Detailed Narrative
3x3 Plan and Aon United Strategy Progress
Aon's 3x3 plan, now in its final year, continues to accelerate the Aon United strategy by integrating risk and human capital, expanding client leadership, and leveraging Aon Business Services (ABS). This strategy has led to 6% organic revenue growth for two consecutive years and 90 basis points of adjusted operating margin expansion in FY25, demonstrating the business model's consistency and durability. The firm's first Investor Day in two decades highlighted the strength of Aon United and the central role of the 3x3 plan, including the power of ABS.
Innovation and Data Center Opportunity
The company is leveraging ABS to deliver innovative solutions and deploy AI, launching Aon Broker Copilot and Claims Copilot. Aon expanded its Data Center Lifecycle Insurance Protection Program (DCLP) capacity by $1 billion, increasing total capacity to $2.5 billion. Its reinsurance team also designed and placed the first-ever data center-specific treaty, aligning up to $5 billion of capital. This leadership in the monumental data center opportunity is a key driver for sustainable organic revenue growth.
Talent Investment and Client Engagement
Aon continues to invest in revenue-generating talent, which increased by a net 6% in 2025, contributing approximately 50 basis points to organic revenue growth from the 2024 and 2025 cohorts. The firm plans to expand this population by an additional 4% to 8% in 2026, focusing on high-growth priority areas. Enhanced client engagement through the Enterprise Client Group and improved service delivery from ABS capabilities are playing a meaningful role in sustaining strong client retention rates in the mid-90s.
Middle Market Expansion and NFP Integration
Aon substantially advanced its middle market strategy, building upon its independent and connected approach with NFP. The NFP business is performing well with strong producer retention, and its integration onto the ABS platform is being accelerated. This acceleration leverages Aon's global capability centers and deepens integration across technology platforms, expected to further enhance performance and drive margin expansion over time⏳, particularly in the $31 billion North American addressable market.
Capital Allocation and Portfolio Management
The firm generated $3.2 billion in free cash flow in FY25, an increase of 14% compared to 2024. This strong cash generation, coupled with disciplined portfolio management including the strategic sale of NFP Wealth, brings total capital available in 2026 to $7 billion. Aon remains committed to a balanced capital allocation model, prioritizing its leverage objective (2.9x in Q4 FY25), consistently growing the dividend, and executing disciplined high-return M&A and capital return, including $1 billion in share repurchases in 2025.
Restructuring and Operating Leverage
The Accelerating Aon United (AAU) restructuring program is on pace to deliver $450 million in total savings with a $1.3 billion investment, with completion expected in 2026. In Q4 FY25, restructuring savings contributed approximately 115 basis points to adjusted operating margin. The scalable ABS platform is expected to drive 40 to 50 basis points of margin expansion in FY26 through continued operating leverage, contributing to the overall 70-80 basis points of adjusted operating margin expansion target.