Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2023 | Jul. 27, 2023 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 1-7933 | |
Entity Registrant Name | Aon plc | |
Entity Incorporation, State or Country Code | L2 | |
Entity Tax Identification Number | 98-1539969 | |
Entity Address, Address Line One | Metropolitan Building, James Joyce Street | |
Entity Address, City or Town | Dublin 1 | |
Entity Address, Country | IE | |
Entity Address, Postal Zip Code | D01 K0Y8 | |
City Area Code | 1 | |
Local Phone Number | 266 6000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 202,866,793 | |
Entity Central Index Key | 0000315293 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Class A Ordinary Shares $0.01 nominal value | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Class A Ordinary Shares $0.01 nominal value | |
Trading Symbol | AON | |
Security Exchange Name | NYSE | |
Guarantees of Aon plc’s 4.00% Senior Notes due 2023 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Guarantees of Aon plc’s 4.00% Senior Notes due 2023 | |
Trading Symbol | AON23 | |
Security Exchange Name | NYSE | |
Guarantees of Aon plc’s 3.50% Senior Notes due 2024 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Guarantees of Aon plc’s 3.50% Senior Notes due 2024 | |
Trading Symbol | AON24 | |
Security Exchange Name | NYSE | |
Guarantees of Aon plc’s 3.875% Senior Notes due 2025 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Guarantees of Aon plc’s 3.875% Senior Notes due 2025 | |
Trading Symbol | AON25 | |
Security Exchange Name | NYSE | |
Guarantees of Aon plc’s 2.875% Senior Notes due 2026 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Guarantees of Aon plc’s 2.875% Senior Notes due 2026 | |
Trading Symbol | AON26 | |
Security Exchange Name | NYSE | |
Guarantees of Aon Corporation and Aon Global Holdings plc’s 2.85% Senior Notes due 2027 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Guarantees of Aon Corporation and Aon Global Holdings plc’s 2.85% Senior Notes due 2027 | |
Trading Symbol | AON27 | |
Security Exchange Name | NYSE | |
Guarantees of Aon Corporation and Aon Global Holdings plc’s 2.05% Senior Notes due 2031 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Guarantees of Aon Corporation and Aon Global Holdings plc’s 2.05% Senior Notes due 2031 | |
Trading Symbol | AON31 | |
Security Exchange Name | NYSE | |
Guarantees of Aon Corporation and Aon Global Holdings plc’s 2.60% Senior Notes due 2031 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Guarantees of Aon Corporation and Aon Global Holdings plc’s 2.60% Senior Notes due 2031 | |
Trading Symbol | AON31A | |
Security Exchange Name | NYSE | |
Guarantees of Aon Corporation and Aon Global Holdings plc’s 5.00% Senior Notes due 2032 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Guarantees of Aon Corporation and Aon Global Holdings plc’s 5.00% Senior Notes due 2032 | |
Trading Symbol | AON32 | |
Security Exchange Name | NYSE | |
Guarantees of Aon Corporation and Aon Global Holdings plc’s 5.35% Senior Notes due 2033 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Guarantees of Aon Corporation and Aon Global Holdings plc’s 5.35% Senior Notes due 2033 | |
Trading Symbol | AON33 | |
Security Exchange Name | NYSE | |
Guarantees of Aon plc’s 4.25% Senior Notes due 2042 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Guarantees of Aon plc’s 4.25% Senior Notes due 2042 | |
Trading Symbol | AON42 | |
Security Exchange Name | NYSE | |
Guarantees of Aon plc’s 4.45% Senior Notes due 2043 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Guarantees of Aon plc’s 4.45% Senior Notes due 2043 | |
Trading Symbol | AON43 | |
Security Exchange Name | NYSE | |
Guarantees of Aon plc’s 4.60% Senior Notes due 2044 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Guarantees of Aon plc’s 4.60% Senior Notes due 2044 | |
Trading Symbol | AON44 | |
Security Exchange Name | NYSE | |
Guarantees of Aon plc’s 4.75% Senior Notes due 2045 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Guarantees of Aon plc’s 4.75% Senior Notes due 2045 | |
Trading Symbol | AON45 | |
Security Exchange Name | NYSE | |
Guarantees of Aon Corporation and Aon Global Holdings plc’s 2.90% Senior Notes due 2051 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Guarantees of Aon Corporation and Aon Global Holdings plc’s 2.90% Senior Notes due 2051 | |
Trading Symbol | AON51 | |
Security Exchange Name | NYSE | |
Guarantees of Aon Corporation and Aon Global Holdings plc’s 3.90% Senior Notes due 2052 | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Guarantees of Aon Corporation and Aon Global Holdings plc’s 3.90% Senior Notes due 2052 | |
Trading Symbol | AON52 | |
Security Exchange Name | NYSE |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Revenue | ||||
Total revenue | $ 3,177 | $ 2,983 | $ 7,048 | $ 6,653 |
Expenses | ||||
Compensation and benefits | 1,754 | 1,639 | 3,546 | 3,406 |
Information technology | 129 | 115 | 268 | 238 |
Premises | 68 | 73 | 143 | 145 |
Depreciation of fixed assets | 39 | 40 | 77 | 78 |
Amortization and impairment of intangible assets | 25 | 25 | 50 | 53 |
Other general expense | 320 | 391 | 649 | 666 |
Total operating expenses | 2,335 | 2,283 | 4,733 | 4,586 |
Operating income | 842 | 700 | 2,315 | 2,067 |
Interest income | 5 | 5 | 10 | 8 |
Interest expense | (130) | (102) | (241) | (193) |
Other income (expense) | (59) | 30 | (84) | 55 |
Income before income taxes | 658 | 633 | 2,000 | 1,937 |
Income tax expense | 83 | 119 | 346 | 375 |
Net income | 575 | 514 | 1,654 | 1,562 |
Less: Net income attributable to noncontrolling interests | 15 | 13 | 44 | 38 |
Net income attributable to Aon shareholders | $ 560 | $ 501 | $ 1,610 | $ 1,524 |
Basic net income per share attributable to Aon shareholders (in dollars per share) | $ 2.74 | $ 2.35 | $ 7.84 | $ 7.11 |
Diluted net income per share attributable to Aon shareholders (in dollars per share) | $ 2.71 | $ 2.33 | $ 7.79 | $ 7.07 |
Weighted average ordinary shares outstanding - basic (in shares) | 204.7 | 213.3 | 205.4 | 214.3 |
Weighted average ordinary shares outstanding - diluted (in shares) | 206.3 | 214.7 | 206.7 | 215.6 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 575 | $ 514 | $ 1,654 | $ 1,562 |
Less: Net income attributable to noncontrolling interests | 15 | 13 | 44 | 38 |
Net income attributable to Aon shareholders | 560 | 501 | 1,610 | 1,524 |
Other comprehensive income, net of tax: | ||||
Change in fair value of financial instruments | 8 | (9) | 11 | (8) |
Foreign currency translation adjustments | 174 | (436) | 228 | (443) |
Postretirement benefit obligation | 24 | 28 | 46 | 61 |
Total other comprehensive income (loss) | 206 | (417) | 285 | (390) |
Less: Other comprehensive loss attributable to noncontrolling interests | 0 | 0 | 0 | (1) |
Total other comprehensive income (loss) attributable to Aon shareholders | 206 | (417) | 285 | (389) |
Comprehensive income attributable to Aon shareholders | $ 766 | $ 84 | $ 1,895 | $ 1,135 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Financial Position - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 952 | $ 690 |
Short-term investments | 200 | 452 |
Receivables, net | 3,764 | 3,035 |
Fiduciary assets | 18,193 | 15,900 |
Other current assets | 840 | 646 |
Total current assets | 23,949 | 20,723 |
Goodwill | 8,360 | 8,292 |
Intangible assets, net | 268 | 447 |
Fixed assets, net | 639 | 558 |
Operating lease right-of-use assets | 678 | 699 |
Deferred tax assets | 963 | 824 |
Prepaid pension | 691 | 652 |
Other non-current assets | 501 | 509 |
Total assets | 36,049 | 32,704 |
Current liabilities | ||
Accounts payable and accrued liabilities | 1,625 | 2,114 |
Short-term debt and current portion of long-term debt | 1,338 | 945 |
Fiduciary liabilities | 18,193 | 15,900 |
Other current liabilities | 1,793 | 1,347 |
Total current liabilities | 22,949 | 20,306 |
Long-term debt | 9,989 | 9,825 |
Non-current operating lease liabilities | 675 | 693 |
Deferred tax liabilities | 120 | 99 |
Pension, other postretirement, and postemployment liabilities | 1,159 | 1,186 |
Other non-current liabilities | 995 | 1,024 |
Total liabilities | 35,887 | 33,133 |
Equity (deficit) | ||
Ordinary shares - $0.01 nominal value Authorized: 500.0 shares (issued: 2023 - 203.2; 2022 - 205.4) | 2 | 2 |
Additional paid-in capital | 6,906 | 6,864 |
Accumulated deficit | (2,505) | (2,772) |
Accumulated other comprehensive loss | (4,338) | (4,623) |
Total Aon shareholders' equity (deficit) | 65 | (529) |
Noncontrolling interests | 97 | 100 |
Total equity (deficit) | 162 | (429) |
Total liabilities and equity | $ 36,049 | $ 32,704 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Financial Position (Parenthetical) - $ / shares | Jun. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Ordinary shares, nominal value (in dollars per share) | $ 0.01 | $ 0.01 |
Ordinary shares, authorized shares (in shares) | 500,000,000 | 500,000,000 |
Ordinary shares, issued shares (in shares) | 203,200,000 | 205,400,000 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Shareholders' Equity (Deficit) (Unaudited) - USD ($) shares in Millions, $ in Millions | Total | Ordinary Shares and Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss, Net of Tax | Non- controlling Interests |
Beginning balance (in shares) at Dec. 31, 2021 | 214.8 | ||||
Beginning balance at Dec. 31, 2021 | $ 1,158 | $ 6,626 | $ (1,694) | $ (3,871) | $ 97 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 1,048 | 1,023 | 25 | ||
Shares issued - employee stock compensation plans (in shares) | 0.9 | ||||
Shares issued - employee stock compensation plans | (116) | $ (116) | |||
Shares repurchased (in shares) | (2.8) | ||||
Shares repurchased | (828) | (828) | |||
Share-based compensation expense | 119 | $ 119 | |||
Dividends to shareholders | (110) | (110) | |||
Net change in fair value of financial instruments | 1 | 1 | |||
Net foreign currency translation adjustments | (7) | (6) | (1) | ||
Net postretirement benefit obligation | 33 | 33 | |||
Dividends paid to noncontrolling interests on subsidiary common stock | (7) | (7) | |||
Ending balance (in shares) at Mar. 31, 2022 | 212.9 | ||||
Ending balance at Mar. 31, 2022 | 1,291 | $ 6,629 | (1,609) | (3,843) | 114 |
Beginning balance (in shares) at Dec. 31, 2021 | 214.8 | ||||
Beginning balance at Dec. 31, 2021 | 1,158 | $ 6,626 | (1,694) | (3,871) | 97 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 1,562 | ||||
Net change in fair value of financial instruments | (8) | ||||
Net foreign currency translation adjustments | (443) | ||||
Net postretirement benefit obligation | 61 | ||||
Ending balance (in shares) at Jun. 30, 2022 | 211.6 | ||||
Ending balance at Jun. 30, 2022 | 788 | $ 6,671 | (1,727) | (4,260) | 104 |
Beginning balance (in shares) at Mar. 31, 2022 | 212.9 | ||||
Beginning balance at Mar. 31, 2022 | 1,291 | $ 6,629 | (1,609) | (3,843) | 114 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 514 | 501 | 13 | ||
Shares issued - employee stock compensation plans (in shares) | 0.4 | ||||
Shares issued - employee stock compensation plans | (50) | $ (50) | |||
Shares repurchased (in shares) | (1.7) | ||||
Shares repurchased | (500) | (500) | |||
Share-based compensation expense | 92 | $ 92 | |||
Dividends to shareholders | (119) | (119) | |||
Net change in fair value of financial instruments | (9) | (9) | |||
Net foreign currency translation adjustments | (436) | (436) | |||
Net postretirement benefit obligation | 28 | 28 | |||
Dividends paid to noncontrolling interests on subsidiary common stock | (23) | (23) | |||
Ending balance (in shares) at Jun. 30, 2022 | 211.6 | ||||
Ending balance at Jun. 30, 2022 | $ 788 | $ 6,671 | (1,727) | (4,260) | 104 |
Beginning balance (in shares) at Dec. 31, 2022 | 205.4 | 205.4 | |||
Beginning balance at Dec. 31, 2022 | $ (429) | $ 6,866 | (2,772) | (4,623) | 100 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 1,079 | 1,050 | 29 | ||
Shares issued - employee stock compensation plans (in shares) | 0.9 | ||||
Shares issued - employee stock compensation plans | (132) | $ (131) | (1) | ||
Shares repurchased (in shares) | (1.8) | ||||
Shares repurchased | (550) | (550) | |||
Share-based compensation expense | 127 | $ 127 | |||
Dividends to shareholders | (115) | (115) | |||
Net change in fair value of financial instruments | 3 | 3 | |||
Net foreign currency translation adjustments | 54 | 54 | |||
Net postretirement benefit obligation | 22 | 22 | |||
Dividends paid to noncontrolling interests on subsidiary common stock | (1) | (1) | |||
Ending balance (in shares) at Mar. 31, 2023 | 204.5 | ||||
Ending balance at Mar. 31, 2023 | $ 58 | $ 6,862 | (2,388) | (4,544) | 128 |
Beginning balance (in shares) at Dec. 31, 2022 | 205.4 | 205.4 | |||
Beginning balance at Dec. 31, 2022 | $ (429) | $ 6,866 | (2,772) | (4,623) | 100 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 1,654 | ||||
Net change in fair value of financial instruments | 11 | ||||
Net foreign currency translation adjustments | 228 | ||||
Net postretirement benefit obligation | $ 46 | ||||
Ending balance (in shares) at Jun. 30, 2023 | 203.2 | 203.2 | |||
Ending balance at Jun. 30, 2023 | $ 162 | $ 6,908 | (2,505) | (4,338) | 97 |
Beginning balance (in shares) at Mar. 31, 2023 | 204.5 | ||||
Beginning balance at Mar. 31, 2023 | 58 | $ 6,862 | (2,388) | (4,544) | 128 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 575 | 560 | 15 | ||
Shares issued - employee stock compensation plans (in shares) | 0.4 | ||||
Shares issued - employee stock compensation plans | (52) | $ (52) | |||
Shares repurchased (in shares) | (1.7) | ||||
Shares repurchased | (550) | (550) | |||
Share-based compensation expense | 99 | $ 99 | |||
Dividends to shareholders | (127) | (127) | |||
Net change in fair value of financial instruments | 8 | 8 | |||
Net foreign currency translation adjustments | 174 | 174 | |||
Net postretirement benefit obligation | 24 | 24 | |||
Purchases of subsidiary shares from noncontrolling interests | (2) | $ (1) | (1) | ||
Dividends paid to noncontrolling interests on subsidiary common stock | $ (45) | (45) | |||
Ending balance (in shares) at Jun. 30, 2023 | 203.2 | 203.2 | |||
