Q2 2026 Aon PLC Earnings Call

July 29, 2026

Speaker #1: Good morning, and thank you for holding. Welcome to Aeon PLC's second quarter 2026 conference call. At this time, all parties will be in a listen-only mode until the question-and-answer portion of today's call.

Speaker #1: I would also like to remind all parties that this call is being recorded. If anyone has an objection, you may disconnect your line at any time.

Speaker #1: It is important to note that some of the comments in today's call may constitute certain statements that are forward-looking in nature, as defined by the Private Securities Reform Act of 1995.

Speaker #1: Such statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results for those anticipated. For information concerning these risk factors, please refer to our Earnings Release for this quarter and to our most recently quarterly or annual SEC filings.

Speaker #1: All of which are available on our website. Now, it is my pleasure to turn the call over to Greg Case, President and CEO of Aeon PLC.

Speaker #2: Thanks, Dylan, and good morning to everyone. Thank you for joining our second quarter earnings call. I'm here today with Edmund Reese, our CFO, and, as always, with Financial Presentation, which Edmund will reference is available on our website.

Speaker #2: Consistent execution: the strength of our Aeon United strategy accelerated through the 3x3 plan, and the resilience of our business model produced second-quarter and first-half results in line with objectives.

Speaker #2: In addition, our investments in talent, technology, and innovative capital solutions continue to strengthen the value we deliver, expand our addressable market, and drive sustainable growth.

Speaker #2: As we enter the second half of 2026, we're well-positioned to deliver on our strategic and financial commitments and continue generating long-term shareholder value. My remarks today focus on three areas: first, how client demand continues to grow as organizations navigate increasingly interconnected risk and workforce challenges; second, how our organizational structure—which brings together risk capital and human capital—and is supported by Aeon Business Services; and our substantial investments—drive our ability to meet client demand and differentiate Aeon in the marketplace.

Speaker #2: And third, how our investments are translating into strong client impact, durable growth, and confidence in our ability to deliver through the cycle performance. Let's start with the external landscape.

Speaker #2: The environment facing our clients continues to evolve rapidly: geopolitical uncertainty remains elevated, economic growth remains uneven, cyber threats continue to increase in frequency and sophistication, climate-related risks continue to challenge traditional underwriting and capital allocation models.

Speaker #2: At the same time, organizations are adapting to profound workforce changes. The common thread across these developments is increasing complexity. As complexity rises, decision-making becomes more difficult, and the cost of being wrong is more consequential.

Speaker #2: Clients are seeking greater clarity around risk exposure, capital allocation, and workforce strategy. They need integrated solutions and trusted partners who can help them navigate uncertainty, rather than simply react to it.

Speaker #2: This is creating growing demand for the capabilities that distinguish Aeon in the marketplace. Our expansion of Aeon claims Copilot during the quarter is one example.

Speaker #2: Building on our successful launch in November, our expansion across North America—Asia, Pacific, and EMEA—brings a substantial portion of our global claims management information onto a single technology platform.

Speaker #2: Claims Copilot, recently recognized by business insurance as the innovation of the year, enables delivery of a globally consistent claims experience for clients while strengthening our ability to generate insights that inform placement, negotiation, and broader risk strategies.

Speaker #2: This expansion underscores our continued investment in AI-enabled technology and innovation to help clients navigate the current environment. Importantly, Claims Copilot enhances our strong track record of claims performance.

Speaker #2: Over the past decade, we've helped clients recover more than $10 billion in financial value, from overturned declarations through our advocacy. By combining that expertise with Claims Copilot, we're helping clients achieve better outcomes.

Speaker #2: The same dynamics that increased demand for our capabilities are also driving demand both within the segments where Aeon has historically strong and in areas where we see opportunities to expand our addressable market.

Speaker #2: Our enterprise, large and middle-market clients, have complex needs. They're seeking insight, advice, and execution, not just transactions. And their decisions depend on combining data analytics, expertise, and judgment.

Speaker #2: Organizations are increasingly seeking access to new sources of capital to fund growth and managing volatility. Aeon is creating opportunities to engage with private equity firms and other capital providers, helping clients access the risk-bearing capacity necessary to support their strategic objectives.

Speaker #2: The opportunities we see today are the result of deliberate decisions we've made over the years. Aeon United remains at the center of our strategy and underpins our competitive advantage.

Speaker #2: The concept is simple: yet powerful. By bringing together expertise across risk capital and human capital, we create more value for clients, expand access to capital, and drive growth.

Speaker #2: Aeon Business Services is foundational to this strategy, and over the last several years, we've accelerated investment to improve our ability to diagnose risk, access capital, and deliver better outcomes for clients.

Speaker #2: Our advantage has never been rooted in technology alone. It always comes from combining deep expertise, trusted relationships, and proprietary insights to help clients navigate important decisions.

Speaker #2: And that is particularly evident in areas where we've developed substantial proprietary data and expertise. Within talent solutions, for example, we're helping clients understand how AI will reshape workforce strategies, our ongoing investments in capabilities such as the Radford-McGloggan compensation database and our proprietary AI sensitivity tool are enhancing insight we bring to clients as they assess the impact of AI on their organizations.

Speaker #2: And making formed talent decisions. And as clients reskill and redeploy talent, we're helping them strengthen the employee experience. For example, through Aeon Activate, our data-led AI-powered total rewards and benefits platform, organizations can deliver a more connected, personalized experience across benefits, well-being, pensions, and rewards, these capabilities are helping clients address both sides of the workforce transformation.

Speaker #2: Enabling employees to adapt to the changing nature of work while enhancing the experience that supports them. Across the firm, we see growing evidence that our technology investments are enabling our strategy and enhancing value for clients.

Speaker #2: Organizations increasingly turn to us to help them navigate some of their most important strategic decisions around digital infrastructure and data centers. A recent engagement with one of the world's largest technology companies demonstrates the value of our integrated approach.

Greg Case: Within Talent Solutions, for example, we're helping clients understand how AI will reshape workforce strategies. Our ongoing investments in capabilities such as the Radford McLagan Compensation Database and our proprietary AI sensitivity tool are enhancing insight we bring to clients as they assess the impact of AI on their organizations and make informed talent decisions. As clients reskill and redeploy talent, we're helping them strengthen the employee experience. For example, through Aon Activate, our data-led, AI-powered total rewards and benefits platform, organizations can deliver a more connected, personalized experience across benefits, well-being, pensions, and rewards. These capabilities are helping clients address both sides of the workforce transformation, enabling employees to adapt to the changing nature of work while enhancing the experience that supports them. Across the firm, we see growing evidence that our technology investments are enabling our strategy and enhancing value for clients.

Speaker #1: Within Talent Solutions, for example, we're helping clients understand how AI will reshape workforce strategies. Our ongoing investments in capabilities such as the Radford-McGloggan Compensation Database and our proprietary AI sensitivity tool are enhancing the insights we bring to clients as they assess the impact of AI on their organizations.

