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Aon

LSE:0XHL
Snowflake Description

High growth potential with proven track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
0XHL
LSE
$42B
Market Cap
  1. Home
  2. GB
  3. Insurance
Company description

Aon plc, a professional services firm, provides advisory and solutions based on risk, retirement, and health to clients. The last earnings update was 62 days ago. More info.


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0XHL Share Price and Events
7 Day Returns
0%
LSE:0XHL
3.5%
GB Insurance
0.6%
GB Market
1 Year Returns
20.7%
LSE:0XHL
-5%
GB Insurance
1.1%
GB Market
0XHL Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Aon (0XHL) 0% 3.5% 13.4% 20.7% - -
GB Insurance 3.5% 7.8% 9.9% -5% 14.9% 23.7%
GB Market 0.6% 3.6% 6.9% 1.1% 15.6% 6.2%
1 Year Return vs Industry and Market
  • 0XHL outperformed the Insurance industry which returned -5% over the past year.
  • 0XHL outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned 1.1% over the past year.
Price Volatility
0XHL
Industry
5yr Volatility vs Market

Value

 Is Aon undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Aon to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Aon.

LSE:0XHL Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 5 analysts.
= Stable Book Value * Return on Equity
= $25.32 * 49%
$12.40
Book Value of Equity per Share Weighted future Book Value estimates from 5 analysts. $25.32
Discount Rate (Cost of Equity) See below 7%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:0XHL
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
Insurance Unlevered Beta Simply Wall St/ S&P Global 0.72
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.724 (1 + (1- 19%) (14.84%))
0.874
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.87
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (0.874 * 6.65%)
7.04%

Discounted Cash Flow Calculation for LSE:0XHL using Excess Returns Model Model

The calculations below outline how an intrinsic value for Aon is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

LSE:0XHL Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (49% – 7.04%) * $25.32)
$10.61
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $10.61 / (7.04% - 1.23%)
$182.72
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $25.32 + $182.72
$208.04
LSE:0XHL Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in LSE:0XHL represents 0.99428x of NYSE:AON
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.99428x
Value per Share
(Listing Adjusted, USD)
= Value per Share (USD) x Listing Adjustment Factor
= $ 208.04 x 0.99428
$206.85
Value per share (USD) From above. $206.85
Current discount Discount to share price of $173.89
= -1 x ($173.89 - $206.85) / $206.85
15.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Aon is available for.
Intrinsic value
16%
Share price is $173.89 vs Future cash flow value of $206.85
Current Discount Checks
For Aon to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Aon's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Aon's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Aon's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Aon's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:0XHL PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $4.32
NYSE:AON Share Price ** NYSE (2019-04-12) in USD $174.89
United Kingdom of Great Britain and Northern Ireland Insurance Industry PE Ratio Median Figure of 19 Publicly-Listed Insurance Companies 16.26x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 797 Publicly-Listed Companies 16.29x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Aon.

LSE:0XHL PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:AON Share Price ÷ EPS (both in USD)

= 174.89 ÷ 4.32

40.46x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Aon is overvalued based on earnings compared to the GB Insurance industry average.
  • Aon is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Aon's expected growth come at a high price?
Raw Data
LSE:0XHL PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 40.46x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts
27.1%per year
United Kingdom of Great Britain and Northern Ireland Insurance Industry PEG Ratio Median Figure of 16 Publicly-Listed Insurance Companies 1.54x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 564 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

LSE:0XHL PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 40.46x ÷ 27.1%

1.5x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Aon is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Aon's assets?
Raw Data
LSE:0XHL PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $17.29
NYSE:AON Share Price * NYSE (2019-04-12) in USD $174.89
United Kingdom of Great Britain and Northern Ireland Insurance Industry PB Ratio Median Figure of 24 Publicly-Listed Insurance Companies 2.12x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,367 Publicly-Listed Companies 1.51x
LSE:0XHL PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:AON Share Price ÷ Book Value per Share (both in USD)

= 174.89 ÷ 17.29

10.12x

* Primary Listing of Aon.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Aon is overvalued based on assets compared to the GB Insurance industry average.
X
Value checks
We assess Aon's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Insurance industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Insurance industry average (and greater than 0)? (1 check)
  5. Aon has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Aon expected to perform in the next 1 to 3 years based on estimates from 17 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
27.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Aon expected to grow at an attractive rate?
  • Aon's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Aon's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
  • Aon's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:0XHL Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:0XHL Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts 27.1%
LSE:0XHL Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 17 Analysts 5.5%
United Kingdom of Great Britain and Northern Ireland Insurance Industry Earnings Growth Rate Market Cap Weighted Average 11.8%
United Kingdom of Great Britain and Northern Ireland Insurance Industry Revenue Growth Rate Market Cap Weighted Average 18.3%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 11%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:0XHL Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:0XHL Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 12,709 2,474 5
2020-12-31 12,018 2,499 2,157 16
2019-12-31 11,351 1,979 1,734 16
LSE:0XHL Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 10,770 1,686 1,060
2018-09-30 10,909 1,356 794
2018-06-30 10,900 647 834
2018-03-31 10,707 634 735
2017-12-31 9,998 734 398
2017-09-30 9,739 1,204 765
2017-06-30 9,600 2,062 853
2017-03-31 9,514 2,293 1,170
2016-12-31 9,409 2,326 1,219
2016-09-30 10,042 2,189 1,426
2016-06-30 10,577 2,195 1,444
2016-03-31 11,095 1,984 1,357

