Aon adjusted profit rises 10% on organic revenue growth

Aon plc (NYSE: AON) said on Oct. 28 that third-quarter adjusted earnings per share rose 10% to $3.36 from $3.05 a year earlier. That was in line with the $3.36 consensus estimate compiled by Finnhub.

Revenue rose 3% to $4.101 billion, in line with the $4.12 billion consensus estimate. Organic revenue growth, which strips out currency, acquisitions, divestitures and fiduciary investment income, was 6%, the company said in its earnings release for the three months ended Sept. 30.

The company, which serves clients in over 120 countries, reported diluted earnings per share of $2.23, up 6% from $2.11 a year earlier.

Here's how the company did:

• Adjusted EPS: $3.36 vs. $3.05 a year earlier, against the $3.36 consensus estimate compiled by Finnhub
• Revenue: $4.101 billion vs. $3.997 billion a year earlier, against the $4.12 billion consensus estimate compiled by Finnhub
• Diluted EPS: $2.23 vs. $2.11 a year earlier
• Operating income: $809 million vs. $816 million a year earlier
• Adjusted operating income: $1.106 billion vs. $1.051 billion a year earlier
• Free cash flow: $1.097 billion vs. $1.079 billion a year earlier

Segment results

Commercial Risk Solutions revenue rose 6% to $2.110 billion, with organic revenue growth of 7%, the company said. Within North America, the release cited strong growth in M&A services and U.S. core P&C.

Reinsurance Solutions organic revenue growth was also 7%, driven by treaty placements, the release said. Health Solutions revenue rose 6% to $992 million, with organic growth of 6%.

Wealth Solutions revenue fell 21% to $429 million from $540 million. The company attributed the decline mainly to the sale of the NFP Wealth business. Organic growth in the unit was 4%.

Costs and charges

Expenses for the Accelerating Aon United Program were $93 million, up from $32 million a year earlier, due primarily to costs related to workforce optimization. The release also cited $25 million of transaction costs tied to the USI acquisition.

The adjusted effective tax rate was 20.2%, compared with 19.2% a year earlier. Diluted weighted average shares fell to 213.0 million from 216.7 million. The company did not repurchase any shares in the quarter and had about $7.7 billion remaining under its repurchase authorization as of Sept. 30.

Acquisition and outlook

The company expects the USI acquisition to close in the fourth quarter of 2026. It will prioritize debt repayment, with a path toward deleveraging to its 2.8x-3.0x objective in about 24 months, the release said.

Currency translation had a $0.02 favorable impact on adjusted EPS in the quarter. If exchange rates stay at current levels, the company expects a de minimis impact in the fourth quarter and a favorable impact of approximately 42 cents per share on adjusted EPS for the full year 2026.

The release did not include a revised numerical full-year forecast.

“Our Aon United strategy continues to advance and differentiate our platform for clients,” said CEO Greg Case. “At the same time, we are strengthening our context advantage and expanding our ability to serve clients across a broader market through the announced acquisition of USI.”

Case added: “We enter the fourth quarter with significant momentum, reinforcing confidence in our ongoing ability to deliver sustained, differentiated performance.”