Aon PLC (AON) Q1 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Q1 twenty twenty six retention remains strong in the mid-90s, improving 20 basis points over last year, led by commercial risk and reinsurance as deeper enterprise client group engagement and ABS driven insights enhance client value and relationship depth. Net new business contributed five points to organic revenue growth in the quarter. Net market impact, which captures the impact of rate and exposure, contributed one point to organic revenue growth and was delivered in line with estimates despite a softer pricing environment in P and C and reinsurance. Rate driven pressure in reinsurance following oneone renewals was offset with higher limit and expanded coverage in commercial risk, further reinforcing that growth is primarily driven by business investment and client demand and remains largely uncorrelated with pricing cycles. And one final point on revenue. First quarter fiduciary investment income was $55,000,000 down 18% from the prior year as higher average balances were more than offset by the lower interest rates. On Slide eight, Q1 adjusted operating income was up 8% to $2,000,000,000 and adjusted operating margins expanded 70 basis points to 39.1%. Through ABS, we are structurally lowering our cost base by reducing technology costs, standardizing and automating processes, including the integration of NFP and embedding AI into our development and operational workflows. These actions are not only driving margin expansion, but also creating durable capacity for investments that support sustainable top line growth. Restructuring savings were $25,000,000 in the quarter, contributing 50 basis points to adjusted operating margin. We remain on track to deliver $100,000,000 of savings in 2026, advancing toward our goal of $450,000,000 in total savings by 2027, with ...