AON - Earnings call transcript Q3 2021

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Operator

Good morning and thank you for holding. Welcome to Aon plc's Third Quarter 2021 Conference Call. At this time, all parties will be in a listen-only mode until the question-and-answer portion of today’s call. I would like to remind all parties that this call is being recorded. If anyone has an objection, you may disconnect your line at this time. Private note constitute of forward-looking certain as by to today's comments in important of defined may Act call statements the is that the some in nature XXXX. It Reform Securities that are Such that cause statements from results actual uncertainties anticipated. materially could or differ are those certain to and to historical subject risks results on quarter concerning our having press release the risk described are in as factors Information well our website. that XXXX third differences been as could posted cause such results covering

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

Greg Case

morning, Thank you, President. CFO; and third Welcome good Davies, Eric joined and everyone. I'm conference by our Christa quarter call. our our Andersen, to

We and your net efforts, working we thanking at financial results an quarters, year-to-date. by hard that feedback be a their in the one QX to result continues previous our we've XX,XXX for in and colleagues. colleagues' our outstanding As a be work, And reference, to as firm clients. to dedication year. also want result perseverance, a as XXXX five-year best as are of proud continues extraordinary a bring direct client remarkable We're This outstanding report begin accomplishment Aon our together promoter posted of to website. and to detailed presentation on scores our performance of a to is high. delivered

we've Overall, to of past financial as colleagues future firm's in and growth for to exceptional, our for rewards to seen way. with client all in Additionally, our we QX in are support more Aon's recognize consistent months QX the appreciation reflected the we ahead. in engagement This levels and our as nine feedback top our clients every our were is momentum program over and promising ownership This success performance. defined results, directly unique plan. opportunity highest is do firm, United In colleagues financial the the deep engagement sustained XXXX, current stock-based and client Aon and momentum, our thrilled quartile colleague establish excited a and see colleague the at firm, with this decade, employers. by of in and our share even the we colleague first and award on reflect we're engagement colleague delivery, what that

their reinforce substantial to clients with This volatile support decisions growing agenda better world. increasingly in serve our an new conversations source demand is to to for making opportunity greater Our the grow catalyst a our them our markets unmet businesses and to clients protect momentum innovation business. in in and create of and

growth from growth X% in in XX%, outstanding solution XX%. financial performance our key our organic in and a growth two results or growth. metrics, growth greater particular global quarters each from Notably, of over lines. revenue our financial three organic strength QX, on and and revenue strongest solution of of including by at for revenue reflects respectively across organic risk decade in adjusted Year-to-date, our row, growth a team every line, commercial by EPS our greater XX% driven organic or XX% Focusing mid-single-digit delivered highlighted four health mid-single-digit

line, Our momentum with delivering Aon every generation retention. strong significant in and United strategy solution new is ongoing net business

discretionary Risk more human Commercial within the and project-related transaction such growth double-digit for capital saw second and quarter Health as portions business, of also liability, our consecutive Solutions. We in the Solutions work

business in further in and growth execute we or margin We year continue continue and XXXX over to revenue greater addressable our share our to market. organic expansion and full XXXX, total as to expect the long the expand mid-single-digit core term win

global ensure the delivering Today, our future team we're to highlight move of drive to our how fully integrated like Aon United continue tenets we'd blueprint we as Blueprint, capable be by local the greater firm every and As in deliver opportunity. core of to of market. our forward, guided best a we operating momentum

enabling retention. building United capability generation How for Aon and new delivering Services core better and is stronger clients. Business fueling is Aon business for into translating how Specifically, service colleagues

Our of highest ongoing our scale retention at level in has is and to unmet engagement inclusive of focus people demand, in commitment innovation over solutions decade. accelerating on a serve the leadership to development the new and resulted

in retention strategy business with generation has First, needs continuing executing enables all United extraordinary years to our many business is of clients firm. existing entirety results delivering turn, resulting exceptional and Aon shareholders. delivering This been new more, strong built engage to growing solutions clients, by and new in their winning net ongoing clients the for across of and Aon over with our book and,

of all grow in faster, to Services, We've organic capable Second. firm. Business globally improve the driving represents efficiencies Excellence redefining higher across scale what of to will operating and the delivering growth. lines. clients ABS invested way core past spans heavily ABS, capability much now driving delivery innovation Equally the ABS over the which enables The solution to margins and we're we service work. Centers five us and Aon important, entirety is or continue of improving have the client model that years, by ABS platform