Speaker #2: As the client accelerated its investment in large-scale digital infrastructure, traditional risk solutions were no longer sufficient. We brought together expertise across commercial risk and reinsurance to help redesign the client's risk financing strategy, expand available capacity, and improve operational efficiency.

Speaker #1: And make informed talent decisions. As clients reskill and redeploy talent, we're helping them strengthen the employee experience. For example, through Aon Activate, our data-led, AI-powered Total Rewards and Benefits platform, organizations can deliver a more connected, personalized experience across benefits, well-being, pensions, and rewards.

Speaker #2: Importantly, the client was looking for a strategic partner that could help reimagine the process using technology. Integrate more effectively with its own sophisticated systems and create a more data-driven approach to managing risk and capital.

Speaker #2: And this is not a one-off example, but reflects a broader opportunity as companies across the tech industry are turning to Aeon to help address their complex risk, resilience, and capital challenges through coordinated solutions.

Speaker #1: These capabilities are helping clients address both sides of the workforce transformation: enabling employees to adapt to the changing nature of work, while enhancing the experience that supports them.

Speaker #2: The scale of this opportunity and the value we bring to clients is further reflected in the continued expansion of our data center lifecycle insurance program.

Speaker #1: Across the firm, we see growing evidence that our technology investments are enabling our strategy and enhancing value for clients. Organizations increasingly turn to us to help them navigate some of their most important strategic decisions around digital infrastructure and data centers.

Speaker #2: Last week, we announced an increase in program capacity to $5 billion, while broadening the integrated risk solutions we provide to support digital infrastructure assets throughout their lifecycle.

Greg Case: Organizations increasingly turn to us to help them navigate some of their most important strategic decisions around digital infrastructure and data centers. A recent engagement with one of the world's largest technology companies demonstrates the value of our integrated approach. As the client accelerated its investment in large-scale digital infrastructure, traditional risk solutions were no longer sufficient. We brought together expertise across Commercial Risk Solutions and Reinsurance Solutions to help redesign the client's risk financing strategy, expand available capacity, and improve operational efficiency. Importantly, the client was looking for a strategic partner that could help reimagine the process using technology, integrate more effectively with its own sophisticated systems, and create a more data-driven approach to managing risk and capital.

Speaker #1: A recent engagement with one of the world's largest technology companies demonstrates the value of our integrated approach. As the client accelerated its investment in large-scale digital infrastructure, traditional risk solutions were no longer sufficient.

Speaker #2: We're also seeing increasing demand from private equity and other capital providers as they seek differentiated insights and capability to deploy capital more effectively. As we deepen our relationships with these firms, we're creating and helping connect institutional funds with opportunity while creating new sources of capital for clients, and providing investors with access to uncorrelated risk and return streams.

Speaker #1: We brought together expertise across commercial risk and reinsurance to help redesign the client's risk financing strategy, expand available capacity, and improve operational efficiency. Importantly, the client was looking for a strategic partner that could help reimagine the process using technology.

Speaker #2: In doing so, we're expanding the addressable market, strengthening the resilience, and reducing the protection gap for clients. Demand for our integrated capabilities is proving equally powerful in the middle market, where we continue to see increased adoption of data-driven analytics and greater collaboration across solution lines.

Speaker #1: Integrate more effectively with its own sophisticated systems and create a more data-driven approach to managing risk and capital. And this is not a one-off example, but reflects a broader opportunity as companies across the tech industry are turning to Aion to help address their complex risk, resilience, and capital challenges through coordinated solutions.

Greg Case: This is not a one-off example, but reflects a broader opportunity as companies across the tech industry are turning to Aon to help address their complex risk, resilience, and capital challenges through coordinated solutions. The scale of this opportunity and the value we bring to clients is further reflected in the continued expansion of our Data Center Lifecycle Insurance Program. Last week, we announced an increase in program capacity to $5 billion, while broadening the integrated risk solutions we provide to support digital infrastructure assets throughout their lifecycle. We're also seeing increasing demand from private equity and other capital providers as they seek differentiated insights and capability to deploy capital more effectively. As we deepen our relationships with these firms, we're creating and helping connect institutional funds with opportunity while creating new sources of capital for clients and providing investors with access to uncorrelated risk and return streams.

Speaker #2: We're expanding our middle market platform through our programmatic tuck-in strategy and have deployed more than 350 million in capital year-to-date. Including opportunities that enhance our MGU and MGA capabilities.

Speaker #1: The scale of this opportunity and the value we bring to clients is further reflected in the continued expansion of our data center lifecycle insurance program.

Speaker #2: At the same time, we continue to draw on our ABS platform to accelerate NFPs growth. The success we're seeing today reinforces our competence in continuing to invest behind these opportunities, to further expand and strengthen our middle market platform over time.

Speaker #1: Last week, we announced an increase in program capacity to $5 billion, while broadening the integrated risk solutions we provide to support digital infrastructure assets throughout their lifecycle.

Speaker #2: Taken together, these examples demonstrate how we connect risk, capital, and people solutions to drive stronger client outcomes and expand the opportunities. The continued demand for our capabilities reinforces the power of what we've created by integrating risk capital and human capital and is translating into strong financial performance and momentum.

Speaker #1: We're also seeing increasing demand from private equity and other capital providers as they seek differentiated insights and capability to deploy capital more effectively. As we deepen our relationships with these firms, we're creating and helping connect institutional funds with opportunity while creating new sources of capital for clients and providing investors with access to uncorrelated risk and return streams.

Speaker #2: Turning briefly to our second quarter results. We delivered 5% organic revenue growth, achieving mid-single-digit or greater organic growth across all solution lines. 70 basis points of adjusted operating margin expansion, 9% adjusted EPS growth, and $483 million of free cash flow.

Speaker #1: In doing so, we're expanding the addressable market, strengthening the resilience, and reducing the protection gap for clients. Demand for our integrated capabilities is proving equally powerful in the middle market, where we continue to see increased adoption of data-driven analytics and greater collaboration across solution lines.

Greg Case: In doing so, we're expanding the addressable market, strengthening resilience, and reducing the protection gap for clients. Demand for our integrated capabilities is proving equally powerful in the middle market, where we continue to see increased adoption of data-driven analytics and greater collaboration across solution lines. We're expanding our middle market platform through our programmatic tuck-in strategy and have deployed more than $350 million in capital year to date, including opportunities that enhance our MGU and MGA capabilities. At the same time, we continue to draw on our ABS platform to accelerate NFP's growth. The success we're seeing today reinforces our confidence in continuing to invest behind these opportunities to further expand and strengthen our middle market platform over time. Taken together, these examples demonstrate how we connect risk, capital, and people solutions to drive stronger client outcomes and expand the opportunities.