Ending balance at Jun. 30, 2023 | $ 162 | $ 6,908 | $ (2,505) | $ (4,338) | $ 97 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Shareholders' Equity (Deficit) (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends (in dollars per share) | $ 0.615 | $ 0.56 | $ 0.56 | $ 0.51 |
Condensed Consolidated Statem_7
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Cash flows from operating activities | ||||
Net income | $ 575 | $ 514 | $ 1,654 | $ 1,562 |
Adjustments to reconcile net income to cash provided by operating activities: | ||||
Gain from sales of businesses | 0 | (22) | 0 | (47) |
Depreciation of fixed assets | 39 | 40 | 77 | 78 |
Amortization and impairment of intangible assets | 25 | 25 | 50 | 53 |
Share-based compensation expense | 226 | 211 | ||
Deferred income taxes | (168) | (36) | ||
Other, net | 28 | 1 | ||
Change in assets and liabilities: | ||||
Receivables, net | (704) | (674) | ||
Accounts payable and accrued liabilities | (515) | (408) | ||
Current income taxes | 53 | 137 | ||
Pension, other postretirement and postemployment liabilities | (3) | (37) | ||
Other assets and liabilities | 433 | 291 | ||
Cash provided by operating activities | 1,131 | 1,131 | ||
Cash flows from investing activities | ||||
Proceeds from investments | 54 | 65 | ||
Purchases of investments | (29) | (39) | ||
Net sales of short-term investments - non fiduciary | 255 | 38 | ||
Acquisition of businesses, net of cash and funds held on behalf of clients | (8) | (143) | ||
Sale of businesses, net of cash and funds held on behalf of clients | 1 | 22 | ||
Capital expenditures | (145) | (68) | ||
Cash provided by (used for) investing activities | 128 | (125) | ||
Cash flows from financing activities | ||||
Share repurchase | (1,100) | (1,328) | ||
Proceeds from issuance of shares | 33 | 26 | ||
Cash paid for employee taxes on withholding shares | (216) | (192) | ||
Commercial paper issuances, net of repayments | (217) | (409) | ||
Issuance of debt | 744 | 1,471 | ||
Increase in fiduciary liabilities, net of fiduciary receivables | 999 | 661 | ||
Cash dividends to shareholders | (241) | (229) | ||
Noncontrolling interests and other financing activities | (41) | (37) | ||
Cash used for financing activities | (39) | (37) | ||
Effect of exchange rates on cash and cash equivalents and funds held on behalf of clients | 203 | (423) | ||
Net increase in cash and cash equivalents and funds held on behalf of clients | 1,423 | 546 | ||
Cash, cash equivalents and funds held on behalf of clients at beginning of period | 7,076 | 6,645 | ||
Cash, cash equivalents and funds held on behalf of clients at end of period | 8,499 | 7,191 | 8,499 | 7,191 |
Reconciliation of cash and cash equivalents and funds held on behalf of clients: | ||||
Cash and cash equivalents | 952 | 740 | 952 | 740 |
Cash and cash equivalents classified as held for sale | 9 | 0 | 9 | 0 |
Funds held on behalf of clients | 7,538 | 6,451 | 7,538 | 6,451 |
Total cash and cash equivalents and funds held on behalf of clients | $ 8,499 | $ 7,191 | 8,499 | 7,191 |
Supplemental disclosures: | ||||
Interest paid | 220 | 155 | ||
Income taxes paid, net of refunds | $ 461 | $ 275 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying Condensed Consolidated Financial Statements and Notes thereto have been prepared in accordance with U.S. GAAP. The Condensed Consolidated Financial Statements include the accounts of Aon plc and all of its controlled subsidiaries (“Aon” or the “Company”). Intercompany accounts and transactions have been eliminated. The Condensed Consolidated Financial Statements include, in the opinion of management, all adjustments (consisting of normal recurring adjustments and reclassifications) necessary to present fairly the Company’s consolidated financial position, results of operations, and cash flows for all periods presented. Certain information and disclosures normally included in the Consolidated Financial Statements prepared in accordance with U.S. GAAP have been condensed or omitted. The Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. The results for the three and six months ended June 30, 2023 are not necessarily indicative of operating results that may be expected for the full year ending December 31, 2023. Use of Estimates The preparation of the accompanying Condensed Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the Condensed Consolidated Financial Statements, and the reported amounts of reserves and expenses. These estimates and assumptions are based on management’s best estimates and judgments. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment. Management believes its estimates to be reasonable given the current facts available. Aon adjusts such estimates and assumptions when facts and circumstances dictate. Illiquid credit markets, volatile equity markets, and foreign currency exchange rate movements increase the uncertainty inherent in such estimates and assumptions. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in estimates resulting from continuing changes in the economic environment would, if applicable, be reflected in the Condensed Consolidated Financial Statements in future periods. |
Accounting Principles and Pract
Accounting Principles and Practices | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Accounting Principles and Practices | Accounting Principles and PracticesAll issued, but not yet effective, guidance has been deemed not applicable or not significant to the Condensed Consolidated Financial Statements. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 6 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers Disaggregation of Revenue The following table summarizes revenue from contracts with customers by principal service line (in millions): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Commercial Risk Solutions $ 1,774 $ 1,692 $ 3,552 $ 3,411 Reinsurance Solutions 607 537 1,684 1,513 Health Solutions 447 414 1,118 1,052 Wealth Solutions 352 343 702 688 Eliminations (3) (3) (8) (11) Total revenue $ 3,177 $ 2,983 $ 7,048 $ 6,653 Consolidated revenue from contracts with customers by geographic area, which is attributed on the basis of where the services are performed, is as follows (in millions): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 United States $ 1,427 $ 1,339 $ 2,922 $ 2,756 Americas other than United States 308 288 609 564 United Kingdom 506 489 1,060 1,017 Ireland 28 25 58 54 Europe, Middle East, & Africa other than United Kingdom and Ireland 512 469 1,614 1,527 Asia Pacific 396 373 785 735 Total revenue $ 3,177 $ 2,983 $ 7,048 $ 6,653 Contract Costs An analysis of the changes in the net carrying amount of costs to fulfill contracts with customers are as follows (in millions): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Balance at beginning of period $ 257 $ 254 $ 355 $ 361 Additions 355 354 717 702 Amortization (373) (361) (835) (818) Impairment — — — — Foreign currency translation and other 3 (8) 5 (6) Balance at end of period $ 242 $ 239 $ 242 $ 239 An analysis of the changes in the net carrying amount of costs to obtain contracts with customers are as follows (in millions): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Balance at beginning of period $ 183 $ 184 $ 185 $ 179 Additions 13 12 23 27 Amortization (13) (12) (25) (24) Impairment — — — — Foreign currency translation and other 3 (2) 3 — Balance at end of period $ 186 $ 182 $ 186 $ 182 |
Cash and Cash Equivalents and S
Cash and Cash Equivalents and Short-Term Investments | 6 Months Ended |
Jun. 30, 2023 | |
Cash, Cash Equivalents, and Short-Term Investments [Abstract] | |
Cash and Cash Equivalents and Short-Term Investments | Cash and Cash Equivalents and Short-Term Investments Cash and cash equivalents include cash balances and all highly liquid instruments with initial maturities of three months or less. Short-term investments consist of money market funds. The estimated fair value of Cash and cash equivalents and Short-term investments approximates their carrying values. At June 30, 2023, Cash and cash equivalents and Short-term investments were $1,152 million compared to $1,142 million at December 31, 2022, an increase of $10 million. Of the total balances, $115 million were restricted as to their use at June 30, 2023 and December 31, 2022, respectively. Included within Short-term investments as of June 30, 2023 and December 31, 2022, were £63.2 million ( $80.3 million at June 30, 2023 exchange rates) and £60.1 million ($72.5 million at December 31, 2022 exchange rates), respectively, of operating funds required to be held by the Company in the U.K. by the FCA, a U.K.-based regulator. |
Other Financial Data
Other Financial Data | 6 Months Ended |
Jun. 30, 2023 | |
Other Financial Data [Abstract] | |
Other Financial Data | Other Financial Data Condensed Consolidated Statements of Income Information Other Income (Expense) Other income (expense) consists of the following (in millions): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Pension and other postretirement $ (43) $ (3) $ (60) $ (6) Foreign currency remeasurement (37) 27 (56) (1) Gain from sales of businesses — 22 — 47 Equity earnings (1) 3 2 4 Financial instruments and other 22 (19) 30 11 Total $ (59) $ 30 $ (84) $ 55 Condensed Consolidated Statements of Financial Position Information Allowance for Doubtful Accounts Changes in the net carrying amount of allowance for doubtful accounts are as follows (in millions): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Balance at beginning of period $ 83 $ 93 $ 76 $ 90 Provision 2 4 9 10 Accounts written off, net of recoveries (3) (9) (3) (12) Foreign currency translation and other 1 3 1 3 Balance at end of period $ 83 $ 91 $ 83 $ 91 Other Current Assets The components of Other current assets are as follows (in millions): As of June 30, December 31, Assets held for sale (1) $ 288 $ — Costs to fulfill contracts with customers (2) 242 355 Prepaid expenses 164 109 Taxes receivable 51 74 Other 95 108 Total $ 840 $ 646 (1) Refer to Note 6 “Acquisitions and Dispositions of Businesses” for further information. (2) Refer to Note 3 “Revenue from Contracts with Customers” for further information. Other Non-Current Assets The components of Other non-current assets are as follows (in millions): As of June 30, December 31, Costs to obtain contracts with customers (1) $ 186 $ 185 Taxes receivable 105 109 Investments 45 60 Leases 35 43 Other 130 112 Total $ 501 $ 509 (1) Refer to Note 3 “Revenue from Contracts with Customers” for further information. Other Current Liabilities The components of Other current liabilities are as follows (in millions): As of June 30, December 31, Deferred revenue (1) $ 355 $ 250 Taxes payable 228 193 Leases 184 186 Liabilities held for sale (2) 35 — Other 991 718 Total $ 1,793 $ 1,347 (1) During the three and six months ended June 30, 2023, revenue of $169 million and $336 million, respectively, was recognized in the Condensed Consolidated Statements of Income. During the three and six months ended June 30, 2022, revenue of $170 million and $373 million, respectively, was recognized in the Condensed Consolidated Statements of Income. (2) Refer to Note 6 “Acquisitions and Dispositions of Businesses” for further information. Other Non-Current Liabilities The components of Other non-current liabilities are as follows (in millions): As of June 30, December 31, Taxes payable (1) $ 793 $ 795 Compensation and benefits 52 69 Deferred revenue 38 37 Leases 19 28 Other 93 95 Total $ 995 $ 1,024 (1) Includes $72 million an d $129 million for the non-current portion of the one-time mandatory transition tax on accumulated foreign earnings as of June 30, 2023 and December 31, 2022, respectively. |
Acquisitions and Dispositions o
Acquisitions and Dispositions of Businesses | 6 Months Ended |
Jun. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions and Dispositions of Businesses | Acquisitions and Dispositions of Businesses Completed Acquisitions The Company completed one acquisition d uring the three and six months ended June 30, 2023. The Company completed one and two acquisitions during the three and six months ended June 30, 2022, respectively. During the second quarter of 2023, total consideration for the completed acquisition was $9 million, which included cash consideration and contingent consideration of approximately $7 million and $2 million, respectively. The preliminary fair values of assets acquired and liabilities assumed as a result of this transaction were $9 million and less than $1 million, respectively. The results of operations of this acquisition are included in the Financial Statements as of the acquisition date. 2023 Acquisitions On June 22, 2023, the Company completed the acquisition of 100% of the share capital of Benefits Corredores de Seguros and Asesorías e Inversiones Benefits, a business that provides health and benefits brokerage and benefit administration in Chile. 