to by created workforces, new This of grow accelerate intellectual which solutions substantially at and navigate IP underserved of solutions, to has first back them digital innovative property demonstrated, delivering scale. through market. forms our volatility, been address enabled kind financing, a example, by for addressable Aon's total the all of new team. its is and access capital solutions forms clients of helping build innovation continue our we AON Third, resilient option

to time. believe new tens client property climate, value the S&P client we and relentlessly cyber, to at to the the team the voice of addressable the make is on Given we're XX-plus client over entire exceptional need categories this of billion the of market a our Other in consistent the hearing that intellectual of around demand. we markets CoverWallet. better Fundamentally, driven potential Aon, new substantial chain billions tail XXX, by decisions represents long risks. category represent IP serve addressable led client, the and has feedback the At solutions, focused $XXX opportunity by percent about supply digital markets include be

organizations our It's X,XXX pieces released. released leaders currently survey, risk than the the take series. had we're pandemic. guidance the on are understand on our also impact example, risk from event-based this and on years, research being Insight shift proprietary that clients how currently Every they it's the getting Aon responding executives navigate For Aon two latest confident with results of And that the almost we investments reflect released three was reflecting assessments, that, XX has senior in U.S., rank ago found than the in management participating before, impact cyber that XX to COVID survey of shift reinforced are also in to by regional volatility focus but recently reliance risks days mindset two inception across faster to to current report seeing today, conducts and more global from as future recently focused more With Aon the clients of C-suite of a Canada current build from spanning private organizations companies. countries top public emphasis and highest technology, world. better risks are environment. top more the following ever needed one systemic remain and the senior XXX survey. for number insights the calculated of leaders preparing also around risk impact-based We by We're the UK organizations decisions. list and to and EU, resiliency aware risk industries and astutely XX and risk on X,XXX predicted since their The organizations informed from and globally. as the

see their Fourth shows inclusive better new versus pulse to leadership. impact Many a of before, all-time need engagement to is holistic, accompanied generally decisions and enjoy examples Voluntary down to shifted our deliver people our the attrition solutions and programs help businesses, risk the investment strategy stated view uniquely win, integrated a we respect There's IP to to data-driven their that businesses. continue seek create community. the they clients we in them entrepreneurship that's including that from colleagues' example continue a of has to great more priority, help apprenticeship address roles tremendous to this to substantially find As to as highlights. challenges. solutions positioned commitment levels. averse and our high highlight the In to our our opportunistic, desire we're insights we approach that talent finally, risk commitment quarterly our that XX,XXX grow $XX these XXXX financing million defensive to focus environment, make to being taking our defend and baseline on by but

last colleagues development the investment has the decade. plan. results months participated a training in around world in Ann global Aon Our have talent best the the over Aon our alone, in In announcement team nine ownership of United growth in the delivered summary, third and quarter XX,XXX over programs

even Our clients in have make decisions. client and Services, significant better advised United momentum better few equipped Blueprint, powered addressable informed, The over combined are in categories and result we Business the years. offer new and reinforces greater is with by demand, capability today our Aon investment next better the that potential growing of to

our for long-term her over thoughts Now, for continued outlook creation. I'd shareholder like and on to our Christa? call turn results Christa value financial the to

Christa Davies

so Greg, Thanks and much, everyone. good morning,

growth and we quarter building As into organic we quarter year-to-date. revenue earnings of income first last head and year. the we Through adjusted into momentum the translated both per the Greg as the the continued of for adjusted share our double-digit operating year, growth, highlighted, months on delivered progress strong nine

but QX greater do the XXXX our These for in assess impact clients revenue the overall full revenue global stimulus year-to-date, note the decade. conditions growth. most beginning and X% driven virus rates of favorable in further strongest We by XX% Considering variants, of year impact for the was year-to-date, saw weaker mid-single-digit Those in XX% macroeconomic as noted, our macroeconomic quarter and also total refactors the from the government of rollout, in revenue in as growth growth dollar XX% and our currencies. XXXX, potential impacts continue or various the growth current since we would strong outlook business. Greg on I I the pandemic. in term. up FX the revenue organic U.S. changes reflect over are areas vaccine new the including quarter, our organic factors, organic to As have and we was long a the over and GDP third continue including factors we expect year-to-date, reported performance versus conditions a that to these

