Note: This is an earnings call transcript. Content may contain errors.

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Date

Friday, October 31, 2025 at 8:30 a.m. ET

Call participants

Chief Executive Officer — Gregory Clarence Case

Chief Financial Officer — Edmund J. Reese

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Takeaways

Organic Revenue Growth – 7%, with all solution lines reporting at least 5% growth and two lines achieving 7% or higher.

Total Revenue – $4 billion total revenue, up 7% year over year.

Adjusted Operating Margin – Adjusted operating margin expanded 170 basis points to 26.3%, driven by operating leverage and ABS.

Adjusted EPS – Adjusted EPS was $3.05, representing 12% adjusted EPS growth.

Revenue-Generating Talent – Up 6% net year to date; these new hires are expected to contribute 30–35 basis points to full-year organic revenue growth.

Capital Return – $411 million returned to shareholders; on track to reach $1 billion for full-year 2025 through share repurchases.

Leverage Ratio – Decreased to 3.2x, with a target of 2.8x–3.0x by the fourth quarter of 2025;

NFP Wealth Sale – Closed, providing over $2 billion in proceeds and having an “immaterial impact on 2025 earnings growth,” according to Reese.

EBITDA from M&A – $32 million in EBITDA from NFP middle market acquisitions in the first nine months of 2025, expected to reach $35–$40 million in acquired EBITDA by year-end 2025.

Margin Drivers – Four contributors—NFP, fiduciary investment income, restructuring, and operating leverage—are all in line with management guidance for fiscal year 2025.

Fiduciary Investment Income – $75 million fiduciary investment income, down 12% versus the prior year, attributed to lower rates despite higher balances versus the prior year.

Q3 Tax Rate – 19.2%, with a full-year expectation of 19.5%-20.5% for fiscal year 2025.

Segment Highlights – Commercial risk grew 7% organically (including double-digit growth in U.S. P&C and construction); reinsurance organic revenue up 8% (with double-digit facultative and Strategy & Technology Group growth); health organic revenue growth up 6%; wealth up 5% (projected 1%–2% in the fiscal fourth quarter due to U.S. advisory slowdown and NFP wealth sale).

Retention – Remained strong, supporting ongoing growth and stable client relationships.

Guidance Reaffirmed – 2025 outlook maintained: mid-single-digit or greater organic revenue growth, 80–90 basis point margin expansion for full-year 2025, 7%–9% adjusted EPS growth expected in the fiscal fourth quarter, and double-digit free cash flow growth for full-year 2025.

Data Center Opportunity – Cited $2 trillion in expected global CapEx over the next several years, with over $10 billion in new insurance premium volume expected for 2026 alone.

New Business Contribution – 11 points contributed to organic revenue growth in the fiscal third quarter, equally from new wins and expansion with existing clients.

Restructuring Savings – $35 million realized in the fiscal third quarter; $150 million targeted for full-year 2025; $350 million run-rate savings expected by 2026.

Interest Expense – $206 million interest expense, Interest expense was $7 million lower year over year; guidance is approximately $200 million for the fiscal fourth quarter.

Other Expense – $13 million, versus a $33 million benefit in the fiscal third quarter of 2024, with fiscal fourth quarter 2025 guidance of $25–$30 million expense.

Global Insurance Capacity for Data Centers – Recent program placed nearly $30 billion in coverage for a leading global developer, cited by Case as evidence of execution.

ABS Platform Impact – Attributed to both scale improvements and margin expansion across businesses.

Summary

Aon (AON +5.08%) highlighted broad-based organic revenue growth and adjusted operating margin expansion, confirming strong business execution and progress on its 3x3 plan, as well as continued investment in client-facing talent. Management emphasized a transformed capital position through the NFP wealth divestiture and active debt reduction, which supports increased flexibility for both acquisitions and shareholder returns. The company specifically called out large-scale opportunities tied to multiyear trends in data center infrastructure and new coverage innovation, signaling sustainable drivers for future insurance premium growth.

CEO Case identified strategic client wins that replaced legacy relationships and expanded global benefits, “demonstrate the impact of our differentiated strategy.”

Case referenced the shifting risk environment, citing the Global Risk Management Survey, noting that “Trade and geopolitical volatility entered the top 10 global risks for the first time in nearly two decades.”

Reese explicitly stated that Growth was broad-based, with each solution line achieving 5% or better. reinforcing the underlying momentum.

Commercial risk results were described as deriving from durable, client-led growth drivers, and not isolated or one-off wins.

Net new business accounted for 5 points of organic revenue growth, while net market impact contributed just over 1 point; pricing pressure in property was offset by increased limits and cyber line expansion.

Health solutions organic performance was attributed to analytics-led expansion, with management emphasizing new business growth over positive market impact from cost trends.

