The following is a summary of the Aon Plc (AON) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Aon Plc reported Q1 2024 organic revenue growth of 5% leading to adjusted margin expansion and adjusted operating income growth of 8% and 9% respectively.

• The NFP acquisition for $13 billion is expected to increase free cash flows by $300 million in 2025 and $600 million in 2026, contributing to adjusted EPS from 2026.

• A share buyback of $1 billion was announced considering current M&A expectations for the year.

• This quarter saw a higher tax rate due changes in the geographical distribution of income and unfavourable discretes.

• In the NFP deal, Aon issued 19 million shares, with significant percentage going to the NFP management team. The average rate of interest is 5.7%, lower than the anticipated 6.5%.

Business Progress:

• The NFP acquisition expanded Aon's position in the $31 billion North American middle market.

• The NFP addition is expected to boost overall revenue growth organically and inorganically.

• Progress was noted in the 3x3 plan concentrating on Risk Capital and Human Capital, Aon client leadership, and efforts via Aon Business Services for the next three years.

• Despite U.S market pressures, growth was spotted in energy, construction and regional expansion into Continental Europe and Asia Pacific.

• The company anticipates annual margin expansion and consistent mid-single-digit organic growth from 2024 onwards.

• Aon's investment in transaction solutions and NFP integration is expected to extend market access and client base.

• Continued investment in technology is focused on Aon Business Services to enable future innovation and client growth.

More details: Aon PLC IR

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