Moving operating to performance.

in XXXX, speak any communicated to I'll refunding want I as First, describe to of expense before which impact previously our to COVID-impacted growth. expenses compared XXXX the

discretionary QX As as points, we resulting expenses to of from allotted the distress. of macroeconomic changing we've is negatively such is prepared the timing to $XX the of XXX impacted that be year-over-year, points. approximately margins QX. took basis of we into in margin This impact actions XXXX expenses QX described, moved due million COVID-XX reduced expenses QX, by XX re-patterning this and basis for potential In in contraction operating impact

have by to would basis in of growth margins year-to-date. our margins revenue excluding has similar revenue rebating, the relative growth QX significantly impacting basis of impact impact, expanded the points organic this factor expense QX, investment. and In key XXX been and A points growth the outpaced QX. adjusted strong XXX speed second Excluding

our using framework We to the talent, on services of continue areas and investments innovation long-term evaluate business invested growth. enable to return and in capital

expect QX. up investment during of will to significantly ramp that areas these We continue

basis margin more office. resumption modest colleagues T&E as In continued were and from main and estate contraction QX slower investment revenue in addition, expansion growth headwind to return and the of the [expensary] driving Collectively, of factors points XX margin as in patterning increases year-to-date. to from basis anticipate we of compared XX the real tailwind points

said Looking and the historically, year over expect to for expansion forward, as we term. margin XXXX long we've deliver full

XX% XX% of the into quarter. We translated in QX growth results and adjusted to income year-to-date. adjusted back EPS Turning strong in growth the operating

rates, a approximately of impact expect share noted we in FX earnings As and would QX translation per impact per share in year-to-date. today's QX. was in insignificant currencies $X.XX If favorable at an remain our material, $X.XX stable

decreased flow costs our XX% cash and billion Watson-related the related majority billion approximately other the was the strong. fee Free other the of and $X.X be flow Willis billion for X/X XXXX. paid charges paid with offset of by the the remains fee Of and $X balance termination total performance the Towers free with going Excluding termination QX XXXX, pretax payment in and $X combination revenue billion outlook costs. strong amount, XXXX and related termination forward to fee costs, with growth was $X.XXX as the in in associated year-to-date costs, in will of remaining of the a termination paid cash

expect to flow of record over long last enabled Aon track Business working reduced to income long-term cash continue on over drive We cash and the by our Services. structural the XX years term, based free XX% on building of improvements operating capital uses CAGR growth,

Business As Greg Services but and enables at scale. highlighted, Aon only revenue efficiencies, not drive opportunities also innovation

the suppliers, an As average. with last vendor XXX year, of than able management Fortune ensure were example, diverse addressable integrated U.S. is spend was to X% our system the through we vendor higher that in Xx which

on quarter, overall our can In clients impact addition supplier ESG this being third Aon we key deliver have opportunity engage of also the for Aon strategy, we as way. we an looking broader way is strategy. program a of an part clients a bigger their In and to to biopharmaceutical what for have even in a diversity to initiative an establish as part United diversity the with inclusion

supply and demonstrated peer included this global our solution industry innovative government together research to a forge on diversity colleagues and and human came spend structure capital which new management conducting on need, Given establishing expertise, based team norms. emerging client's our

third to for expect capital for we million billion. highest free shares $X.X In outlook our our approximately X.X flow Given to share long-term approximately for repurchased on growth, remain capital cash allocation. we the repurchase opportunity return continue quarter,

also to in to address capabilities unmet expect innovative client and to needs. organically We invest inorganically and content continue

exchange biggest the that areas connectivity delivered bringing previously QX Our business. In exchange $XXX of I note revenue the four X, light. around Aon million our clients' XXXX, M&A generated to challenges, predominantly would is a focused innovative pipeline, on we of is described, retiree retiree closed announced October the and centered that Greg also to by sale it United. of business on the solutions our a

in we our current closer historical investment-grade Turning debt our well-lettered Interest debt increased confident to the ratios, to manage strength our ratings. fourth levels. notes billion and debt In maturity sheet the return approximately senior reflecting now we is as credit balance profile. issued to remained of risk We $X million, our quarter expense leverage expected while maintaining be through of sheet in and a $XX capacity. liquidity balance QX,

our cash line generation, and our to remains this on long for return term, our which as past the last that free quarter and expect and capital, we for approach year-to-date seasonally We strongest to long-term capital, the year. EBITDA and cash summary, long growing value combined questions. happy the disciplined progress over return bottom with the reflect substantial I'd and practice return of operator, repurchase. unlock as believe grows. we best will strong allocate turn our continued momentum I'll to In on highest invested debt enter of to Over and shareholder expected to back growth note free to term. creation be on we'll we that, the your Further, flow cash share to is performance both top the take With call based intend fourth over flow the quarter quarter quarter uses

