AON Insurance Brokers
Aon plc
Aon is a global insurance broker and professional services firm. It earns commissions and fees for placing insurance and reinsurance and for advising on risk, health benefits, and retirement plans. FY2025 revenue rose 9% to $17.2 billion (6% organic) and operating income to $4.34 billion. Net income of $3.7 billion included a $1.2 billion gain on selling the NFP Wealth business. In August 2026 Aon agreed to acquire USI, the tenth-largest U.S. insurance broker, for $17.0 billion in cash, funded with new debt. It also paused share repurchases to prioritize repaying debt.
Last updated
Analysis last edited: October 7, 2026 · Financial data fetched: October 7, 2026 12:16 (SEC EDGAR) · Source 10-K filed: February 13, 2026
Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
01
Company profile
- Legal name
- Aon plc
- Headquarters
- DUBLIN 2, Ireland
- Incorporated in
- Ireland
- Fiscal year end
- 12/31
- Exchange & ticker
- NYSE: AON
- Industry
- Insurance Brokers
- CIK
- 315293
- Website
- https://www.aon.com/ ↗
- IR page
- https://ir.aon.com/ ↗
Workforce (as of FY2025 year-end)
Employees
60,000
Source: Form 10-K (FY2025) cover page and business description
02
Earnings calendar
When the company reports each quarter: the quarter-end date, the day results were released, and when the 10-Q or 10-K was filed.
Next report
Q3 FY2026
Quarter end: September 2026. In past years, Q3 results were released 25–31 days after quarter end (Oct 31, 2025; Oct 25, 2024; Oct 27, 2023). No date has been announced in the sources this site uses.
Reporting pattern
- Fiscal year ends around December 31.
- Reports four times a year: three quarterly reports (10-Q) and an annual report (10-K) for Q4.
- Earnings releases came 25–33 days after quarter end over the last 12 quarters.
| Quarter | Quarter ended | Earnings release (8-K) | Report filed (10-Q / 10-K) |
|---|---|---|---|
| Q2 FY2026 | Jun 30, 2026 | Jul 29, 2026 (+29 days) | Jul 29, 2026 10-Q (+29 days) |
| Q1 FY2026 | Mar 31, 2026 | May 1, 2026 (+31 days) | May 1, 2026 10-Q (+31 days) |
| Q4 FY2025 | Dec 31, 2025 | Jan 30, 2026 (+30 days) | Feb 13, 2026 10-K (+44 days) |
| Q3 FY2025 | Sep 30, 2025 | Oct 31, 2025 (+31 days) | Oct 31, 2025 10-Q (+31 days) |
| Q2 FY2025 | Jun 30, 2025 | Jul 25, 2025 (+25 days) | Jul 25, 2025 10-Q (+25 days) |
| Q1 FY2025 | Mar 31, 2025 | Apr 25, 2025 (+25 days) | Apr 25, 2025 10-Q (+25 days) |
| Q4 FY2024 | Dec 31, 2024 | Jan 31, 2025 (+31 days) | Feb 18, 2025 10-K (+49 days) |
| Q3 FY2024 | Sep 30, 2024 | Oct 25, 2024 (+25 days) | Oct 25, 2024 10-Q (+25 days) |
| Q2 FY2024 | Jun 30, 2024 | Jul 26, 2024 (+26 days) | Jul 26, 2024 10-Q (+26 days) |
| Q1 FY2024 | Mar 31, 2024 | Apr 26, 2024 (+26 days) | Apr 26, 2024 10-Q (+26 days) |
| Q4 FY2023 | Dec 31, 2023 | Feb 2, 2024 (+33 days) | Feb 16, 2024 10-K (+47 days) |
| Q3 FY2023 | Sep 30, 2023 | Oct 27, 2023 (+27 days) | Oct 27, 2023 10-Q (+27 days) |
Source: SEC EDGAR filing history. Release dates are the dates the earnings release was furnished to the SEC on Form 8-K (Item 2.02), which is normally the day results are announced. Fiscal years are labeled by the calendar year in which they end.
03
Flagship products & services
Risk Capital
Commercial Risk Solutions
Examples: Insurance and specialty brokerage, global risk consulting, captives, Affinity programs, Data Center Lifecycle Insurance Program
Global broking centers in London, Bermuda, and Singapore.
