Aon reports strong Q2 growth with focus on NFP integration
From Investing.com: 2024-07-28 11:05:05
Aon plc reported a strong second quarter in 2024, with 6% organic revenue growth and significant contributions from the NFP acquisition. The company’s 3×3 plan is on track, focusing on Risk Capital and Human Capital solutions. Aon expects to deliver double-digit free cash flow growth and announced the appointment of a new CFO.
Key takeaways include 18% total revenue growth and $45 million in restructuring savings year-to-date. Aon’s adjusted operating income grew by 19%, with margins at 27.4%. The company is investing in talent and specialty areas like construction and energy, while NFP is expected to contribute $45-60 million in EBITDA in 2024. Adjusted EPS increased by 6% in Q2.
Aon is confident in its long-term prospects and plans to maintain elevated credit ratios for the next 12-18 months. The acquisition of NFP is expected to drive overall revenue growth, with a focus on mid-market acquisitions. Aon aims to enhance client experiences with new tools and analytics, focusing on sustained growth and results in 2024 and beyond.
With strong organic growth in Commercial Risk and global expansion, Aon is investing in energy, construction, and renewable energy sectors. The company’s Wealth business is performing well in the pension risk transfer market. Aon plans substantial share buybacks of $1 billion or more in 2024, with a commitment to delivering value to shareholders. The firm is set to capitalize on opportunities in the middle market and reinforce its M&A plan for continued momentum.
Aon’s strategic initiatives, including the integration of NFP and talent acquisition, set the stage for sustained growth. The company’s focus on delivering Risk and Human Capital solutions is supported by its strong financial performance. Headed by a new CFO, Aon remains committed to long-term growth and profitability, capitalizing on market trends and opportunities for expansion and innovation.
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