Operator

Thank you much. very

you Our Elyse may question. begin from first Ma'am, Now, with Fargo. Greenspan question-and-answer Wells [Operator we question now Instructions] is session. your ask

Elyse Greenspan

the about Good that. ramp-up the expenses that Thank about word question quarter. Christa, you I when My you. talking you fourth is in significantly the morning. used talking first think on were

at expand better full we could expansion average, that, expecting is Just which your expect tying estate? around investments, basis your year XX believe you're should And from I margin or trying to real than points? XX-year to if into the on and be ramp-up you T&E

Christa Davies

much for Thanks so Elyse. the question,

As delivered you year margin year XX year basis XXXX. we mentioned, full deliver a over of for XXX points approximately we've the the years. XX for points expansion margin last XX And for basis years, expansion will full

to due during Business continue terrific will ramp we in investments these the and And QX, ahead. in up meaningfully in the growth. talent, expenses QX to to we enable in long-term we will see innovation associated mentioned, opportunity I with As Services invest Aon expect

expect And don't We least, have the years mentioned, last that, we so but expansion for basis points we margin in-year for delivered I year guidance full of a XX as at year. XX specific expansion. margin give

Elyse Greenspan

quarter -- you some any third the in the Okay. color see maybe going was other you that guys the terms sequentially? just And how ramp-up significantly third terms in say that can -- you of in like there of were on sizing the investing -- in quarter it's

Christa Davies

Yes.

significantly about our say did is growth. growth our outpaced strong QX I what expense So revenue

going really are in investments increase than QX these to so, And QX. more

Greg Case

And reinforce, over you when Christa is think to would -- about I just time, right. Elyse, margin exactly

in growth increasing build areas solutions essentially historical next about they've following what fully we to continues ability it's future And I saying years in we need think over the reacting need. been the it's would in we been though, on -- really business and margin client to year see the to really of sort very highlight, on. that continued You invest improvement, in we there performance, are momentum that And what as has just got they're really expect a been. and our new specific to time. in and cited believe

there just kinds sense want a Elyse of in that want I So able you invest do to level the of couple we're still to areas Eric, things to are improvement? sort and gets of maintain so investment. highlight specific on reflect increased a Maybe of margin might

Eric Andersen

series clients, to speakers, events right? drawn capability, the ways bring forward. of couple doing insight it to they've virtually, one the any thousands to and and thinking around global we've over the been the are of we've quarters, share benefits has make of able around really do allows global going comment. And couple T&E, which been helpful. And global region our using keep technology answer the the One practices. going in to these I last best we're way about really remember impact that back what going Greg. question to us the is a Sure, a Maybe been using to client of clients world of

at road is city time model ability historical rooms it to people city doing city, Our right? to the to of X,XXX to talk do conference a in hours the around two clients and same in So putting material. show,

really So that's been continue point just great growth such for has we opportunities second, to invest in what's didn't to real business the see and it a Greg, just analytic our analytics better. understand of one and areas, And coming couple a is in right? space, Christa, impact data the area. want to that different on our because lose I help digital us. to and continued area then in clients see First, modeling capability

risk in that And mentioned opening analytic have your people aware. means capabilities. around we risk now You more they modeling are C-suite right? And information, more more by want comments so, to aware, capability, need

then something. health where construction, teams underneath Aon it's we're there. your it's benefits. Those United the rate, of M&A seeing got those services, And you've we whether areas really growth investing integrating we're So see really is do great need traditional areas that platform where

could talk to but about there's there. make So a out We comments the for question. it, just off those lot days

Elyse Greenspan

this so basis, bit tax higher which a is an than trending. then XX% was one. on under little And been where quarter, adjusted one rate it's last The

any any then tab? the there? implications global you share can provide could that And color If you minimum from