Guidance for full-year margin expansion, EPS growth, and double-digit free cash flow was reaffirmed, with the NFP wealth sale described as having “an immaterial impact on 2025 earnings growth,” according to Edmund J. Reese.

Industry glossary

ABS (Aon Business Services): Aon’s proprietary platform enabling analytic scale, operational leverage, and integrated client solutions across risk and human capital segments.

NFP: Acquired middle-market U.S. risk and wealth platform, integrated and referenced as a driver for both acquisition synergies and divestiture proceeds.

Facultative Placement: Reinsurance contracted for specific individual risks, as opposed to automatic or treaty reinsurance for a portfolio.

STG (Strategy & Technology Group): Specialized Aon segment focused on advanced analytics and bespoke risk placement solutions, especially within reinsurance.

Full Conference Call Transcript

Gregory Clarence Case: Thank you, and good morning, and welcome to our third quarter earnings call. I’m joined today by Edmund Reese, our CFO. The financial presentation, which Edmund will reference in his remarks, is posted on our website. To begin today, we want to recognize the great trauma and suffering resulting from Hurricane Melissa. We’re thinking about everyone affected by this terrible catastrophe, and we feel very, very humble and hopeful that the work Aon undertook with the World Bank to arrange a cap on for the government of Jamaica will help accelerate and support recovery.

Turning now to Aon, our third quarter results reflect another quarter defined by continued acceleration of our Aon United strategy, great progress executing our 3x3 plan and financial model, and ongoing momentum as we head into the final months of the year. Our focus on execution is translating into value delivery to our clients, while at the same time producing results for our firm and strong financial performance. We’re winning more in the core by deepening relationships with existing clients through data-led solutions, capturing demand in existing markets by developing new capabilities for emerging risks, and creating demand in new categories by innovating unique capital solutions.

We’re strengthening our clients’ insurance programs to ensure they’re positioned well for the future with enhanced coverage and limits. Let’s start with a look at our third quarter highlights. We delivered another strong quarter of financial results, highlighted by 7% organic revenue growth, a 26.3% adjusted operating margin, and 12% adjusted EPS growth, which keeps us on track to achieve our full-year objectives. Our continued success in winning new business and deepening client relationships reflects the strength of our risk capital and human capital capabilities powered by ABS. Simply put, our analytic capabilities enable smarter and faster decisions for clients, which, when coupled with our advisory expertise, helps clients capture greater opportunity.

While any firm can point to client wins, two highlights from this quarter truly demonstrate the impact of our differentiated strategy. The first example demonstrates how our advanced analytic capabilities were critical in securing our appointment as the captive insurance partner for a leading global logistics company, replacing a competitive relationship that spanned decades. Our ability to deliver global expertise with local leadership provided the client with relevant insights into captive management and the risk capital structure, making Aon the clear choice. In the second example, by demonstrating our distinctive client service and enterprise mindset to the enterprise client group, we not only retained but expanded our benefits work with a longstanding financial services client in an intensely competitive process.

We leveraged deep industry knowledge in governance, risk management, and employee experience, and this resulted in securing global benefits across new and existing geographies: U.S., HMB, and Total Benefits Administration. Our proactive approach, combining innovation, analytics, and advisory, continues to deliver measurable impact and position us for sustained success, as our solutions have never been more relevant for clients. Our latest 2025 Global Risk Management Survey revealed a significant shift in the risk landscape and how decision-makers are thinking about risk. Trade and geopolitical volatility entered the top 10 global risks for the first time in nearly two decades, reflecting growing global uncertainty.

At the same time, climate risk and natural disasters also reached their highest-ever rankings, underscoring the need for resilience in a world where severe weather events are driving up costs, and workforce-related risks continue to have a growing impact on how employers manage affordability, access, and productivity. In addition, advancements in AI are surging demand for cloud infrastructure and are fueling unprecedented investment in data center construction, with CapEx estimated to exceed $2 trillion globally over the next several years. These technological developments are not only reshaping physical infrastructure but also amplifying cyber and operational risk. Active risk management in this area has become a strategic necessity, and traditional approaches alone aren’t sufficient to cover this risk.

With connected risk capital and human capital capabilities, we’re truly uniquely positioned to guide clients through a complex environment, access capital, unlock value, and build resilience. As we review our performance this quarter, several strategic milestones demonstrate progress on our 3x3 plan. These achievements are the direct result of our team’s dedication, collaboration, and focus on advancing priorities. First. Talent remains a significant driver of sustained growth, and the competitive environment for attracting and retaining top performance is as intense as ever. No company is immune, which makes it essential to stay focused and deliberate in our approach.