Risk Capital
Reinsurance Solutions
Examples: Treaty and facultative reinsurance, Strategy and Technology Group, capital markets
Analytics tools include ReMetrica and PathWise; capital markets handles insurance-linked securities and M&A advice.
Human Capital
Health Solutions
Examples: Health and benefits consulting and brokerage, consumer benefits, talent advisory
Advises multinationals on benefits programs in over 120 countries.
Human Capital
Wealth Solutions
Examples: Retirement consulting, pension administration, investment consulting
Includes pension risk transfer advice.
From Aon's FY2025 Form 10-K, Item 1.
04
Recent strategic focus
FY2025 from the 10-K, and 2026 events from 8-Ks.
USI acquisition
Aon agreed on August 30, 2026 to buy USI from KKR and other shareholders for $17.0B in cash ($16.7B net of tax attributes). USI has about $3B of annual revenue and more than 10,500 people in nearly 200 U.S. offices.
Source: 8-K and press release filed 2026-08-31
Deal financing
$13.5B of senior notes priced September 14, 2026, plus a $4.0B delayed-draw term loan facility signed September 18.
Source: 8-Ks filed 2026-09-17 and 2026-09-22
NFP Wealth sale
Sold to Madison Dearborn Partners on October 30, 2025 for $2.3B in cash, with a $1.2B pre-tax gain.
Source: Form 10-K (FY2025)
Restructuring program
The Accelerating Aon United Program is expected to cost about $1.3B in total and deliver about $450M of annualized savings by the end of 2027.
Source: Form 10-K (FY2025)
Capex ÷ D&A (FY2025)
1.40x
Well above depreciation — expansion-stage investment
formulacapital expenditures ÷ depreciation & amortization
e.g.$263M ÷ $188M = 1.40x
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
M&A spend (5-year total)
$4.11B
Latest year: $394M
Cash-flow-statement spending on acquisitions, net of cash acquired
Where the money goes, over time
Unit: $M. Capex went from $137M in FY2021 to $263M in FY2025
- Capex
- M&A spend
formulacapital expenditures ÷ depreciation & amortization
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-13
05
Key figures at a glance
FY2021–FY2025, 5 years.
Revenue (FY2025)
$17.18B
As reported in the 10-K
Revenue CAGR (4 years)
+9.0%▲favorable
formula(last-period revenue ÷ first-period revenue) ^ (1 ÷ years) − 1
e.g.($17,181M ÷ $12,193M) ^ (1÷4) − 1 = 9.0%
termsCAGR · ^ (exponent) · Revenue (net sales)
Operating margin (FY2025)
25.3%▲favorable
+8.1pt vs. 4 years ago
formulaoperating income ÷ revenue × 100
e.g.$4,344M ÷ $17,181M × 100 = 25.3%
ROE (FY2025)
47.8%▲favorable
5-year average: 83.0%
As reported in the 10-K
P/B (FY2025 end)
8.09x
formulaP/E × EPS ÷ BVPS (= period-end share price ÷ book value per share)
e.g.20.7x × $17.02 ÷ $43.60 = 8.09x
Period-end (fiscal year-end) value, not today's P/B
EV/EBITDA (FY2025 end)
20.0x
formula(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization)
e.g.($76,597M + $15,249M − $1,195M) ÷ ($4,344M + $188M) = 20.0x
termsEV/EBITDA · Market capitalization · Interest-bearing debt · EBITDA · Depreciation & amortization (D&A)
Period-end (fiscal year-end) value, not today's multiple
- ▲
Revenue grew +9.0% a year over 4 years (strong growth)
From $12.19B in FY2021 to $17.18B in FY2025. The annualized rate (CAGR) makes it possible to compare growth pace across companies of different sizes.
- ▲
Operating margin improved: 17.1% → 25.3%
How much operating profit is left per $100 of revenue. It moved +8.1 points over 4 years — pricing power, cost control, and product mix all show up here.
- ▼
Equity ratio is 18.4% (relatively heavy reliance on debt)
The share of total assets funded by equity rather than debt. 50%+ is often read as low bankruptcy risk, though the right level varies by industry (real estate and leasing run lower, for instance).
- ▲
Free cash flow was positive in 5 of 5 years
Operating cash flow minus capital expenditures: the cash left over after funding the business’s own investment, available for dividends, buybacks, acquisitions, or debt paydown. A negative year can mean heavy investment, or weak core earnings — worth distinguishing.