Christa Davies

Yes.

we're forward. exclusive be give item. the we over has a been cetera, the can you closely you, discrete QX going one look learn was on to very if implementation higher any of look tax was more, rate or rate the that with historically, four obviously, tax which years in to in But et terms and And not And impact the forward historical and we slightly as going rate of last negative back positive quarter, you so yet. in Elyse. of underlying an sharing monitoring, with saw minimum our We're this guidance we unfavorable So tax, the And for worked out Elyse, question. what global tracking XX%. not thank much discrete

Operator

you. Thank

question Our your line from is with is next Research. Charlie Sir, open. Lederer Wolf

Charlie Lederer

on morning. help the has in will Mike for of the reduce we that questions been this expect in so? about XX slide next loss that date? Have net dialing to cash Zaremski A cash be couple paid Should I'm disclosed in or months to GAAP noted the over $XXX a the you also flows. much tax how basis you on And 'XX. that deck paid payments million of

Christa Davies

order, question. in I'll Thanks Charlie. much maybe reverse those for so So take the

question charges by double $X.XXX and XXXX will first provided. term, of had is flow, of was think we remaining out and digits. the to be the then expenses cash of to We we in $X over were QX, free charges, sort which the this free year, $XXX in the billion flow. will expect flow $X the XXXX. $XXX do billion of and fee the the million cash your million So X/X And range be around long of be X/X million We expect strong fee and lower billion cash generate to of termination paid growing free paid paid We I a adjusted end that QX, $XXX range. in termination million we provided of at $XXX end in the

cash I'd billion, $X is if tax less it. cash from not that of details that's a disclosed said things that's off Charlie, fact. the cash flow XXXX can of double billion equals statement flow, $X.XXX $X.X point operations cash of the we you to deductibility of for have think free And about deductibility good flow asking Charlie, really digits, with we of a straight CapEx yourself billion pretax in And tax flow. XXXX, in start you then billion, free that number, and One the you're the starting the I the the $X.X also GAAP note, get the grow have

Charlie Lederer

this this your seeing about insurance. significant going imbalance increases you're organic talk And can about quarter cyber Okay. what talked your there's in supply/demand growth? there, peers helping whether And of Is you now? more and then of a some rate on

Greg Case

love in start Eric, to back to Charlie, impact. than your more overall of else. market anything rate, all kind marketplace. we're help And when going in we is get asked that. come understand pieces remember, start broader on I'd our what's Maybe this. important Literally, analytics how on That's them comments role and clients the the about really I'll endure always model, life to and We with manage sort the And first face But course best nine create at reflect modest of overall, set you you one-off the of months. the But a it? the generally, day, modestly -- day on of over solutions we're quarter but to market for clients pick the to on the in looking impact them how in help how Eric, us prices can of pieces, reflect impact. we that. the would and actually

Eric Andersen

in the it has of essentially demand, markets retention appetite, clients are pick of Greg, you marketplace, dynamics. insurance it. based Credit product et cetera. capacity, decisions has own said I own options conditions, to competing, its claim a which up maybe has their in bit trends, risk The think, that, on tons et deductibles, cetera. say its little I supply would what And budget make each on it

seeing probably a environment. So products. we're to price across coming But increase globe major on XX-month out a the we're deceleration the of XX-

marketplace. the of in the and of cyber, the in size It's mentioned insurance of scale entirety put You that reach particular. to terms important in

we've into The today of I've lot into of because to risk they're the on to is So it's based But clients energy around heard in as going market trying more entire like in on the management other the make balance cyber over the well. reality trading part against. overall, context, transfer to the conditions risk of of aspect and it of activity will, market what's couple get portfolio what's the that and to the is, things and that's actually to right covered risk trying And last managing all it. size if the been our ransomware to doing cyber our clients than last is those to couple But or entirety expertise, in But marketplace. But analytics, would to them consulting product just using would the help context days that -- the it years. last the choices. years. our right what you part going lot modeling a role opposed for insurers clients attention favorable trade-offs say, and its and are I as couple price, as a ultimately, of keep our seen one as of it what scale is in help capability relative the world, of the are that in choices the an over our post-event management in the just risk over the gets make them based transfer, I keep is have

Operator

is you with Bhullar Our now your question. next may Jimmy Sir, question ask JPMorgan. from

Jimmy Bhullar

Hi, good morning.