In this environment, our platform is a unique advantage in attracting talent and helping client-facing talent win more business and retain clients, especially in priority areas like construction, energy, and health. Revenue-generating talent is up 6% net year to date, reflecting our strong position and differentiated capabilities. We have a great team, and we remain focused on continuing to strengthen it. Second, our enhanced capital strength gives us greater flexibility to execute our capital allocation strategy with discipline and precision. We’ve invested the NFP wealth business, an asset better suited to an owner prepared to make the capital investment required for long-term growth.

At the same time, we remain highly committed to our core wealth and retirement offerings, which represent key components of our human capital value proposition. Also, during the quarter, NFP closed more than $10 million in acquired EBITDA as part of programmatic M&A. We have a great pipeline of high-return middle-market opportunities, and our improved capital position reinforces our commitment to long-term strategic investment and shareholder returns. Finally, equipped with better data and analytics built from years of investment, we’re mobilizing capital into the industry, particularly to address the rapid expansion of data center construction driven by AI and cloud infrastructure adoption. As highlighted earlier, the opportunity here is monumental.

Data center CapEx increased 50% in 2024 and is expected to increase significantly over the next several years as trillions of dollars of CapEx go into the construction of these facilities. Near term, we estimate data center demand could generate over $10 billion in new premium volume in 2026 alone. Our globally aligned risk capital and human capital teams are helping clients navigate this transformation and support stakeholders across the value chain, from technology companies to contractors and operators to capital providers, each with unique insurance needs given their role in the data center development. While still early days, we’re excited by the specific accomplishments that showcase our ability to help clients navigate this transformational opportunity.

We recently became the risk partner for a leading global engineering-focused insurer with a mission to work with them to build a significantly greater level of insurance capacity. This work complements the launch of our data center lifecycle insurance program, a proprietary multi-line insurance facility that consolidates coverage for construction, cargo, cyber, and operational exposures, and offers clients end-to-end risk management and insurance solutions. We’re also working to support resilient design and engineering from the outset of these projects to optimize the industry’s ability to provide the limits necessary for hyperscaler data center development and management of accumulation risk.

Another example of how our global distribution analytics and expertise in both traditional and alternative risk transfer is already delivering results is a recent client win where we placed nearly $30 billion in coverage for a top global hyperscaler data center developer for operational data centers and data centers under construction. This is just the beginning. Overall, we accomplished a lot this quarter, and there’s a lot to be energized by going forward. Our results and the momentum we have going into the final months of the year give us confidence in reaffirming our 2025 guidance. Let me conclude with two points.

First, our Aon United strategy, accelerated through the 3x3 plan and the strength of our financial model, are generating strong results today and building momentum for future success. Our unique capabilities and integrated solutions have never been more relevant to clients as we help them reduce volatility, protect their assets, and grow their businesses. We’re attracting exceptional talent to strengthen our great team, delivering innovative new solutions with unmatched data and insights, and building and deepening client relationships. We’re winning more in core markets, capturing new demand in existing markets, and creating new demand in new categories. Finally, and most important, to our over 60,000 colleagues around the world, thank you.

Thank you for your commitment to our clients, to each other, and to our Aon United strategy. Your dedication is the driving force of our firm. Now, let me turn the call over to Edmund for his reflections on the quarter and outlook for the year. Edmund.

Edmund J. Reese: Thank you, Greg, and good morning, everyone. I’m excited to be here to discuss our third quarter results, which mark another quarter of disciplined execution on our 3x3 plan and financial model. To frame our discussion, let me highlight the most important factors shaping our third quarter performance. First, our Q3 performance demonstrates continued momentum across the key drivers of sustainable top-line growth. Our investment in revenue-generating talent, enhanced by ABS, and our continued expansion in the middle market is translating into strong organic growth. Organic revenue growth of 7% in Q3 serves as another proof point in our ability to execute on each of these drivers, keeping us in line with or ahead of industry performance.

Second, we continue to deliver scale improvements in operating leverage through ABS, while also investing in talent and capabilities that deepen client engagement and drive new business. We again delivered in Q3, expanding margins over 100 basis points and increasing our revenue-generating hires by 6%. Third, our enhanced earnings power, disciplined portfolio management, and strong free cash flow generation, up 13% in the quarter, have strengthened our capital position. Through three quarters in 2025, we have reduced debt and remained on track to achieve our leverage objectives. We closed $32 million in EBITDA for middle market acquisition and returned $1.2 billion in capital to shareholders through dividends and share repurchases.

Our strong capital position empowers us to pursue high-return inorganic investments, further accelerating and supplementing our organic growth momentum. Collectively, these three components—momentum on the growth drivers, accelerated scale benefits through ABS, and a robust capital position—are delivering growth today and setting the foundation for future performance. We continue to invest in capabilities and innovate capital solutions that create even greater value for our clients. This gives us confidence not only in achieving our 2025 guidance but also in the upside potential of sustaining top-line growth and delivering double-digit free cash flow beyond 2025. Turning to the quarter’s results, organic revenue growth was 7% and total revenue increased 7% year over year to $4 billion.