- ▲
ROE averaged 83.0% over 5 years (latest: 47.8%)
How much profit was generated on shareholders’ equity. Roughly 10%+ is often cited as solid for a U.S. company, though this varies a lot by industry and capital intensity.
06
Business model
Risk Capital
Commercial Risk Solutions (insurance brokerage, risk consulting, captives management, Affinity programs) and Reinsurance Solutions (treaty and facultative reinsurance, analytics, and capital markets).
01 what it draws on
Inputs & resources
- Data and analytics on clients' losses and exposures
- Relationships with insurance and reinsurance carriers
- About 60,000 employees in more than 120 countries (company-wide)
02 what it does
Activities
- Designing and placing insurance programs
- Placing reinsurance for insurers
- Insurance-linked securities and advisory
03 who it serves
Customers
- Businesses and organizations
- Insurers and reinsurers
04 how money comes in
How it earns
- Commissions and fees
- Fiduciary investment income on client funds
Risk Capital: how it makes money
- Revenue $11.29B (+7%) and operating income $3.44B (30.4% margin) in FY2025.
- Commercial Risk Solutions $8.50B; Reinsurance Solutions $2.79B.
Human Capital
Health Solutions (health and benefits consulting and brokerage, consumer benefits, compensation and talent advisory) and Wealth Solutions (retirement consulting, pension administration, investment consulting).
01 what it draws on
Inputs & resources
- Actuarial and benefits expertise
- Data and analytics
02 what it does
Activities
- Benefits brokerage and consulting
- Retirement and pension advice and administration
- Investment consulting
03 who it serves
Customers
- Employers, pension plans, endowments, and foundations
04 how money comes in
How it earns
- Commissions and consulting and administration fees
Human Capital: how it makes money
- Revenue $5.91B (+13%, helped by NFP) and operating income $1.41B (23.9% margin) in FY2025.
- Health Solutions $3.84B; Wealth Solutions $2.07B.
Revenue by segment (FY2025)
Unit: $M — bar length = revenue, (%) = share of total company revenue, margin = segment profit ÷ segment revenue × 100
Risk Capital
11,290 (66%)profit 3,436 · margin 30.4%
Human Capital
5,907 (34%)profit 1,410 · margin 23.9%
Source: Form 10-K (FY2025) — MD&A, segment results Profit is segment operating income. Corporate and eliminations: revenue −$16M, operating loss −$502M.
07
Where it earns
Many U.S.-listed companies earn most of their revenue outside the U.S. — this breaks down revenue by country/region so it's clear where the business actually makes its money.
Largest market (FY2025)
United States — 48% of revenue
Revenue by country / region (FY2025)
Unit: $M — bar length = revenue, (%) = share of total company revenue
United States
8,279 (48%)Americas other than U.S.
1,633 (10%)United Kingdom
2,220 (13%)Ireland
185 (1%)Other EMEA
3,153 (18%)Asia Pacific
1,711 (10%)
Source: Form 10-K (FY2025) — Note 3, revenue by geographic area Attributed by where services are performed.
08
Contract structure
Short-term or spot sales carry different earnings quality than long-term or auto-renewing contracts — this shows how the company actually contracts with its customers.
Aon earns commissions and fees for brokerage and consulting. Revenue is recorded net of estimated policy cancellations and tends to be higher in the first and fourth quarters. Premiums and claims it collects for clients are held in a fiduciary capacity ($7.4B of funds at year-end 2025), and it earns interest on them.
Commercial Risk Solutions
$8,497M (49% of FY2025 revenue)
Typical term: Brokerage commissions and consulting fees
Organic growth 6%.
Reinsurance Solutions
$2,793M (16%)
Typical term: Treaty and facultative brokerage, advisory, capital markets
Organic growth 6%.
Health Solutions
$3,839M (22%)
Typical term: Benefits brokerage and consulting
Organic growth 5%.
Wealth Solutions
$2,068M (12%)
Typical term: Retirement and investment consulting, pension administration
Organic growth 5%.
Source: Form 10-K (FY2025) — MD&A, organic revenue growth table
09
Customers & suppliers
Who the company sells to and buys from. Companies rarely name either, so named counterparties come only from the company's own filings and press releases; otherwise this lists the concentration figures the 10-K discloses.
Customers
Businesses, insurers and reinsurers, employers, and pension plans across many industries worldwide.
Named by the company
None named in the 10-K or the company’s press releases.
