Aon Plc Stock Price, News & Analysis

Aon plc (NYSE: AON) has acquired Tyche, an actuarial software platform from RPC Tyche, enhancing its capabilities for re/insurers. This acquisition enables Aon to offer a unified technology platform that integrates capital modeling, pricing, and reserving solutions for both life and non-life insurance sectors. Nick Frankland, chair of Aon's insurance consulting team, emphasized the opportunity to provide significant value to clients facing complex risks. Tyche, known for its risk and capital modeling software, will contribute nearly 140 employees to Aon.

Aon plc (NYSE: AON) announced a $7.5 billion increase in its share repurchase program, raising total authorization to approximately $9.2 billion. This comes alongside a 10% increase in its quarterly cash dividend to $0.56 per share. CEO Greg Case emphasized the company’s confidence in its Aon United strategy and strong free cash flow generation, aiming to maximize total returns for shareholders.

Aon plc reported a 4% revenue increase to $3.1 billion in Q4 2021, with 10% organic revenue growth. EPS rose 72% to $3.90. However, full-year revenue also increased 10% to $12.2 billion while EPS decreased 34% to $5.55. The operating margin dropped 800 basis points to 17.1%, although adjusted operating margin improved 160 basis points to 30.1%. Aon repurchased 12.4 million shares for $3.5 billion throughout 2021. CEO Greg Case emphasized confidence in future growth driven by their Aon United strategy.

According to Aon's 2021 Weather, Climate and Catastrophe Insight report, global economic losses from natural disasters reached $343 billion in 2021, up from $297 billion in 2020. Only 38% of these losses were covered by insurance, revealing a persistent protection gap. The report notes 401 notable disaster events occurred, with the European floods being the costliest at $46 billion. The need for improved risk assessment and innovative solutions, such as AI, is emphasized as climate-related risks intensify.

Metropolitan Tower Life Insurance Company, a MetLife subsidiary, has completed its first longevity reinsurance transaction involving a U.K. pension scheme, covering approximately $3.5 billion in liabilities. This milestone, facilitated by Aon and utilizing Zurich as an intermediary, is pivotal for MetLife's growth in the U.K. longevity reinsurance market. The deal reflects MetLife's commitment to innovation and collaboration with key partners to support pension de-risking during uncertain times. Analysts view this as a significant addition to the reinsurance capacity in the market.

Aon plc (NYSE: AON) announced a quarterly cash dividend of $0.51 per share on Class A Ordinary Shares, payable on February 15, 2022, to shareholders of record on February 1, 2022. This decision reflects Aon's commitment to returning value to shareholders, ensuring continued trust and investment confidence. Operating in over 120 countries, Aon provides global professional services that support business decision-making.

Aon plc (NYSE: AON) will announce its fourth quarter and full year 2021 results on February 4, 2022, at 5:00 am Central Time. CEO Greg Case will host a live conference call at 7:30 am Central Time the same day. The earnings release and a supplemental slide presentation will be accessible on Aon's website. This event will provide key insights into Aon's financial performance, allowing investors to gauge the company's health and future prospects.

Aon plc (NYSE:AON) and Guidewire (NYSE:GWRE) have partnered to implement Guidewire's Cyence Risk Analytics products for enhanced cyber insurance underwriting. This partnership arises from increased concerns over cyber threats, particularly ransomware. By utilizing Guidewire's extensive data capabilities, Aon aims to better model client portfolios and develop tailored solutions for cyber risk, addressing issues like business interruptions and regulatory changes. This move signals Aon's commitment to innovation in risk management and enhancing client service in the evolving insurance landscape.