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Aon's earnings are expected to grow significantly at over 20% yearly.
  • Aon's revenue is expected to grow by 5.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:0XHL Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below

All data from Aon Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:0XHL Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 10.89 10.95 10.84 3.00
2020-12-31 9.29 9.71 8.57 10.00
2019-12-31 7.23 8.17 6.04 9.00
LSE:0XHL Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 4.32
2018-09-30 3.21
2018-06-30 3.33
2018-03-31 2.89
2017-12-31 1.54
2017-09-30 2.92
2017-06-30 3.22
2017-03-31 4.39
2016-12-31 4.55
2016-09-30 5.28
2016-06-30 5.28
2016-03-31 4.89

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Aon is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
X
Future performance checks
We assess Aon's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Aon has a total score of 5/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Aon performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Aon's growth in the last year to its industry (Insurance).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Aon's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Aon's 1-year earnings growth exceeds its 5-year average (166.3% vs -10.3%)
  • Aon's earnings growth has exceeded the GB Insurance industry average in the past year (166.3% vs 5.3%).
Earnings and Revenue History
Aon's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Aon Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:0XHL Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 10,770.00 1,060.00 1,920.00
2018-09-30 10,909.00 794.00 2,132.00
2018-06-30 10,900.00 834.00 2,036.00
2018-03-31 10,707.00 735.00 1,900.00
2017-12-31 9,998.00 398.00 1,867.00
2017-09-30 9,739.00 765.00 1,941.00
2017-06-30 9,600.00 853.00 1,904.00
2017-03-31 9,514.00 1,170.00 1,809.00
2016-12-31 9,409.00 1,219.00 1,765.00
2016-09-30 10,042.00 1,426.00 2,022.00
2016-06-30 10,577.00 1,444.00 2,255.00
2016-03-31 11,095.00 1,357.00 2,534.00
2015-12-31 9,480.00 1,216.00 1,775.00
2015-09-30 11,670.00 1,260.00 2,888.00
2015-06-30 11,807.00 1,274.00 2,959.00
2015-03-31 11,920.00 1,400.00 3,026.00
2014-12-31 12,019.00 1,397.00 3,030.00
2014-09-30 11,929.00 1,290.00 3,139.50
2014-06-30 11,842.00 1,234.00 3,147.50
2014-03-31 11,820.00 1,169.00 3,184.50
2013-12-31 11,787.00 1,113.00 3,199.00
2013-09-30 11,693.00 1,051.00 3,188.00
2013-06-30 11,633.00 1,000.00 3,202.00
2013-03-31 11,555.00 1,005.00 3,187.00
2012-12-31 11,476.00 980.00 3,185.00
2012-09-30 11,348.00 969.00 3,181.00
2012-06-30 11,330.00 962.00 3,164.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst Aon has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.
  • Aon used its assets more efficiently than the GB Insurance industry average last year based on Return on Assets.
  • Aon has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Aon's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Insurance industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Aon has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Aon's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Aon's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Aon is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Aon's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Aon's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 2.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Aon Company Filings, last reported 3 months ago.