What the filings disclose
- The largest single client accounted for about 1% of 2025 revenue. (Form 10-K (FY2025), Item 1)
- No insurance carrier received more than 10% of the total premiums Aon placed in 2025. (Form 10-K (FY2025), Item 1)
Suppliers
Insurance and reinsurance carriers that underwrite the risks Aon places.
Named by the company
None named in the 10-K or the company’s press releases.
10
Competitors & peers
Competitors the 10-K names, and the peer group the company itself chose in its proxy statement. Nothing here is this site's own pick.
Aon's 10-K describes a highly competitive and fragmented market. Competitors include other global brokers and consultants, insurers that sell directly, large financial institutions, and consulting firms tied to accounting, technology, HR, and financial services firms.
Competitors named in the 10-K
Global insurance brokerage and consulting
- Marsh & McLennan Companiessite ↗
- WTW (Willis Towers Watson)site ↗
- Arthur J. Gallaghersite ↗
- Locktonsite ↗
Plus numerous other global, regional, and local firms.
Peer group the company chose
2025 and 2026 executive compensation peer group, from the proxy statement. Peers are companies the board considers comparable — for example when setting executive pay — not necessarily direct competitors.
Global financial services and professional services firms that Aon competes with for executive talent or capital, sized from one-fourth to four times Aon's market capitalization and revenue.
- Accenturesite ↗
- Automatic Data Processingsite ↗
- BlackRocksite ↗
- BNY (Bank of New York Mellon)site ↗
- Cognizantsite ↗
- Equifaxsite ↗
- FIS (Fidelity National Information Services)site ↗
- Fiservsite ↗
- Arthur J. Gallaghersite ↗
- Marsh & McLennan Companiessite ↗
- Moody'ssite ↗
- Morgan Stanleysite ↗
- Northern Trustsite ↗
- S&P Globalsite ↗
- State Streetsite ↗
- WTW (Willis Towers Watson)site ↗
Insurance brokers also named as competitors in the 10-K
Source: Proxy statement (DEF 14A, filed 2026-04-28) — Peer GroupCompany names link to this site’s analysis where one exists; “site ↗” opens the company’s own website.
11
M&A history
Companies acquired over the last five years, plus older large acquisitions that still anchor a current business — what each was bought to do, and what happened afterward. From the 10-K, 8-Ks, and the company's press releases.
Aon has made two large U.S. middle-market broker acquisitions — NFP (2024) and USI (pending) — and sold most of NFP's wealth business.
Cash spent on acquisitions, FY2021–FY2025: $4.11B
Pending (agreed Aug 2026)
USI Insurance Services
$17.0B in cash ($16.7B net of about $278M of tax attributes)
The tenth-largest U.S. insurance broker, with about $3B of annual revenue in property and casualty, employee benefits, personal risk, and retirement.
- Stated purpose (company)
- To build a leading U.S. middle-market platform, expand access to the E&S segment, and enhance Aon's data platform.
2024
NFP
19.0 million Aon shares (recorded at $5.88B) plus cash; total net cash paid for 2024 acquisitions was $3.5B
A U.S. middle-market broker and advisor; Aon sold most of its wealth businesses (Wealthspire Advisors, Fiducient Advisors, Newport Private Wealth) in 2025.
- Stated purpose (company)
- Aon describes NFP as the base for its U.S. middle-market platform, which USI extends.
Source: Form 10-K (FY2025) — Statement of shareholders' equity; Liquidity and Financial Condition · USI press release (Exhibit 99.1, 8-K filed 2026-08-31)
USI closing is expected in Q4 2026, subject to regulatory approvals.
12
Five years of financials
Each chart's axis holds a single unit (never mixing dollars, %, and $/share). The table's per-period header links to the filing the numbers came from.