2022 Acquisitions On November 1, 2022, the Company completed the acquisition of 100% of the share capital of E.R.N. Evaluacion de Riesgos Naturales y Antropogenicos, S.A. de C.V., a Mexico-based firm in risk assessment modeling. On September 12, 2022, the Company completed the purchase of certain assets of Praxiom Risk Management, a provider of professional risk management in the U.S. On August 1, 2022, the Company completed the purchase of certain assets of U.S. Advisors, Inc., a broker based in the U.S. On May 3, 2022, the Company completed the acquisition of 100% of the share capital of Karl Köllner group companies, a marine hull broker based in Germany. On March 1, 2022, the Company completed the acquisition of Tyche, an actuarial software platform based in the U.K. Completed Dispositions The Company completed no di spositions during the three and six months ended June 30, 2023. The Company completed one and three dispositions during the three and six months ended June 30, 2022, respectively. The pretax gains recognized related to the dispositions were $22 million and $47 million for the three and six months ended June 30, 2022. Gains recognized as a result of a disposition are included in Other income (expense) in the Condensed Consolidated Statements of Income. There were no losses recognized for the three and six months ended June 30, 2022. Assets and Liabilities Held for Sale As of June 30, 2023, Aon classified certain assets and liabilities as held for sale, as the Company has committed to a plan to sell the assets and liabilities within one year. Total assets and liabilities held for sale were $288 million and $35 million , respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The changes in the net carrying amount of goodwill for the six months ended June 30, 2023 are as follows (in millions): Balance as of December 31, 2022 $ 8,292 Goodwill related to current year acquisitions 1 Foreign currency translation and other 67 Balance as of June 30, 2023 $ 8,360 Other intangible assets by asset class are as follows (in millions): June 30, 2023 December 31, 2022 Gross Carrying Amount Accumulated Net Carrying Amount (1) Gross Carrying Amount Accumulated Net Carrying Amount Customer-related and contract-based $ 1,904 $ 1,696 $ 208 $ 2,207 $ 1,833 $ 374 Technology and other (2) 380 320 60 450 377 73 Total $ 2,284 $ 2,016 $ 268 $ 2,657 $ 2,210 $ 447 (1) In the second quarter of 2023, the Company classified $143 million of Intangible assets, net, as assets held for sale within Other current assets. Refer to Note 6 “Acquisitions and Dispositions of Businesses” for further information. (2) Includes $14 million of fully amortized intangible assets previously classified as Tradenames which have been reclassified within Technology and other as of December 31, 2022. The estimated future amortization for finite-lived intangible assets as of June 30, 2023 is as follows (in millions): Remainder of 2023 $ 39 2024 64 2025 54 2026 35 2027 23 2028 17 Thereafter 36 Total $ 268 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt Notes In June 2023, Aon Global Limited’s $600 million 3.50% Senior Notes due June 2024 were classified as Short-term debt and current portion of long-term debt in the Condensed Consolidated Statement of Financial Position as the date of maturity is in less than one year. On February 28, 2023, Aon Corporation, a Delaware corporation, and Aon Global Holdings plc, a public limited company formed under the laws of England and Wales, both wholly owned subsidiaries of the Company, co-issued $750 million 5.35% Senior Notes due in February 2033. The Company intends to use the net proceeds from the offering for general corporate purposes. In November 2022, Aon Global Limited’s $350 million 4.00% Senior Notes due November 2023 were classified as Short-term debt and current portion of long-term debt in the Condensed Consolidated Statement of Financial Position as the date of maturity is in less than one year. In November 2022, Aon Corporation’s $500 million 2.20% Senior Notes matured and were repaid in full. On September 12, 2022, Aon Corporation and Aon Global Holdings plc co-issued $500 million of 5.00% Senior Notes due September 2032. The Company intends to use the net proceeds from the offering for general corporate purposes. On February 28, 2022, Aon Corporation and Aon Global Holdings plc co-issued $600 million of 2.85% Senior Notes due May 2027 and $900 million of 3.90% Senior Notes due February 2052. The Company intends to use the net proceeds from the offering for general corporate purposes. Revolving Credit Facilities As of June 30, 2023, Aon had two primary committed credit facilities outstanding: its $1.0 billion multi-currency U.S. credit facility expiring in September 2026 and its $750 million multi-currency U.S. credit facility expiring in October 2024. In aggregate, these two facilities provide approximately $1.8 billion in available credit. Each of these primary committed credit facilities includes customary representations, warranties, and covenants, including financial covenants that require Aon to maintain specified ratios of adjusted consolidated EBITDA to consolidated interest expense and consolidated debt to adjusted consolidated EBITDA, in each case, tested quarterly. At June 30, 2023, Aon did not have borrowings under either of these primary committed credit facilities , and was in compliance with the financial covenants and all other covenants contained therein during the rolling 12 months ended June 30, 2023. Commercial Paper Aon Corporation has established a U.S. commercial paper program (the “U.S. Program”) and Aon Global Holdings plc has established a European multi-currency commercial paper program (the “European Program” and, together with the U.S. Program, the “Commercial Paper Program”). Commercial paper may be issued in aggregate principal amounts of up to $1.0 billion under the U.S. Program and €625 million ( $682 million at June 30, 2023 exchange rates) under the European Program, not to exceed the amount of the Company’s committed credit facilities, which was approximately $1.8 billion at June 30, 2023. The aggregate capacity of the Commercial Paper Program remains fully backed by the Company’s committed credit facilities. On June 22, 2023, consistent with the guarantors included in the Company’s shelf registration statement, the Company added a new guarantor, Aon North America, Inc., to its Commercial Paper programs. As of June 22, 2023, the U.S. Program is fully and unconditionally guaranteed by Aon plc, Aon Global Limited, Aon North America, Inc., and Aon Global Holdings plc. As of June 22, 2023, the European Program is fully and unconditionally guaranteed by Aon plc, Aon Global Limited, Aon North America, Inc., and Aon Corporation. Refer to Note 14 “Claims, Lawsuits, and Other Contingencies” for further information on changes to the Company’s guarantees of registered securities. Commercial paper outstanding, which is included in Short-term debt and current portion of long-term debt in the Condensed Consolidated Statements of Financial Position, is as follows (in millions): June 30, 2023 December 31, 2022 Commercial paper outstanding $ 382 $ 592 The weighted average commercial paper outstanding and its related interest rates are as follows (in millions, except percentages): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Weighted average commercial paper outstanding $ 435 $ 375 $ 414 $ 473 Weighted average interest rate of commercial paper outstanding 4.90 % 0.68 % 4.18 % 0.18 % |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The effective tax rate on Net income was 12.6% and 17.3% for the three and six months ended June 30, 2023, respectively. The effective tax rate on Net income was 18.8% and 19.4% for the three and six months ended June 30, 2022, respectively. For the three and six months ended June 30, 2023, the tax rate was primarily driven by the geographical distribution of income and certain discrete items, including the tax benefit associated with share-based payments and the anticipated sale of certain assets and liabilities classified as held for sale. For the three and six months ended June 30, 2022, the tax rate was primarily driven by the geographical distribution of income and certain discrete items, primarily the favorable impacts of share-based payments. |
Shareholders' Equity (Deficit)
Shareholders' Equity (Deficit) | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Shareholders' Equity (Deficit) | Shareholders’ Equity (Deficit) Ordinary Shares Aon has a share repurchase program authorized by the Company’s Board of Directors (the “Repurchase Program”). The Repurchase Program was established in April 2012 with $5.0 billion in authorized repurchases, and was increased by $5.0 billion in authorized repurchases in each of November 2014, June 2017, and November 2020, and by $7.5 billion in February 2022 for a total of $27.5 billion in repurchase authorizations. Under the Repurchase Program, the Company’s class A ordinary shares may be repurchased through the open market or in privately negotiated transactions, from time to time, based on prevailing market conditions, and will be funded from available capital. The following table summarizes the Company’s share repurchase activity (in millions, except per share data): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Shares repurchased 1.7 1.7 3.5 4.5 Average price per share $ 323.96 $ 292.06 $ 314.36 $ 293.56 Repurchase costs recorded to accumulated deficit $ 550 $ 500 $ 1,100 $ 1,328 At June 30, 2023, the remaining authorized amount for share repurchases under the Repurchase Program was approximately $4.9 billion. Under the Repurchase Program, the Company has repurchased a total of 164.2 million shares for an aggregate cost of approximately $22.6 billion. Weighted Average Ordinary Shares Weighted average ordinary shares outstanding are as follows (in millions): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Basic weighted average ordinary shares outstanding 204.7 213.3 205.4 214.3 Dilutive effect of potentially issuable shares 1.6 1.4 1.3 1.3 Diluted weighted average ordinary shares outstanding 206.3 214.7 206.7 215.6 Potentially issuable shares are not included in the computation of Diluted net income per share attributable to Aon shareholders if their inclusion would be antidilutive. There were no shares excluded from the calculation for the three and six months ended June 30, 2023. There were 1.3 million and 1.1 million shares excluded from the calculation for the three and six months ended June 30, 2022, respectively. Accumulated Other Comprehensive Loss Changes in Accumulated other comprehensive loss by component, net of related tax, are as follows (in millions): Change in Fair Value of Financial Instruments (1) Foreign Currency Translation Adjustments Postretirement Benefit Obligation (2) Total Balance at December 31, 2022 $ (11) $ (1,861) $ (2,751) $ (4,623) Other comprehensive income (loss) before reclassifications, net 7 228 (22) 213 Amounts reclassified from accumulated other comprehensive income Amounts reclassified from accumulated other comprehensive income 6 — 92 98 Tax expense (2) — (24) (26) Amounts reclassified from accumulated other comprehensive income, net 4 — 68 72 Net current period other comprehensive income 11 228 46 285 Balance at June 30, 2023 $ — $ (1,633) $ (2,705) $ (4,338) Change in Fair Value of Financial Instruments (1) Foreign Currency Translation Adjustments Postretirement Benefit Obligation (2) Total Balance at December 31, 2021 $ 2 $ (1,333) $ (2,540) $ (3,871) Other comprehensive income (loss) before reclassifications, net (5) (442) 16 (431) Amounts reclassified from accumulated other comprehensive income Amounts reclassified from accumulated other comprehensive income (4) — 61 57 Tax benefit (expense) 1 — (16) (15) Amounts reclassified from accumulated other comprehensive income, net (3) — 45 42 Net current period other comprehensive income (loss) (8) (442) 61 (389) Balance at June 30, 2022 $ (6) $ (1,775) $ (2,479) $ (4,260) (1) Reclassifications from this category included in Accumulated other comprehensive loss are recorded in Total revenue, Interest expense, and Compensation and benefits in the Condensed Consolidated Statements of Income. Refer to Note 12 “Derivatives and Hedging” for further information regarding the Company’s derivative and hedging activity. (2) Reclassifications from this category included in Accumulated other comprehensive loss are recorded in Other income (expense) in the Condensed Consolidated Statements of Income. |
Employee Benefits
Employee Benefits | 6 Months Ended |
Jun. 30, 2023 | |
Retirement Benefits [Abstract] | |
Employee Benefits | Employee Benefits The following table provides the components of the net periodic (benefit) cost recognized in the Condensed Consolidated Statements of Income for Aon’s significant U.K., U.S., and other major pension plans, which are located in the Netherlands and Canada. Service cost is reported in Compensation and benefits and all other components are reported in Other income (expense) as follows (in millions): Three Months Ended June 30, U.K. U.S. Other 2023 2022 2023 2022 2023 2022 Service cost $ — $ — $ — $ — $ — $ — Interest cost 36 21 26 17 10 4 Expected return on plan assets, net of administration expenses (48) (34) (30) (27) (12) (8) Amortization of prior-service cost 1 — — — — — Amortization of net actuarial loss 19 8 8 17 4 3 Net periodic (benefit) cost 8 (5) 4 7 2 (1) Loss on pension settlement — — — — 27 — Total net periodic (benefit) cost $ 8 $ (5) $ 4 $ 7 $ 29 $ (1) Six Months Ended June 30, U.K. U.S. Other 2023 2022 2023 2022 2023 2022 Service cost $ — $ — $ — $ — $ — $ — Interest cost 72 44 52 34 20 9 Expected return on plan assets, net of administration expenses (94) (70) (60) (54) (24) (17) Amortization of prior-service cost 1 1 — — — — Amortization of net actuarial loss 37 15 17 33 7 7 Net periodic (benefit) cost 16 (10) 9 13 3 (1) Loss on pension settlement — — — 1 27 — Total net periodic (benefit) cost $ 16 $ (10) $ 9 $ 14 $ 30 $ (1) In May 2023, to further its pension de-risking strategy, the Company settled certain pension obligations in the Netherlands through the purchase of annuities, where certain pension assets were liquidated to purchase the annuities. A non-cash settlement charge totaling $27 million was recognized in the second quarter of 2023. In the first quarter of 2022, the Company recognized a non-cash settlement charge of approximately $1 million. Settlements from a certain U.S. pension plan exceeded the plan’s service and interest cost. This triggered settlement accounting which required the immediate recognition of a portion of the accumulated losses associated with the plan. Contributions Assuming no additional contributions are agreed to with, or required by, the pension plan trustees, the Company expects to make total cash contributions of approximately $4 million, $43 million, and $14 million, (at December 31, 2022 exchange rates) to its significant U.K., U.S., and other major pension plans, respectively, during 2023. The following table summarizes contributions made to the Company’s significant pension plans (in millions): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Contributions to U.K. pension plans $ 1 $ 2 $ 2 $ 5 Contributions to U.S. pension plans 5 7 21 25 Contributions to other major pension plans 2 2 8 10 Total contributions $ 8 $ 11 $ 31 $ 40 |