Adjusted operating margin expanded by 170 basis points over last year and reached 26.3%. Adjusted EPS was $3.05, and finally, free cash flow increased 13%. Let’s get into the details of these results, starting with organic revenue growth on slide six. Organic revenue growth was 7% in the quarter, in line with our mid-single-digit or greater guidance range. Growth was broad-based, 5% or better in each solution line, with two of our solution lines delivering 7% or greater. A strong result achieved despite pricing pressure in certain products and geographies, underscoring the contribution from new business and continued high retention.

In commercial risk, 7% organic revenue growth reflected strong performance in our core P&C business globally, including double-digit growth in the U.S. with meaningful contribution from the middle market through NFP, and continued strength in EMEA. M&A services continued to grow at a double-digit level, and this contribution provided an incremental lift. Construction also delivered double-digit growth, driven by demand from large-scale global infrastructure projects, including data center builds for major tech companies, reinforcing this category as a strategic priority. Reinsurance delivered 8% growth, driven by treaty placements and double-digit growth in facultative placements and the strategy and technology group. Insurance-linked securities also had significant growth but off a smaller baseline.

While July 1 treaty property renewal rates were softer, this was balanced by higher limits and ongoing strength in international facultative markets, especially in EMEA. Demand for STG analytics remained high, underscoring our platform’s increasing importance in supporting clients as they navigate volatility and match capital to risk. Health solutions grew 6% this quarter, benefiting from data analytics-driven sales in our talent business and new business in our core health and benefits offerings across the U.S. and EMEA. As Greg mentioned, we continue to leverage our analytics and advisory capabilities to support employers as they navigate rising healthcare costs and achieve better outcomes for their workforces. Finally, wealth generated 5% growth.

The performance reflects strength in advisory work in the U.K. and EMEA related to ongoing regulatory change, partially offset by softer advisory demand in the U.S. Additionally, the NFP contribution was meaningful, driven by asset inflows and market performance. Importantly, for modeling purposes, I will add that we expect wealth growth in Q4 to be 1% to 2%. Impacted by delays in U.S. advisory work and the sale of the faster-growing NFP wealth business, which closed yesterday. Let me take a moment to walk through the key components of our Q3 organic revenue growth on slide seven. In Q3, we extended our consistent track record of strong new business generation to drive organic growth.

For the second consecutive quarter, new business contributed 11 points to organic revenue growth with balanced contributions from both expansion with existing clients and new client wins. Our investments in revenue-generating talent, particularly in high-growth sectors like construction and energy, continue to deliver measurable impact. We remain proactive and on the front foot in attracting top talent. Our revenue-generating hires are up 6% year to date. Importantly, we’re already seeing these new colleagues make contributions to new business growth as the 2024 hiring cohort continues to ramp. We are confident this group will contribute 30 to 35 basis points to full-year organic revenue growth, leveraging advanced analytics and client engagement tools through Aon Business Services.

The 11-point contribution from new business this quarter underscores the effectiveness of our investment in client-facing talent. We expect continued momentum as the 2024 cohort seasons and the 2025 hires continue to onboard. Q3 2025 retention remains strong year over year, reflecting the continued strength and stability of our client relationships, supported by investments in enhanced service delivery, innovative capabilities, and Aon client leadership. Net new business contributed 5 points to organic revenue growth in the quarter. Net market impact, which captures the impact of rate and exposure, contributed just over 1 point to organic revenue growth, consistent with our 0 to 2-point estimated range.

Rate pressure on property within commercial risk was offset with limit and coverage increases across cyber and other financial lines. Reinsurance net market impact was flat as rate declines and higher retentions were mitigated by increased limits and facultative growth. Health solutions continued to benefit from our ability to support clients managing rising healthcare costs, providing a significant contribution to net market impact. One final point on revenue. Third quarter fiduciary investment income was $75 million, down 12% versus the prior year. While average balances increased, lower interest rates more than offset that benefit. On slide eight, adjusted operating income increased 15% to $1.1 billion, and adjusted operating margin expanded 170 basis points to 26.3%.

These results reflect strong top-line growth and the operating leverage in our business, powered by ABS, giving us capacity to fund growth investments in client-facing talent and middle market while still expanding margins. When we provided full-year guidance, we highlighted four components that would impact 2025 margin expansion: NFP, fiduciary investment income, restructuring, and operating leverage. All four remained fully in line with our expectations. We have now fully lapped the headwind on margin from NFP, and we are on track to meet our $30 million OpEx synergies target, resulting in a net 20 basis point headwind from NFP for the year.

