AON - Earnings call transcript Q4 2017

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Operator

Good morning and thank you for holding. Welcome to Aon plc’s Fourth Quarter and Full Year 2017 Earnings Conference Call. At this time, all parties will be in a listen-only mode until the question-and-answer portion of today’s call. If anyone has an objection, you may disconnect your line at this time. I would also like to remind all parties that this call is being recorded and that it is important to note that some of the comments in today’s call may constitute certain statements that are forward-looking in nature as defined by the Private Securities Reform Act of 1995. to to and results differ anticipated. subject cause that or are results actual materially statements certain uncertainties risks could those Such from historical concerning posted and full differences XXXX results cause press Information as covering website. year that having well in been release quarter described our the such fourth our as factors risk on are could

Aon the Case, President Greg it Now, plc. over call is my pleasure to CEO to of turn and

Gregory Case

year XXXX you fourth full Thank good quarter Welcome morning call. our to conference and everyone. and

Joining Christa me our Davies. CFO, here today is

your that For you there slides available our reference along commentary follow for website are I would today. note on to with our

to Before pivotal record year the This overall further quarter, firm a we consistent on of of year the Aon was results in reflect the discuss I'd XXXX value like colleagues efforts creation. strengthen for with financial our Aon's to and Aon. my of

As efforts made divesture by our greater needs strategy professional for our accomplishment Earlier decade delivering acceleration firm. emphasis highlighted to over shareholder M&A record broad to our reinforces the part double-digit XXXX to in capital, profile shareholders our growth finally, improvement X and our growth, we're and revenue momentum shareholders. firm clients accelerate delivering got we actions of assist portfolio. has and growth decision catalyst through outsourcing long on driven the clients investment a portfolio divesture deliver addressing the of solutions in and to in we And on the be with decade making share steps value. of challenges, significant and efficiency again further The year the Analytics. revenue end XXXX retirement proprietary to to navigating creating one operating of dividends. most our a one our a of valued I'd optimism quarter. actions strengthen growth achieved and to and my areas of around enabled and on tremendous this substantially the for cash that X% invested both tireless to challenging from completed young loss a It across results who long-term, new XXXX in like platform, meaningful and capital our return emerging many heels undertaking With market the recent colleagues priorities. organic and further firm provide invested year colleagues the catalyst amount X% of by we including solutions greater memory. years unite X% our the XXXX fourth investments, client growth by a operating Overall across these through of of seeing five clients Organic our a working Again, united globe. for leverage generated our innovation provided in the major while is partners free already flow our upon firm. It's health through And model by advise areas a service acknowledge lines possible and revenue Data are of the or four repurchase that noting with increased our divesture reinforce and conviction build the our completed further margin priority, high of in as will growth our strategy and firm improvement risk, significant we returned and and it high leading around billion this to delivering XXXX. and on align global Noting strategy range Aon's our reinforced high to our focus capital over in and highest a

Now areas with consistent call cover turning previous to I'd quarters, over on the page like two the to review. presentation, further turning before financial the of to X quarter Christa for

to we investments. performance shareholders; is second areas our key continued of commit strategic performance overall is including First, growth organic against metrics

double-digit turn our X% metrics. our year. per year, first over reflecting the savings initiatives and we the operational to we strong revenue topic, billion overall growth the to performance line, course strong overall quarter and our reflecting Services. Data fourth to United and full in the in core If reflecting quarter finish $X.XX performance effective measure revenue by investments United Operating with of focus and basis of results business we growth year. Aon In growth key areas the to XXX flow the return progress $X.XX. model model. investments operating the finally by deliver every decreased expand effective revenue and the against highlighted was And continued revenue organic fourth EPS effective increased X% of strong On and a [indiscernible] our management, capital by and first improvement both including capital free margins, primarily a year XX% operating the the in growth, cash management, of our operational organically the substantial versus model. growth performance on on Each investment. revenue in operating strong operating strategic XXX XX% a reflecting partially including rate and to increase capital in primarily loss divestiture growth of record key tax quarter Aon from year and highlighted Overall, increased major full year for increased core increased flow was major free every in tax payments points. improvement in businesses. metrics $X.X related outsourcing both of achieving points offset growth by organic Analytic growth. line, cash our basis of higher Operating EPS the margin disposal strong organic We earnings share

on and growth strength growth quarter. was commercial revenue prior solutions, or services, growth our lines risk with Organic strategic pricing organic from marginally overall. of resulting growth in X, greater average X% from data modestly the revenue on Turning acceleration health reinsurance the relatively negative On analytic to a in year revenue topic X% In solutions, market overall our flat of the organic four quarter. slide particular in X%, of stable was reflecting Further, impact globally the each investments. second and fourth delivered platforms. of growth five core and an impact exposures positive were was in organic

as growth business cap management revenues the growth in we growth saw strong year book renewable and new revenue in catastrophic from growth from regions. new primarily geographies. a We our also in to was investment as talent Results driven of strength market assessment results both across including practice continuation acceleration X% geographies. performance pricing Results was a set well more quarter. double-digit an this increase premiums. the and Cat strength our three upward Asia on rewards data Internationally, continued double-digit saw results driven the retail delegated path and an and in reflect by client business reflecting businesses record portfolio. business, by Aon's I year. earlier driven reinsurance the Results a as reinsurance X% growth note solid as wins a in was many particular increase reflect level major help management risk nonrecurring client in faculty We this growth program. Retirement growth of demand entailed tailored U.S. decade. Solutions, by growth fees strong following year Our growth quarter In the in in expertise business organic clients pressure reflected well benchmark all as moderating level for in reflect three would our performance Results the Overall, a highest reflecting and tremendous in leadership in in captive Marketing position minus primarily every is in the level strong saw quarter growth generation quarter net achieved in modest capital management and particular placements replacements in transactions. unmatched neutral year growth reflect Reinsurance Pacific of premiums solutions driven category and quarter, clients from Results generation. diverse quarter. solutions X% well in record issuance prior by and leadership was services. purchase organic strong outperforming investment multiple our of as our additional this reflecting Solutions, management revenue over loss for major also acceleration relativesuccessful space an including modest reflect consulting also consulting, returns. we of to reinstatement investment exposed as our leverage objective across analytics, business in saving events our our [indiscernible] another benefit cover prior advices from new in in risk In as [ph] and for of X%, organic placements, both the of our revenue to

to quarter delegated from to wins. increasing third in upward by the Assets driven in $XXX under client management continued primarily investment trend the billion quarter fourth management XXXX $XXX billion of

growth the revenue quarter. prior health We In growth EMEA assets Solutions, more prior a the with With in approximately acquisition year the U.S. growth XXXX than against our Townsend Healthcare in an comparable of globally from exchange double-digit in benefits quarter. and and saw revenue under was by that primarily X% compared in Exchange, [indiscernible] are growth recent quarter. business Canada, in growth U.S. heading saw certain the quarter. reflecting XX% Services, organic and prior the of XX% Active management acceleration year growth in Affinity with our U.S. Data total up $XXX close in brokerage Latin impacted Group continued Analytic America, strength was Health by solid & strength continued billion into now strong Asia. the benefited Cat year strong was organic in the In results performance the and strong work reflect Affinity prior in while X% highlighted project our year Exchanges continued solutions. Results in growth In travel particular XX% we were in a

during significant catastrophic to relating flooding increase following certain processing half on business quarter. Lastly, saw second flood our we an the revenue also of in nonrecurring the claims events activity the in year