Derivatives and Hedging
Derivatives and Hedging | 6 Months Ended |
Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging | Derivatives and Hedging The Company is exposed to market risks, including changes in foreign currency exchange rates and interest rates. To manage the risk related to these exposures, the Company enters into various derivative instruments that reduce these risks by creating offsetting exposures. The Company does not enter into derivative transactions for trading or speculative purposes. Foreign Exchange Risk Management The Company is exposed to foreign exchange risk when it earns revenues, pays expenses, enters into monetary intercompany transfers or other transactions denominated in a currency that differs from its functional currency. The Company uses foreign exchange derivatives, typically forward contracts, options and cross currency swaps, to reduce its overall exposure to the effects of currency fluctuations on cash flows. These exposures are hedged, on average, for less than two years. These derivatives are accounted for as hedges, and changes in fair value are recorded each period in Other comprehensive income (loss) in the Condensed Consolidated Statements of Comprehensive Income. The Company also uses foreign exchange derivatives, typically forward contracts and options, to economically hedge the currency exposure of the Company’s global liquidity profile, including monetary assets or liabilities that are denominated in a non-functional currency of an entity, typically on a rolling 90-day basis, but may be for up to one year in the future. These derivatives are not accounted for as hedges, and changes in fair value are recorded each period in Other income (expense) in the Condensed Consolidated Statements of Income. The notional and fair values of derivative instruments are as follows (in millions): Notional Amount Net Amount of Derivative Assets Presented in the Statements of Financial Position (1) Net Amount of Derivative Liabilities Presented in the Statements of Financial Position (2) June 30, December 31, June 30, December 31, June 30, December 31, Foreign exchange contracts Accounted for as hedges $ 645 $ 618 $ 29 $ 12 $ — $ 2 Not accounted for as hedges (3) 472 312 — — 1 1 Total $ 1,117 $ 930 $ 29 $ 12 $ 1 $ 3 (1) Included within Other current assets ($10 million at June 30, 2023 and $3 million at December 31, 2022) or Other non-current assets ($19 million at June 30, 2023 and $9 million at December 31, 2022). (2) Included within Other current liabilities ($1 million at June 30, 2023 and $2 million December 31, 2022) or Other non-current liabilities ($1 million at December 31, 2022). (3) These contracts typically are for 90-day durations and executed close to the last day of the most recent reporting month, thereby resulting in nominal fair values at the balance sheet date. The amounts of derivative gains recognized in the Condensed Consolidated Financial Statements are as follows (in millions): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Gain (loss) recognized in Accumulated other comprehensive loss $ 9 $ (7) $ 9 $ (6) The amounts of derivative losses reclassified from Accumulated other comprehensive loss to the Condensed Consolidated Statements of Income are as follows (in millions): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Gains (losses) recognized in Total revenue $ (1) $ 4 $ (6) $ 3 Compensation and benefits — 1 — 1 Total $ (1) $ 5 $ (6) $ 4 The Company estimates that approximately $5 million of pretax loss currently included within Accumulated other comprehensive loss will be reclassified into earnings in the next twelve months. During the three and six months ended June 30, 2023, the Company recorded gains of $28 million and $37 million, respectively, in Other income (expense) for foreign exchange derivatives not designated or qualifying as hedges. During the three and six months ended June 30, 2022, the Company recorded a loss of $15 million and gain of $17 million, respectively, |
Fair Value Measurements and Fin
Fair Value Measurements and Financial Instruments | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements and Financial Instruments | Fair Value Measurements and Financial Instruments Accounting standards establish a three tier fair value hierarchy that prioritizes the inputs used in measuring fair values as follows: • Level 1 — observable inputs such as quoted prices for identical assets in active markets; • Level 2 — inputs other than quoted prices for identical assets in active markets, that are observable either directly or indirectly; and • Level 3 — unobservable inputs in which there is little or no market data which requires the use of valuation techniques and the development of assumptions. The following methods and assumptions are used to estimate the fair values of the Company’s financial instruments: Money market funds consist of institutional prime, treasury, and government money market funds. The Company reviews treasury and government money market funds to obtain reasonable assurance that the fund net asset value is $1 per share, and reviews the floating net asset value of institutional prime money market funds for reasonableness. Equity investments consist of equity securities and equity derivatives valued using the closing stock price on a national securities exchange. Over-the-counter equity derivatives are valued using observable inputs such as underlying prices of the underlying security and volatility. On a sample basis, the Company reviews the listing of Level 1 equity securities in the portfolio, agrees the closing stock prices to a national securities exchange, and independently verifies the observable inputs for Level 2 equity derivatives and securities. Fixed income investments consist of certain categories of bonds and derivatives. Corporate, government, and agency bonds are valued by pricing vendors who estimate fair value using recently executed transactions and proprietary models based on observable inputs, such as interest rate spreads, yield curves, and credit risk. Asset-backed securities are valued by pricing vendors who estimate fair value using DCF models utilizing observable inputs based on trade and quote activity of securities with similar features. Fixed income derivatives are valued by pricing vendors using observable inputs such as interest rates and yield curves. The Company obtains an understanding of the models, inputs, and assumptions used in developing prices provided by its vendors through discussions with the fund managers. The Company independently verifies the observable inputs, as well as assesses assumptions used for reasonableness based on relevant market conditions and internal Company guidelines. If an assumption is deemed unreasonable, based on internal Company guidelines, it is then reviewed by management and the fair value estimate provided by the vendor is adjusted, if deemed appropriate. These adjustments do not occur frequently and historically are not material to the fair value estimates used in the Condensed Consolidated Financial Statements. Derivatives are carried at fair value, based upon industry standard valuation techniques that use, where possible, current market-based or independently sourced pricing inputs, such as interest rates, currency exchange rates, or implied volatility. Debt is carried at outstanding principal balance, less any unamortized issuance costs, discount or premium. Fair value is based on quoted market prices or estimates using DCF analyses based on current borrowing rates for similar types of borrowing arrangements. The following tables present the categorization of the Company’s assets and liabilities that are measured at fair value on a recurring basis at June 30, 2023 and December 31, 2022 (in millions): Fair Value Measurements Using Balance at June 30, 2023 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Money market funds (1) $ 3,550 $ 3,550 $ — $ — Other investments Government bonds $ 1 $ — $ 1 $ — Derivatives (2) Gross foreign exchange contracts $ 44 $ — $ 44 $ — Liabilities Derivatives (2) Gross foreign exchange contracts $ 16 $ — $ 16 $ — Fair Value Measurements Using Balance at December 31, 2022 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Money market funds (1) $ 3,323 $ 3,323 $ — $ — Other investments Government bonds $ 1 $ — $ 1 $ — Derivatives (2) Gross foreign exchange contracts $ 19 $ — $ 19 $ — Liabilities 0 Derivatives (2) Gross foreign exchange contracts $ 9 $ — $ 9 $ — (1) Included within Fiduciary assets or Short-term investments in the Condensed Consolidated Statements of Financial Position, depending on their nature and initial maturity. (2) Refer to Note 12 “Derivatives and Hedging” for additional information regarding the Company’s derivatives and hedging activity. There were no transfers of assets or liabilities between fair value hierarchy levels in the three and six months ended June 30, 2023 or 2022. The Company recognized no realized or unrealized gains or losses in the Condensed Consolidated Statements of Income during the three and six months ended June 30, 2023 or 2022 related to assets and liabilities measured at fair value using unobservable inputs. The fair value of debt is classified as Level 2 of the fair value hierarchy. The following table provides the carrying value and fair value for the Company’s term debt (in millions): June 30, 2023 December 31, 2022 Carrying Value Fair Value Carrying Value Fair Value Current portion of long-term debt $ 949 $ 935 $ 350 $ 347 Long-term debt $ 9,989 $ 8,966 $ 9,825 $ 8,745 |
Claims, Lawsuits, and Other Con
Claims, Lawsuits, and Other Contingencies | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Claims, Lawsuits, and Other Contingencies | Claims, Lawsuits, and Other Contingencies Legal Aon and its subsidiaries are subject to numerous claims, tax assessments, lawsuits, and proceedings that arise in the ordinary course of business, which frequently include E&O claims. The damages claimed in these matters are or may be substantial, including, in many instances, claims for punitive, treble, or extraordinary damages. While Aon maintains meaningful E&O insurance and other insurance programs to provide protection against certain losses that arise in such matters, Aon has exhausted or materially depleted its coverage under some of the policies that protect the Company and, consequently, is self-insured or materially self-insured for some claims. Accruals for these exposures, and related insurance receivables, when applicable, are included in the Condensed Consolidated Statements of Financial Position and have been recognized in Other general expense in the Condensed Consolidated Statements of Income to the extent that losses are deemed probable and are reasonably estimable. These amounts are adjusted from time to time as developments warrant. Matters that are not probable and reasonably estimable are not accrued for in the financial statements. The Company’s contingencies and exposures are subject to significant uncertainties, and the determination of likelihood of a loss and estimating any such loss can be complex. The Company is therefore, in certain matters, unable to estimate the range of reasonably possible loss. Although management at present believes that the ultimate outcome of such matters, individually or in the aggregate, will not have a material adverse effect on the consolidated financial position of Aon, legal proceedings are subject to inherent uncertainties and unfavorable rulings or other events. Unfavorable resolutions could include substantial monetary or punitive damages imposed on Aon or its subsidiaries. If unfavorable outcomes of these matters were to occur, future results of operations or cash flows for any particular quarterly or annual period could be materially adversely affected. Certain significant legal proceedings involving us or our subsidiaries are described below. Current Matters Aon Hewitt Investment Consulting, Inc., now known as Aon Investments USA, Inc. (“Aon Investments”), Lowe’s Companies, Inc. and the Administrative Committee of Lowe’s Companies, Inc. (collectively “Lowe’s”) were sued on April 27, 2018 in the U.S. District Court for the Western District of North Carolina (the “Court”) in a class action lawsuit brought on behalf of participants in the Lowe’s 401(k) Plan (the “Plan”). Aon Investments provided investment consulting services to Lowe’s under ERISA . The plaintiffs contend that in 2015 Lowe’s imprudently placed the Hewitt Growth Fund in the Plan’s lineup of investments, the Hewitt Growth Fund underperformed its benchmarks, and that Aon had a conflict of interest in recommending the proprietary fund for the Plan. The plaintiffs allege the Plan suffered over $200 million in investment losses when compared to the eight funds it replaced. The plaintiffs allege that Aon Investments breached its duties of loyalty and prudence pursuant to ERISA . The matter was tried to the Court the last week of June 2021, and the Court entered judgment in favor of Aon on all claims on October 12, 2021. Plaintiffs filed an appeal with the United States Court of Appeals for the Fourth Circuit, and oral argument took place on December 7, 2022. On July 17, 2023, the United States Court of Appeals for the Fourth Circuit issued an opinion affirming the Court’s judgment in favor of Aon. Barring Fourth Circuit rehearing (which plaintiffs must request by July 31, 2023) or Supreme Court review by certiorari (for which a petition or a request for extension must be filed by October 16, 2023), the judgment in Aon’s favor will become final. In the event of further appellate proceedings, Aon believes the Fourth Circuit correctly decided the matter and intends to continue to vigorously defend itself against these claims. Aon faces legal action arising out of a fatal plane crash in November 2016. Aon U.K. Limited placed an aviation civil liability reinsurance policy for the Bolivian insurer of the airline. After the crash, the insurer determined that there was no coverage under the airline’s insurance policy due to the airline’s breach of various policy conditions. In November 