AON NYSE: AON reported 6% organic revenue growth in the third quarter of 2026, led by 7% growth in both its commercial risk and reinsurance businesses. The company said its results reflected broad-based demand for risk, capital and human-capital solutions amid geopolitical uncertainty, evolving cyber threats, uneven economic conditions and rapid technology change.
Total revenue rose 3% to $4.1 billion, while adjusted operating income increased 5% to $1.1 billion. Adjusted operating margin expanded 70 basis points to 27%, adjusted earnings per share increased 10% to $3.36, and free cash flow totaled $1.1 billion.
“Our outstanding third quarter results reflect continued momentum across the firm and reinforce high confidence in our Aon United strategy,” President and CEO Greg Case said. The strategy combines the company’s risk capital and human capital operations with its Aon Business Services platform, which supports data, analytics, technology and shared-services capabilities.
Growth Across Solution Lines
Commercial risk organic revenue growth accelerated to 7%, supported by contributions from North America and Europe, the Middle East and Africa. Aon said growth reflected strength in its core property-and-casualty business, double-digit growth in merger-and-acquisition activity, demand for specialized underwriting solutions, and construction activity tied to a record pipeline of data-center projects.
Reinsurance also posted 7% organic growth, following 8% growth in the prior-year quarter. The company said treaty growth, new business and client retention more than offset lower rates in a softer market. Aon also cited growth in facultative placements internationally, capital advisory, insurance-linked securities, catastrophe bonds, actuarial advisory and its strategy and technology group.
Health solutions grew 6%, driven by international health-and-benefits demand as employers navigated rising healthcare costs and benefits complexity. Wealth revenue rose 4%, with growth from regulatory and valuation work in the United Kingdom and EMEA, retirement services and NFP asset-based revenue.
Interim CFO Nadin Virani said new business contributed 11 percentage points to organic growth in the quarter, extending a run in which new business has added 9 to 11 points of growth for 10 consecutive quarters. Revenue-generating headcount was up 4% year to date, while the company said retention remained in the mid-90% range.
Aon said fiduciary investment income declined 8% year over year to $69 million, as lower interest rates more than offset higher average balances.
Margins, Investments and Cash Flow
Virani said adjusted margin expansion was supported by operating leverage from Aon Business Services and savings from the company’s AAU restructuring program. Restructuring savings totaled $20 million in the quarter and contributed about 50 basis points to adjusted operating margin. Aon continues to target $100 million in restructuring savings during 2026 and $450 million in program savings overall.
During the question-and-answer session, Virani said underlying margin expansion before certain offsets exceeded 100 basis points, but Aon chose to reinvest part of that improvement in the business. “It’s all about creating durable growth for the long term,” he said.
The company expects fourth-quarter interest expense of approximately $410 million, reflecting debt raised to fund its pending acquisition of USI. Aon recorded $206 million of interest expense in the third quarter, up $27 million from the second quarter due primarily to a partial quarter of interest on USI-related debt.
Aon said it remains confident it can meet its prior standalone 2026 guidance for organic revenue, margin expansion, earnings per share and free-cash-flow growth, excluding USI transaction-related cash and other expenses. It expects approximately $160 million of transaction costs from the USI deal, largely recognized in the third and fourth quarters of 2026.
USI Transaction and Middle-Market Strategy
Aon expects to close its acquisition of USI in the fourth quarter of 2026. Following the close, Aon plans to combine USI with NFP and its existing operations to establish what it described as a $6.5 billion U.S. middle-market platform.
Case said the U.S. middle market includes more than 200,000 companies and 48 million employees, representing an addressable market of more than $40 billion across commercial risk, health and wealth. USI will also provide access to the excess-and-surplus insurance market and add approximately $11 billion in property-and-casualty premium flow, according to the company.
Aon has identified $395 million of expected run-rate EBITDA synergies from 33 work streams, including $280 million in cost synergies and $115 million in revenue synergies. Virani said approximately 90% of the cost-synergy initiatives are expected to be completed by 2028. Revenue opportunities include wholesale-flow placement optimization, E&S opportunities, direct placement of USI premium volume, producer productivity and cross-selling risk-capital and human-capital offerings.
The company said an integration management office has been established, with Virani serving as executive sponsor alongside leaders from Aon, NFP and USI. Aon plans to provide quarterly updates on annual net EBITDA synergies and total program synergies after the transaction closes.
Capital Access and Technology
Management emphasized that its technology, analytics and AI investments are intended to improve client insights, help win and retain business, and generate productivity gains. Deputy CEO Andy Marcell said 5,600 clients used Aon’s risk analytics in the third quarter, up 30% from the prior year.
Aon also discussed efforts to bring alternative capital into insurance and reinsurance markets, including sidecars, catastrophe bonds and other structures. Case said the company views the opportunity as expanding available market capacity rather than displacing existing insurance capital. Marcell said elevated risks related to climate, social inflation, technology and socioeconomic disruption are likely to increase clients’ need for risk transfer over time.
About AON (NYSE:AON)
Aon plc is a global professional services firm that helps organizations manage risk, make informed decisions and improve workforce outcomes. Its services span commercial risk, health, retirement and investments, and data and analytics.
The company provides insurance brokerage and risk-management services, including coverage placement, claims support, risk transfer and consulting. Through its reinsurance business, Aon also serves insurers and other organizations seeking to manage catastrophe, capital and underwriting risks.
Aon's human capital offerings include employee benefits consulting, retirement advisory services, talent and compensation consulting, and health and workforce solutions.
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