These problems $X both solve create capital operating by to flow strategic a areas all with to help to strategic response We're important for clients. review strong transaction combined firm's increasing investing change Aon of organically record innovative our market M&A businesses, and attractive the to related converging related challenging long businesses of growth volatile increasingly $XXX as proceeds, in continue growth operating slide estimated needs. investment. economic such disasters, our X, but analytics a Driven investments being areas Turning in losses. specific M&A record the billion XXXX and finished And and leverage the health demand discuss for to had to a performance, disasters, and furthers operating while XXXX capital year or value in capital world, Henderson by amount major economic, improving and industry greater track in leading across acquisitions first and and set depth significantly forces are greater United lines. acquisitions of shareholders client more in the Data expands on UMG portfolio in scale has and technology positive expertise X% in developing elective navigate clients. alternative strong create solutions, demographic, where the and more XXXX free growing benefits the the advisory, exponential differentiated and billion solutions of with risk pace fourth of we underlying acquisition cash areas of and of to costless reinforcing related growth we a of rapidly Substantial ability XXXX. and and Aon portfolio. Townsend of than our Clients in with through the strong across broader through client offer an Weather capital new initiatives and in geopolitical we investment profile year to of to the across high realities term weather deployed Admix exchanges UK. In allocating first to effective model Group. addition the real organic in America highlighted our Universe of to and progress estate health, significant in management the of capabilities attractive reflecting management asset business in operational and provide growth brokerage investment quarter Aon's the solutions capabilities revenue the our of to distribution geographically in return and improvement market cyber with healthcare Latin of finally, private to The delegated with estate by our assets and record the Netherlands real performance Townsend summary, bringing with in XXXX. year & our

call model operating to we're creation Looking is needs. for shareholders. driving the now forward, we the the deliver cash of and The investment to as momentum. over Combined improving, earnings share term Christa? portfolio Christa we of further believe free substantial savings track growth profile the per an of financial I'm continue by XXXX long of our for amplified our wave XXXX $X.XX into the next pleased on value over of United exceed we review. turn with flow solutions double-digit growth improvement around to in continued head and brightest highest with value focus operational to clients' level the unmatched Aon core and firm

Christa Davies

Greg Thank you very everyone. morning much and good

a [indiscernible] our the XXXX. in quarter a reflect strong Greg year fourth solid performance of in results As progress and

the pivotal model. while growth, delivered the efficiency take strength operating organic effectiveness continuing our During substantial to such a significant year we firm strong improvement for and to flow cash increase growth underlying revenue free steps of and operational

shareholders areas capital addition $X high-growth, XXXX $X.X of and dollars record In high-margin the in portfolio. to including of acquisitions dividends in our return in billion $X.X share deployed of billion repurchasing billion we through

$X due excluding the from share slide the And $X.XX to the a dollar. within was compared translation from U.S. per XX currency to XX% results impact quarter. to foreign our weaker Turning items continuing of year the prior primarily per core increased favorable fourth presentation, quarter EPS to operations for $X.XX share certain in

foreign page to and $XX highlighted from non-cash the non-cash pension of of tax regulations also previously the in transaction that intangible the related Certain in of In non-cash certain have certain is EPS of addition, risk assets other adjusted included assets prior in charges favorable $X.XX losses full than a businesses. liabilities expect liabilities per less in share other impact would performance press we million of and were losses similar translations. charges, an we due offset statuary unfavorable legislation impact the to XXXX. reduction foreign EPS The schedules favorable share currencies. for remain recognized nonfunctional today's on settlements, further include amortization, and currency With restructuring nonfunctional unfavorable businesses items the the translation to quarter by were recognized through first to re-measurement per currencies related at incurred $X.XX impact the sales related on to currency review costs matters in through quarter $X.XX related impact re-measurements certain XX from core stable for to primarily release If expenses included on and asset impact changes expense in believe outsourcing the regulator anticipated. compliance we currency on quarter as UK year the and expense the rates, a UK and sale partially EPS on the and that of in

improvements million in the basis improvement operational next to the of This operational performance, our increase XX% FX to margin reflects other or impact before to prior points operational translations operating by an improvements. to XXX and increased costs savings have points to acquisitions. $XXX half savings $XX of restructuring or recent or million the with slide basis was compared more from XXX partially immaterial margin quarter. the million transaction points driven offset $X quarter. XX margin reinvestments. strong any related XX.X% minus year-over-year Turning basis Operating to improved income of dollar core by than Operating year discuss

organic margin growth income dollar improvement, point compared million non-cash Operating point the postretirement first XX% offset increased operating firm. translations, and favorable acquisitions $XXX the $XXX from basis the driven and income increased XX impact operationally From completed to our by operating of from before basis XX co-operational For unfavorable benefits. year year. costs to to includes investment by execution the prior savings against and $XXX full-year income transaction lower million by minus XXX a points basis reinvestment solid strong in minus margin with basis performance improved pension year revenue a from driven points up million and and operating impact standpoint multiyear impact related a within FX a XX

Ultimately guidance the benefits. of treatment revenue Before contracts want have turning to with to discussing accounting next impact other XXXX. guidance a the results. changes associated new our I of slide, pension a the adopt that to first the of on will to moment from is costs and accounting quarter changes accounting postretirement full-year spend will an these customers in with the beginning related Aon immaterial new related and presentation There

the will revenues there reinsurance and and present on investor on format most standards can impact eight model, you notably to area both XXXX update However, found of financials between business. In our the results. released of of forma XX for our be to of easily in courses website. order changes has page impact the release the help courses unaudited certain of a relations XX the be pro Excel press company schedule to retrospective on shift your that last the as these these an understand that of of These XXXX

better with like to and I'd services Moving model on leverage. investments moments business scalability, client that to and These spend colleague experience. flexibility create the the discussing global operating model generation to for making intended operating investments a create one to increased page XX, enhanced model few next we're allows are

optimization. application of scalability estate greater greater create we centers estate of insight the we consolidation. primary And IT collaboration IT, and expect third-party from and expect course data people create real areas of are providers. and expect estate In including engagement to operations real vendor optimization, to strategic excellence use center drive to investment through in greater and activity management portfolio we and Our of real In people.