Speaker #2: Edna will discuss our financial performance and capital allocation strategy in greater detail, but I'll note that our balance sheet remains strong and flexible, supporting our disciplined approach to capital allocation.

Speaker #1: We're expanding our middle market platform through our programmatic tuck-in strategy and have deployed more than 350 million in capital year-to-date. Including opportunities that enhance our MGU and MGA capabilities.

Speaker #2: Looking ahead, we're confident in the trajectory of the business. The environment will continue to evolve. Pricing conditions will change. New technologies will emerge. Capital and client needs will continue to become more complex and interconnected.

Speaker #1: At the same time, we continue to draw on our ABS platform to accelerate NFPs growth. The success we're seeing today reinforces our confidence in continuing to invest behind these opportunities to further expand and strengthen our middle market platform over time.

Speaker #2: However, these dynamics increase the relevance of Aeon's capabilities. Organizations increasingly need insight, expertise, and execution that span risk, capital, and workforce decisions. They need partners capable of helping them operate confidently amid uncertainty.

Speaker #1: Taken together, these examples demonstrate how we connect risk, capital, and people solutions to drive stronger client outcomes and expand opportunities. The continued demand for our capabilities reinforces the power of what we've created by integrating risk, capital, and human capital, and is translating into strong financial performance and momentum.

Speaker #2: Now more than ever, we're exceptionally well-positioned to meet that need. Our organizational alignment around risk, capital, and human capital supported by Aeon Business Services further strengthens our ability to bring together distinctive capabilities on behalf of clients.

Greg Case: The continued demand for our capabilities reinforces the power of what we've created by integrating Risk Capital and Human Capital and is translating into strong financial performance and momentum. Turning briefly to our Q2 results. We delivered 5% organic revenue growth, achieving mid-single digit or greater organic growth across all solution lines, 70 basis points of adjusted operating margin expansion, 9% adjusted EPS growth, and $483 million of free cash flow. Edmund will discuss our financial performance and capital allocation strategy in greater detail, but I'll note that our balance sheet remains strong and flexible, supporting our disciplined approach to capital allocation. Looking ahead, we're confident in the trajectory of the business. The environment will continue to evolve. Pricing conditions will change. New technologies will emerge. Capital and client needs will continue to become more complex and interconnected. However, these dynamics increase the relevance of Aon's capabilities.

Speaker #1: Turning briefly to our second quarter results: We delivered 5% organic revenue growth, achieving mid-single-digit or greater organic growth across all solution lines; 70 basis points of adjusted operating margin expansion; 9% adjusted EPS growth; and $483 million of free cash flow.

Speaker #2: As our capabilities expand in client relationships deepened, we continue to see growing opportunities to create value. And for our 3x3 plan, we're focused on continuing to execute with discipline, and build on capabilities that support growth well beyond the plan.

Speaker #1: Edmund will discuss our financial performance and capital allocation strategy in greater detail, but I'll note that our balance sheet remains strong and flexible, supporting our disciplined approach to capital allocation.

Speaker #2: Finally, to our more than 60,000 colleagues around the world, thank you. Thank you for your commitment to our clients, each other, and your Aeon United strategy.

Speaker #2: Your dedication continues to drive our success and position us for long-term growth. Now let me turn the call over to Edna. Edna?

Speaker #1: Looking ahead, we're confident in the trajectory of the business. The environment will continue to evolve, pricing conditions will change, new technologies will emerge, and capital and client needs will continue to become more complex and interconnected.

Speaker #3: Thank you, Greg, and good morning, everyone. Before turning to the details of our second quarter results, I want to frame today's discussion on the continuation of a consistent theme.

Speaker #1: However, these dynamics increase the relevance of Aion's capabilities. Organizations increasingly need insight, expertise, and execution that span risk, capital, and workforce decisions. They need partners capable of helping them operate confidently amid uncertainty.

Greg Case: Organizations increasingly need insight, expertise, and execution that span risk, capital, and workforce decisions. They need partners capable of helping them operate confidently amid uncertainty. Now more than ever, we're exceptionally well-positioned to meet that need. Our organizational alignment around Risk Capital and Human Capital, supported by Aon Business Services, further strengthens our ability to bring together distinctive capabilities on behalf of clients. For our 3x3 Plan, we're focused on continuing to execute with discipline and build on capabilities that support growth well beyond the plan. Finally, to our more than 60,000 colleagues around the world, thank you. Thank you for your commitment to our clients, each other, and our Aon United strategy. Your dedication continues to drive our success and position us for long-term growth.

Speaker #3: Through the cycle performance. Over the past several quarters, discipline execution across our business and financial model has translated in a consistently strong performance. In line with or above industry, across the key financial metrics, including organic revenue growth.

Speaker #1: Now more than ever, we're exceptionally well-positioned to meet that need. Our organizational alignment around risk, capital, and human capital supported by Aion Business Services further strengthens our ability to bring together distinctive capabilities on behalf of clients.

Speaker #3: As we move into the second half of 2026, our underlying business and financial model the foundation of that performance remains unchanged. What has evolved is the environment in which we are executing.

Speaker #1: As our capabilities expand and client relationships deepen, we continue to see growing opportunities to create value. And for our 3x3 plan, we're focused on continuing to execute with discipline and build on capabilities that support growth well beyond the plan.

Speaker #3: We are operating in a period characterized by both a transitioning pricing cycle and an accelerated pace of technological change. Periods like this increase the dispersion across outcomes.

Speaker #1: Finally, to our more than 60,000 colleagues around the world: thank you. Thank you for your commitment to our clients, to each other, and to our Aon United strategy.

Speaker #3: And bring in the sharper focus to business models that are structurally advantaged and built to perform through the cycle. Against that backdrop, our results continue to reflect differentiated performance.

Speaker #1: Your dedication continues to drive our success and position us for long-term growth. Now let me turn the call over to Edmund. Edmund?

Greg Case: Now let me turn the call over to Edmund. Edmund?

Speaker #2: Thank you, Greg, and good morning, everyone. Before turning to the details of our second quarter results, I want to frame today's discussion on the continuation of a consistent theme.

Edmund Reese: Thank you, Greg, and good morning, everyone. Before turning to the details of our Q2 results, I want to frame today's discussion on the continuation of a consistent theme through the cycle performance. Over the past several quarters, disciplined execution across our business and financial model has translated into consistently strong performance in line with or above industry across the key financial metrics, including organic revenue growth. As we move into the H2 2026, our underlying business and financial model, the foundation of that performance remains unchanged. What has evolved is the environment in which we are executing. We are operating in a period characterized by both the transitioning pricing cycle and an accelerated pace of technological change. Periods like this increase the dispersion across outcomes and bring in the sharper focus to business models that are structurally advantaged and built to perform through the cycle.