While the outlook for U.S. interest rate cuts has shifted from two at the start of the year to three in the latest dot plot, the delayed timing of the first rate cut from June to September effectively offsets the additional reduction, and the margin impact from fiduciary investment income remains unchanged at 20 basis points. Restructuring savings totaled $35 million in the quarter, contributing approximately 90 basis points to adjusted operating margin. We remain firmly on track to deliver $150 million in restructuring saves for the full year and advancing toward our $350 million run rate savings target by 2026.

With ABS-driven scale improvements and strong execution year to date, we remain confident in delivering full-year margin expansion of 80 to 90 basis points, aligned with our long-term financial model. Moving to interest, other income, and taxes on slide nine, interest income was negligible in the third quarter and $4 million lower than last year. Interest expense came in at $206 million, $7 million lower than last year, primarily due to lower average debt balances. We expect Q4 interest expense to be approximately $200 million.

Other expense was $13 million versus a $33 million benefit in Q3 2024, which included gains from the divestment of non-core personal lines and real estate advisory assets, partially offset by the remeasurement of balance sheet items and non-functional currencies. We estimate Q4 2025 other expense to range between $25 million and $30 million. Finally, the Q3 tax rate was 19.2%. Our full-year tax outlook remains unchanged at 19.5% to 20.5%. Turning now to free cash flow and capital allocation on slide 10. We generated $1.1 billion of free cash flow in the third quarter. Year to date, free cash flow of $1.9 billion is up 13% year over year.

As we complete the NFP integration, we continue to expect strong adjusted operating income, including contributions from NFP, and ongoing working capital improvements to drive double-digit free cash flow growth in 2025. Turning the capital on the right-hand side of the page, I noted earlier that we closed the sale of NFP wealth. With over $2 billion in proceeds, the transaction significantly strengthens our capital position. We approach the final months of the year in an even greater position of capital strength with enhanced flexibility. Importantly, we remain disciplined in allocating capital, balancing opportunities that meet our strategic and financial growth priorities with capital return to shareholders. This discipline reinforces our commitment to creating long-term shareholder value.

We continue to execute our capital allocation model in Q3 2025. We reduced our leverage ratio to 3.2 times in Q3, remaining on track to reach 2.8 times to 3.0 times by the fourth quarter of 2025, consistent with our stated objective. We continued our programmatic tuck-in acquisitions, including middle market deals through NFP. Through nine months, NFP has closed $32 million of EBITDA. Following the NFP wealth sale, we expect to close $35 million to $40 million in acquired EBITDA by year-end. The pipeline remains strong, primarily composed of U.S. P&C opportunities. Finally, we returned $411 million to shareholders in the quarter, including $250 million in share repurchases.

With $750 million repurchased year to date, we remain on track for $1 billion in capital return through share repurchases for full-year 2025. Enabled by our high free cash flow generation, these actions demonstrate our disciplined capital allocation, reducing leverage, investing in high-return growth opportunities, and delivering meaningful capital return to shareholders. I will conclude my prepared remarks on slide 11 with our 2025 guidance and some forward-looking perspective on our growth objectives. We are reaffirming our full-year 2025 guidance, including organic revenue growth, mid-single digit or greater, capturing the impact of our growth investments. Second, margin expansion, 80 to 90 basis points, including $260 million in cumulative annual savings from our Aon United Restructuring Initiative.

Next, strong earnings growth supported by the scale improvements from ABS. I’ll also note two additional points related to earnings. First, the sale of NFP wealth is expected to have an immaterial impact on 2025 earnings growth. Second, we continue to expect an effective tax rate of 19.5% to 20.5% for the full year. For modeling purposes, we are estimating 7% to 9% adjusted EPS growth in Q4 2025. Finally, free cash flow. Double-digit growth in 2025, demonstrating our ability to consistently convert our strong earnings into capital for investment and shareholder return. We enter the final stretch of the year with strong momentum, executing our 3x3 plan and financial model to deliver results today.

At the same time, scale improvements enabled by ABS. The cumulative impact of our growth investments and our capital capacity are strengthening the foundation for future performance, positioning us for sustainable top-line growth and consistently strong earnings growth. This powerful combination gives us high conviction in our ability to create long-term value for shareholders. With that, let’s open the line for questions. Daryl, I’ll turn it back to you. Thank you. We will now be conducting a question-and-answer session. If you would like to ask a question, please press Star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press Star 2 to remove yourself from the queue.

For participants using speaker equipment, it may be necessary to pick up your handset before pressing the Star keys. We ask that you please limit yourself to one question and one follow-up question.