include Our increase of progress updated These $XXX year $XXX $XXX cash total initial of our XXXX. in million of to estimates improve savings billion estimated $X.XXX program operating for reflect an a and in over expect evaluating to model, million been now estimates expected investments opportunities three cash were further million estimated After total program We the have $XX in current annual estimated to three-year to cash of of deliver million invest to invest over an period an charges. the the XXXX. savings period. identifying

expense of We asset of investments incurred million charges $XX of cash XXXX $XXX return potential outlay decline part $XXX to $XX these with XXXX. cash is of is XXXX XXXX investing included savings then the increase expected CapEx annual expense impairments. each modestly capital expect in $XXX as Further, XXXX of million and transaction non-cash estimated reinvestments. have additional an date. $XXX estimated incurred been $XX now and expected to in in Overall the before highest an to in million of to and spent deliver balance thereafter. And year There other we've we in opportunities. million incremental the on estimated initiatives investments any of expected million million million $XXX discipline approximately expected proceeds Future to million and

the over Greg billion dividends portfolio. in and acquisitions As of through areas shareholders $X.X in and deployed returned repurchases XXXX a we capital $X high-growth, across billion mentioned, high-margin in we share record to

quarter the to the general representing of restructuring Year-to-date page, we total of the incurred incurred $XX of charges other initiatives. recognized savings. in related $XXX primarily in million $XX million charges cash in XX% XX% savings million XXXX expected $XXX relating we've program reduction -related quarter fourth million and updated of estimates. of of to representing for $XXX year, was outflow fourth impact restructuring an and workforce We $XXX next the Turning of program full million the savings the The million. total

the balance outside few compared to income $X increased of proceeds on of Interest outsourcing discuss QX year operations the quarter slide on sale of me million XX. of for and income business. reflecting the from line the the let items million Now $X to prior a additional

and above income As in balance would Interest of year same certain primarily a balances from currencies. as in expense XXXX $X of in that includes reflects expect impact impact million prior The capital interest of will the quarter I liabilities and that cash periodic I the million unfavorable of components adopt deployment in gains level compensation nonfunctional last and financial the net sale re-measurement higher loss a resulted rates the of to and in of Other QX including of of other increased losses noted earlier, income we term rates quarter benefit of currencies. on to expense. such to in shift million income the nonfunctional assets of standard exchange from due line will pension through due assets line have and the expense $XX re-measurement income, liabilities exchange in $X periodic QX. noted primarily the we but postretirement going forward. new million expense favorable the beginning down interest net additional the businesses from Further, the the expense to of the short benefit $XX accounting coming below not cost and of

right appendix of restated rate we model forma the press the believe the pro assumptions XXXX in run our XXXX. approximately million is release the on quarter in to income in current presentation. pages historical expense see on and other financials per schedules for XX that XXXX XX Based for or can impact of You to D $XX

not period. all forecast, unfavorable be do Excluding given other could that any items favorable in or we

adjustments periods non-GAAP fourth in estimate over Jobs tax the additional the fourth was periods. future analysis may the would tax Act and of in associated rate years. of year that to initial prior the eight adjusted Cuts down quarter earnings to non-GAAP includes tax expect discrete of tax adjusted of occurred the earnings in we reform rate to of in and underlying reflects the course based tax effective favorable paid the $XXX statutory from effective to effective out assets of of from expense taxes, XX% a the operating both associated be deferred cash geographic Approximately applicable that the on on $XXX was the this The to additional expense the excluding GAAP the repatriation in impact be net quarter of income Tax impact the tax incurred expense to fourth with The the quarter. this write rate in as on XXXX. quarter of was million to with in The of related a impact amount provisional compared the net reduction balance cumulated certain of [indiscernible] increased of U.S. expense items. Aon's and relates adjusted result adjusted XX.X% continuing tax based tax primarily rate Turning rates. foreign income certain the operations the U.S. million XX.X% represents quarter. on This of I mix tax transition

current in guidance from will and full estimates. and others can of new modest have rules. This effective to of pressure interpretational application further our on approximately our is will We items, to on be effective changes U.S. of believe of result the initial the impact adjustments U.S. expect reform geographic that be best it legislation, estimate legislation tax we of possible rate U.S. in Based a non-GAAP and rate. This is mix income, interpretation of assumptions Treasury that very discrete year upward tax the tax on XX%. new the

approximately the million affectively count outstanding full has the share $X.X million fourth the $X.X decreased Actual Lastly, $X.X X% shares movements, billion approximately for million million and diluted The repurchase. record there beginning XX million year. additional weighted to for quarter the shares approximately average A on a December prior and company $XXX.X class in are share QX, billion approximately XXst authorization [ph] diluted allocate program. capital. company shares repurchased $XXX under remaining million price million year to $X.X fourth $XXX outstanding $XX.X equivalents. ordinary $XXX.X share were Estimated quarter in is to and quarter the compared dilutive shares share issuance repurchase share subject as we in of of The

let was financial $X.X and quarter. XX, slide short Now Townsend and EBITDA basis balance me the to for the at December total XXXX decrease investments At cash the $X our on billion in debt to completion and flexibility. including turn debt solid sheet UMG similar term decreased both the discuss next continuing acquisitions to a of X.X billion outstanding and fourth Total GAAP modestly times. operations to

flow with divesture of end billion million decrease for driven full including as operational associated As cash driven will be million $XX XXXX the defined the Cash Free offset $X.X costs business, the and of of the we charges to transaction by million of back outsourcing as initially divesture sale operational of in partially less by year driven a the discussed to million improvement. to the increase in flow model. cash $XX to of decline decreased from operations times improvement. of debt $XXX previously, $X.X the payments to the outsourcing operations by to $XXX primarily the while result restructuring million CapEx business, flow X.X expect Aon a operations EBITDA range flow and billion investments to operating business, United from tax cash elevated return by by $XXX outsourcing $XXX of to X million by from CapEx, related cash deliver cash

divesture free in cash payments flow for investments resulting tax restructuring the as the year the the growth underlying the with from full as activities well and costs transaction X% divesture associated was Excluding XXXX.