So had employee question a first, just retention. on I

doesn't your process. You've during the It employees lost results high-profile impacted a seem though. Willis number it's of like

yet, little you overall? results? of bit about So over expect in slowdown wondering a just you next you haven't seen that be the employee a whether Just few quarters because but that of expecting could if retention And it? talk might

Greg Case

against Jimmy, my ahead it my that of opening see baseline. sort what we let's in we're start and way every with mentioned in we comments, pegged XXXX the of in Listen, as reverse voluntary what the is opening, perspective. and attrition quite Obviously, day. look at of heard our we I you've terms

very stronger ways highest in we think our are, about a literally looking the clients, frequently and understand, which And we're colleagues very last serve and most and very where them do, decade. environment, more, gotten -- unique full as we on talent I focused we've more their on time, actually, clients goals to is. to they're a their result, a go our that had as positive. very, means we've we alongside help development, quarterly expertise sometimes survey engagement then focused you trying have what them, important, even said, So as And it's we monthly their do as better to Aon much creates over that's what our And and much and And we're engagement. insights. have at achieve development. and colleagues, around And their the

about the things my comments in talked of that. referenced Some I

just tremendous our in bottom and world. we Net And both and momentum borne with as out I NPS so line said the line performance, the performance, -- before, our feel scores, performance in our colleagues top that's we our our And Promoter around Scores.

We a terrific holds our position. to all as So feel very world. are, are around I what able where are. optimistic to Eric privileged more input from listen, day, of our colleagues about focused we what every on well. we in about have and Eric? I the talent get is on even this and want Chris what we feel And day. do the highlighted, deliver I in as every both potential we're standpoint, literally But Christa's are we where what Eric terms and

Eric Andersen

team we feel it's would We for of are you senior the future direct and question where from -- And track Greg. it how about are our we to industry snippets is insurance great the feel is, the we of your we look, people? great Thanks, from The feel can't positioning I that our just investing print. on like critical that rags assets. say losing Yes. a are answer based --

do. It's think Aon provide in world, innovation We that leverage the an opportunity for in consistent our you anyone industry also else something way standards Business us don't our think I around platform. our Services and actually professional as a have to can service, about

opportunities. on do And and been focusing growth focusing many we talent, teams so we got investment We're sure of our bench sure can years over also grow, depth we to where service as make as our can it we the we're see that. we've where we do to building make on have focus

make the where feel about into growth scale changer client target having of to service in an our But it allows outsized great in growth we need platform is investments level can areas actually because ABS really our really for are. us, and that talent impact. So provide game clients our where us a we that our innovation,

Jimmy Bhullar

Okay. And the on then of timing expenses.

XQ mentioned shift and think, mention expenses the well, expense you, the as -- this in year. did You before I XQ and towards

think should would consistent more be that pre-pandemic Or consistent in XXXX? XXXX, expenses we about levels? be As and it margins with with

Christa Davies

question. Great

expenses patterning go-forward is year, each of So XXXX Jimmy. right the for

as XXXX pattening. use your should right you So

Jimmy Bhullar

in years? How Okay. term, But margin I you term. you you've benefited And whether lastly, as going sort through spending think expenses, footprint about comes I of longer T&E just forward that think it's affects from of lower benefits trajectory about are pandemic next your less back. travel pandemic, long-term and real lower there And the at do few or from the obviously then your how think sort at point, least the estate expenses? the some think near

Christa Davies

clients Thanks learning important in really We're so much teams great Jimmy. opportunities XX X,XXX months, a how clients. focused for best bring the asking over client bringing for with been to question. on described, well the our issues. series best colleagues be globally, as and and the expertise Via question, serve insight more expertise most serving this clients it's globally, lessons and their to virtually. creating we're talent It's best the And global to utilizing we've included over to video Eric last

really about this in new us, how future And and better so scenario. is we work of Aon position a the for

and that here? end the you an a productive, and So, at and they're with ensuring of workforce. day, that center the what inclusive serving clients having expertise, you're every clients would employees with Eric, diverse flexibility talent But best and providing front