Robert Cox: Our first question has come from the line of Robert Cox with Goldman Sachs. Please proceed with your questions. Hey, thanks. Good morning. This first question on talent. The revenue-generating hires were up 6%, and it sounds like you’re executing on that. 40 basis point contribution to organic growth here in the back half of the year. If we start thinking about stacking the benefits from the 2024 hiring and 2025 cohorts, does that get us to something like roughly 80 basis points in 2026? Good morning, Rob, and thank you for the question. Before even getting directly to the answer, the first thing, and Greg may comment on this, is that you see the headlines across our industry.

It’s clear that competitors are aggressive in their recruiting efforts. Given the expertise and attractiveness of our talent, we’re not immune to that. We continue to be super high-focused on the investments right now. As I said in my prepared remarks, I think we’re on the right foot. Through nine months, 6% increase in revenue-generating hires. That’s right in line with the 4% to 8% that we communicated during investment days. To your question, they are contributing right in line with our expectations on the full-year 30 to 35 basis points. There will be a cumulative impact when these 2024 cohorts ramp up. As I said in my prepared remarks, the 2025 hires are also coming on board.

We’ll give specific guidance on the contribution from those hires when we come back into Q4 and talk about 2026. The key point for us right now is that is a significant contributor to the 11 points of new business contribution to organic revenue growth. They’re performing right in line with our expectation in terms of incremental revenue and ramp-up time. There will be a cumulative impact. We’ll give the results of that and an outlook on that when we get into 2026 guidance on Q4. Make no doubt about it, the investments in these client-facing talent is a key part of the growth strategy, particularly in the market that we have now. Thank you. That’s helpful.

I just wanted to follow up on commercial risk specifically and the U.S. business. Core P&C. It feels like the double-digit growth is significantly in excess of what some of your peers are reporting. I just wanted to flush out what you might attribute that excess growth to. I know you talked about data centers, construction, and talent. I also just wanted to ask if that result was flattered at all by multi-year policies. Robert, appreciate the question. Listen. Think about the growth result. This is continued progress. Continued progress. We’re halfway through the 3x3 plan, fully executed against it.

When you think about what we bring to the table with risk capital and human capital, and then very substantially reinforced with Aon Business Services, remember, these are the set of analyzers, risk tools that help clients make better decisions by driving revenue, also retention. Obviously, you have some benefits from the cost side too, but really it’s around client impact. You’re seeing these results. By the way, you’re not just seeing it in the U.S. It’s really globally and contributes to Edmund’s commitment around what we’re going to be able to achieve each and every year around mid-single digit or greater. This is really what you’re seeing.

I want to be clear, it really is just part of the day-to-day. There really isn’t anything that we would highlight. We talk about M&A services. It was progress, but it did not drive the result. The results were driven fundamentally by what we were doing day-to-day with clients. We did it, I would just also highlight, in the face of all that’s going on in the overall marketplace. We’ve talked time and time again about the fact that this is not about unit pricing in specific areas. I’m sure we’ll talk about pricing before we end the call today. It’s not about that.

It’s really about my client impact and our ability to take analytics with our great team in place and do things that really have a meaningful impact. That’s really what’s driving growth. It’s driven the growth in the U.S., but also driving growth in the same respect around the world. Greg’s exactly right, Rob. We’re pleased but not surprised by the strength in the commercial risk growth in Q3 because it’s being driven by specific actions that we’re taking, durable growth drivers. We talked about 11 points of contribution at the company level, but within commercial risk itself, it was 11 points of contribution from new business. The retention was better year over year.

That’s driven by what Greg just talked about, the analyzers helping us win RFPs by ECG, our enterprise client group, and the tools that we have in ABS. The outlook and the results in this quarter remain strong as we continue to have the hires in construction and energy as clients increase limit and add coverages. We’re going to continue to be focused on net new business plus retention and the investment in the specialty hires and giving them, equipping them with analytical tools that help them win new business. That’s what drove it in Q3 within the U.S., but as Greg said, globally. That’s what gives us confidence in our mid-single digit guidance going forward. Great.

Thanks for all the color.

Andrew Kligerman: Our next question has come from the line of Andrew Anderson with Jefferies. Please proceed with your questions. Hey, good morning. Just look at health solutions, 6% organic, really strong and has been for a couple of years now. You listed a few drivers there of the organic input positive market impact kind of last there. I would think that is one of the bigger drivers. Maybe you could just help us break down between net new business, retention, and market impact. Yeah. I mean, you’re right. There was an impact from net market impact as you continue to see healthcare costs rising, but make no doubt about it.

Health is actually one of the largest parts of our portfolio when it comes to new business contribution. Expansion with existing customers. Greg actually called out an example on the call of expansion with existing customers coming in through new business. In the quarter, you had the strength from our talent analytics business. Our data continues to be seeing high demand. Our core health business had strong growth in the MEA and U.S. as well. The market’s attractive right now for these solutions, and the macro factors are having an impact. You are seeing a positive net market impact. Without a doubt, I have to highlight that it is new business that’s driving this, primarily expansion with existing customers.