2018, the owner of the aircraft filed a claim in Bolivia against Aon, the airline, the insurer and the insurance broker. The claim is for $16 million plus any liability the owner has to third parties. In November 2019, a federal prosecutor in Brazil filed a public civil action naming three Aon entities as defendants, along with the airline, the insurer and the lead reinsurer. That claim seeks pecuniary damages for families affected by the crash in the sum of $300 million; or, in the alternative, $50 million; or, in the alternative, $25 million; plus “moral damages” of an equivalent sum. Separately, in March 2020, the Brazilian Federal Senate invited Aon to give evidence to a Parliamentary Commission of Inquiry in an investigation into the accident. Aon cooperated with that inquiry. In August 2020, 43 individuals (surviving passengers and estates of the deceased) filed a motion in the Circuit Court of the 11th Judicial Circuit in and for Miami-Dade County, Florida, seeking permission to commence proceedings against Aon (and the insurer and reinsurers) for claims totaling $844 million. Finally, in April 2021, representatives of 16 passengers issued a claim against Aon in the High Court in England seeking damages under the Fatal Accidents Act 1976 in the sum of £29 million ( $37 million at June 30, 2023 exchange rates). In December 2022, the High Court in England granted an anti-suit injunction, restricting the 43 individuals who previously filed a motion in the Circuit Court of the 11th Judicial Circuit in and for Miami Dade County, Florida, from continuing litigation in the Circuit Court of the 11th Judicial Circuit against Aon. Aon believes that it has meritorious defenses and intends to vigorously defend itself against the remaining claims. Certain of the Company’s clients and counterparties have initiated or indicated that they may initiate legal proceedings against the Company following allegations in July 2023 that fraudulent letters of credit were issued in the name of third-party banks in connection with transactions for which capital was arranged by Vesttoo Ltd. (“Vesttoo”). Vesttoo is one of the third parties that identifies capital providers to collateralize insurance and reinsurance obligations of the Company’s clients and counterparties. In certain transactions in which Vesttoo identified third party capital providers to collateralize reinsurance obligations, including transactions in which the Company or its affiliates provided brokerage or other services, some letters of credit from third party banks are alleged to have been fraudulent. The Company is actively investigating those allegations. The pending or threatened legal proceedings against the Company allege, among other theories of liability, that in certain circumstances the Company failed to comply with its alleged duty to procure appropriate letters of credit. Aon believes that it has meritorious defenses and intends to vigorously defend itself against these claims and to seek recourse against third parties where appropriate. In addition, certain Bermuda regulatory authorities have initiated investigations or inquiries into this matter, and other regulatory authorities could initiate investigations or proceedings against the Company or third parties. Guarantees and Indemnifications The Company provides a variety of guarantees and indemnifications to its customers and others. The maximum potential amount of future payments represents the notional amounts that could become payable under the guarantees and indemnifications if there were a total default by the guaranteed parties, without consideration of possible recoveries under recourse provisions or other methods. These amounts may bear no relationship to the expected future payments, if any, for these guarantees and indemnifications. Any anticipated amounts payable are included in the Financial Statements, and are recorded at fair value. The Company expects that, as prudent business interests dictate, additional guarantees and indemnifications may be issued from time to time. Guarantee of Registered Securities On June 22, 2023, Aon plc, Aon Global Limited, Aon Global Holdings plc, Aon Corporation, and Aon North America, Inc., and The Bank of New York Mellon Trust Company, N.A., as trustee (the “Trustee”), as applicable, entered into supplemental indentures, each dated June 22, 2023, amending each of the following indentures (as amended, supplemented or modified from time to time) to add for the benefit of the holders of the instruments issued thereunder a full and unconditional guarantee of Aon North America, Inc. thereunder: (i) Second Amended and Restated Indenture, dated April 1, 2020, among Aon Corporation, Aon plc, Aon Global Limited, Aon Global Holdings plc and the Trustee (amending and restating the Amended and Restated Indenture, dated April 2, 2012, amending and restating the Indenture, dated January 13, 1997); (ii) Second Amended and Restated Indenture, dated April 1, 2020, among Aon Corporation, Aon plc, Aon Global Limited, Aon Global Holdings plc and the Trustee (amending and restating the Amended and Restated Indenture, dated April 2, 2012, amending and restating the Indenture, dated September 10, 2010); (iii) Amended and Restated Indenture, dated April 1, 2020, among Aon plc, Aon Corporation, Aon Global Limited, Aon Global Holdings plc and the Trustee (amending and restating the Indenture, dated December 12, 2012); (iv) Second Amended and Restated Indenture, dated April 1, 2020, among Aon plc, Aon Corporation, Aon Global Limited, Aon Global Holdings plc and the Trustee (amending and restating the Amended and Restated Indenture, dated May 20, 2015, amending and restating the Indenture, dated May 24, 2013); (v) Amended and Restated Indenture, dated April 1, 2020, among Aon plc, Aon Corporation, Aon Global Limited, Aon Global Holdings plc and the Trustee (amending and restating the Indenture, dated November 13, 2015); and (vi) Amended and Restated Indenture, dated April 1, 2020, among Aon Corporation, Aon plc, Aon Global Limited, Aon Global Holdings plc and the Trustee (amending and restating the Indenture, dated December 3, 2018). Letters of Credit Aon has entered into a number of arrangements whereby the Company’s performance on certain obligations is guaranteed by a third party through the issuance of LOCs. The Company had total LOCs outstanding of approximately $79 million at June 30, 2023, and $74 million at December 31, 2022. These LOCs cover the beneficiaries related to certain of Aon’s U.S. and Canadian non-qualified pension plan schemes and secure deductible retentions for Aon’s own workers compensation program. The Company has also obtained LOCs to cover contingent payments for taxes and other business obligations to third parties, and other guarantees for miscellaneous purposes at its international subsidiaries. Premium Payments The Company has certain contractual contingent guarantees for premium payments owed by clients to certain insurance companies. The maximum exposure with respect to such contractual contingent guarantees was approximately $135 million at June 30, 2023 compared to $173 million at December 31, 2022. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company operates as one segment that includes all of Aon’s operations, which as a global professional services firm provides a broad range of risk and human capital solutions through four solution lines — Commercial risk, Reinsurance, Health, and Wealth, which make up its principal products and services. The CODM assesses the performance of the Company and allocates resources based on one segment: Aon United. The Company’s reportable operating segment has been determined using a management approach, which is consistent with the basis and manner in which the CODM uses financial information for the purposes of allocating resources and evaluating performance. The CODM assesses performance and allocates resources based on total Aon results against its key four metrics, expense discipline, and collaborative behaviors that maximize value for Aon and its shareholders, regardless of which solution line it benefits. As Aon operates as one segment, segment profit or loss is consistent with consolidated reporting as disclosed in the Condensed Consolidated Statements of Income. Refer to Note 3 “Revenue from Contracts with Customers” for further information on revenue by principal service line. |
Accounting Principles and Pra_2
Accounting Principles and Practices (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying Condensed Consolidated Financial Statements and Notes thereto have been prepared in accordance with U.S. GAAP. The Condensed Consolidated Financial Statements include the accounts of Aon plc and all of its controlled subsidiaries (“Aon” or the “Company”). Intercompany accounts and transactions have been eliminated. The Condensed Consolidated Financial Statements include, in the opinion of management, all adjustments (consisting of normal recurring adjustments and reclassifications) necessary to present fairly the Company’s consolidated financial position, results of operations, and cash flows for all periods presented. Certain information and disclosures normally included in the Consolidated Financial Statements prepared in accordance with U.S. GAAP have been condensed or omitted. The Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. The results for the three and six months ended June 30, 2023 are not necessarily indicative of operating results that may be expected for the full year ending December 31, 2023. |
Use of Estimates | Use of Estimates The preparation of the accompanying Condensed Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the Condensed Consolidated Financial Statements, and the reported amounts of reserves and expenses. These estimates and assumptions are based on management’s best estimates and judgments. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment. Management believes its estimates to be reasonable given the current facts available. Aon adjusts such estimates and assumptions when facts and circumstances dictate. Illiquid credit markets, volatile equity markets, and foreign currency exchange rate movements increase the uncertainty inherent in such estimates and assumptions. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in estimates resulting from continuing changes in the economic environment would, if applicable, be reflected in the Condensed Consolidated Financial Statements in future periods. |
Derivatives and Hedging | The Company is exposed to market risks, including changes in foreign currency exchange rates and interest rates. To manage the risk related to these exposures, the Company enters into various derivative instruments that reduce these risks by creating offsetting exposures. The Company does not enter into derivative transactions for trading or speculative purposes. Foreign Exchange Risk Management The Company is exposed to foreign exchange risk when it earns revenues, pays expenses, enters into monetary intercompany transfers or other transactions denominated in a currency that differs from its functional currency. The Company uses foreign exchange derivatives, typically forward contracts, options and cross currency swaps, to reduce its overall exposure to the effects of currency fluctuations on cash flows. These exposures are hedged, on average, for less than two years. These derivatives are accounted for as hedges, and changes in fair value are recorded each period in Other comprehensive income (loss) in the Condensed Consolidated Statements of Comprehensive Income. The Company also uses foreign exchange derivatives, typically forward contracts and options, to economically hedge the currency exposure of the Company’s global liquidity profile, including monetary assets or liabilities that are denominated in a non-functional currency of an entity, typically on a rolling 90-day basis, but may be for up to one year in the future. These derivatives are not accounted for as hedges, and changes in fair value are recorded each period in Other income (expense) in the Condensed Consolidated Statements of Income. |