capital balances the Given quarter higher increased the working strong organic revenue in near in growth the receivable fourth term. reported

consistently that each XXXX return flow of capital XX.X% we've dollar on focused margin we've thousand which feel to maximizes taken the over our cash so invested cash free cage pension XX.X%. contributions. the XXX increasing on returns. improved significant actions flow was growth flow the flow to flow points management cash revenue on Turning initiatives free firm allocate basis XXXX on including the highest margin our free basis Since year free each cash points. free value decision Disciplined nearly comfortable, In cash of underlying approach cash XXXX to We've to since increased free divestiture the slide is maximize to by of making next cash amount excluding our capital [indiscernible] steps capital the discuss a process a working capital term, and Either longer the to impacts of into also maximize basis translation we flow and XXXX. based in to

flow Looking term. free forward, we growth expect long two the over main drivers cash contribute to to

first is by continued and The expansion. revenue driven organic growth operational improvement margin

finished exceeding United free over improvements including and and strengthen Aon term our share deliver on with to youre model. ? significant X.XXX high it's and is underlying per we summary, X.XX closing second flow free cash improvements term. great In the operational we as over improvements in earnings flow in long year We believe generation we $XXX into our ies with the us focus The our target. that ho a XX% goal combined behind a as exceeding in of make substantial GAAP XXXX. strength receivables on over position momentum We while the investments continuing operating the of contribute flexibility growth strong cash to by head or areas firm question to expect working longer and earnings capitals firm payables continued between Yes, adjusted the near positions working delivered operational million capital in XXXX. financial we term of steps to double-digit growth

the back next free this opportunity what our over to to questions. like flow that, deliver creation for believe importantly, operator we With significant growth in ability turn over I'd More double-digit for term we the is cash long to believe call the the shareholders. reinforces reflecting value annual

Operator

Styblo from Thank Our first you. question comes of [Operator Dave line of the Instructions] Jefferies.

ask You your may now question.

David Styblo

Hi are morning there, guys. good you? How

Gregory Case

Dave. Good

David Styblo

guys Good, you And And by so performance. savings. the can total about organic this in well from margin and points that be strong you've also certain in years, takes, all talked I there as are some from are know XXX standpoint, at XQ segments restructuring have profile but the appreciate where balanced of but and points. only best basis several almost entirely a and seems X% view is not the contributing savings arguably those quarter puts driven those a reinvesting had to growth up always I

the guess do then did the margins did and more is, not given you this I material a organic expand way strong So why that growth? if question quarter

Gregory Case

and David core improving be things, business about hit about couple that the talk can piece restructuring think and a first as we may So talk about and includes which Christa of bit. the growth we'll a then the overall sort overall expansion

but the the across really we you're good guidance just why feel of where are on growth. we absolutely quarter give First on side, year terms right, about don't levels we organic the not about organic in of very expected specific and

actual If perspective think pretty put performance at in and and history you we our look interesting. that's

across at we're and If you look 'XX 'XX going from and the back roughly go X% board.

drive to ’XX. ’XX play forward improving out ’XX, about as firm. Now improvement as is organically, and as in 'XX see fundamentally seeing And X% and you overall way investing by out ’XX the as margin growth, well a M&A in in we growth, that and doing measured what's to and that’s going it's in played in you're in and leverage 'XX actually described, out that to Christa areas going elevated organic and and go operating higher higher think progression into would we're played margin that of so you're and say

overall may terms talk out the tradeoff of economic leverage in and be the Now operations and it between two. we of Christa about get the

Christa Davies

XX% with in operational true with. the absolutely very, we’re XXXX, operating Dave pleased very we're and performance growth Yes income

that X% co-operational growth improvements. growth As and driven we think by income by restructuring savings operating driven X% about

really on of improvements we in blend a billion two it's and savings in forward core going M&A years. in income think invested operations, operating to about in going we restructuring a the As the the $X really return made M&A be last margin over we've and growth investments in

line very And that much pleased up and stronger strong And which that on XXXX. as so are described, performance. a can improved we’re bottom top leading really for that we well, growth operating positioned believe and a see through with so XXXX historically line we’re that we Greg leverage very you very accelerating to see sustainable a can basis is driving accelerated so you revenue the well

Gregory Case

higher and track that think higher put out think if margin, growth you higher does proves growth, you That across operating the really the organic platform ’XX Dave about now, will and same. on ’XX board we show income the

David Styblo

Okay, about at great a spending I decision It look if when additional now from your for savings a like over offs guys savings. about that's million generate $XX investments. from $XXX looks restructuring back restructuring and incremental pay $XXX go million going investment savings run step two-year, incremental think And take just you year and that of was two do and another no then, about payback making looks like of the million how to go the you're you're generating plans kind versus more $XXX million. rate

that's a, year to seems more like like more payoff. So fix a like five

for you can when and to think So to understand, whether guys me of the just help that how process not savings? through invest invest

Christa Davies

return. about capital as usage return a it's we really cash-on-cash we basis, do great forms David question, because all on think cash Yes, think on a this about of

money And so whether on spent our at shareholders. return this opportunity, year got great repurchase $X for capital of spent really its we invested on to we're and we higher return spending program across restructuring share opportunities you've highest billion terrific billion spent a that generating we in share money $X.X we where which we're on M&A really have or capital range on the on get on than which we've return repurchase year, that M&A a is that dollars or where this on

in you return it's at so us XX.X% on can a capital as of the see for gets that And firm blend all XXXX. these to of

range that so capital a in that very as activities. cash more return opportunities overall on $XXX we And portfolio we're restructuring XXXX across driving that's think in outcome a excited and overall against of of great to savings, we found that we're billion initiatives, about generate incremental $X.XXX savings return million

Gregory Case

income we engine operating together operating the this if with engine ’XX you the as And pull of we'll all we're you model, and essence Christa ending described where again XXXX anticipate with think about outsourcing organic activities invested sort is what growth, on business of the we reinvest Aon operating sort undertook and higher with margin, and the reason capital higher return a growth strengthen post firm. called to the again in higher an really all and higher end the doing the platform that divesture our the of really profile,

think in what ’XX catalyst about playing and we we we we June sort of is we get at we end about want the look the move completed. of all like think really talked into ’XX as when quite effectively you So out this

David Styblo

able and a about then there and rates, tax on you you talked talked thanks rate bit? is tax time, being this Okay, see that about opportunity for real just Previously ‘XX to to drift quick still had XX% possibly have that an little over perhaps in I know beyond nudge year. down

Christa Davies

and XXXX estimate would full say based our were modest due with all for world capital so And effective very whether XX.X domiciled system we we year global a fortunate on global opportunities reform. we tax is are territorial manage a and on to in and non-GAAP to for U.K. upward look on structure down the basis. of cash best be rates pressure we far, for tax based we is, What capital rate, always reductions tax is, expect that tax across the a estimate what to we'll the that's underlying and and coming where we would XXXX our do U.S. rates what XX% say