LSE:0XHL Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 4,219.00 6,244.00 737.00
2018-09-30 4,328.00 6,406.00 651.00
2018-06-30 4,618.00 6,458.00 561.00
2018-03-31 5,385.00 6,100.00 613.00
2017-12-31 4,648.00 5,966.00 1,189.00
2017-09-30 5,247.00 5,967.00 2,291.00
2017-06-30 5,553.00 5,923.00 3,339.00
2017-03-31 5,826.00 6,277.00 547.00
2016-12-31 5,532.00 6,205.00 634.00
2016-09-30 5,494.00 6,160.00 861.00
2016-06-30 5,561.00 6,158.00 602.00
2016-03-31 5,347.00 6,597.00 957.00
2015-12-31 6,059.00 5,700.00 635.00
2015-09-30 5,942.00 6,126.00 676.00
2015-06-30 6,456.00 6,061.00 734.00
2015-03-31 6,431.00 5,676.00 594.00
2014-12-31 6,631.00 5,582.00 599.00
2014-09-30 7,272.00 5,500.00 455.00
2014-06-30 7,759.00 5,954.00 565.00
2014-03-31 8,006.00 4,746.00 425.00
2013-12-31 8,195.00 4,389.00 786.00
2013-09-30 7,590.00 4,558.00 514.00
2013-06-30 7,618.00 4,439.00 372.00
2013-03-31 7,633.00 4,572.00 490.00
2012-12-31 7,805.00 4,165.00 437.00
2012-09-30 8,361.00 4,402.00 796.00
2012-06-30 8,210.00 4,490.00 612.00
  • Aon's level of debt (148%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (53.6% vs 148% today).
  • Debt is well covered by operating cash flow (27%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 8.6x coverage).
X
Financial health checks
We assess Aon's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Aon has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Aon's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.01%
Current annual income from Aon dividends. Estimated to be 1.05% next year.
If you bought $2,000 of Aon shares you are expected to receive $20 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Aon's pays a lower dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.02%).
  • Aon's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.19%).
Upcoming dividend payment

Purchase Aon before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:0XHL Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Insurance Industry Average Dividend Yield Market Cap Weighted Average of 21 Stocks 4.5%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 705 Stocks 4.2%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:0XHL Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 2.06 6.00
2020-12-31 1.85 11.00
2019-12-31 1.69 11.00
LSE:0XHL Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-04-05 1.760 1.009
2019-01-09 1.600 0.975
2018-10-09 1.600 1.041
2018-07-30 1.600 1.079
2018-04-13 1.600 1.129
2018-01-16 1.440 1.024
2017-10-12 1.440 1.024
2017-07-14 1.440 1.020
2017-04-17 1.440 1.122
2017-01-13 1.320 1.136
2016-10-17 1.320 1.182
2016-07-15 1.320 1.194
2016-04-15 1.320 1.236
2016-01-19 1.200 1.252
2015-10-14 1.200 1.297
2015-07-10 1.200 1.259
2015-04-14 1.200 1.196
2015-01-14 1.000 1.029
2014-10-13 1.000 1.108
2014-07-14 1.000 1.156
2014-04-11 1.000 1.143
2014-01-10 0.700 0.842
2013-10-11 0.700 0.872
2013-07-15 0.700 1.008
2013-04-15 0.700 1.093
2013-01-11 0.630 1.067
2012-10-12 0.630 1.129
2012-07-12 0.630 1.231
2012-01-11 0.600 1.255
2011-10-07 0.600 1.297
2011-07-15 0.600 1.334
2011-04-13 0.600 1.166
2011-01-18 0.600 1.193
2010-10-07 0.600 1.424
2010-07-19 0.600 1.592
2010-04-21 0.600 1.515
2010-01-12 0.600 1.466
2009-10-12 0.600 1.533
2009-07-20 0.600 1.475
2009-04-23 0.600 1.613

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Aon is not paying a notable dividend for United Kingdom of Great Britain and Northern Ireland, therefore no need to check if the payments are stable.
  • Aon is not paying a notable dividend for United Kingdom of Great Britain and Northern Ireland, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of Aon's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of Aon's dividends as it is not paying a notable one for United Kingdom of Great Britain and Northern Ireland.
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (5.6x coverage).
X
Income/ dividend checks
We assess Aon's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Aon afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Aon has a total score of 1/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Aon's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Greg Case
COMPENSATION $14,609,682
AGE 55
TENURE AS CEO 14 years
CEO Bio

Mr. Gregory C. Case, also known as Greg, has been the Chief Executive Officer and Executive Director of Aon plc and Aon Corporation at Aon Hewitt LLC since April 4, 2005. He serves as Chief Executive Officer of Aon Corp and President of Aon Corp at Aon Benfield Group Limited. Mr. Case served as the President of Aon plc and Aon Corporation until May 15, 2018. Prior to joining Aon, he served as the Head of Financial Services Practice at McKinsey & Company. He was a responsible for McKinsey's Global Insurance Practice. Before joining McKinsey, Mr. Case was with the investment banking firm of Piper, Jaffray and Hopwood and the Federal Reserve Bank of Kansas City. He serves on the boards of St. John's University School of Risk Management. He serves as a Director of Discover Bank. He has been a Director of Discover Financial Services since June 29, 2007. He is a Member of the International Insurance Society Inc., The Financial Services Roundtable, Children's Memorial Hospital and The Economic Club of Chicago. Mr. Case holds M.B.A. from Harvard Business School and Undergraduate Degree from Kansas State University.