Fair Value Measurements and Financial Instruments | Accounting standards establish a three tier fair value hierarchy that prioritizes the inputs used in measuring fair values as follows: • Level 1 — observable inputs such as quoted prices for identical assets in active markets; • Level 2 — inputs other than quoted prices for identical assets in active markets, that are observable either directly or indirectly; and • Level 3 — unobservable inputs in which there is little or no market data which requires the use of valuation techniques and the development of assumptions. The following methods and assumptions are used to estimate the fair values of the Company’s financial instruments: Money market funds consist of institutional prime, treasury, and government money market funds. The Company reviews treasury and government money market funds to obtain reasonable assurance that the fund net asset value is $1 per share, and reviews the floating net asset value of institutional prime money market funds for reasonableness. Equity investments consist of equity securities and equity derivatives valued using the closing stock price on a national securities exchange. Over-the-counter equity derivatives are valued using observable inputs such as underlying prices of the underlying security and volatility. On a sample basis, the Company reviews the listing of Level 1 equity securities in the portfolio, agrees the closing stock prices to a national securities exchange, and independently verifies the observable inputs for Level 2 equity derivatives and securities. Fixed income investments consist of certain categories of bonds and derivatives. Corporate, government, and agency bonds are valued by pricing vendors who estimate fair value using recently executed transactions and proprietary models based on observable inputs, such as interest rate spreads, yield curves, and credit risk. Asset-backed securities are valued by pricing vendors who estimate fair value using DCF models utilizing observable inputs based on trade and quote activity of securities with similar features. Fixed income derivatives are valued by pricing vendors using observable inputs such as interest rates and yield curves. The Company obtains an understanding of the models, inputs, and assumptions used in developing prices provided by its vendors through discussions with the fund managers. The Company independently verifies the observable inputs, as well as assesses assumptions used for reasonableness based on relevant market conditions and internal Company guidelines. If an assumption is deemed unreasonable, based on internal Company guidelines, it is then reviewed by management and the fair value estimate provided by the vendor is adjusted, if deemed appropriate. These adjustments do not occur frequently and historically are not material to the fair value estimates used in the Condensed Consolidated Financial Statements. Derivatives are carried at fair value, based upon industry standard valuation techniques that use, where possible, current market-based or independently sourced pricing inputs, such as interest rates, currency exchange rates, or implied volatility. Debt is carried at outstanding principal balance, less any unamortized issuance costs, discount or premium. Fair value is based on quoted market prices or estimates using DCF analyses based on current borrowing rates for similar types of borrowing arrangements. |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following table summarizes revenue from contracts with customers by principal service line (in millions): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Commercial Risk Solutions $ 1,774 $ 1,692 $ 3,552 $ 3,411 Reinsurance Solutions 607 537 1,684 1,513 Health Solutions 447 414 1,118 1,052 Wealth Solutions 352 343 702 688 Eliminations (3) (3) (8) (11) Total revenue $ 3,177 $ 2,983 $ 7,048 $ 6,653 Consolidated revenue from contracts with customers by geographic area, which is attributed on the basis of where the services are performed, is as follows (in millions): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 United States $ 1,427 $ 1,339 $ 2,922 $ 2,756 Americas other than United States 308 288 609 564 United Kingdom 506 489 1,060 1,017 Ireland 28 25 58 54 Europe, Middle East, & Africa other than United Kingdom and Ireland 512 469 1,614 1,527 Asia Pacific 396 373 785 735 Total revenue $ 3,177 $ 2,983 $ 7,048 $ 6,653 |
Schedule of Capitalized Contract Cost | An analysis of the changes in the net carrying amount of costs to fulfill contracts with customers are as follows (in millions): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Balance at beginning of period $ 257 $ 254 $ 355 $ 361 Additions 355 354 717 702 Amortization (373) (361) (835) (818) Impairment — — — — Foreign currency translation and other 3 (8) 5 (6) Balance at end of period $ 242 $ 239 $ 242 $ 239 An analysis of the changes in the net carrying amount of costs to obtain contracts with customers are as follows (in millions): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Balance at beginning of period $ 183 $ 184 $ 185 $ 179 Additions 13 12 23 27 Amortization (13) (12) (25) (24) Impairment — — — — Foreign currency translation and other 3 (2) 3 — Balance at end of period $ 186 $ 182 $ 186 $ 182 |
Other Financial Data (Tables)
Other Financial Data (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Other Financial Data [Abstract] | |
Schedule of Other Income (Expense) | Other income (expense) consists of the following (in millions): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Pension and other postretirement $ (43) $ (3) $ (60) $ (6) Foreign currency remeasurement (37) 27 (56) (1) Gain from sales of businesses — 22 — 47 Equity earnings (1) 3 2 4 Financial instruments and other 22 (19) 30 11 Total $ (59) $ 30 $ (84) $ 55 |
Schedule of Allowance for Doubtful Accounts | Changes in the net carrying amount of allowance for doubtful accounts are as follows (in millions): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Balance at beginning of period $ 83 $ 93 $ 76 $ 90 Provision 2 4 9 10 Accounts written off, net of recoveries (3) (9) (3) (12) Foreign currency translation and other 1 3 1 3 Balance at end of period $ 83 $ 91 $ 83 $ 91 |
Schedule of Other Current Assets | The components of Other current assets are as follows (in millions): As of June 30, December 31, Assets held for sale (1) $ 288 $ — Costs to fulfill contracts with customers (2) 242 355 Prepaid expenses 164 109 Taxes receivable 51 74 Other 95 108 Total $ 840 $ 646 (1) Refer to Note 6 “Acquisitions and Dispositions of Businesses” for further information. (2) Refer to Note 3 “Revenue from Contracts with Customers” for further information. |
Schedule of Other Non-current Assets | The components of Other non-current assets are as follows (in millions): As of June 30, December 31, Costs to obtain contracts with customers (1) $ 186 $ 185 Taxes receivable 105 109 Investments 45 60 Leases 35 43 Other 130 112 Total $ 501 $ 509 (1) Refer to Note 3 “Revenue from Contracts with Customers” for further information. |
Schedule of Other Current Liabilities | The components of Other current liabilities are as follows (in millions): As of June 30, December 31, Deferred revenue (1) $ 355 $ 250 Taxes payable 228 193 Leases 184 186 Liabilities held for sale (2) 35 — Other 991 718 Total $ 1,793 $ 1,347 (1) During the three and six months ended June 30, 2023, revenue of $169 million and $336 million, respectively, was recognized in the Condensed Consolidated Statements of Income. During the three and six months ended June 30, 2022, revenue of $170 million and $373 million, respectively, was recognized in the Condensed Consolidated Statements of Income. (2) Refer to Note 6 “Acquisitions and Dispositions of Businesses” for further information. |
Schedule of Other Non-current Liabilities | The components of Other non-current liabilities are as follows (in millions): As of June 30, December 31, Taxes payable (1) $ 793 $ 795 Compensation and benefits 52 69 Deferred revenue 38 37 Leases 19 28 Other 93 95 Total $ 995 $ 1,024 (1) Includes $72 million an d $129 million for the non-current portion of the one-time mandatory transition tax on accumulated foreign earnings as of June 30, 2023 and December 31, 2022, respectively. |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in the Net Carrying Amount of Goodwill by Operating Segment | The changes in the net carrying amount of goodwill for the six months ended June 30, 2023 are as follows (in millions): Balance as of December 31, 2022 $ 8,292 Goodwill related to current year acquisitions 1 Foreign currency translation and other 67 Balance as of June 30, 2023 $ 8,360 |
Schedule of Other Intangible Assets by Asset Class | Other intangible assets by asset class are as follows (in millions): June 30, 2023 December 31, 2022 Gross Carrying Amount Accumulated Net Carrying Amount (1) Gross Carrying Amount Accumulated Net Carrying Amount Customer-related and contract-based $ 1,904 $ 1,696 $ 208 $ 2,207 $ 1,833 $ 374 Technology and other (2) 380 320 60 450 377 73 Total $ 2,284 $ 2,016 $ 268 $ 2,657 $ 2,210 $ 447 (1) In the second quarter of 2023, the Company classified $143 million of Intangible assets, net, as assets held for sale within Other current assets. Refer to Note 6 “Acquisitions and Dispositions of Businesses” for further information. |
Schedule of Estimated Future Amortization Expense on Intangible Assets | The estimated future amortization for finite-lived intangible assets as of June 30, 2023 is as follows (in millions): Remainder of 2023 $ 39 2024 64 2025 54 2026 35 2027 23 2028 17 Thereafter 36 Total $ 268 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Commercial Paper Outstanding | Commercial paper outstanding, which is included in Short-term debt and current portion of long-term debt in the Condensed Consolidated Statements of Financial Position, is as follows (in millions): June 30, 2023 December 31, 2022 Commercial paper outstanding $ 382 $ 592 The weighted average commercial paper outstanding and its related interest rates are as follows (in millions, except percentages): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Weighted average commercial paper outstanding $ 435 $ 375 $ 414 $ 473 Weighted average interest rate of commercial paper outstanding 4.90 % 0.68 % 4.18 % 0.18 % |
Shareholders' Equity (Deficit)
Shareholders' Equity (Deficit) (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Schedule of Share Repurchase Activity | The following table summarizes the Company’s share repurchase activity (in millions, except per share data): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Shares repurchased 1.7 1.7 3.5 4.5 Average price per share $ 323.96 $ 292.06 $ 314.36 $ 293.56 Repurchase costs recorded to accumulated deficit $ 550 $ 500 $ 1,100 $ 1,328 |
Schedule of Components of Weighted Average Number of Shares Outstanding | Weighted average ordinary shares outstanding are as follows (in millions): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Basic weighted average ordinary shares outstanding 204.7 213.3 205.4 214.3 Dilutive effect of potentially issuable shares 1.6 1.4 1.3 1.3 Diluted weighted average ordinary shares outstanding 206.3 214.7 206.7 215.6 |
Schedule of Components of Accumulated Other Comprehensive Loss, Net of Related Tax | Changes in Accumulated other comprehensive loss by component, net of related tax, are as follows (in millions): Change in Fair Value of Financial Instruments (1) Foreign Currency Translation Adjustments Postretirement Benefit Obligation (2) Total Balance at December 31, 2022 $ (11) $ (1,861) $ (2,751) $ (4,623) Other comprehensive income (loss) before reclassifications, net 7 228 (22) 213 Amounts reclassified from accumulated other comprehensive income Amounts reclassified from accumulated other comprehensive income 6 — 92 98 Tax expense (2) — (24) (26) Amounts reclassified from accumulated other comprehensive income, net 4 — 68 72 Net current period other comprehensive income 11 228 46 285 Balance at June 30, 2023 $ — $ (1,633) $ (2,705) $ (4,338) Change in Fair Value of Financial Instruments (1) Foreign Currency Translation Adjustments Postretirement Benefit Obligation (2) Total Balance at December 31, 2021 $ 2 $ (1,333) $ (2,540) $ (3,871) Other comprehensive income (loss) before reclassifications, net (5) (442) 16 (431) Amounts reclassified from accumulated other comprehensive income Amounts reclassified from accumulated other comprehensive income (4) — 61 57 Tax benefit (expense) 1 — (16) (15) Amounts reclassified from accumulated other comprehensive income, net (3) — 45 42 Net current period other comprehensive income (loss) (8) (442) 61 (389) Balance at June 30, 2022 $ (6) $ (1,775) $ (2,479) $ (4,260) (1) Reclassifications from this category included in Accumulated other comprehensive loss are recorded in Total revenue, Interest expense, and Compensation and benefits in the Condensed Consolidated Statements of Income. Refer to Note 12 “Derivatives and Hedging” for further information regarding the Company’s derivative and hedging activity. (2) Reclassifications from this category included in Accumulated other comprehensive loss are recorded in Other income (expense) in the Condensed Consolidated Statements of Income. |
Employee Benefits (Tables)
Employee Benefits (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of Components of Net Periodic Benefit Cost for the Pension Plans | The following table provides the components of the net periodic (benefit) cost recognized in the Condensed Consolidated Statements of Income for Aon’s significant U.K., U.S., and other major pension plans, which are located in the Netherlands and Canada. Service cost is reported in Compensation and benefits and all other components are reported in Other income (expense) as follows (in millions): Three Months Ended June 30, U.K. U.S. Other 2023 2022 2023 2022 2023 2022 Service cost $ — $ — $ — $ — $ — $ — Interest cost 36 21 26 17 10 4 Expected return on plan assets, net of administration expenses (48) (34) (30) (27) (12) (8) Amortization of prior-service cost 1 — — — — — Amortization of net actuarial loss 19 8 8 17 4 3 Net periodic (benefit) cost 8 (5) 4 7 2 (1) Loss on pension settlement — — — — 27 — Total net periodic (benefit) cost $ 8 $ (5) $ 4 $ 7 $ 29 $ (1) Six Months Ended June 30, U.K. U.S. Other 2023 2022 2023 2022 2023 2022 Service cost $ — $ — $ — $ — $ — $ — Interest cost 72 44 52 34 20 9 Expected return on plan assets, net of administration expenses (94) (70) (60) (54) (24) (17) Amortization of prior-service cost 1 1 — — — — Amortization of net actuarial loss 37 15 17 33 7 7 Net periodic (benefit) cost 16 (10) 9 13 3 (1) Loss on pension settlement — — — 1 27 — Total net periodic (benefit) cost $ 16 $ (10) $ 9 $ 14 $ 30 $ (1) |
Schedule of Employer's Contributions | The following table summarizes contributions made to the Company’s significant pension plans (in millions): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Contributions to U.K. pension plans $ 1 $ 2 $ 2 $ 5 Contributions to U.S. pension plans 5 7 21 25 Contributions to other major pension plans 2 2 8 10 Total contributions $ 8 $ 11 $ 31 $ 40 |
Derivatives and Hedging (Tables
Derivatives and Hedging (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional and Fair Values of Derivative Instruments | The notional and fair values of derivative instruments are as follows (in millions): Notional Amount Net Amount of Derivative Assets Presented in the Statements of Financial Position (1) Net Amount of Derivative Liabilities Presented in the Statements of Financial Position (2) June 30, December 31, June 30, December 31, June 30, December 31, Foreign exchange contracts Accounted for as hedges $ 645 $ 618 $ 29 $ 12 $ — $ 2 Not accounted for as hedges (3) 472 312 — — 1 1 Total $ 1,117 $ 930 $ 29 $ 12 $ 1 $ 3 (1) Included within Other current assets ($10 million at June 30, 2023 and $3 million at December 31, 2022) or Other non-current assets ($19 million at June 30, 2023 and $9 million at December 31, 2022). (2) Included within Other current liabilities ($1 million at June 30, 2023 and $2 million December 31, 2022) or Other non-current liabilities ($1 million at December 31, 2022). (3) These contracts typically are for 90-day durations and executed close to the last day of the most recent reporting month, thereby resulting in nominal fair values at the balance sheet date. |