Andrew, I just want to add, if you think about where we are in terms of continued progression, as we began the 3x3 plan and thought about the areas we could beat in, each one of them had a set of characteristics which for us suggested our ability to grow, and those were going to be very, very strong. Health is exactly in that wheelhouse. Think about it. This is 20+% of the U.S. economy, as an example, and growing at 9% to 10% a year. It’s a tremendous burden on companies as they think about supporting their employees and their families from a health standpoint. What we bring to the table is unique in content and capability.

Just look at we recently published a set of analytics never been seen before around overall population health and the impact of the GLP-1 medications in that context, demonstrating that you might be able to say something we’ve never been able to say before, which is we can potentially improve population health and bend the curve. That kind of opportunity for us, we’re incredibly excited about. We’re just beginning to sort of tap that thread. For us, we love this category like we do across the risk side as well and the retirement side. You’re right, a lot of progress here, and we’ll continue to take steps to build the business. Thanks.

Reinsurance, just as we, I realize 3Q is a little bit of a lighter quarter, but as we kind of shift towards 2026, how are you kind of seeing the reinsurance pricing environment and maybe just some color on demand changes? Listen, overall, Edmund can comment on. A little bit from that standpoint. Listen, again, think about overall demand and supply. Demand, when you think about what’s going on in the world these days, greater and greater risk. There is absolute pressure on a unit price basis, as we’ve talked about, particularly on the property side, and you’re seeing that really across the board. Think about how we react.

We react on a client level, and we’re essentially helping clients understand how to mitigate risk on a much broader, even a much broader scale. This isn’t just traditional treaty and facultative. Think about insurance-linked securities. I started off with the obvious tragedy and the catastrophe in Jamaica and then talked about how we brought capital in to try to do something about that. We’ve done now. We’re going to do well over close to 150 or greater cap bonds or parametric instruments for companies in addition to insurers. This is really the opportunity to bring more capital in to support an environment which is demanding it.

What we described on the hyperscalers, this is an opportunity to truly address a level of opportunity that we haven’t seen before. It’s truly unique. Think about $2 trillion of investment, and that’s just the operating investment. Sorry, the build investment doesn’t even get to the operating investment or the innovation investment, which happens over time. For us, the content and capability we have and such an extraordinary group on the reinsurance side in the context of reinsurance and risk capital with our commercial risk capabilities is extraordinary, and we see great, great opportunity over time. Edmund, anything else you’d add to that? The only thing I’d add is we are seeing pressure on the rate side today.

Reinsurance, the net market impact there was flat in the quarter. Clearly, we’re seeing pressure in the property side of it. To Greg’s point, the demand is high. Clients are buying more sideways coverage to cover perils. We are seeing a focus on our facultative placements, growth in our STG businesses. We’ll come back in 2026 to your question in Q4 and talk about 2026 specifically. These pressures come today, and we still are in 2025 growing at a mid-single digit level because of the demand and the solutions that we’re providing for our clients here. Thank you. Thank you.

Bob Huang: Our next questions come from the line of Bob Huang with Morgan Stanley. Please proceed with your question. Hi, good morning. My first question comes around the thoughts on capital deployments. Obviously, free cash flow increased significantly year on year, but your buyback slowed down. I know that we talked about this a little bit. Just curious how you think about that. Capital deployment going forward between the acquisitions that NFP is going to make versus how you think about buybacks versus dividends. Yes. Appreciate the question on the capital. It’s an important point for us. You said buybacks slowed down.

I want to just highlight that we were focused this year, coming into the year, paying down debt to get back to our debt leverage objective. We paid down nearly $2 billion, $1.9 billion last year. We’re on track to do something similar this year, continuing to pay the dividend. Acquiring in middle market through NFP, which was over $32 million in EBITDA to date, and returning. We guided to returning $1 billion in capital to shareholders through share repurchases. Despite sort of where we were from a leverage standpoint, our free cash flow generation has allowed us to do that. When we think overall about capital deployment, we have a set of criteria by which we evaluate the options.

We started talking about that previously and emphasized it during investor day as well. Those criteria are focused on long-term shareholder value creation. We’re going to remain committed to balancing investment for growth with capital return to shareholders. For us, that means paying down the debt, meeting our leverage objective, obviously consistently paying the dividend. We’re very pleased with what we deployed towards middle market acquisitions this year and will be even in a stronger position to do that next year, particularly given the proceeds that we have from the NFP wealth sale. Those acquisitions will have to meet, as I said during the prepared remarks, our strategic criteria and our financial criteria as well.

