Aon plc (AON): history, ownership, mission, how it works & makes money (2024)

A Brief History of Aon plc (AON)

Aon plc (AON) is a leading global professional services firm that provides a broad range of risk, retirement and health solutions. The company is headquartered in London, United Kingdom, but has offices in more than 120 countries worldwide.

The company was founded in 1982 in Chicago, Illinois, by Patrick Ryan, who served as the CEO until 2005. Aon’s initial business focus was on specialized insurance underwriting services. Over time, the company broadened its offerings to become a global provider of risk management, insurance brokerage, reinsurance brokerage, and human resources solutions.

• In 1987, Aon acquired Rollins Burdick Hunter, a California-based insurance brokerage company, to expand its presence in the West Coast market of the United States.
• In 1998, Aon acquired The Minet Group, a London-based insurance broker, to expand its presence in Europe and Asia.
• In 2001, Aon acquired the human resource consulting firm Hewitt Associates to broaden its capabilities in the employee benefits and HR consulting space.
• In 2010, Aon sold its underwriting division, Combined Insurance Company of America, to ACE Limited for $2.4 billion to focus more on its core businesses.
• In 2020, Aon announced its intention to merge with Willis Towers Watson in a $30 billion deal to create the largest insurance broker in the world. The merger is expected to close in the first half of 2021, subject to regulatory approval.

Today, Aon employs nearly 50,000 people worldwide and provides services to clients in over 120 countries. The company is a Fortune 500 company and is publicly traded on the New York Stock Exchange under the ticker symbol AON.

Who Owns Aon plc (AON)

Aon plc (AON) is a publicly traded company, which means it is owned by its shareholders. These shareholders can be individuals, institutions, or organizations that have purchased shares of Aon on stock exchanges.

According to the latest reports, the major institutional shareholders of Aon plc (AON) include:

• The Vanguard Group, Inc.
• BlackRock, Inc.
• State Farm Mutual Automobile Insurance Co.
• Wellington Management Company LLP
• Fidelity Management & Research Co.
• Morgan Stanley
• T. Rowe Price Associates, Inc.
• Invesco Ltd.

These institutions hold a significant percentage of Aon's outstanding shares and have a significant say in the company's decisions. However, individual investors also own a portion of Aon's shares.

Aon plc (AON) was previously headquartered in London, UK, but it recently announced that it would be relocating its headquarters to Ireland due to Brexit.

Aon plc (AON) Mission Statement

Aon plc (AON) is a leading global professional services firm that provides a broad range of risk, retirement and health solutions. Their mission is to empower their clients to better understand, manage and mitigate their risks through innovative and tailored solutions.

Aon believes that risk is fundamental to everything we do and by managing it effectively, businesses and individuals can achieve greater success. As such, their mission is to help their clients navigate a complex and ever-changing risk landscape with confidence and agility.

To achieve their mission, Aon is committed to providing their clients with the highest level of expertise and service. They strive to build long-term relationships with their clients that are based on mutual trust, respect and a shared commitment to excellence.

• Empower clients to better understand, manage and mitigate their risks
• Provide innovative and tailored solutions
• Help clients navigate a complex and ever-changing risk landscape with confidence and agility
• Provide the highest level of expertise and service to their clients
• Build long-term relationships based on mutual trust, respect, and a shared commitment to excellence

Overall, Aon's mission is to enhance their clients' success by enabling them to effectively manage their risks and seize every opportunity. They believe that by doing so, they can help create a more prosperous and secure future for all.

How Aon plc (AON) Works

Aon plc (AON) is a leading global professional services firm that provides a wide range of risk, retirement, and health solutions to clients around the world. The company operates in more than 120 countries and has over 50,000 employees who are dedicated to helping clients manage risk and improve their financial performance.

One of the key strategies that Aon uses to provide its clients with the best possible solutions is its approach to data analytics. Aon leverages a vast amount of data to gain insights into various business risks, industry trends, and other critical factors that can affect its clients.

Aon's core business is split into three segments: Risk Solutions, Retirement Solutions, and Health Solutions.

• Risk Solutions: This segment provides solutions to help clients manage risk and maximize their financial performance. It includes areas such as commercial risk solutions, cyber risk solutions, and human capital solutions.
• Retirement Solutions: This segment provides solutions to help clients manage their retirement plans and improve financial outcomes for their employees. It includes areas such as defined benefit plans, defined contribution plans, and investment consulting.
• Health Solutions: This segment provides solutions to help clients manage their health risks and improve employee well-being. It includes areas such as health and benefits consulting, health care exchanges, and population health management.

In addition to its core business segments, Aon also has a subsidiary called Aon Hewitt, which provides outsourcing and consulting services in the areas of HR, payroll, and talent management. This subsidiary helps clients optimize their human resources functions and improve employee engagement and performance.

Overall, Aon plc (AON) is a comprehensive professional services firm that leverages data and insights to provide clients with effective solutions to manage risk, improve financial outcomes, and optimize their overall business performance.

How Aon plc (AON) Makes Money

Aon plc (AON) is a multinational professional services firm that provides risk management, insurance, and reinsurance brokerage services, as well as health and retirement solutions. The company operates in more than 120 countries, serving clients in various industries, such as healthcare, aviation, retail, and construction. Aon generates revenue through the following sources:

• Commission and fees
• Investment income
• Incentives and contingent commissions

Commission and Fees

The primary source of revenue for Aon is commission and fees earned from its brokerage services. The company helps clients identify, assess, and manage risks associated with their operations and provides them with insurance policies that cover those risks. Aon earns commissions from insurance companies for the policies it sells to its clients. The commissions are typically a percentage of the insurance premiums paid by the clients. Aon also charges clients service fees for its risk management and consulting services, such as risk assessments, claims management, and compliance support.

Investment Income

Another source of revenue for Aon is investment income. The company invests its own and its clients' funds in various securities, such as stocks, bonds, and money market instruments, to generate income. Aon earns interest, dividends, and capital gains on these investments, which contribute to its total revenue. However, Aon's investment income is subject to market volatility and fluctuations in interest rates, which can affect its profitability.

Incentives and Contingent Commissions

In addition to commissions and fees, Aon also earns incentives and contingent commissions from insurance companies. Incentives are payments made by insurers to Aon for meeting certain performance targets, such as achieving a certain level of sales or retaining a certain number of clients. Contingent commissions are payments that depend on the amount of business Aon places with a particular insurer over a period of time. These incentives and commissions can vary depending on market conditions and the relationship between Aon and each insurer.

In conclusion, Aon plc (AON) generates revenue through its brokerage services, investment income, incentives, and contingent commissions. The company's business model relies on its ability to provide risk management and consulting services to clients across a range of industries and geographies.