Schedule of Derivative Gains (Losses) | The amounts of derivative gains recognized in the Condensed Consolidated Financial Statements are as follows (in millions): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Gain (loss) recognized in Accumulated other comprehensive loss $ 9 $ (7) $ 9 $ (6) The amounts of derivative losses reclassified from Accumulated other comprehensive loss to the Condensed Consolidated Statements of Income are as follows (in millions): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Gains (losses) recognized in Total revenue $ (1) $ 4 $ (6) $ 3 Compensation and benefits — 1 — 1 Total $ (1) $ 5 $ (6) $ 4 |
Fair Value Measurements and F_2
Fair Value Measurements and Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities That are Measured at Fair Value on a Recurring Basis | The following tables present the categorization of the Company’s assets and liabilities that are measured at fair value on a recurring basis at June 30, 2023 and December 31, 2022 (in millions): Fair Value Measurements Using Balance at June 30, 2023 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Money market funds (1) $ 3,550 $ 3,550 $ — $ — Other investments Government bonds $ 1 $ — $ 1 $ — Derivatives (2) Gross foreign exchange contracts $ 44 $ — $ 44 $ — Liabilities Derivatives (2) Gross foreign exchange contracts $ 16 $ — $ 16 $ — Fair Value Measurements Using Balance at December 31, 2022 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Money market funds (1) $ 3,323 $ 3,323 $ — $ — Other investments Government bonds $ 1 $ — $ 1 $ — Derivatives (2) Gross foreign exchange contracts $ 19 $ — $ 19 $ — Liabilities 0 Derivatives (2) Gross foreign exchange contracts $ 9 $ — $ 9 $ — (1) Included within Fiduciary assets or Short-term investments in the Condensed Consolidated Statements of Financial Position, depending on their nature and initial maturity. |
Schedule of Financial Instruments Where the Carrying Amounts and Fair Values Differ | The fair value of debt is classified as Level 2 of the fair value hierarchy. The following table provides the carrying value and fair value for the Company’s term debt (in millions): June 30, 2023 December 31, 2022 Carrying Value Fair Value Carrying Value Fair Value Current portion of long-term debt $ 949 $ 935 $ 350 $ 347 Long-term debt $ 9,989 $ 8,966 $ 9,825 $ 8,745 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 3,177 | $ 2,983 | $ 7,048 | $ 6,653 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 1,427 | 1,339 | 2,922 | 2,756 |
Americas other than United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 308 | 288 | 609 | 564 |
United Kingdom | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 506 | 489 | 1,060 | 1,017 |
Ireland | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 28 | 25 | 58 | 54 |
Europe, Middle East, & Africa other than United Kingdom and Ireland | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 512 | 469 | 1,614 | 1,527 |
Asia Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 396 | 373 | 785 | 735 |
Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | (3) | (3) | (8) | (11) |
Commercial Risk Solutions | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 1,774 | 1,692 | 3,552 | 3,411 |
Reinsurance Solutions | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 607 | 537 | 1,684 | 1,513 |
Health Solutions | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 447 | 414 | 1,118 | 1,052 |
Wealth Solutions | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 352 | $ 343 | $ 702 | $ 688 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Contract Assets Rollforward (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Capitalized Cost To Fulfill Customer Contracts | ||||
Change in Capitalized Contract Costs | ||||
Balance at beginning of period | $ 257 | $ 254 | $ 355 | $ 361 |
Additions | 355 | 354 | 717 | 702 |
Amortization | (373) | (361) | (835) | (818) |
Impairment | 0 | 0 | 0 | 0 |
Foreign currency translation and other | 3 | (8) | 5 | (6) |
Balance at end of period | 242 | 239 | 242 | 239 |
Capitalized Cost To Obtain Customer Contracts | ||||
Change in Capitalized Contract Costs | ||||
Balance at beginning of period | 183 | 184 | 185 | 179 |
Additions | 13 | 12 | 23 | 27 |
Amortization | (13) | (12) | (25) | (24) |
Impairment | 0 | 0 | 0 | 0 |
Foreign currency translation and other | 3 | (2) | 3 | 0 |
Balance at end of period | $ 186 | $ 182 | $ 186 | $ 182 |
Cash and Cash Equivalents and_2
Cash and Cash Equivalents and Short-Term Investments (Details) £ in Millions, $ in Millions | 6 Months Ended | |||
Jun. 30, 2023 USD ($) | Jun. 30, 2023 GBP (£) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 GBP (£) | |
Cash, Cash Equivalents, and Short-Term Investments [Abstract] | ||||
Cash and cash equivalents and short-term investments | $ 1,152 | $ 1,142 | ||
Decrease in cash and cash equivalents and short term investments | 10 | |||
Restricted cash and investments | 115 | 115 | ||
Operating funds required to be held in U.K. | $ 80.3 | £ 63.2 | $ 72.5 | £ 60.1 |
Other Financial Data - Schedule
Other Financial Data - Schedule of Other Income (Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Other Financial Data [Abstract] | ||||
Pension and other postretirement | $ (43) | $ (3) | $ (60) | $ (6) |
Foreign currency remeasurement | (37) | 27 | (56) | (1) |
Gain from sales of businesses | 0 | 22 | 0 | 47 |
Equity earnings | (1) | 3 | 2 | 4 |
Financial instruments and other | 22 | (19) | 30 | 11 |
Total | $ (59) | $ 30 | $ (84) | $ 55 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other income (expense) | Other income (expense) | Other income (expense) | Other income (expense) |
Other Financial Data - Schedu_2
Other Financial Data - Schedule of Allowance for Doubtful Accounts (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Movement ofAccounts Receivable, Allowance for Credit Loss, Current [Roll Forward] | ||||
Balance at beginning of period | $ 83 | $ 93 | $ 76 | $ 90 |
Provision | 2 | 4 | 9 | 10 |
Accounts written off, net of recoveries | (3) | (9) | (3) | (12) |
Foreign currency translation and other | 1 | 3 | 1 | 3 |
Balance at end of period | $ 83 | $ 91 | $ 83 | $ 91 |
Other Financial Data - Schedu_3
Other Financial Data - Schedule of Other Current Assets (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Other Financial Data [Abstract] | ||
Assets held for sale | $ 288 | $ 0 |
Cost to fulfill contracts with customers | 242 | 355 |
Prepaid expenses | 164 | 109 |
Taxes receivable | 51 | 74 |
Other | 95 | 108 |
Total | $ 840 | $ 646 |
Other Financial Data - Schedu_4
Other Financial Data - Schedule of Other Non-current Assets (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Other Financial Data [Abstract] | ||
Cost to obtain contracts with customers | $ 186 | $ 185 |
Taxes receivable | 105 | 109 |
Investments | 45 | 60 |
Leases | 35 | 43 |
Other | 130 | 112 |
Total | $ 501 | $ 509 |
Other Financial Data - Schedu_5
Other Financial Data - Schedule of Other Current Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Other Financial Data [Abstract] | |||||
Deferred revenue | $ 355 | $ 355 | $ 250 | ||
Taxes payable | 228 | 228 | 193 | ||
Leases | 184 | 184 | 186 | ||
Liabilities held for sale | 35 | 35 | 0 | ||
Other | 991 | 991 | 718 | ||
Total | 1,793 | 1,793 | $ 1,347 | ||
Revenue recognized from deferred revenue | $ 169 | $ 170 | $ 336 | $ 373 |
Other Financial Data - Schedu_6
Other Financial Data - Schedule of Other Non-current Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Other Financial Data [Abstract] | ||
Taxes payable | $ 793 | $ 795 |
Compensation and benefits | 52 | 69 |
Deferred revenue | 38 | 37 |
Leases | 19 | 28 |
Other | 93 | 95 |
Other non-current liabilities | 995 | 1,024 |
Noncurrent portion of transition tax | $ 72 | $ 129 |
Acquisitions and Dispositions_2
Acquisitions and Dispositions of Businesses - Completed Acquisitions (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2023 USD ($) acquisition | Jun. 30, 2022 acquisition | Jun. 30, 2023 USD ($) acquisition | Jun. 30, 2022 acquisition | Jun. 22, 2023 | Nov. 01, 2022 | May 03, 2022 | |
Business Acquisition [Line Items] | |||||||
Number of business acquired under business combination | acquisition | 1 | 1 | 1 | 2 | |||
2023 Acquisitions | |||||||
Business Acquisition [Line Items] | |||||||
Total consideration | $ 9 | ||||||
Cash consideration | 7 | ||||||
Contingent consideration | 2 | ||||||
Assets acquired from acquisition | 9 | $ 9 | |||||
Liabilities assumed from acquisition (less than) | $ 1 | $ 1 | |||||
Percentage of capital acquired | 100% | ||||||
E.R.N. Evaluacion de Riesgos Naturales y Antropogenicos, S.A. de C.V | |||||||
Business Acquisition [Line Items] | |||||||
Percentage of capital acquired | 100% | ||||||
Karl Köllner Group | |||||||
Business Acquisition [Line Items] | |||||||
Percentage of capital acquired | 100% |
Acquisitions and Dispositions_3
Acquisitions and Dispositions of Businesses - Completed Dispositions (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 USD ($) disposition | Jun. 30, 2022 USD ($) disposition | Jun. 30, 2023 USD ($) disposition | Jun. 30, 2022 USD ($) disposition | Dec. 31, 2022 USD ($) | |
Business Combination and Asset Acquisition [Abstract] | |||||
Number of dispositions | disposition | 0 | 1 | 0 | 3 | |
Gain from sales of businesses | $ 0 | $ 22 | $ 0 | $ 47 | |
Assets held for sale | 288 | 288 | $ 0 | ||
Liabilities held for sale | $ 35 | $ 35 | $ 0 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Schedule of Changes in the Net Carrying Amount of Goodwill (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 8,292 |
Goodwill related to current year acquisitions | 1 |
Foreign currency translation and other | 67 |
Ending balance | $ 8,360 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Schedule of Other Intangible Assets by Asset Class (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Jun. 30, 2023 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 2,657 | $ 2,284 |
Accumulated Amortization and Impairment | 2,210 | 2,016 |
Total | 447 | 268 |
Customer-related and contract-based | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 2,207 | 1,904 |
Accumulated Amortization and Impairment | 1,833 | 1,696 |
Total | 374 | 208 |
Technology and other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 450 | 380 |
Accumulated Amortization and Impairment | 377 | 320 |
Total | 73 | $ 60 |
Tradenames | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortized intangible assets | $ 14 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Narrative (Details) $ in Millions | Jun. 30, 2023 USD ($) |
Held-for-sale | |
Dispositions | |
Gross intangibles held for sale | $ 143 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Schedule of Estimated Future Amortization Expense on Intangible Assets (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remainder of 2023 | $ 39 | |
2024 | 64 | |
2025 | 54 | |
2026 | 35 | |
2027 | 23 | |
2028 | 17 | |
Thereafter | 36 | |
Total | $ 268 | $ 447 |
Debt - Narrative (Details)
Debt - Narrative (Details) | Jun. 30, 2023 USD ($) credit_facility | Jun. 30, 2023 EUR (€) credit_facility | Feb. 28, 2023 USD ($) | Nov. 30, 2022 USD ($) | Sep. 12, 2022 USD ($) | Feb. 28, 2022 USD ($) |
Debt Instrument [Line Items] | ||||||
Number of credit facilities | credit_facility | 2 | 2 | ||||
Borrowings under credit facilities | $ 0 | |||||
Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, available credit | 1,800,000,000 | |||||
Line of Credit | Credit Facility Expiring September 2026 | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | 1,000,000,000 | |||||
Line of Credit | Credit Facility Expiring October 2024 | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | 750,000,000 | |||||
3.50% Senior Notes Due June 2024 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt, face amount | $ 600,000,000 | |||||
Debt interest rate percentage | 3.50% | 3.50% | ||||
5.350% Senior Notes Due February 2033 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt, face amount | $ 750,000,000 | |||||
Debt interest rate percentage | 5.35% | |||||
4.00% Senior Notes Due November 2023 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt, face amount | $ 350,000,000 | |||||
Debt interest rate percentage | 4% | |||||
2.20% Senior Notes due November 2022 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt, face amount | $ 500,000,000 | |||||
Debt interest rate percentage | 2.20% | |||||
5.00% Senior Notes Due September 2032 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt, face amount | $ 500,000,000 | |||||
Debt interest rate percentage | 5% | |||||
2.85% Senior Notes Due May 2027 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt, face amount | $ 600,000,000 | |||||
Debt interest rate percentage | 2.85% | |||||
3.90% Senior Notes Due February 2052 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt, face amount | $ 900,000,000 | |||||
Debt interest rate percentage | 3.90% | |||||
U.S. Program | Commercial paper outstanding | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 1,000,000,000 | |||||
European Program | Commercial paper outstanding | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 682,000,000 | € 625,000,000 |
Debt - Schedule of Commercial P
Debt - Schedule of Commercial Paper Outstanding (Details) - Commercial paper outstanding - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | |||||
Commercial paper outstanding | $ 382 | $ 382 | $ 592 | ||
Weighted average commercial paper outstanding | $ 435 | $ 375 | $ 414 | $ 473 | |
Weighted average interest rate of commercial paper outstanding | 4.90% | 0.68% | 4.18% | 0.18% |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 12.60% | 18.80% | 17.30% | 19.40% |
Shareholders' Equity (Deficit_2
Shareholders' Equity (Deficit) - Narrative (Details) - USD ($) shares in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 135 Months Ended | ||||||