CEO Compensation
  • Greg's compensation has been consistent with company performance over the past year.
  • Greg's remuneration is higher than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the Aon management team in years:

10.3
Average Tenure
53
Average Age
  • The average tenure for the Aon management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Greg Case

TITLE
CEO & Executive Director
COMPENSATION
$15M
AGE
55
TENURE
14 yrs

Eric Andersen

TITLE
Co-President
COMPENSATION
$4M
AGE
53
TENURE
0.9 yrs

Mike O'Connor

TITLE
Co-President
COMPENSATION
$4M
AGE
49
TENURE
0.9 yrs

Christa Davies

TITLE
Executive VP of Global Finance & CFO
COMPENSATION
$7M
AGE
46
TENURE
11.1 yrs

John Bruno

TITLE
Global COO and CEO of Data & Analytic Services
AGE
53
TENURE
2 yrs

Frances Sigurani

TITLE
Chief Administrative Officer

Scott Malchow

TITLE
SVP, IR and Corporate FP&A
TENURE
12.6 yrs

Peter Lieb

TITLE
Executive VP
COMPENSATION
$4M
AGE
62
TENURE
9.8 yrs

Ken Bond

TITLE
Senior Vice President of Corporate Development
TENURE
10.9 yrs

Andy Weitz

TITLE
Chief Marketing Officer
AGE
41
Board of Directors Tenure

Average tenure and age of the Aon board of directors in years:

12.6
Average Tenure
64
Average Age
  • The average tenure for the Aon board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Lester Knight

TITLE
Non-Executive Chairman of the Board
COMPENSATION
$692K
AGE
60
TENURE
10.7 yrs

Greg Case

TITLE
CEO & Executive Director
COMPENSATION
$15M
AGE
55
TENURE
14 yrs

Chily Chilton

TITLE
Chairman of Aon Specialty and Director of Aon Benfield
AGE
60
TENURE
10.3 yrs

Dominic Christian

TITLE
Global Chairman of Aon Benfield
AGE
57
TENURE
1.1 yrs

Hristo Borissov

TITLE
Chairman of Czech Republic & Slovakia and CEO of Czech Republic & Slovakia
TENURE
6.4 yrs

Dick Notebaert

TITLE
Non-Executive Director
COMPENSATION
$325K
AGE
71
TENURE
21 yrs

Mike Losh

TITLE
Non-Executive Director
COMPENSATION
$323K
AGE
72
TENURE
16.3 yrs

Gloria Santona

TITLE
Non-Executive Director
COMPENSATION
$355K
AGE
68
TENURE
14.9 yrs

Fulvio Conti

TITLE
Non-Executive Director
COMPENSATION
$365K
AGE
71
TENURE
11.3 yrs

Carolyn Woo

TITLE
Non-Executive Director
COMPENSATION
$340K
AGE
64
TENURE
21 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
22. Aug 18 Sell Michael Neller Individual 20. Aug 18 20. Aug 18 -750 $143.58 $-107,683
08. Aug 18 Buy Jeffrey Campbell Individual 06. Aug 18 06. Aug 18 5,550 $143.84 $798,290
18. May 18 Sell Michael Neller Individual 16. May 18 16. May 18 -1,000 $140.93 $-140,930
X
Management checks
We assess Aon's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Aon has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

Aon plc, a professional services firm, provides advisory and solutions based on risk, retirement, and health to clients. It offers commercial risk solutions, including retail brokerage, cyber, and global risk consulting solutions, as well as acts as a captive insurance provider; and health solutions, such as health and benefits brokerages, and health care exchanges. The company also provides reinsurance solutions, such as treaty and facultative reinsurance, as well as investment banking services, including mergers and acquisition, capital raising, strategic advisory, restructuring, and recapitalization services; insurance-linked securities; and corporate finance advisory services, capital markets solutions, and risk management products. In addition, it develops, markets, and administers customized insurance programs and specialty market solutions for organizations, and their members or affiliates; operates the Global Risk Insight Platform, which provides data, analytics, engagement, and consulting services; and offers ReView that provides advisory, analysis, and benchmarking services to help reinsurers. Aon plc was founded in 1919 and is headquartered in London, the United Kingdom.

Details
Name: Aon plc
0XHL
Exchange: LSE
Founded: 1919
$42,073,115,383
240,569,017
Website: http://www.aon.com
Address: Aon plc
The Leadenhall Building,
The Aon Centre,
London,
Greater London, EC3V 4AN,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE AON Class A Ordinary Shares New York Stock Exchange US USD 02. Jun 1980
DB 9H6 Class A Ordinary Shares Deutsche Boerse AG DE EUR 02. Jun 1980
LSE 0XHL Class A Ordinary Shares London Stock Exchange GB USD 02. Jun 1980
Number of employees
Current staff
Staff numbers
50,000
Aon employees.
Industry
Insurance Brokers
Insurance
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/22 22:45
End of day share price update: 2019/04/12 00:00
Last estimates confirmation: 2019/04/22
Last earnings filing: 2019/02/19
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.