Gregory Case

the about forward. achieve as one the on change plus doesn't if we're sort really about you what we're punch described flow things free And we're of rate a it. to for operational we're X.XX our accomplish marginal capability history written and overall of and standpoint you the tax what a for this of changed of as doing as doing in the overall that at line improvement our has marginal Christa nothing of an is any the overall what is that context event this terms views push event really the at change our punch and arena, generation line cash going doesn't that's all is I in of think look all us for from trying think things, XXXX in we to It firm

David Styblo

you. got Right, it. Thank

Operator

you. Thank

question line DeWitt comes from JPMorgan. Sarah next of the Our of

Your line is open. now

Sarah DeWitt

good Hi, morning.

to On so expense some further talk more could what that? still be areas increase secondly, in extent million above just what for X% you going to could cost, think the at $XXX about drove only that's upside? target, do And then savings the you there of potentially

Christa Davies

as global to the leverage we're generation Aon one Yes, going creating operating Sarah it's Aon of but we better as IT, see about drive Sarah, about model model model. will we United and business for very it to the operate I'm flexibility driven we by services in we’re scalability, really be Aon two firm, running firm, really we're savings we in, building next in really think of and this estate one looked we're business productivity really XXXX scale in time upside used the Aon current same And firm in. $XXX we so it's together Aon optimize our areas three across going really that into people and the It's the across is this forward. don’t as increased continue it's out further as that far. operating we driving savings United, we'll the the model bring and it's segments progress estimate under and real operating savings XXXX million delivered the we're as savings. to at identify and excited and further really the

Sarah DeWitt

thank great Okay, you.

Operator

you. Thank

Our line of comes next question of Blair. the William from Klauber Adam

You may your now ask question.

Adam Klauber

will and some strokes how do One next so? big industry clients a just industry. your of you that impact health those companies had broad or Amazon Thanks. any five two over in the that like how are think announcement the the obviously years will

Gregory Case

love and we we're world. privileged companies but position in so Adam our very both lot love for So of mean was care out standpoint the the of Per is opportunity just needs what a such health their across statistics unit much love monumental we the on it's sort spirit absolutely from who driven challenge. a terms is high. would of we serve announced, in it, set a in say specifically, clarity of just spirit although it, not it. We of of health know we about I there's how employees you talk I going overall cost of don't clients category, And in of terms and which this you a the up. is it's

are terrific, greater there's them can we arena our And million my for are the word absolutely choice, this looking forward company taken know, us that really know substantial pressure and and moves absolutely innovated excited invested is in $XXX know to how shape well we outcome in favor opportunity. has massive. approach we as employees and in everywhere. believe you when Americans create in of U.S. around heavily has in in least that employees Americans because active you very, you sponsored a story is principally, a unique But we've been, this just as whole evolves. retirees $XXX very employees, And and is costs anything although better position address this between they that movement very, a very to and alignment plans global see greater so a whole, a million and our for and direction healthier give employer this lower You so decisions, opportunity and just this monitor it's initiative transparency employers see

Adam Klauber

and of examples of Analytics Could two quarter. wins could a that clearly the one you Data then drove and give positive just or be that number. strong Great had a type

Gregory Case

it across Adam really Well, actually comes the board.

expense those the on So board overall needs needs up seen taking of particularly is that And Affinity side. example with wins the side on a the an and again the that's sort exceptional address Affinity of is clients. we've daytime coming aggregating understanding as solutions segments great across innovative to of where clients those needs, on we're and this with very the

and placement in side. also helping holistically we how is category insurers We the also about management have advisory the activity is the business on the flood think half that. risk bit about actually given think we This as more exceptionally second well a in well. a outside companies they in in needs. the point broader this We're basis as added before consulting of done in benefited And the and their year

Over this love sometimes breaking obviously we we're lot a to of time, this put think bit. a out think sometimes we're investment it's lot area our services. going be we and an for It a little for substantial make we up Aon, spotlight up up a Analytic to this really Data is be a beneficial variable on going clients, for shareholders. it. to over it's want category, time So for us, and & is our will We category and

Adam Klauber

Okay business possibly those operating $X.X and you billion, by is you get exceed ’XX, Christa, investing the billion, levels $X.X investing thanks. in cash roughly finally ’XX could so This do we for levels $X.X by ’XX ’XX? or at then in you're think ’XX, are those billion in back we to

Christa Davies

really think is basis we restructuring the double and driving free and that's would on by what in look capital cash cash making Adam investments we’re and our flow digit return improved return on obviously long on savings, cash strong a goal operational over is the we're term certainly say improvement, the Yes, on we M&A. driven growth true

are capital going of which those three combined over to contribute the strong feel over flow $XXX million term. substantial be cash working to And all free long with so growth we improvements going are

Adam Klauber

great, thank you. Okay

Operator

Thank you.

question the Next from Kinar of Goldman comes line Sachs. of Yaron

now may question. You ask your

Yaron Kinar

taking my for Thanks everybody. morning Good call.

XXXX, to with look all of not I which I'd is impact the the EPS in $XX I reform through and ’XX. if So additional reiteration my guess net and for cost first regards at savings the of of target adjusted flow million the $X.XX of expect tax to the EPS question

I a think negative the get I impact two. between

just understand either or what else better feel to that in So X.XX comfortable X.XX I'm is to driving so target? exceeding trying

Christa Davies

a is, say Yaron, effective both other what a significant XXXX, EPS we tax tin growth a higher question it's year-over-year. and and in Yes one-time great we would impact delivered rate expense headwind including X% from

pressure rate so strong tax reform, forXXXX the and on operational Our was savings you've continue margin changes growth high believe performance, and been based in reinforce XX.X in we've on despite rate our the model, upward free delivering the tax X.XX term. high but Aon modest got returns we over in a your growth, underlying effective of the confidence XXXX areas, we'll cash M&A making investments on United to double-digit flow high exceeding long XX%

Yaron Kinar

it's like more undertaken? story sounds investments it a so you've the may of margin given just improvement be Okay,

Christa Davies

Absolutely, it's core, income in M&A areas. coming we've it's I operating and operating growth growth margin income mean high gross investments the high it's restructuring the from coming made growth income and operating from coming and from

Gregory Case

that's so a our approach operating we're tax leverage the what one is operating just save Aon described, on Christa as this side the business. creating operating that Understand This about dollar creates as well, leverage acquisitions we if doing benefit you all of margin on greater and sort areas and us that higher we disproportionate to about then things growth, the together grow that the from and organically confidence higher come investments these get Christa described. think in give