Feb. 28, 2022 | Nov. 30, 2020 | Jun. 30, 2017 | Nov. 30, 2014 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Apr. 30, 2012 | |
Equity [Abstract] | ||||||||||
Share repurchase authorization amount | $ 27,500,000,000 | $ 27,500,000,000 | $ 27,500,000,000 | $ 5,000,000,000 | ||||||
Share repurchase authorization amount, increase during period | $ 7,500,000,000 | $ 5,000,000,000 | $ 5,000,000,000 | $ 5,000,000,000 | ||||||
Share repurchase, remaining authorized repurchase amount | $ 4,900,000,000 | $ 4,900,000,000 | $ 4,900,000,000 | |||||||
Shares purchased (in shares) | 1.7 | 1.7 | 3.5 | 4.5 | 164.2 | |||||
Total cost of shares purchased | $ 550,000,000 | $ 500,000,000 | $ 1,100,000,000 | $ 1,328,000,000 | $ 22,600,000,000 | |||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 | 1.3 | 0 | 1.1 |
Shareholders' Equity (Deficit_3
Shareholders' Equity (Deficit) - Schedule of Stock Repurchases (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | 135 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | |
Equity [Abstract] | |||||
Shares repurchased (in shares) | 1.7 | 1.7 | 3.5 | 4.5 | 164.2 |
Average price per share (in dollars per share) | $ 323.96 | $ 292.06 | $ 314.36 | $ 293.56 | |
Repurchase costs recorded to accumulated deficit | $ 550 | $ 500 | $ 1,100 | $ 1,328 | $ 22,600 |
Shareholders' Equity (Deficit_4
Shareholders' Equity (Deficit) - Weighted Average Ordinary Shares Outstanding (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Equity [Abstract] | ||||
Basic weighted average ordinary shares outstanding (in shares) | 204.7 | 213.3 | 205.4 | 214.3 |
Dilutive effect of potentially issuable shares (in shares) | 1.6 | 1.4 | 1.3 | 1.3 |
Diluted weighted average ordinary shares outstanding (in shares) | 206.3 | 214.7 | 206.7 | 215.6 |
Shareholders' Equity (Deficit_5
Shareholders' Equity (Deficit) - Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | $ 58 | $ 1,291 | $ (429) | $ 1,158 |
Other comprehensive income (loss) before reclassifications, net | 213 | (431) | ||
Amounts reclassified from accumulated other comprehensive income | ||||
Amounts reclassified from accumulated other comprehensive income | 98 | 57 | ||
Tax benefit (expense) | (26) | (15) | ||
Amounts reclassified from accumulated other comprehensive income, net | 72 | 42 | ||
Total other comprehensive income (loss) attributable to Aon shareholders | 206 | (417) | 285 | (389) |
Ending balance | 162 | 788 | 162 | 788 |
AOCI Attributable to Parent | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | (4,544) | (3,843) | (4,623) | (3,871) |
Amounts reclassified from accumulated other comprehensive income | ||||
Ending balance | (4,338) | (4,260) | (4,338) | (4,260) |
Change in Fair Value of Financial Instruments | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | (11) | 2 | ||
Other comprehensive income (loss) before reclassifications, net | 7 | (5) | ||
Amounts reclassified from accumulated other comprehensive income | ||||
Amounts reclassified from accumulated other comprehensive income | 6 | (4) | ||
Tax benefit (expense) | (2) | 1 | ||
Amounts reclassified from accumulated other comprehensive income, net | 4 | (3) | ||
Total other comprehensive income (loss) attributable to Aon shareholders | 11 | (8) | ||
Ending balance | 0 | (6) | 0 | (6) |
Foreign Currency Translation Adjustments | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | (1,861) | (1,333) | ||
Other comprehensive income (loss) before reclassifications, net | 228 | (442) | ||
Amounts reclassified from accumulated other comprehensive income | ||||
Amounts reclassified from accumulated other comprehensive income | 0 | 0 | ||
Tax benefit (expense) | 0 | 0 | ||
Amounts reclassified from accumulated other comprehensive income, net | 0 | 0 | ||
Total other comprehensive income (loss) attributable to Aon shareholders | 228 | (442) | ||
Ending balance | (1,633) | (1,775) | (1,633) | (1,775) |
Postretirement Benefit Obligation | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | (2,751) | (2,540) | ||
Other comprehensive income (loss) before reclassifications, net | (22) | 16 | ||
Amounts reclassified from accumulated other comprehensive income | ||||
Amounts reclassified from accumulated other comprehensive income | 92 | 61 | ||
Tax benefit (expense) | (24) | (16) | ||
Amounts reclassified from accumulated other comprehensive income, net | 68 | 45 | ||
Total other comprehensive income (loss) attributable to Aon shareholders | 46 | 61 | ||
Ending balance | $ (2,705) | $ (2,479) | $ (2,705) | $ (2,479) |
Employee Benefits - Components
Employee Benefits - Components of Net Periodic (Benefit) Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
U.K. | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | $ 0 | $ 0 | $ 0 | $ 0 | |
Interest cost | 36 | 21 | 72 | 44 | |
Expected return on plan assets, net of administration expenses | (48) | (34) | (94) | (70) | |
Amortization of prior-service cost | 1 | 0 | 1 | 1 | |
Amortization of net actuarial loss | 19 | 8 | 37 | 15 | |
Net periodic (benefit) cost | 8 | (5) | 16 | (10) | |
Loss on pension settlement | 0 | 0 | 0 | 0 | |
Total net periodic (benefit) cost | 8 | (5) | 16 | (10) | |
Other | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | 0 | 0 | 0 | 0 | |
Interest cost | 10 | 4 | 20 | 9 | |
Expected return on plan assets, net of administration expenses | (12) | (8) | (24) | (17) | |
Amortization of prior-service cost | 0 | 0 | 0 | 0 | |
Amortization of net actuarial loss | 4 | 3 | 7 | 7 | |
Net periodic (benefit) cost | 2 | (1) | 3 | (1) | |
Loss on pension settlement | 27 | 0 | 27 | 0 | |
Total net periodic (benefit) cost | 29 | (1) | 30 | (1) | |
U.S. | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | 0 | 0 | 0 | 0 | |
Interest cost | 26 | 17 | 52 | 34 | |
Expected return on plan assets, net of administration expenses | (30) | (27) | (60) | (54) | |
Amortization of prior-service cost | 0 | 0 | 0 | 0 | |
Amortization of net actuarial loss | 8 | 17 | 17 | 33 | |
Net periodic (benefit) cost | 4 | 7 | 9 | 13 | |
Loss on pension settlement | 0 | 0 | $ 1 | 0 | 1 |
Total net periodic (benefit) cost | $ 4 | $ 7 | $ 9 | $ 14 |
Employee Benefits - Narrative (
Employee Benefits - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
U.S. | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Non-cash settlement charge | $ 0 | $ 0 | $ 1 | $ 0 | $ 1 |
Expected future employer cash contribution | 43 | 43 | |||
Other | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Non-cash settlement charge | 27 | 0 | 27 | 0 | |
Expected future employer cash contribution | 14 | 14 | |||
U.K. | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Non-cash settlement charge | 0 | $ 0 | 0 | $ 0 | |
Expected future employer cash contribution | $ 4 | $ 4 |
Employee Benefits - Schedule of
Employee Benefits - Schedule of Employer Contributions (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Company’s benefit pension plans | $ 8 | $ 11 | $ 31 | $ 40 |
U.K. | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Company’s benefit pension plans | 1 | 2 | 2 | 5 |
Other | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Company’s benefit pension plans | 2 | 2 | 8 | 10 |
U.S. | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Company’s benefit pension plans | $ 5 | $ 7 | $ 21 | $ 25 |
Derivatives and Hedging - Forei
Derivatives and Hedging - Foreign Exchange Risk Management Narrative (Details) | 6 Months Ended |
Jun. 30, 2023 | |
Not designated as hedging instrument | Foreign exchange contracts | |
Derivative [Line Items] | |
Term of derivative contract | 90 days |
Not designated as hedging instrument | Foreign exchange contracts | Maximum | |
Derivative [Line Items] | |
Term of derivative contract | 1 year |
Cash Flow Hedging | |
Derivative [Line Items] | |
Foreign currency exposures, maximum average hedging period (less than) (in years) | 2 years |
Derivatives and Hedging - Notio
Derivatives and Hedging - Notional and Fair Values of Derivative Instruments (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2022 | |
Other Current Assets | ||
Derivative [Line Items] | ||
Net amount of derivative assets | $ 10 | $ 3 |
Other Noncurrent Assets | ||
Derivative [Line Items] | ||
Net amount of derivative assets | 19 | 9 |
Other Current Liabilities | ||
Derivative [Line Items] | ||
Net amount of derivative liabilities | 1 | 2 |
Other non-current liabilities | ||
Derivative [Line Items] | ||
Net amount of derivative liabilities | 1 | |
Foreign exchange contracts | ||
Derivative [Line Items] | ||
Notional Amount | 1,117 | 930 |
Net amount of derivative assets | 29 | 12 |
Net amount of derivative liabilities | 1 | 3 |
Accounted for as hedges | Foreign exchange contracts | ||
Derivative [Line Items] | ||
Notional Amount | 645 | 618 |
Net amount of derivative assets | 29 | 12 |
Net amount of derivative liabilities | 0 | 2 |
Not accounted for as hedges | Foreign exchange contracts | ||
Derivative [Line Items] | ||
Notional Amount | 472 | 312 |
Net amount of derivative assets | 0 | 0 |
Net amount of derivative liabilities | $ 1 | $ 1 |
Term of derivative contract | 90 days |
Derivatives and Hedging - Sched
Derivatives and Hedging - Schedule of Derivative Gains (Losses) Recognized in the Consolidated Financial Statements (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Derivative [Line Items] | ||||
Gain (loss) recognized in Accumulated other comprehensive loss | $ 9 | $ (7) | $ 9 | $ (6) |
Gains (losses) recognized in Total revenue | (1) | 5 | (6) | 4 |
Gains (losses) recognized in Total revenue | ||||
Derivative [Line Items] | ||||
Gains (losses) recognized in Total revenue | (1) | 4 | (6) | 3 |
Compensation and benefits | ||||
Derivative [Line Items] | ||||
Gains (losses) recognized in Total revenue | $ 0 | $ 1 | $ 0 | $ 1 |
Derivatives and Hedging - Inter
Derivatives and Hedging - Interest Rate Management Risk Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Derivative [Line Items] | ||||
Gain (loss) on derivative | $ 22 | $ (19) | $ 30 | $ 11 |
Foreign exchange contracts | ||||
Derivative [Line Items] | ||||
Pretax losses that will be reclassified into earnings in the next twelve months | 5 | |||
Foreign exchange contracts | Not designated as hedging instrument | ||||
Derivative [Line Items] | ||||
Gain (loss) on derivative | $ 28 | $ (15) | $ 37 | $ 17 |
Fair Value Measurements and F_3
Fair Value Measurements and Financial Instruments - Schedule of Assets and Liabilities that are Measured at Fair Value on a Recurring Basis (Details) - Recurring - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Money market funds | ||
Assets | ||
Money market funds | $ 3,550 | $ 3,323 |
Government bonds | ||
Assets | ||
Other investments | 1 | 1 |
Gross foreign exchange contracts | ||
Assets | ||
Derivatives | 44 | 19 |
Liabilities | ||
Derivatives | 16 | 9 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Money market funds | ||
Assets | ||
Money market funds | 3,550 | 3,323 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Government bonds | ||
Assets | ||
Other investments | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Gross foreign exchange contracts | ||
Assets | ||
Derivatives | 0 | 0 |
Liabilities | ||
Derivatives | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Money market funds | ||
Assets | ||
Money market funds | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Government bonds | ||
Assets | ||
Other investments | 1 | 1 |
Significant Other Observable Inputs (Level 2) | Gross foreign exchange contracts | ||
Assets | ||
Derivatives | 44 | 19 |
Liabilities | ||
Derivatives | 16 | 9 |
Significant Unobservable Inputs (Level 3) | Money market funds | ||
Assets | ||
Money market funds | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Government bonds | ||
Assets | ||
Other investments | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Gross foreign exchange contracts | ||
Assets | ||
Derivatives | 0 | 0 |
Liabilities | ||
Derivatives | $ 0 | $ 0 |
Fair Value Measurements and F_4
Fair Value Measurements and Financial Instruments - Schedule of Financial Instruments where the Carrying Amounts and Fair Values Differ (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt | $ 9,989 | $ 9,825 |
Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Current portion of long-term debt | 949 | 350 |
Long-term debt | 9,989 | 9,825 |
Fair Value | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Current portion of long-term debt, fair value | 935 | 347 |
Long term debt, fair value | $ 8,966 | $ 8,745 |
Claims, Lawsuits, and Other C_2
Claims, Lawsuits, and Other Contingencies - Legal Narrative (Details) - Pending Litigation £ in Millions, $ in Millions | 1 Months Ended | |||||
Jun. 30, 2023 USD ($) | Apr. 30, 2021 GBP (£) plaintiff | Aug. 31, 2020 USD ($) plaintiff | Nov. 30, 2019 USD ($) defendant | Nov. 30, 2018 USD ($) | Apr. 27, 2018 USD ($) fund | |
Aon Hewitt Investment Consulting Inc | ||||||
Legal, Guarantees and Indemnifications | ||||||
Investment losses suffered by plaintiff | $ 200 | |||||
Investment losses suffered by plaintiff, number of funds | fund | 8 | |||||
Fatal Plain Crash In November 2016 | ||||||
Legal, Guarantees and Indemnifications | ||||||
Damages sought | $ 37 | £ 29 | $ 844 | $ 16 | ||
Number of defendants | defendant | 3 | |||||
Damages sought option 1 | $ 300 | |||||
Damages sought option 2 | 50 | |||||
Damages sought option 3 | $ 25 | |||||
Number of plaintiffs | plaintiff | 16 | 43 |
Claims, Lawsuits, and Other C_3
Claims, Lawsuits, and Other Contingencies - Letters of Credit Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Commitments and Contingencies Disclosure [Abstract] | ||
Letters of credit outstanding | $ 79 | $ 74 |
Claims, Lawsuits, and Other C_4
Claims, Lawsuits, and Other Contingencies - Premium Payments (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Commitments and Contingencies Disclosure [Abstract] | ||
Maximum potential funding under commitments | $ 135 | $ 173 |
Segment Information (Details)
Segment Information (Details) | 6 Months Ended |
Jun. 30, 2023 performance_metric segment revenue_line | |
Segment Reporting [Abstract] | |
Number of reportable segment | segment | 1 |
Number of solution lines | revenue_line | 4 |
Number of performance metrics | performance_metric | 4 |