Revenue over time
Unit: $M
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-13
Profit over time (operating → net)
Unit: $M
- Operating income
- Pretax income
- Net income
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-13
Margins over time
Unit: %
- Operating margin
- Net margin
formulaoperating income ÷ revenue × 100
formulanet income attributable to the company ÷ revenue × 100
Cash flow over time
Unit: $M (below zero = cash went out)
- Operating CF
- Investing CF
- Free CF
formulacash flow from operations − capital expenditures
termsFree cash flow (FCF) · Cash flow from operations (operating CF) · Capital expenditures (capex)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-13
Financial stability & capital efficiency
Unit: %
- Equity ratio
- ROE
formulatotal equity ÷ total assets × 100 (as reported in the 10-K)
termsStockholders’ equity · Total assets
formulanet income ÷ average equity (beginning + ending, ÷2) × 100 (as reported in the 10-K)
termsNet income (attributable to the company) · Stockholders’ equity
Earnings per share (EPS) and dividend per share
Unit: $
- EPS
- Dividend per share
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-13
| Line item | FY202110-K on EDGAR ↗ | FY202210-K on EDGAR ↗ | FY202310-K on EDGAR ↗ | FY202410-K on EDGAR ↗ | FY202510-K on EDGAR ↗ |
|---|---|---|---|---|---|
| Income statement ($M) | |||||
| Revenue | 12,193 | 12,479 | 13,376 | 15,698 | 17,181 |
| Operating income | 2,090 | 3,669 | 3,785 | 3,835 | 4,344 |
| Pretax income | 1,931 | 3,156 | 3,169 | 3,462 | 4,759 |
| Net income (attributable) | 1,255 | 2,589 | 2,564 | 2,654 | 3,695 |
| Revenue growthcalc(this year’s revenue − last year’s revenue) ÷ last year’s revenue × 100 | — | 2.3% | 7.2% | 17.4% | 9.4% |
| Operating margincalcoperating income ÷ revenue × 100 | 17.1% | 29.4% | 28.3% | 24.4% | 25.3% |
| Net margincalcnet income attributable to the company ÷ revenue × 100 | 10.3% | 20.7% | 19.2% | 16.9% | 21.5% |
| Balance sheet ($M) | |||||
| Total assets | 31,917 | 32,704 | 33,959 | 48,965 | 50,784 |
| Total equity | 1,158 | -429 | -742 | 6,305 | 9,459 |
| Interest-bearing debtSum of short- and long-term borrowings, notes/bonds payable | 9,392 | 10,770 | 11,199 | 17,016 | 15,249 |
| Equity ratio | 3.3% | -1.6% | -2.4% | 12.5% | 18.4% |
| ROE | 118.3% | — | — | — | 47.8% |
| Cash flow ($M) | |||||
| Operating CF | 2,182 | 3,219 | 3,435 | 3,035 | 3,481 |
| Investing CF | 49 | -449 | -188 | -2,833 | 286 |
| Financing CF | -1,924 | -1,790 | -2,865 | 796 | -4,205 |
| Free cash flowcalccash flow from operations − capital expenditures | 2,045 | 3,023 | 3,183 | 2,817 | 3,218 |
| Cash and equivalents | 544 | 690 | 778 | 1,085 | 1,195 |
| Per share & other | |||||
| EPS ($) | 5.55 | 12.14 | 12.51 | 12.49 | 17.02 |
| BVPS ($) | 4.94 | -2.58 | -4.16 | 28.34 | 43.60 |
| Dividend per share ($) | 1.99 | 2.19 | 2.41 | 2.64 | 2.91 |
| Payout ratiocalcdividend per share ÷ diluted EPS × 100 | 35.9% | 18.0% | 19.3% | 21.1% | 17.1% |
| P/E (x) | 54.2 | 24.7 | 23.3 | 28.8 | 20.7 |
| EV/EBITDA (x)calc(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization) | 33.9 | 19.4 | 17.7 | 23.0 | 20.0 |
| P/B (x)calcP/E × EPS ÷ BVPS (= period-end share price ÷ book value per share) | 60.84 | — | — | 12.68 | 8.09 |
P/B and EV/EBITDA use each period’s period-end (fiscal year-end) figures, not the current share price. Figures without a "calc" tag are as reported in the Form 10-K (five-year selected financial data and the consolidated financial statements), pulled automatically from SEC EDGAR. Where a later filing restated a prior period, the restated figure is used.
13
Is ROIC above WACC?
ROIC (the return on money invested in the business) above WACC (the cost of raising that money) means the company is creating value. WACC is an estimate, so its assumptions can be adjusted below.
