidilutive.
Weighted average ordinary shares — first-half 2026 share-count reduction · Filed 29/07/2026
The incentive pool funding determination included both a pre-established formulaic financial component (80% weighted), based on comparison of current year adjusted operating income results against the prior year, and a non-formulaic People & Culture component (20% weighted), based on Company’s progress across four areas: wellbeing, belonging, engagement, and retention.
Compensation discussion — actual incentive pool funding framework · Filed 28/04/2026
Case) were paid 65% in cash and 35% in the form of time-vested restricted share units, which provides value to our executives that is tied to the long-term performance of the Company.
Compensation discussion — paid non-CEO incentives with restricted share component · Filed 28/04/2026
Mr. Case’s annual incentive was paid 65% in the form of cash and 35% in the form of performance share units under our twenty-first LPP cycle, as a further tie to the long-term performance of the Company.
Compensation discussion — CEO annual incentive paid partly in performance units · Filed 28/04/2026
As a reflection of Mr. Case’s exceptional performance through his tenure at the Company, his commitment to extended employment through 2030, and to secure his continued leadership, the Compensation Committee recommended and the independent members of the Board approved a one-time grant of PSUs (the “Special PSUs”) to Mr.
Compensation discussion — independent board approval of special CEO performance-unit grant · Filed 28/04/2026
Case on December 31, 2025, with a target grant date value of $50 million.
Compensation discussion — December 2025 special grant target value · Filed 28/04/2026
The design of the Special PSUs provides that between 0% and 200% of the target number of units subject to the award will be eligible to be earned based on the achievement of meaningful performance related to organic revenue growth, adjusted operating margin expansion, and free cash flow performance goals over a five-year performance period commencing on January 1, 2026, and ending on December 31, 2030, generally subject to Mr.
Compensation discussion — special grant performance metrics and 2026–2030 period · Filed 28/04/2026
All of our directors are independent, with the exception of our Chief Executive Officer.
Corporate governance — director independence · Filed 28/04/2026
Independent Chair. We have had an independent chair Board leadership structure since 2008.
Corporate governance — independent chair since 2008 · Filed 28/04/2026
Directors are elected annually by a majority of votes cast in an uncontested election.
Corporate governance — annual director elections and majority voting · Filed 28/04/2026
What we learned Based on our shareholder engagement and other feedback from investors throughout the year, we believe we continue to be focused on the matters that are most important to our shareholders, including: · Creating and delivering value for our clients and shareholders · Strong corporate governance including effective Board composition and refreshment, Board oversight of risks, executive succession planning, broader corporate governance practices, executive compensation, and corporate sustainability matters · Robust disclosure of director experience and skills · Enhancing the context and transparency in our disclosure regarding executive compensation decisions · Transparency regarding Company strategy, including insights regarding execution of our 3x3 Plan Giving consideration to the feedback we received from investors during our 2025 and 2024 engagement meetings, our Board approved enhancements to our Board committee charters to formalize oversight responsibilities in several key areas including cybersecurity and data privacy, financial risk management, and human capital matters, including colleague engagement.
Shareholder engagement — approved committee oversight enhancements · Filed 28/04/2026
(6) In the fourth quarter of 2023, Aon recognized a $197 million charge in connection with transactions for which capital was arranged by a third party, Vesttoo Ltd., and in the third quarter of 2025, certain legal settlement expenses and recoveries were recognized resulting in a $23 million reduction of expense within the Risk Capital segment.
Proxy reconciliation — realized Vesttoo-related charge and subsequent expense reduction · Filed 28/04/2026
Consulting and brokerage also advises multinational companies on global benefits, including insurance placement across more than 120 countries and sovereignties, program design and management, financing optimization, and enhanced employee experience, as well as assists in navigating global regulatory and compliance requirements in countries in which they operate.
Business — 2023 multinational benefits and regulatory capabilities · Filed 16/02/2024