Speaker #3: We are delivering top-line growth, expanding margins, and generating strong free cash flow. Our consistency particularly in a changing environment is an important signal. It reflects not just execution in a single period or given quarter, but the durability and persistence we expect from our underlying model.

Speaker #2: Through the cycle performance. Over the past several quarters, discipline execution across our business and financial model has translated in a consistently strong performance. In line with or above industry, across the key financial metrics, including organic revenue growth.

Speaker #3: That durability is grounded in structural decisions we've made over time. Our client-centric organizational model Aeon United now established over more than 15 years aligns how we deliver solutions invest in talent and allocate capital.

Speaker #2: As we move into the second half of 2026, our underlying business and financial model—the foundation of that performance—remains unchanged. What has evolved is the environment in which we are executing.

Speaker #2: We are operating in a period characterized by both a transitioning pricing cycle and an accelerated pace of technological change. Periods like this increase the dispersion across outcomes.

Speaker #3: Combined with our early and continued investment in data and increasingly AI-enabled analytical capabilities, we are enhancing the quality speed and relevance of the insights we deliver to clients.

Speaker #2: And bring in the sharper focus to business models that are structurally advantaged and built to perform through the cycle. Against that backdrop, our results continue to reflect differentiated performance.

Speaker #3: As value continues to shift toward insight-led decision-making that drives client outcomes, that advantage becomes even more pronounced. We also recognize that the current pace of technological change broadens the range of potential long-term outcomes.

Edmund Reese: Against that backdrop, our results continue to reflect differentiated performance. We are delivering top-line growth, expanding margins, and generating strong free cash flow. Our consistency, particularly in a changing environment, is an important signal. It reflects not just execution in a single period or given quarter, but the durability and persistence we expect from our underlying model. That durability is grounded in structural decisions we've made over time. Our client-centric organizational model, Aon United, now established over more than 15 years, aligns how we deliver solutions, invest in talent, and allocate capital. Combined with our early and continued investment in data and increasingly AI-enabled analytical capabilities, we are enhancing the quality, speed, and relevance of the insights we deliver to clients. As value continues to shift toward insight-led decision making that drives client outcomes, that advantage becomes even more pronounced.

Speaker #2: We are delivering top-line growth, expanding margins, and generating strong free cash flow. Our consistency, particularly in a changing environment, is an important signal. It reflects not just execution in a single period or given quarter, but the durability and persistence we expect from our underlying model.

Speaker #3: Importantly, our disciplined approach remains consistent. We continue to make deliberate, high-conviction investments many of which generate value today and build strategic advantage over time.

Speaker #3: Regardless of how the technology landscape evolves, these investments act as catalysts to strengthen our competitive advantage and support sustained growth that compounds. Periods like this tend to further differentiate strong businesses.

Speaker #2: That durability is grounded in structural decisions we've made over time. Our client-centric organizational model Aion United now established over more than 15 years aligns how we deliver solutions invest in talent and allocate capital.

Speaker #3: And as we look at our performance and our positioning, we believe that is exactly what is occurring. And the changing environment consistent performance is the clearest signal.

Speaker #2: Combined with our early and continued investment in data and increasingly AI-enabled analytical capabilities, we are enhancing the quality speed and relevance of the insights we deliver to clients.

Speaker #3: And that is what our results continue to demonstrate. So without framing, let's turn to our second quarter results. On slide five, you see the second quarter results.

Speaker #2: As value continues to shift toward insight-led decision-making that drives client outcomes, that advantage becomes even more pronounced. We also recognize that the current pace of technological change broadens the range of potential long-term outcomes.

Speaker #3: Organic revenue growth was 5% and total revenue increased 2% year over year to 4.2 billion. Adjusted operating margin expanded by 70 basis points for the quarter and reached 28.9%.

Edmund Reese: We also recognize that the current pace of technological change broadens the range of potential long-term outcomes. Importantly, our disciplined approach remains consistent. We continue to make deliberate high conviction investments, many of which generate value today and build strategic advantage over time. Regardless of how the technology landscape evolves, these investments act as catalysts to strengthen our competitive advantage and support sustained growth that compounds. Areas like this tend to further differentiate strong businesses. As we look at our performance and our positioning, we believe that is exactly what is occurring. In the changing environment, consistent performance is the clearest signal, that is what our results continue to demonstrate. With that framing, let's turn to our second quarter results. On slide five, you see the second quarter results. Organic revenue growth was 5%, total revenue increased 2% year-over-year to $4.2 billion.

Speaker #3: Adjusted EPS was up $3.81, up 9% year over year. And finally, we generated $483 million in free cash flow. Let's get into the details of these results starting with organic revenue growth on slide six.

Speaker #2: Importantly, our discipline approach remains consistent. We continue to make deliberate, high-conviction investments many of which generate value today and build strategic advantage over time.

Speaker #3: Organic revenue growth was 5% in the quarter in line with our mid-single digit for better guidance. Growth was broad-based with all four solution lines delivering 5% organic revenue growth, reflecting the strength of our diversified business mix and the consistency of the growth drivers underpinning our performance.

Speaker #2: Regardless of how the technology landscape evolves, these investments act as catalysts to strengthen our competitive advantage and support sustained growth that compounds. Areas like this tend to further differentiate strong businesses.

Speaker #2: And as we look at our performance and our positioning, we believe that is exactly what is occurring. And the changing environment consistent performance is a clearest signal.

Speaker #3: That consistency is most evident in new business, which has contributed 9 to 11 points for 9 consecutive quarters. Providing a durable foundation for sustainable growth through varying market conditions.

Speaker #2: And that is what our results continue to demonstrate. So without framing, let's turn to our second quarter results. On slide 5, you see the second quarter results.

Speaker #3: And commercial risk organic revenue growth was 5%, reflecting continued strength in our core P&C business where new business generation and higher retention drove meaningful contribution from EMEA and North America.

Speaker #2: Organic revenue growth was 5% and total revenue increased 2% year over year to 4.2 billion. Adjusted operating margin expanded by 70 basis points for the quarter and reached 28.9%.

Edmund Reese: Adjusted operating margin expanded by 70 basis points for the quarter and reached 28.9%. Adjusted EPS was up $3.81, up 9% year-over-year. Finally, we generated $483 million in free cash flow. Let's get into the details of these results, starting with organic revenue growth on slide six. Organic revenue growth was 5% in the quarter, in line with our mid-single digit for better guidance. Growth was broad-based with all four solution lines delivering 5% organic revenue growth, reflecting the strength of our diversified business mix and the consistency of the growth drivers underpinning our performance. That consistency is most evident in new business, which has contributed nine to 11 points for nine consecutive quarters, providing a durable foundation for sustainable growth through varying market conditions.

Speaker #2: Adjusted EPS was up $3.81, up 9% year over year. And finally, we generated $483 million in free cash flow. Let's get into the details of these results starting with organic revenue growth on slide 6.