ROIC (FY2025)
14.3%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
e.g.$4,344M × (1 − 21%) ÷ $24,015M × 100 = 14.3%
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
WACC (this site’s estimate)
6.42%
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
e.g.Equity weight: $76.6B ÷ ($76.6B + $15.25B) = 83.4%
e.g.Debt weight: $15.25B ÷ ($76.6B + $15.25B) = 16.6%
e.g.WACC: 6.9% × 83.4% + 5.3% × (1 − 21%) × 16.6% = 6.42%
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
WACC 6.42% is this site’s estimate under the assumptions below (not a figure the company has published)
- Risk-free rate
- 4%
- β
- 0.52 (price-derived adjusted beta, but correlation with the market is low (R² 0.03), so reliability is limited)
- Equity risk premium
- 5.5%
- Cost of equity
- 6.86%
- Cost of debt
- 5.34%
- Effective tax rate
- 21%
- Capital structure (equity : debt)
- 83% : 17%
ROIC over time, vs. WACC
Unit: % — bars = each period's ROIC, horizontal line = latest WACC. Bars above the line are green, below are red
- ROIC (above WACC)
- ROIC (below WACC)
- WACC 6.42%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
Try different WACC assumptions
β and the equity risk premium are estimates with a real range of plausible values — move the sliders to check whether ROIC > WACC still holds. The defaults reflect 2026-09.
Initial β: 0.52 (price-derived adjusted beta. Raw β 0.29, R² 0.03, 130 weeks)
formula0.67 × β + 0.33 (β = the slope of weekly stock returns regressed on weekly market returns)
e.g.0.67 × 0.288 + 0.33 = 0.523
termsβ (beta)
Period 2024-04-12–2026-10-06, using S&P 500 ETF (SPY) as the market proxy. Source: Yahoo Finance price history.
formularisk-free rate + β × equity risk premium
e.g.4.0% + 0.52 × 5.5% = 6.9%
termsCAPM · Risk-free rate · β (beta) · Equity risk premium (market risk premium)
formulaP/E × net income ≈ period-end share price × shares outstanding (= market cap)
termsP/E · Net income (attributable to the company) · Market capitalization · Market value of equity
formulainterest expense ÷ interest-bearing debt × 100 (clamped to 0–10%; falls back to the risk-free rate if there’s no debt)
14
What the price implies (DCF)
A company's value can be written as its free cash flow divided by (cost of capital − perpetual growth). Working that backwards from the market's valuation shows how much growth the share price assumed — compared here with the company's actual past growth.
Growth the price implies (FY2025)
2.8%
Perpetual FCF growth: g = r − FCF ÷ EV = 6.4% − 3.6%
Past FCF growth (FY2021–FY2025)
+12.0%
Compound annual rate, 4 years
Past revenue growth (FY2021–FY2025)
+9.0%
Compound annual rate, 4 years
Inputs (FY2025): free cash flow $3.22B (operating CF − capex); enterprise value $89.05B = market cap $76.6B + debt $15.25B − cash and short-term investments $2.8B; r = WACC of 6.4% using this page’s default assumptions (β 0.52, risk-free 4.0%, market premium 5.5%).
Try your own assumptions
V = FCF ÷ (r − g). It starts at the implied growth rate, where the theoretical value equals today’s enterprise value.
Theoretical enterprise value
$89.39B
FCF $3.22B ÷ (6.4% − 2.8%)
Theoretical ÷ actual enterprise value
1.00x
Above 1x: these assumptions value the business above the market did
How sensitive the answer is
Theoretical ÷ actual enterprise value for each combination of r and g.
| g \ r | 4.4% | 5.4% | 6.4% | 7.4% | 8.4% |
|---|---|---|---|---|---|
| 0% | 0.82x | 0.67x | 0.56x | 0.49x | 0.43x |
| 2% | 1.51x | 1.06x | 0.82x | 0.67x | 0.56x |
| 4% | 9.03x | 2.58x | 1.51x | 1.06x | 0.82x |
| 6% | — | — | 9.03x | 2.58x | 1.51x |
| 8% | — | — | — | — | 9.03x |
A simplified model for seeing what the market price assumes, not a forecast or a target price. It treats free cash flow as growing at one constant rate forever; the result swings widely with small changes in r and g, and is undefined when g reaches r. Free cash flow here is operating cash flow minus capex, which is after interest — a full DCF of enterprise value would use cash flow before interest. Market cap and enterprise value use the fiscal year-end price, not today’s.
15
Earnings quality
The same reported profit can mean different things depending on whether it's backed by cash, driven by the core business, or the result of a one-off item. Four checks below.
- ✓
Operating CF ÷ net income: averages 1.28x
Profit is backed by cash coming in.
- ✓
Accrual ratio (latest): 0.4%
A small share of profit rests on accounting estimates.