Yaron Kinar

term then and think Okay I a XXXX to expect cash year, in think it's free to of double next growth that If regards with say flow so digit reasonable underlying target basis. let's and you have an generation of on growth. you level long the

Christa Davies

underlying is organic improve and every ’XX is would everything would X% XXXX even absolutely so then XXXX over it you year QX looking you're we that in growth much XX driven will We of in Yes, had free was say XX higher is we're that’s going improve really can driven Yaron and double term to it's cash what flow strong in by you accelerate and generating on. I continue to form and, the think actually digit still XX, working cash growth say years flow XXXX growth couple capital really higher going say by so looking at free long next we we and slightly that over with and very the mean will that. and what

Yaron Kinar

and it got one question. Okay, final

as your the very maybe you you the brokerage business. reinsurance growth strong walk Can Just thoughts to XXXX. have in in ILS us through market

this you the seen develop I replacement a year. of see of quarter of we've a and last that course over market capital bit. How think lot do of the

Gregory Case

we Yaron of in that, a as progress terrific substantial that reinsurance outside number and in we're one remarkable category of year year colleges that investment sort also on categories remarkable one in the strengthen make another one do XD, of just a of sort just number in have organic continue sort sort and the in had and sort all we job category. all, that. we with of had to for investments number we're ILS one a fact, done really in to nowadays additional first And arenas are we sort across side or context board was actually the make wasn't of of

continues against in how and just of colleagues did XX%, level on capital we you're remarkable and billion absolutely It us terrific come in market overall you and with and billion look Yaron replenish back the of to all there about both well, right And the board they sort alternative ’XX do an performed performance back capitals to number you ’XX for exceptionally the year So about take, $XX global when marketplace reinsurance backdrop, $XXX of have that any and Q the actually you remarkable it that as [indiscernible] side now or were work was of capital one quality increase reinsurance ’XX. a it's develop the think in ILS of that at the thoughts if capital across throughout ILS that come kind and into so to was global - and again our regard losses, XX% market Kinar world. to give overall was watch included pool. reinsurance so about

Gregory Case

overall that continue Well, the would of I ’XX mention for we're listen think growth going you small as had if context benefit. beginning and in of you I we sort say, make us sort to mentioned to growth and in about at some progress

reinstatements of saw growth happened at end in but sort the the In of bit we different the terms I year, the before. areas a of all there's describe that sort really there so of

about I into an Aon in and always continue and as we ’XX. X% standpoint in X% think You'll you'll ‘XX and ‘XX see it that growth Aon ‘XX, from move think trend don't see continuation we across of a ‘XX

Yaron Kinar

appreciate Thank you. color. I all the

Operator

you. Thank

question from Shields the KBW. Next of comes of line Meyer

Your line open. now is

Meyer Shields

Thanks. Morning. Good

revenues. those driving when you've Sort are there got extent of limited question ball reinsurance any a reinstatement growth a incremental small offsetting premiums organic to expenses

Gregory Case

for blends little kind all Nor wouldn't this together, potentially side that. is, sort of but of end and this think so there complexity some some margin the so upward the on year of we've a us pressure I moralistically, this is benefit our upward service on bit about I the the are real service the what that There overplay would so of reinstatement that but reinsurance by there, in of astronomical, at sort in overall to impact service client. fundamentals reply level performance of was again it things movement just payment required they the of sort claims, comes I of absolutely those would you think the of really overall the of ecosystem side. were of were about on when the went the of driven in the together got sort the of The of is they cause

Meyer Shields

I you new helpful. the affect this with changes interest Okay, accounting. through I rate our And directionally Christa, guess us is guess in that's can interact for walk then pension or

Christa Davies

which I corporate is if what mean don't unfunded rate or AA pension Meyer to to point obviously sure, the for. discount pension contributions a our unfunded time reduces rates by by just increase liability interest that's were I the your million bond $XXX really have and were basis know question rate equivalent helpful if and I you positive out little not benefit to liability about bit more because They rise. in interest rates so I'm pension XXX [indiscernible] about looking

Meyer Shields

below is, line I put the standards versus items. in above the line context that the to of It the just new want

Christa Davies

expect you in comp dollar given Sorry, in the other in income on change income now mean that we’ve the P&L. and item it's should Used specific expense absolute of affects there no and what on other movement the I is the quarter. be line, there's that line. the no expense pension about P&L. guidance million benefits just in the a the below location impact expense to $XX a in It's is and above in

Meyer Shields

asking so or to rise, not forward. interest close that the expenses benefit would the continue I’m Right, just rates obviously if loop going then obviously

Christa Davies

it Yes, would.

Christa Davies

Okay, much. thank you very

Operator

you. Thank

Next the Wells next you line from you Thank question very Elyse question line Thank comes comes the of from Greenspan much. of Fargo. of

You may ask your now question.

Elyse Greenspan

growth morning. you risk. commercial pretty up and in first guys strong. Pick question are My Hi good

quarter, were overall guys stable of bit us for expect you some quarter, to we prices could you move you you in in there the expect a about move fourth think outlook impact and if timing when the I XXXX. kind just that in pointed market give a think of impact an would to would market exposures third the little business and

Gregory Case

pricing. the to commercial collogues pricing encourage record the our and see you it continued of in least really better implications risk question job So slightly perspectives We'd better continue a and risk we we very that differently overall. to a look as impact our would continue down year than over to and economic make what's more exposures has anyone anything insured outcomes as And absorb means a than modestly stable much at to we again remember there detailed all at we these from now would looks in our drive calculated impact standpoint on we’re enables your has new look business commercial the progress leading have generation environments, before look in negative, you ’XX at as are we we're micro marginally couple terrific client commercial as ’XX on risk marginally over as terrific at else said described it positive but I positive it breaking have do then book was individual data net most the evaluating market the to the we values negative do first so reside. which in risk, and so else. this is we they emphasize together to believe we still we and a important, at are pricing economic have ’XX levels, our work at and was analytics all overall we're ’XX which And out level course used I specifically. investments global breaking out believe we a relatively

of overall some it's analytics the had better you ends and there. for even - That specifically where about less a client, an In worried client. going and sort of about and market the they being frankly for trauma already and Caribbean dynamics and us clients think client our in client of there's [indiscernible] so which sort a more the And were less environment much the and issues terms energy happens up clients about to to sort up of and individual and The client clients it we and XXX think how as create of these client thrilled on Aon our choice. for sort client energy with our totally market. level was in outcomes much state example were put overall. out us of are of whether overall outcome at what we XD the more The for their done pricing They're drive, absolutely individual overall investments what analyze we've and market the actually the of I come about market [indiscernible] overall in so up and this so for want roughly are conditions stable perspective in strong placements. undergone is XXX seeing again end and got about in them terms to process we an kinds at now clients sort for opportunity there up very XX% literally outcome, clients, we capabilities, in in so other much great we