Speaker #3: Construction delivered a fifth consecutive quarter of double-digit growth as we continue to convert our record data center pipeline. Additionally, our MGA and MGU platforms benefited from ongoing client demand for specialized underwriting solutions.

Speaker #2: Organic revenue growth was 5% in the quarter in line with our mid-single digit for better guidance. Growth was broad-based with all four solution lines delivering 5% organic revenue growth, reflecting the strength of our diversified business mix and the consistency of the growth drivers underpinning our performance.

Speaker #3: M&A services were lower year over year against the Q25 comparison that benefited from elevated close deal activity. While this tempered overall commercial risk growth in the quarter, announced transaction volumes are up over 60%, which is reflected in a stronger second half pipeline.

Speaker #2: That consistency is most evident in new business, which has contributed 9 to 11 points for nine consecutive quarters, providing a durable foundation for sustainable growth through varying market conditions.

Speaker #3: Reinsurance delivered 5% organic revenue growth despite meaningful rate pressure in the market. Treaty growth reflected continued strong new business activity including the addition of new logos which more than offset 15 to 20% lower rates.

Speaker #2: And commercial risk organic revenue growth was 5%, reflecting continued strength in our core P&C business, where new business generation and higher retention drove meaningful contribution from EMEA and North America.

Edmund Reese: In Commercial Risk, organic revenue growth was 5%, reflecting continued strength in our core P&C business, where new business generation and higher retention drove meaningful contribution from EMEA and North America. Construction delivered a fifth consecutive quarter of double-digit growth as we continue to convert our record data center pipeline. Additionally, our MGA and MGU platforms benefited from ongoing client demand for specialized underwriting solutions. M&A services were lower year-over-year against the Q2 2025 comparison that benefited from elevated closed deal activity. While this tempered overall commercial risk growth in the quarter, announced transaction volumes are up over 60%, which is reflected in a stronger H2 pipeline. Reinsurance delivered 5% organic revenue growth despite meaningful rate pressure in the market.

Speaker #3: While facultative placements continued to perform well globally. Growth was further supported by double-digit performance in our strategy and technology group underscoring the increasing value clients place on analytics, and access to alternative capital solutions.

Speaker #2: Construction delivered a fifth consecutive quarter of double-digit growth as we continue to convert our record data center pipeline. Additionally, our MGA and MGU platforms benefited from ongoing client demand for specialized underwriting solutions.

Speaker #3: Finally, as part of our risk capital structure, reinsurance performance reflects continued contribution from our data center development efforts. Given that we typically deliver approximately three-quarters of annual treaty revenue during the first half of the year, we have strong visibility into our full-year outlook.

Speaker #2: M&A services were lower year over year against the Q2 '25 comparison that benefited from elevated closed deal activity. While this tempered overall commercial risk growth in the quarter, announced transaction volumes are up over 60%, which is reflected in a stronger second-half pipeline.

Speaker #3: The strength of our results through six months combined with the continued momentum in international facultative placements and strong demand for our strategy and technology group solutions reinforces our confidence in delivering full-year organic revenue growth consistent with our mid-single digit for greater objectives.

Speaker #2: Reinsurance delivered 5% organic revenue growth despite meaningful rate pressure in the market. Treaty growth reflected continued strong new business activity including the addition of new logos which more than offset 15 to 20% lower rates.

Edmund Reese: Treaty growth reflected continued strong new business activity, including the addition of new logos, which more than offset 15% to 20% lower rates, while facultative placements continued to perform well globally. Growth was further supported by double-digit performance in our Strategy and Technology Group, underscoring the increasing value clients place on analytics and access to alternative capital solutions. Finally, as part of our Risk Capital structure, reinsurance performance reflects continued contribution from our data center development efforts. Given that we typically deliver approximately three-quarters of annual treaty revenue during H1, we have strong visibility into our full-year outlook. The strength of our results through 6 months, combined with the continued momentum in international facultative placements, Strong demand for our Strategy and Technology Group solutions reinforces our confidence in delivering full-year organic revenue growth consistent with our mid-single digit or greater objective.

Speaker #3: Health solutions group 5% in the quarter driven by continued strength in our core health and benefits business, particularly in EMEA where demand for global benefits remains strong.

Speaker #2: While facultative placements continued to perform well globally. Growth was further supported by double-digit performance in our strategy and technology group, underscoring the increasing value clients place on analytics and access to alternative capital solutions.

Speaker #3: Growth also benefited from improved performance in talent solutions as we converted to strong pipeline. Along with contribution from NFP, particularly in executive benefits. Employers continue to face rising healthcare costs evolving workforce needs and increasing benefits complexity all of which drive demand for our health analytics.

Speaker #2: Finally, as part of our risk capital structure, reinsurance performance reflects continued contribution from our data center development efforts. Given that we typically deliver approximately three-quarters of annual treaty revenue during the first half of the year, we have strong visibility into our full-year outlook.

Speaker #3: Finally, wealth generated 5% organic revenue growth reflecting sustained demand for regulatory and valuation work across the UK and EMEA. In addition, the demand for increased pension risk transfer solutions in the US is planned sponsors resume evaluating de-risking opportunities and seek to improve balance sheet efficiency.

Speaker #2: The strength of our results through six months combined with the continued momentum in international facultative placements and strong demand for our strategy and technology group solutions reinforces our confidence in delivering full-year organic revenue growth consistent with our mid-single digit for greater objectives.

Speaker #3: Turning to the key components of our Q2 organic revenue growth on slide seven. A key driver of predictability in our revenue profile is the consistency of our new business performance.

Edmund Reese: Health Solutions grew 5% in the quarter, driven by continued strength in our core health and benefits business, particularly in EMEA, where demand for global benefits remains strong. Growth also benefited from improved performance in Talent Solutions as we converted a strong pipeline, along with contribution from NFP, particularly in executive benefits. Employers continue to face rising healthcare costs, evolving workforce needs, and increasing benefits complexity, all of which drive demand for our health analytics. Finally, wealth generated 5% organic revenue growth, reflecting sustained demand for regulatory and valuation work across the UK and EMEA. In addition, the demand for increased pension risk transfer solutions in the US as plan sponsors resume evaluating de-risking opportunities and seek to improve balance sheet efficiency. Turning to the key components of our Q2 organic revenue growth on slide seven.

Speaker #2: Health solutions group 5% in the quarter driven by continued strength in our core particularly in EMEA where demand for global benefits remains strong. Growth also benefited from improved performance in talent solutions as we converted to strong pipeline.

Speaker #3: In Q2, new business contributed 10 points to organic revenue growth supported by a balanced mix of new client wins and expanding our share of wallet with existing clients.

Speaker #3: Our sustained investment in revenue-generating talent is a meaningful driver of the consistent new business contribution. The 2024 and 2025 cohorts contributed approximately $100 basis points to organic revenue growth in the quarter with their impact increasing as productivity ramps.