- ✓
Core-earnings share (operating income ÷ pretax income): 91%
Most profit comes from core operations.
- ✓
Days sales outstanding: 93 → 89 days
No major slowdown in collecting on sales.
Operating CF vs. net income
Unit: $M — operating CF above net income means profit is backed by cash
- Operating CF
- Net income
formulacash flow from operations ÷ net income attributable to the company
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formula(net income − operating CF) ÷ average total assets × 100
termsNet income (attributable to the company) · Cash flow from operations (operating CF) · Total assets
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-13
Profit bridge (FY2025)
Unit: $M — what moved profit from operating income to net income
- Profit (each stage)
- Pushed profit up
- Pushed profit down
formulaoperating income ÷ income before income taxes × 100
termsOperating income · Income before income taxes (pretax income)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-13
Receivables & inventory days
Unit: days — days grow when receivables or inventory build up faster than sales
- Days sales outstanding
formulaperiod-end receivables ÷ revenue × 365
formulaperiod-end inventory ÷ revenue × 365
termsInventory · Revenue (net sales)
Worked examples (latest period)
formulacash flow from operations ÷ net income attributable to the company
e.g.$3,481M ÷ $3,695M = 0.94x
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formulaoperating income ÷ income before income taxes × 100
e.g.$4,344M ÷ $4,759M × 100 = 91%
termsOperating income · Income before income taxes (pretax income)
formulaperiod-end receivables ÷ revenue × 365
e.g.$4,209M ÷ $17,181M × 365 = 89 days
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Strengths & weaknesses
Strengths
1. Diversified, low-concentration client base
Aon's largest client accounted for about 1% of 2025 revenue, and no insurance carrier received more than 10% of the premiums Aon placed.
Evidence: Form 10-K (FY2025), Item 1
2. Steady organic growth
Organic revenue growth was 6% in both 2024 and 2025.
Evidence: Form 10-K (FY2025), MD&A
3. Asset-light cash generation
Operating cash flow of $3.48B against capital spending of $263M in 2025.
Evidence: SEC EDGAR XBRL
4. Long record of buybacks and dividends
Aon has repurchased 174.9 million shares for about $26.2B under its program; the dividend per share rose from $1.99 (2021) to $2.91 (2025).
Evidence: Form 10-K (FY2025); SEC EDGAR XBRL
Weaknesses
1. High leverage
Debt of about $15.2B at year-end 2025 against shareholders' equity of $9.4B; equity was negative at year-end 2022 and 2023 after years of buybacks. The USI deal adds $13.5B of notes and up to $4B of term loans.
Evidence: SEC EDGAR XBRL; 8-Ks filed 2026-09-17 and 2026-09-22
2. 2025 earnings lifted by a one-time gain
Net income included a $1.2B pre-tax gain on selling the NFP Wealth business.
Evidence: Form 10-K (FY2025), MD&A
3. Integration load
Aon is still integrating NFP (acquired 2024) and is now taking on USI.
Evidence: Form 10-K (FY2025), Risk Factors; 8-K filed 2026-08-31
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What draws investors to it
Why the stock can look attractive to investors — each point paired with what has to hold for it to stay true, and the opposing view. This is this site's analysis, not a recommendation to buy or sell.
P/E (FY2025)
20.7x
Price at fiscal year-end ÷ diluted EPS
Dividend yield (FY2025)
0.82%
Dividends per share ÷ fiscal year-end price
Payout ratio (FY2025)
17%
Dividends per share ÷ diluted EPS
FCF yield (FY2025)
4.2%
(Operating CF − capex) ÷ market cap
1. Steady fee and commission business
6% organic growth, a 25.3% operating margin, and a client base where no single client exceeds about 1% of revenue.
- What has to hold
- Insurance and benefits demand stays steady.
- The other side
- Debt rises sharply with the USI deal and buybacks pause.
Evidence: Form 10-K (FY2025); USI press release
2. Middle-market expansion
USI adds a large U.S. middle-market and E&S (excess and surplus) presence on top of NFP.
- What has to hold
- Synergies of about $395M are achieved.
- The other side
- A $17B integration so soon after NFP.
Evidence: 8-K filed 2026-08-31
Shareholders' equity was negative in 2022–2023, so ROE isn't shown for 2022–2024.
18
Resilience
How well the company could absorb a bad year: its financial buffer, how its revenue and profit held up in the worst year on record, and what the 10-K says about the business's exposure to shocks. Figures and filing statements only — no overall rating.