It’s worth emphasizing I showed some information during investor day that showed over 20% IRRs and over 10% revenue growth after owning these acquisitions for one year. That gives you some sense about how we think about the financial return. Of course, we balance that with returning capital to shareholders. We feel very good about the position of strength we’re in and our ability to evaluate the options moving forward. Let me turn it to you, Greg, to add some color to that. Listen, Edmund, I think you captured. It exceptionally well. Maybe one observation I would just add. Edmund just went through a whole series of actions, a whole series of activities.

Bob, hopefully what comes through clearly is our absolute focus on long-term shareholder value creation. We are taking specific actions on the balance sheet side, the capital side, the capital deployment side to make that happen. Acquisitions and divestitures, these are difficult things to do. If you think about just even in the last 18 months, bringing in NFP, which has been phenomenal, but by itself a monumental effort. The decision to divest of a specific piece of NFP, which is good business, but really not one we’re going to invest in and double down from a capital deployment standpoint. You make the decision to divest against that. That’s a hard thing to do.

A lot to cover on our finance side with our NFP colleagues, and it went exceptionally well. Closed yesterday. The paydown of debt, the buyback, all the different pieces. What I’m trying to highlight here is we have an absolute commitment, and it’s not just something we say. You see it in our actions, which is an active management of our balance sheet and our capital position, which happens to be currently the strongest it’s ever been against the criteria on long-term shareholder value creation. The team’s done a remarkable job actively managing this just like we do on the operational side. Really helpful and also apologies for a poorly phrased question there. Yeah, you’re absolutely right. Thank you.

My second question is, going back to the data centers a little bit. Obviously, it’s a huge momentum for you, and it’s likely to be very long-tailed. Just curious to how you think about the competitive environment now that data center is very much in the front and center of discussions for insurance. Do you see large competitors coming in? How should you think about your market share in this expanding pie, so to speak? First of all, really appreciate you asking the question. This is the wheelhouse. When you think about sort of what we have been built to do. Think about levels of innovation. What we did on Aon Client Treaty when it first came out.

What we did on the GLP-1s I just described. What we’ve done in multiple other environments. What we did in retirement on the employment plan, trying to bring 401(k) economics to the middle market from large companies. All these things are innovations that we have driven over time, and they come from the standpoint of truly requiring integrated capability, risk capital and human capital, and the ability to bring capital from in the industry and outside the industry to bear on behalf of these challenges. All that’s true, and that’s a proof point in how we approach the market. This happens to be bigger than anything you’ve ever seen. $2 trillion, right?

By the way, $2 trillion is only the build. It’s not the operating or the innovation that comes over time. It’s just the tip of the iceberg. This isn’t really about competitive position. By the way, from our standpoint, we have taken a very, very hard, hard look at this, and we’ve taken a very much engineering-driven approach. I referenced the partnership we’ve got with a very unique firm that will be clear over time on how you take an engineering-driven position around where do you position these things. How do you think about where you build them? By the way, how do you think about the actual building? Not the core technology.

We’ll leave that to the technology companies, but literally, how do you do this in a way in which you can create better business continuity and business resilience? When you think about business interruption in the context of a data center in this world, it’s going to be measured in the millions of dollars per minute. It’s going to be a completely different scale. For us, what we want to do is bring a set of solutions which may be copied by others. It’ll be difficult, but they might be. There’s enough room for everyone here.

The question is how we can increase relevance of our industry to help reduce the volatility of the operating building and operating of these data centers. For us, it’s a massive. It really is unique. It’s a massive opportunity for our industry to make a difference in a way that’s going to really matter globally and get bigger and bigger over time. The scale is quite. We’ve just never seen it before. We’re pretty excited about it. Thank you. Really appreciate that.

Michael Zaremski: Our next question has come from the line of Michael Zaremski with BMO Capital Markets. Please proceed with your questions. Hey, thanks. Good morning. Happy Halloween and happy Friday. Sticking to the exciting data center conversation. Greg, you gave us some great color. Potentially over $10 billion in new premiums in 2026 alone for the industry. Any color. Are those premiums more of like a. If you do the math and if it was commission-based, there’d be a lot of growth. Is this mostly fee-based? And is Aon getting a disproportionate share of this, you think, or is it most of it going to the E&S market? Just any other color would just be great. Clearly, a great opportunity. Yeah.

Listen, from our standpoint, it’s still very early in the process. This is not mid-game or even end-game. This is like the beginning of the game. This is all beginning to develop over time. Think about, Mike, from the standpoint of this is around how you build these things, how you operate them, and then they evolve and they innovate on a timeframe that’s measured in a few years. You’re going to continue to iterate this. For us, this is about accessing capital to connect with risk. Whatever market it goes through, primary, admitted, E&S, or frankly, alternative markets, we’re accessing all that capital. By the way, it’s going to require access to all that capital.

Literally, from our standpoint, we’re looking to provide value for clients. We always find a way. We do fine on compensation when we provide value