Speaker #2: Along with contributions from NFP, particularly in executive benefits, employers continue to face rising healthcare costs, evolving workforce needs, and increasing benefits complexity, all of which drive demand for our health analytics.

Speaker #2: Finally, Wealth generated 5% organic revenue growth, reflecting sustained demand for regulatory and valuation work across the UK and EMEA. In addition, the demand for increased pension risk transfer solutions in the US is planned as sponsors resume evaluating de-risking opportunities and seek to improve balance sheet efficiency.

Speaker #3: Revenue-generating headcount is up 3% year to date and given the opportunities we continue to see across priority growth areas including construction, energy and health, we remain on track to expand this population by 4 to 8% despite the competitive talent market.

Speaker #3: Retention remains strong at a mid-90s level. Continued improvement in commercial risk up 40 basis points and reinsurance up 20 basis points reflect increased engagement through our enterprise client group, enhanced service delivery from ABS, and our ability to provide differentiated access to both traditional and alternative forms of capital.

Speaker #2: Turning to the key components of our Q2 organic revenue growth on slide 7, a key driver of predictability in our revenue profile is the consistency of our new business performance.

Edmund Reese: A key driver of predictability in our revenue profile is the consistency of our new business performance. In Q2, new business contributed 10 points to organic revenue growth, supported by a balanced mix of new client wins and expanding our share of wallet with existing clients. Our sustained investment in revenue-generating talent is a meaningful driver of the consistent new business contribution. The 2024 and 2025 cohorts contributed approximately 100 basis points to organic revenue growth in the quarter, with their impact increasing as productivity ramps. Revenue-generating headcount is up 3% year to date. Given the opportunities we continue to see across priority growth areas, including construction, energy, and health, we remain on track to expand this population by 4% to 8% despite the competitive talent market. Retention remains strong at a mid-90s level.

Speaker #2: In Q2, new business contributed 10 points to organic revenue growth, supported by a balanced mix of new client wins and by expanding our share of wallet with existing clients.

Speaker #3: Net new business contributed 5 points to organic revenue growth in the quarter. Net market impact which captures the impact of rate and exposure was modestly positive and within our expected 0 to 2-point range despite a softer pricing environment in P&C and reinsurance.

Speaker #2: Our sustained investment in revenue-generating talent is a meaningful driver of the consistent new business contribution. The 2024 and 2025 cohorts contributed approximately $100 basis points to organic revenue growth in the quarter, with their impact increasing as productivity ramps.

Speaker #3: Importantly, these results reflect the durability of our business model across market cycles. With growth driven by business investment and client demand, rather than pricing cycles.

Speaker #2: Revenue-generating headcount is up 3% year to date. And given the opportunities we continue to see for us priority growth areas including construction, energy and health, we remain on track to expand this population by 4 to 8% despite the competitive talent market.

Speaker #3: And one final point on revenue, second quarter fiduciary investment income was $58 million, down 12% from the prior year as higher average balances were more than offset by lower interest rates.

Speaker #2: Retention remains strong at a mid-90s level. Continued improvement in Commercial Risk, up 40 basis points, and Reinsurance, up 20 basis points, reflect increased engagement through our Enterprise Client Group, enhanced service delivery from ABS, and our ability to provide differentiated access to both traditional and alternative forms of capital.

Speaker #3: On slide eight, Q2 adjusted operating income was up 5% to $1.2 billion and adjusted operating margin expanded 70 basis points to $28.9%. This margin expansion reflects the impact of lower rates on investment income from fiduciary balances benefit from the AAU restructuring program and most importantly, continued operating leverage enabled by our scalable ABS platform, all of which were in line with our expectations.

Edmund Reese: Continued improvement in commercial risk up 40 basis points and reinsurance up 20 basis points reflect increased engagement through our Enterprise Client Group, enhanced service delivery from ABS, and our ability to provide differentiated access to both traditional and alternative forms of capital. Net new business contributed 5 points to organic revenue growth in the quarter. Net market impact, which captures the impact of rate and exposure, was modestly positive and within our expected 0 to 2-point range, despite a softer pricing environment in P&C and reinsurance. Importantly, these results reflect the durability of our business model across market cycles, with growth driven by business investment and client demand rather than pricing cycles. One final point on revenue, Q2 fiduciary investment income was $58 million, down 12% from the prior year as higher average balances were more than offset by lower interest rates.

Speaker #2: Net new business contributed 5 points to organic revenue growth in the quarter. Net market impact, which captures the impact of rate and exposure, was modestly positive and within our expected 0 to 2-point range despite a softer pricing environment in P&C and reinsurance.

Speaker #3: The scale advantages created through ABS including AI-enabled productivity improvements and disciplined expense management continue to lower unit costs across our operations while increasing our capacity to invest.

Speaker #2: Importantly, these results reflect the durability of our business model across market cycles, with growth driven by business investment and client demand, rather than pricing cycles.

Speaker #3: This is the power of the ABS growth engine. Generating operating leverage that funds growth investments and enabling us to broaden the addressable market and deliver sustainable top-line growth while continuing to expand margins.

Speaker #2: And one final point on revenue: second quarter fiduciary investment income was $58 million, down 12% from the prior year, as higher average balances were more than offset by lower interest rates.

Speaker #2: On slide 8, Q2 adjusted operating income was up 5% to $1.2 billion and adjusted operating margin expanded 70 basis points to $28.9%. This margin expansion reflects the impact of lower rates on investment income from fiduciary balances, benefit from the AAU restructuring program, and most importantly, continued operating leverage enabled by our scalable ABS platform, all of which were in line with our expectations.

Edmund Reese: On slide eight, Q2 adjusted operating income was up 5% to $1.2 billion and adjusted operating margin expanded 70 basis points to 28.9%. This margin expansion reflects the impact of lower rates on investment income from fiduciary balances, benefit from the AAU restructuring program, and most importantly, continued operating leverage enabled by our scalable ABS platform, all of which were in line with our expectations. The scale advantages created through ABS, including AI-enabled productivity improvements and disciplined expense management, continue to lower unit costs across our operations while increasing our capacity to invest. This is the power of the ABS growth engine, generating operating leverage that funds growth investments and enabling us to broaden the addressable market and deliver sustainable top-line growth while continuing to expand margins. Restructuring savings were $25 million in the quarter, contributing approximately 60 basis points to our adjusted operating margin.

We remain on track to deliver 100 million of savings in 2026 advancing toward our goal of 450 million in total savings by 2027 with 2026 marking the final year of our restructuring investment.