Eric Andersen

happening talent much say, Yes, it that an way of opportunity to more it other because bring if a want it's our direct client conversation. and it -- than to something a about talk a us Christer challenging that U.S.-based When to can pop to client France, go just global client a they the that's not and really that they for and historically just we French have was unlock provided in to in team, logistics. you can has up

just account learning. the the exec global from U.S. would a it team in France unlocking the come that would to about have have does and and historically, opposed So the in to learning team, that third One, a been person also in way couple teams they're power connections as talked the things in so to where repeat as a and makes global of among for firsthand shows client. the the it our can well of company It us.

been digest that and the build harder us point have before, historically able is easy right valued value that going bring being as use in ability access, the a to it to it and something to do said, last those way right has it really the a deliver forward. to on and been we're connectivity to relationships real for That well. able definitely on an it found and over everything really have do really us way for going So take Christa, and more but months of basis. are model the client to get a and expertise going that XX be in frequent We there's part the to the we it into And forward. clients you're for bake see those that a you the really to absolutely global just had

Operator

question from Our KBW. next now Shields with is Meyer

sir. Your open line

Meyer Shields

First user the are can. persistence telling about I in you current question, the inflation clients your What U.S.? of if

Greg Case

it? So I to Or want what our just overall, we're counting about make in the terms just clients -- question? was of -- so Meyer, that sure

Meyer Shields

year point valuable. tremendously pretty Yes, just going be insights what the because are much wondering just I I'm think to is?

Greg Case

Go ahead, Christa.

Christa Davies

Areas wage it our our -- Yes. role. spending about real capital compensation compensation the clients where to resource really the inflation of human long-term from teams and for time depending this is total now. a are with clients increases. in that is reflected range, X% with such increases the on X% in the result, as is over rewards may seen a double-digit strategies great deal and we're I strategies XX% seeing certainly and benchmarking business right seeing And a data business, topical and directly talent of mean, because capital our from And like this. demand hearing readiness have course in business to and and surveys are surprisingly, averaging lot is compensation in we've a development to the question of lot our the it's organizational Not human growth of of this year. allocation,

Meyer Shields

sense. inflation? it compensation-related go makes beyond That Does Okay.

Christa Davies

area. areas other Are main seeing in it there the there? the We're area. about That's you're labor thinking

Meyer Shields

are calling all of people sort inflation be items financial general CPI? on to The

Christa Davies

Yes. Aon's is I one the we're for is, of certainly mean overall. mean I things broadly -- business positive we a would inflation more say Meyer thing

If you assets, a property or revenues the generally or you commercial and think is for are tailwind it, business. assets inflation our corporate employment are insuring whether assets levels about

Meyer Shields

with that Okay. can With are plan ownership stock And associated if share the then regard I see offset Perfect. the to colleagues, follow up. associated repurchases? we issuance stock that? Does going to for any

Greg Case

overall again, to the start Well, plan. with just

a do of been at the take It's and the may been colleague our to in they success it's respects, many But has before. they're how firm. mechanics talk -- and think engage the just works, colleagues of and of Aon all goes Aon nuances of a haven't When piece watch statement world that. see happens, -- participate chance wellness now discussion part this. of the about actually I seen the just it is getting And want amazing. I can you wonderful around in all Christa it. the essence, highlight this has about what really firm talked firm well see financial, the in around in every to actually opportunity mechanics understanding, to beyond a in this a the is fantastic. a of this It's way we for been to it, at a colleague -- has this fidelity every

colleagues this of fantastic. investment looked aspect to we this expectations reaction of we're obviously, aspect in doing, was then in standpoint, from creation and high context at one. investments the wellness expensed what the we been So of of sort all the a financial is have the absolutely we And is it really like a of And The wealth phenomenal beyond thought by at kind the our aspect look the our of it, return has capital. way, exceeded. been

Meyer Shields

highest across you of part obviously therefore, on opportunity about utilizing know issuing run value of across to on return our discounted above investment on share all basis opportunity on are the And we're remains firm cash, Aon. trading return the We the just returns, cash then capital And highest repurchase repurchase, our and are if values we think the view. a a maybe But share point where substantially we on cash capital this. firm but cash flow as because Aon share continues today. be we from on return based options as

to because offset so not share And dilution. of repurchase in we're return, the investing

Operator

Our is line next Weston is Bloomer from now question your Sir, open. from UBS.