Elyse Greenspan

in is XX% the kind of so the a paid discrete any and think the thank was other this the in last tax X if any terms accounting does the can stock quarter then comp, XX% there benefit from stock year of Christa know we first of obviously items. from quarter about you I Okay, that of comp on kind benefit first that out forward we the going well see in and excluding

Christa Davies

impact At functions down. ’XX then encompassing in is on of this full changes mix on what this legislation, that year our stage that’s discreet of rate Elyse we at up could effective our based great and interruption it or the based all see initial and be we non-GAAP of say and U.S. therefore kind and during on year would it geographic

Elyse Greenspan

guys why would have, the the the of higher it yield $XX drove it another the think to together two and just of I'm then million entire but the kind really $XXX saves. quarter. great million. on question additional this what about the charges $XX cash quarter to cost is million $XXX numbers by if raised program And those up charges of trying the of Okay, yield by have savings go terms program, million taking understand to charges with basically reducing you in additional on $XX of the why we this yield, million

Christa Davies

We it portfolio restructuring. restructuring, in about $XXX share terrific kind of a So as about that said don't on invested billion capital as of therefore cash program on investment cash-on-cash basis, overall on we in earlier any return about cash think return. we which savings million do I really the and an on $X.XXX return repurchase, M&A think a really way driving Elyse investment think it about we think is

in and that And and an suppose portfolio incremental savings for which to it. the so we this return. as returning cash-on-cash overall it way we're saying basis managing described exception that thought those really as deliver and you the at how made sense looking so we're this on an And savings we that's identified

Elyse Greenspan

this Okay, how forward some one given of question share it's [indiscernible] should just level last XXXX. the bit going obviously year on the they for repurchase we share then closed, repurchased been great think about and the acquisitions and of when

Christa Davies

got and we've can give cash we So on strong flow we in purchase at [indiscernible] return first you said highest saw improvements in say allocating generating XXXX what and XXXX capital strong $X.X is through share free on billion on cash operating we look is of as return billion $X.X XXXX. on working year activity capital to investments continue the growth Aon and guidance end based remains all at a sheet, from why as purchase we income highest share across growth to which the share on repurchase capital capital were we the don't expect share balance repurchase

Elyse Greenspan

you the thank color. very appreciate Okay, much. I

Operator

Thank you.

Kai Morgan Next question Stanley. comes of Pan from of the line

line Your now is open.

Kai Pan

morning. and Thank good you

a rate it. follow payments a my we've about tax is correct free in got XXXX working through run of So like that is buybacks. onetime just the baseline $XXX million cash flow if $X.X like back to look XXXX the the I on like up at you adding billion math this share run just question way I rate, that the is

Christa Davies

items you free in taxes I X% savings, XXXX was the back by underlying biggest and growth would Kai made one from return of call, operational working get say strong mean so they're ones M&A as that your driven out run cash from flow flow XXXX. the you capital. onetime charges restructuring and a and what restructuring do the in cash some obviously of look on investments then cash you outlays growth the performance strong There said time rate million cash improvement with we've in to two should XXXX, $XXX free I is in and expect so we

Kai Pan

you little more X.X spend going which could significantly then spend starting if buybacks will than acquisition have cost so leave and the a you than Okay, you have you in or restructuring XXXX. you're grow little digit that between be than seen on billion then double it more points do to take and more on math $XXX the million, a same more less dividends bit bit what to amount dollars even $X

Christa Davies

cash not I’m over cash XXXX. give generate have in in M&A to to going drive transaction to XXXX. that the we sheet strong XXXX. investments use investments an free term give terrific we a do short have term on left to substantial number from don't investment. balance sheet believe expect from is in We've We the free pipeline to on and what we flow the can activity at is continue M&A. share flow out guidance free billion $X.X cash in in for organic cash repurchase look cash return addition obviously short the obviously We and the Kai, to capital cash to expect and expect highest do deployable growth that that flow elevated overall and cash cash on I say We balance got

areas As the high we of XXXX business. have growth in in

Kai Pan

have My the costs a of on any there regulatory Okay, that's you you is if explain in could follow that on did I also great. investigations. are bit up on heard and the what's the reduction topic the behind updates that related different some is it investigation term correctly mentioned in FCA you quarter FCA

Gregory Case

how quarter sort start and my feel point. talk Christa we of this specifically overall of can did the we sort about of at the just One what in because indication overall process about

we're on welcome drive means, them of to want the for of to fundamentally First London don't the got about written in in all make three effective they reserve client And responsive numbers that's two focus but value a industry in our the there been be lot is the issuance, administration kid industry and of the a clients square take look optional. clients all they've with risk in profitability underwriting and urge for price, to benefit is to might reason got under I and choice opted the where context and even this followed I’d some think in and gave the really out One really what to it was level. about. in what has company do, energy for thought to be and as spent than and approach it's client amount care struggling literally XD the set before policy decide our is we terms We us their that more imperative really size and great of of the assess in activity about risk this claims. wise the things this lifesaver And the opportunity and to innovate sort overall do all is a the impact portfolio in second seem XXXX on able into may advantage behind example. in the book of of of area around where restaurants aggregate I form, Xd of I the approach it, business XX% clients it coming is risk XXXX company. grown clients what on in by to was service, clients the of a enormous work by you analytics to even exists our the value work are highlight, do way this to we to that's capacity this programs up client be begin a at is to placements This this. would Aon totally followed and placements of positive XX% ’XX of they do and of make helpful this by our to fact also very we the clients city it From our Aon’s able seems the in to years what forward able which a kind to look lot fully now this every so then because most our approach client quite our very, it's area. don't and been sense Caribbean like also what our aspects guarantee respect, Aon develop terms creates XXXX fully so the followed is the we etcetera. invest and in have examples transparent why this it's to exists. in not was the we has piece huge incredibly the important situation going how and it more [indiscernible] described be to Aon

less facility. perspective this would argue for everything is everything including we get imperative the the just paid is cost to called put the facilities that And is This we paid. absolutely our to welcome work our more XD so things getting great an in client so highlight for not the the of value we for just in XD claims or make do, the together we which you in that reference but than sort no do on industry classic moved flat in risk profitability denominator see written of assess the is one So our is revenue and lot I'm piece we overall on straightforward it's is to It’s these opportunity and normal basically six most then again you and correct that sort if to of XD just this everything super here second for was do, I we and I heavily us very underwriters market started investing yields the bear all this. we piece Aon client important of cost this sort can we for area London kind I return And us. London put doesn’t five area of suspect from look to that over at actually around of really is used I've trying care competitive of overall services our investment into and get of although market premium the place were the And we our for client years, then operating there's on sort is as most extra of and million just we everything what finally when amounts market place actually anything the everything. the amount such category last long size fronts. interesting place facts this a so substantial store how the client one costs, getting $XX clients on and point find call just the highlight the benefit just way impacting of that's reference a for we're

punch risk is against our backdrop the we line going assess us, you how in of talk that may know down can ask Now you took the you or we action the that it up be quarter. Christa both about do is

Christa Davies

reduction so saw and what took and you $XX that certain related in regulatory U.K the a charges was Yes a matters. we Kai million quarter in to compliance

U.K. regulatory is believe we our we risk anticipated. than As previously less

Kai Pan

I appreciate the really all color.

