Aon Q3 Earnings Beat Estimates on Reinsurance Solutions Strength

Aon plc AON reported third-quarter 2025 adjusted earnings of $3.05 per share, which beat the Zacks Consensus Estimate by 5.5%. The bottom line increased 12% from the year-ago period.

Total revenues rose 7% year over year to $4 billion. The top line surpassed the consensus mark by 1.4%. Organic revenue growth was 7%.

The strong quarterly results benefited from new business growth and solid retention rates in Aon’s solution lines. Its Risk Capital and Human Capital segments gained from organic revenue growth and net restructuring savings. However, the upside was partially offset by escalating operating costs.

Aon plc Price, Consensus and EPS Surprise

Aon plc price-consensus-eps-surprise-chart | Aon plc Quote

AON’s Q3 Operations

Total operating expenses of $3.2 billion increased 3% year over year due to higher expenses related to 7% organic revenue growth, and increased intangible asset amortization from the acquisitions and long-term growth investments. The metric was marginally lower than our estimate.

Adjusted operating income advanced 15% year over year to $1.1 billion and beat our estimate by 1.9%. The metric gained on the back of organic revenue growth and net restructuring savings. The adjusted operating margin of 26.3% improved 170 basis points year over year.

Q3 Segmental Performance

Risk Capital

Commercial Risk Solutions: Organic revenues grew 7% year over year in the third quarter, attributable to strength in core P&C operations, international growth and strong retentions. Revenues in this solution line were $2 billion, which advanced 7% year over year and beat the Zacks Consensus Estimate by 1.1%.

Reinsurance Solutions: Organic revenues improved 8% year over year on the back of a well-performing treaty business, higher facultative placements, strong retention and new business. Revenues increased 7% year over year to $537 million, which surpassed the consensus mark of $531.4 million.

Human Capital

Health Solutions: Organic revenues grew 6% year over year as a result of expansion in the core health and benefits business and strong talent analytics. The solution line’s revenues of $935 million climbed 7% year over year and beat the Zacks Consensus Estimate of $927.4 million.

Wealth Solutions: Organic revenues improved 5% year over year in the third quarter on the back of a strong Retirement business, which received an impetus from sustained advisory demand related to the impact of regulatory changes and growth in investments. Revenues grew 8% year over year to $540 million, driven by growth in NFP. The metric beat the consensus mark of $524.4 million.

AON’s Financial Position (As of Sept. 30, 2025)

Aon exited the third quarter with cash and cash equivalents of $1.1 billion, which rose 0.9% from the 2024-end level. Total assets of $51.6 billion increased from the $49 billion figure at 2024-end.

Long-term debt amounted to $15.1 billion, down from the 2024-end level of $16.3 billion. Short-term debt and the current portion of long-term debt totaled $1.7 billion.

Aon generated cash flow from operations of $1.1 billion in the third quarter, which rose from $1 billion a year ago. Adjusted free cash flows grew 13% year over year to $1.1 billion.

Aon’s Capital Deployment Update

Aon bought back 0.7 million class A ordinary shares for roughly $250 million in the third quarter. A leftover capacity of around $1.6 billion remained under its repurchase authorization as of Sept. 30, 2025.

AON’s Forward View Reaffirmed

Revenues are still expected to register mid-single-digit or higher organic growth for 2025 and beyond. The company expects the adjusted operating margin to expand in 2025. It also estimates adjusted EPS to witness strong growth this year. Free cash flow is still projected to witness double-digit growth in the long term.

The Aon United Restructuring program is likely to enable the company to achieve total annual run-rate savings of approximately $350 million by the end of 2026. It was earlier projected to achieve $260 million in cumulative annual savings in 2025.

AON’s Zacks Rank

AON currently carries a Zacks Rank #3 (Hold).

Upcoming Earnings Releases

Here are three companies from the Finance space that are likely to report their respective quarterly earnings soon.

EverQuote, Inc. EVER has a Zacks Rank of 2 (Buy) at present. The Zacks Consensus Estimate for EVER’s bottom line for the to-be-reported quarter is pegged at 37 cents per share, indicating 19.4% year-over-year growth. EverQuote’s earnings beat estimates in each of the past four quarters, with an average surprise of 44.2%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Robinhood Markets, Inc. HOOD has a Zacks Rank of 3 at present. The Zacks Consensus Estimate for HOOD’s bottom line for the to-be-reported quarter is pegged at 51 cents per share, indicating 200% year-over-year growth. Robinhood Markets’ earnings beat estimates in three of the past four quarters and missed once, with an average surprise of 19.5%.

American International Group, Inc. AIG currently has a Zacks Rank #3. The Zacks Consensus Estimate for AIG’s bottom line for the to-be-reported quarter of $1.68 per share indicates 36.6% year-over-year growth. It remained stable over the past week. American International Group’s earnings beat estimates in each of the last four quarters, with an average surprise of 9.5%.

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