Weston Bloomer

of probably difficult on for more is that My and question what XXXX. it mean the comp talent the like looks specifically could year first in because second just potentially half in a organic you'll in growth, come investment off the half second

terms you what a ramp terms your more getting you in on there? broader up of historically, So expectations the curious, of new or talent efficiency as seen have full bring in

Greg Case

year for And organic the are, coming And or all anticipating solution back of view. we about set or and again, and We on years. greater that's where broad just -- all that's start I'll we're maybe mid-single-digit revenue Well, after, essentially, growth well, comment us across this. achieved three lines. have continue we and of can next the to our achieve, year, we that's where in talked

also set part develop but we how our come that's this I bring terms time. for think of a our current both it's look how look in support colleagues, at maybe them just our that, are. and we the of over the are in we about in return. them, benchmark our and And who Aon of that's talent we of and look same hires, where program. new also, of firm. as quarter-to-quarter really develop the it of idea sort colleagues it strategy don't So really overall course but describe I'll at We way at We of apprenticeship get How

of years. network in what's program been trying we last across recognize to We've We're impact Chicago. the in has And recognized, copied the America. We've done in even North investment opportunity We it sort XX Chicago, have I'm investment terms number Europe. going started of the employers now Our to been and we've furnaces of example. been have. X,XXX apprentice an engaged In in And programs amazing that fortunate of mid-single central across about what's done with apprenticeship becomes XXXX nine over all on complex. what is we made this a our of help sort as topic an which achieve of aspects this expectation. all to we dealt to really professionals as colleagues highlight full developed is specific it we training continue approach environment in in That way. digit and day. angles talked market. I results, serve months alone, an all the talent, very going in way last more on clients this greater. it's or through going the colleagues evolve to Aon the XX,XXX with

these So new it's that's addressable it's down to talked continue It's or to up, digit what expand not about. just be of markets opportunity mid-single or then different. see greater. going kind with we to And we

digit kind mid-single But the up, standpoint think we think you down, your about, how is something about from Eric greater got philosophically up, of ramp others over from isn't time. the that ours this that's talent? ramp It as talk really So or it. about often ramp down ramp

Eric Andersen

do immediate clients, side, or less then we with of whether clients, to the way work reinsurance risk a five need Maybe to less interact on the solutions hiring solutions about essentially new matching investing Aon team-based five It's capability existing too, that new really model, and create them we new get a on how it's unlock leader capability health a and over wealth et consistently in a So time client, we're that's culture expertise things. team-based as to what together we've to years. you as invest what of and allows it's last with model the return, when it's so bring cetera. the is to today that on that have the risk model the value. have around different nobody an think client new actually about couple and side, can and the ways either in on or the having interact people That it's you where deliver bring so That's after, that been that a it, side and I to That's teams client on you're is the person try over we can. capability else getting that can you you Yes. of angle human have a firm create capital all and about health who we a United together, building the more that how or and you to whether right?

have way and Greg the as can head one Christa, you process count deliver plan. do That's a in have So able no around else It's down. right where the the the it's can. said, you something you'd culture, less client right Do add? we anything about right expertise interact headcount -- with to we're up, so a planning that

Christa Davies

point Look, any capable Business specialized and we've over long-term at firm as margin expansion about investments. sustained on engineered demonstrated to the Eric's decade. of a in Services Yes. last And organic and that's point just teams. invested We've cycle, the we've Aon build in growth

Weston Bloomer

And follow-up, Curious double-digit missed question. the I a Did sense. this. just you how CoverWallet that's? makes That a think might and it. in Got last as have I provided you provide quarter? growth

Greg Case

And team about. more has Aon effectively talked this amazing provide our brought opportunities Eric Chris made amazing, want time. CoverWallet capability, didn't them serve an we've just is of We what just of invested become global in hopefully, that the into we help over firm, and as they've And they together, stronger and to better. was family just clients do can firm the highlight is what It looking a really and to had specific we callout. at it example I perfect in and digital exceptional. growth sort been

see the the grow around they've And so the around team we really -- and in the with business not this what really we're world, broader been the of our the what team the us be iceberg helped seeing by and as would driven world. just have the came tip but how businesses as defined in and they substantial core impact, opportunity could

Operator

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

Greg Case

appreciate it. joining Thanks, the very everyone, much. Appreciate much. to our look Thanks very and discussion. We call. next it Thanks always for forward

Operator

you The participation. Thank conference now concluded. your has for

disconnect. ahead and You may please go

Aon (AON) 29 Oct 212021 Q3 Earnings call transcript