Speaker #2: The scale advantages created through ABS, including AI-enabled productivity improvements, and disciplined expense management, continue to lower unit costs across our operations while increasing our capacity to invest.

moving the interest of our income and taxes on slide 9 interest income was 5 million in the second quarter driven by interest earned on the proceeds from the sales of the NFP will

Interest expense came in at 179 million 33 million lower than last year. Primarily due to lower average debt balances.

Speaker #2: This is the power of the ABS growth engine—generating operating leverage that funds growth investments and enabling us to broaden the addressable market and deliver sustainable top-line growth, while continuing to expand margins.

We expect Q3 26. Interest expense to be approximately 185 million. Other expense was 15 million lower than last year, driven by remeasurement of balance sheet, currency, exposures and lower non-cash. Pension expense.

Speaker #2: Restructuring savings were $25 million in the quarter contributing approximately 60 basis points to our adjusted operating margin. We remain on track to deliver $100 million of savings in 2026, advancing toward our goal of $450 million in total savings by 2027 with 2026 marking the final year of our restructuring investment.

We have to make Q3 26, other expense to range between 15 and 20 million.

Edmund Reese: We remain on track to deliver $100 million of savings in 2026, advancing toward our goal of $450 million in total savings by 2027, with 2026 marking the final year of our restructuring investment. Moving to interest, other income and taxes on slide nine. Interest income was $5 million in the Q2, driven by interest earned on proceeds from the sale of NFP Wealth. Interest expense came in at $179 million, $33 million lower than last year, primarily due to lower average debt balances. We expect Q3 2026 interest expense to be approximately $185 million. Other expense was $15 million lower than last year, driven by remeasurements of balance sheet currency exposures and lower non-cash pension expense. We estimate Q3 2026 other expense to range between $15 to 20 million.

Finally the Q2 effective tax rate was 20.1% up, 360 basis points over Q2 2525 which benefited from a favorable discrete tax item.

We continue to expect a full year, tax rate of 19.5 to 20.5%.

Speaker #2: Moving the interest other income and taxes on slide 9. Interest income was $5 million in the second quarter driven by interest earned on proceeds from the sale of NFP wealth.

Turning now to free cash flow and capital allocation on slide 10.

Speaker #2: Interest expense came in at $179 million, $33 million lower than last year, primarily due to lower average debt balances. We expect Q3 26 interest expense to be approximately $185 million.

Ated 483 million of free cash flow in the second quarter as expected. Q2 26, free cash, flow included, 267 million of tax impact from the NFP wealth sale proceeds.

Importantly.

Strong operating income growth offset that headwind highlighting the strengths of our cash generation.

Speaker #2: Other expense was $15 million lower than last year driven by remeasurements of balance sheet currency exposures and lower non-cash pension expense. We estimate Q3 26 other expense to range between $15 and $20 million.

Through the first 6 Months of the Year, free cash flow is up 4% and we remain confident in our ability to deliver double-digit free cash flow growth in 2026.

Speaker #2: Finally, the Q2 effective tax rate was 20.1%, up 360 basis points over Q2 '25, which benefited from a favorable discrete tax item. We continue to expect a full-year tax rate of 19.5% to 20.5%.

Edmund Reese: Finally, the Q2 effective tax rate was 20.1%, up 360 basis points over Q2 2025, which benefited from a favorable discrete tax item. We continue to expect a full-year tax rate of 19.5% to 20.5%. Turning now to free cash flow and capital allocation on slide 10. We generated $483 million of free cash flow in the Q2. As expected in Q2 2026, free cash flow included $267 million of tax impact from the NFP Wealth sale proceeds. Importantly, strong operating income growth offset that headwind, highlighting the strength of our cash generation. Through the H1 of the year, free cash flow is up 4%, and we remain confident in our ability to deliver double-digit free cash flow growth in 2026.

Turning the capitol, on the right hand side of the page, our strong free cash flow. Growth generation enables us to continue to execute our disciplined Capital allocation model.

Speaker #2: Turning now to free cash flow and capital allocation on slide 10. We generated $483 million of free cash flow in the second quarter. As expected, Q2 '26 free cash flow included $267 million of tax impact from the NFP Wealth sale proceeds.

Balancing investment for growth with capital return to shareholders. We remained active on the m&a and allocated 29 million to targeted, tuck-in Acquisitions in Middle Market. So, there's a line with our strategic priorities and return thresholds.

Consistent with last quarter. Shareholders are returned represented the largest use of capital from Q2.

Speaker #2: Importantly, strong operating income growth offset that headwind, highlighting the strength of our cash generation. Through the first six months of the year, free cash flow is up 4%, and we remain confident in our ability to deliver double-digit free cash flow growth in 2026.

In total, we returned 775 million to shareholders, including 600 million, in share repurchases.

Given the dislocation in the market, we opportunistically accelerated repurchases during the first half of the Year, reflecting our conviction that aoins share price remains well below the firm's intrinsic value.

Speaker #2: Turning the capital on the right-hand side of the page, our strong free cash flow growth generation enables us to continue to execute our disciplined capital allocation model.

Edmund Reese: Turning to capital on the right-hand side of the page, our strong free cash flow growth generation enables us to continue to execute our disciplined capital allocation model, balancing investment for growth with capital return to shareholders. We remained active on M&A and allocated $29 million to targeted tuck-in acquisitions in middle market to the line with our strategic priorities and return thresholds. Consistent with last quarter, shareholder return represented the largest use of capital in Q2. In total, we returned $775 million to shareholders, including $600 million in share repurchases. Given the dislocation in the market, we opportunistically accelerated repurchases during the H1 of the year, reflecting our conviction that Aon's share price remains well below the firm's intrinsic value. As always, our objective is disciplined capital allocation that maximizes long-term shareholder value.

As always, our objective is disciplined, Capital allocation that maximizes long-term shareholder value. We have exceeded our objective of at least 1 billion in Cherry purchases for the year and we have continued strategic flexibility.

Speaker #2: Balancing investment for growth with capital return to shareholders. We remained active on M&A and allocated $29 million to targeted tuck-in acquisitions and middle market to the line with our strategic priorities and return thresholds.

We remain. Well, positioned to allocate Capital towards the highest return opportunities available, whether through high return, the freedom of m&a.

Or incremental shareholder return.

Speaker #2: Consistent with last quarter, shareholder return represented the largest use of capital from Q2. In total, we returned $775 million to shareholders, including $600 million in share repurchases.

I'll conclude my prepared remarks on slide. 11 with a few thoughts. On our financial objectives in 2026 guidance.

Speaker #2: Given the dislocation in the market, we opportunistically accelerated repurchases during the first half of the year, reflecting our conviction that Aon's share price remains well below the firm's intrinsic value.

Our second quarter results and our results to the first half of 2026, reflect the strength of our business, and financial models, the disciplined execution of the 3x3.com.

The underlying drivers of growth remained firmly in place.

Speaker #2: As always, our objective is disciplined capital allocation that maximizes long-term shareholder value. We have exceeded our objective of at least $1 billion in share repurchases for the year, and we have continued strategic flexibility.