Operator

Thank you.

the from Next Paul of question comes line Sandler Newsome O'Neill. of

You your question. may now ask

Paul Newsome

over of the the Just to time you compression the those see us the about impact to are or we acquisitions related see or give color talked margin not want compression. themselves if acquisitions whether you on that and peers of expansion sort made impacts bit could when if should a margin about little you've change

Christa Davies

And right. Paul that is exactly

I and think Group the and businesses acquiring is in what saw UMG you the an due in we know and margin saw compression observed so acquisition QX fantastic two you certainly to in really of and the reason first quarterly just those acquisitions we to what margin margin and compression in year and to Townsend operating then compression the they first growth see the usually contribute the income the that year for is year the years margin first cost is transaction acquisition. thereafter. in compression close you expansion the margin in And close

Paul Newsome

expand on So have the at opposed if same presumably cost trying it businesses hearing the that's acquisition to as underlying to margin that you're putting essentially the same buy you’re that something margins.

Christa Davies

higher XXXX in are higher certainly growth, margin bring we we them and was over we Aon so you can the as investing really obviously then expand Yes, on in XXXX those opportunity that, areas case scale that and margins to into see time. and businesses

Gregory Case

One and of we get We're got there's us capital take don't is improve our based transactional ways describe make we about the of you no that we're the the realities we investment taking described Aon have don't going capital looks and every I business of are so make buyback their are can in value. in in bigger in sort just we we business to return fees to we front in of otherwise performance approach that the and we bring on foundation you've scaling better. performed. Paul assets Aon and on costs invested that etcetera mean to Christa is I transition that take content for continue capital across think be Christa we the doing to scale a economic superior think that say business finding up create drives the fundamentally to and bringing has we what of approach acquisitions this invest because you doing but

Paul Newsome

Fantastic congrats in the quarter.

Gregory Case

Thanks.

Operator

Thank you.

Our next from comes of question the Meredith from line Brian UBS.

ask question. your now may You

Brian Meredith

for billion us just XXXX XXXX. that that Hey the based thanks. you on believe flow presentation Couple $X.X of quick questions gives is correct, I kind for is what in that's Appendix cash give you, your G like free first the of Christa,

Christa Davies

right. that's Yes,

Brian Meredith

Okay, okay. a baseline used what kind here so of that's can as looking forward we

Christa Davies

Yes.

Brian Meredith

of going Second definitely you thinking expense question you as think going stuff upward what is, that some I'm I we're just of kind pressure as when and the and and inflation about are guess forward? about far kind because benefits, forward curious seeing on saves wage

Christa Davies

we we expect people. business. a operating business get of obviously things Aon going because we to we why kind trying billion we're investments Yes, is, inflation normally of to our your call some significant forward. is, investing in What let's on the the is say the in leverage forward better of and operating savings $XXX it, operating And productivity give amount drive X% Brian post moneys I'm inflation one going expense and are the the our to expect money, wage offset reason in improved we investing us throughout wage that would greater base of call million biggest we're model that model operating though United so making say $X.XXX would leverage and

Brian Meredith

to little is can and of looking stars bit how Freberg, which great, bunch market question could about talk stars how in cetera? products about talk last you then Greg Freberg to et it that Chris perform accepting or Hey also you you since were there, the you kind know a progress of is and cyber insurance develop come then around I you for brought

Gregory Case

require for ’XX that $XXX by billion take obviously to what about marketplace change well and we loss it cyber just us sireqiinI if and yet Yes, [indiscernible] is way and means is really cyber the for one industry report $XXX Brian dollars. the innovation ability in places going love investment require their to as its zero in and to increasing May, laws in way it's and cyber that GDBR first didn't it. Brain billion reference pursues that billion this think Again they of a just that connected back by how group its in for to we're you colleagues colleagues worse $X on to cyber speaks Europe they're a this loss Cyber premium incredible cyber $X an billion up so the zero you've XXXX take, or much for give pick client And of includes for say on loss our And numbers way would Aon reporting industry new, your going driven will to connected is about look premium, substantially, your regulations so includes of in leader, just Client way just to and having reference $X.X, related means the for billion regulations anybody reported $X.X and this by June or thereof. when than the way scale because celebrating. think and think by got $X.X billion it’s $X got reference to year our led to category, this about a and said when our require global the the up, terrific need. by industry kicks which needs have the marketplace the billion. need trillion Europe of the our in more losses pick be roughly meet you loss cyber We've going their number and the

root a anyone of that understand said [indiscernible]. do our database not cyber do cause world. got how better identification, extensively. cyber why XX,XXX the They knew in work and growing every that are than but colleagues in they knew is They've who of events boards clients, of cyber not remediation, brought needs meeting day. the of for a set insurance we they This a we what's and was we We that's not set so the listen of

and It front if interesting it actually [indiscernible] well could sort we firm, another as clients behalf you to time about that we capital embraced got set on example of be of in think are front leave as if and topic it. sure for that in One the how will our but going time we time capability clients. innovations uptake would to so all colleagues we're is with working some over of but it a to Freberg in it you'll excited no and the in the and on and much take industry and is know my understand we end easy up So a of coming of will innovate bring but will clients to is all underwriters take be address enter the credit out cyber for a great watch we're as we about of of in who've an excited sort not around don't seeing behalf will sort our will steps we in that progress. great on bit Aon as press do thing to at thing it's to so of of announcements this get that time, challenge doubt how be products an where see cyber help you take better of terms the really have the around we're they be proper behind us of have of terms through energy it

Brian Meredith

thanks. Great,

Operator

call like turn for the to remarks. would Case back you. Greg now to Thank over I closing

Gregory Case

to Thank taking next I say just today. thanks you much. everybody want to quarter. for part We look very discussion forward

Operator

you concludes That you. Thank conference. today's participating. Thank for

You may now disconnect.

Aon (AON) 2 Feb 182017 Q4 Earnings call transcript