1. Financial buffer (FY2025)
Cash & short-term investments ÷ debt due within a year
4.8x
$2.8B vs. $589M
Interest coverage (operating income ÷ interest expense)
5.3x
$4.34B vs. $815M
Free cash flow ÷ dividends paid
5.1x
$3.22B vs. $629M (FCF = operating CF − capex)
2. Worst year in the record, and the recovery
| Figure | Worst year-over-year change | Back to the prior level? |
|---|---|---|
| Revenue | No decline in the record | — |
| Operating income | No decline in the record | — |
Covers only the 5 fiscal years on record (FY2021–FY2025), which may not include a full recession — the worst year here isn’t necessarily how the company would fare in a severe downturn.
3. Business resilience (from the 10-K)
Recurring broker revenue
Organic growth of 5–7% across all four solution lines in 2025.
Source: Form 10-K (FY2025), MD&A
Cash generation
Operating cash flow of $3.48B in 2025, up 15%.
Source: Form 10-K (FY2025), MD&A
Debt load
Debt of about $15.2B at year-end 2025, before $13.5B of new notes for USI.
Source: SEC EDGAR XBRL; 8-K filed 2026-09-17
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Risks (including geopolitical)
Starting from the 10-K's Risk Factors section, organized by category — geopolitical, currency, raw materials, regulatory, disaster, and more — with impact and likelihood assessed by this site.
Risk map
Vertical = impact on results, horizontal = likelihood. Upper right = most severe. Numbers match the list below (placement is this site’s own assessment).
Likelihood →
"Company disclosure" vs. "this site’s assessment"
The description and mitigation for each risk are this site’s summary of the 10-K’s "Risk Factors" section. Impact and likelihood are this site’s own assessment, not the company’s — where the company discloses its own likelihood assessment, that is noted in the summary.
Impact is judged from how large the affected business is relative to total revenue/profit, and from the risk’s track record of moving results in the past. Likelihood is judged from the filing’s wording and the current business environment (already occurring, or recurring).
- 1Competition & technology shift
Competitive, fragmented market
- Company disclosure (summarized from the 10-K)
- Aon competes with Marsh McLennan, WTW, Gallagher, Lockton, and many regional firms, as well as insurers selling directly and consulting firms.
- Company’s stated mitigation
- Global scale and data and analytics.
- This site’s assessment
- Impact Med / Likelihood High
- 2M&A & integration
USI acquisition
- Company disclosure (summarized from the 10-K)
- A $17.0B cash purchase subject to regulatory approvals; Aon targets about $395M of annual run-rate synergies and adjusted-EPS accretion in 2028.
- Company’s stated mitigation
- Experience integrating NFP; USI's CEO to lead Aon's middle-market business.
- This site’s assessment
- Impact High / Likelihood Med
- 3Funding & liquidity
Higher debt
- Company disclosure (summarized from the 10-K)
- New debt funds the USI deal; Aon says it will prioritize deleveraging and doesn't expect near-term share repurchases.
- Company’s stated mitigation
- Aon expects to keep its Baa2 (Moody's) and A- (S&P) ratings.
- This site’s assessment
- Impact Med / Likelihood Med
- 4Demand & macro
Insurance pricing cycles
- Company disclosure (summarized from the 10-K)
- Much of Aon's revenue is commissions paid out of the premiums insurers charge, and Aon has no control over premium rates, which move with pricing cycles. Lower fiduciary investment income also weighed on 2025 margins.
- Company’s stated mitigation
- Fee-based consulting in Human Capital.
- This site’s assessment
- Impact Med / Likelihood Med
20
What to watch going forward
- Closing and integration of USI (expected Q4 2026).
- Debt reduction after the USI financing.
- Organic revenue growth by solution line.
- Savings from the Accelerating Aon United Program ($450M annualized by end-2027).
- CFO transition (interim CFO since August 2026).
21
Source documents
This page's financial figures come from the Form 10-Ks listed below. Check the original filings for full detail.
Last updated
Analysis last edited: October 7, 2026 · Financial data fetched: October 7, 2026 12:16 (SEC EDGAR) · Source 10-K filed: February 13, 2026
Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
This page is this site’s own analysis based on public information, and does not represent Aon plc’s views. It is not a recommendation to buy or sell any security, and this site does not guarantee the accuracy of any figure or statement here. Always verify against the original source documents before making an investment decision.