We are generating sustainable, organic Revenue growth through consistent new business, generation and higher retention.

Edmund Reese: We have exceeded our objective of at least $1 billion in share repurchases for the year. We have continued strategic flexibility. We remain well-positioned to allocate capital towards the highest return opportunities available, whether through high return accretive M&A or incremental shareholder return. I'll conclude my prepared remarks on slide 11 with a few thoughts on our financial objectives in 2026 guidance. Our Q2 results and our results through the H1 of 2026 reflect the strength of our business and financial model, the disciplined execution of the Three by Three plan, and the durability of our through-the-cycle performance. The underlying drivers of growth remain firmly in place. We are generating sustainable organic revenue growth through consistent new business generation and higher retention. Translating that growth into strong earnings through operating leverage and converting those earnings into double-digit free cash flow growth.

Translating that growth into strong earnings through operating Leverage.

And converting those earnings in the double digit, free cash, flow growth.

As a result.

Speaker #2: We remain well-positioned to allocate capital toward the highest return opportunities available, whether through high-return, depletive M&A or incremental shareholder return. I'll conclude my prepared remarks on slide 11 with a few thoughts on our financial objectives and 2026 guidance.

We are reaffirming our 2026 full year guidance, including mid single digit or greater organic Revenue growth.

70 to 80 basis points of margin expansion.

Strong adjusted earnings growth.

In double digits. Free cash flow growth.

Speaker #2: Our second quarter results and our results through the first half of 2026 reflect the strength of our business and financial model. The disciplined execution of the 3 by 3 plan and the durability of our through the cycle performance.

Before we move the Q&A, I want to leave you with 1 final thought.

The structural Advantage we have built through our aeon United strategy, operationalized through risk Capital, human capital, and abs.

Speaker #2: The underlying drivers of growth remain firmly in place. We are generating sustainable, organic revenue growth through consistent new business generation and high retention, translating that growth into strong earnings through operating leverage.

And our investment in AI embedded. Technology within the, ABS are increasingly differentiating, our performance and serving as a catalyst for durable growth.

Speaker #2: And converting those earnings into double-digit free cash flow growth. As a result, we are reaffirming our 2026 full-year guidance, including mid-single-digit or greater organic revenue growth, 70 to 80 basis points of margin expansion, strong adjusted earnings growth, and double-digit free cash flow growth.

Edmund Reese: As a result, we are reaffirming our 2026 full-year guidance, including mid-single digit or greater organic revenue growth, 70 to 80 basis points of margin expansion, strong adjusted earnings growth, and double-digit free cash flow growth. Before we move to Q&A, I want to leave you with one final thought. The structural advantage we have built through our Aon United strategy, operationalized through Risk Capital, Human Capital, and ABS, and our investment in AI-embedded technology within ABS, are increasingly differentiating our performance and serving as a catalyst for durable growth. We enter the H2 of the year with greater visibility, significant financial flexibility, and confidence in our ability to continue creating value for clients that fuels sustainable growth and long-term shareholder value creation. With that, let's open the lines for questions. Dylan, back to you.

We enter the second half of the year with greater visibility significant financial flexibility in confidence, in our ability to continue creating value for clients, that fuels sustainable growth and long-term shareholder value creation.

so, with that,

Let's open the line for questions. At Dillon, back to you.

Speaker #2: Before we move to Q&A, I want to leave you with one final thought. The structural advantage we have built through our Aon United strategy, operationalized through Risk Capital, Human Capital, and ABS, and our investment in AI-embedded technology within ABS, are increasingly differentiating our performance and serving as a catalyst for durable growth.

Thank you. We will now be conducting a question and answer session. We ask that you please limit yourself to 1 question and 1 follow-up. If you'd like to ask a question, please press star 1 on your telephone keypad. The confirmation tone will indicate your line is in the question queue. You may press star 2. If you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star Keys 1 moment, please while we pull for questions.

Our first question.

Speaker #2: We enter the second half of the year with greater visibility, significant financial flexibility, and confidence in our ability to continue creating value for clients, that fuels sustainable growth and long-term shareholder value creation.

Comes from David Moe, maintenance with evercore. Please go ahead.

Speaker #2: So with that, let's open the line for questions. Dylan, back to you.

Speaker #1: Thank you. We will now be conducting a question and answer session. We ask that you please limit yourself to one question and one follow-up.

Operator: Thank you. We will now be conducting a question and answer session. We ask that you please limit yourself to one question and one follow-up. If you'd like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we poll for questions. Our first question comes from David Motemaden with Evercore. Please go ahead.

Commercial risk admin, you'd called out, uh, m&a Services. Um, as as something that tempered the growth, this quarter, um, I'm just wondering if you could maybe size that and you also mentioned a stronger second half pipeline. Um, how we should think about that contributing, um, to the rest of the year.

Speaker #1: If you'd like to ask a question, please press star one on your telephone keypad. The confirmation tone will indicate your line is in the question queue.

Speaker #1: You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.

Speaker #1: One moment, please, while we pull for questions. Our first question comes from David Moat-Mayton with Evercore. Please go ahead.

Speaker #3: Hey, good morning. Just had a question on commercial risk. Edmund, you had called out M&A services as something that tempered the growth this quarter.

David Motemaden: Hey, good morning. Just had a question on commercial risk. Edmund, you had called out M&A services as something that tempered the growth this quarter. I'm just wondering if you could maybe size that. You also mentioned a stronger H2 pipeline, how we should think about that contributing to the rest of the year.

Speaker #3: I'm just wondering if you could maybe size that. And you also mentioned a stronger second-half pipeline. How should we think about that contributing to the rest of the year?

Sorry, David. Good morning and uh thanks for the questions. I was I was on mute there for a moment. The momentum, I think the first thing I say about commercial risk is that the momentum continues to build here. Remember, we're in a lower rate environment and Commercial risk was 5% of the quarter 6% through the first 6 months. Well, within our mid single digit or greater results, you are right that I highlighted m&a Services muted, the growth for the quarter. And remember it was growing over an elevated Q2 but the important point is that announced transactions are up over 60% that's reflected in our pipeline. We recognize the revenue on m&a is the deals closed and I will say this m&a becomes a Tailwind for the rest of the year. Given our leadership role, uh, within P&E. But the important thing here is that every other significant component of Revenue within commercial risk was mid single digit, or greater the growth was broad-based across the regions. I talked about strength in the Mia talked about strength in North America and our core p.

Speaker #2: Sorry, David. Good morning, and thanks for the questions. I was on mute there for a moment. The momentum—I think the first thing I'd say about commercial risk is that the momentum continues to build here.

Edmund Reese: Sorry, David. Good morning, and thanks for the questions. I was on mute there for a moment. I think the first thing I'd say about Commercial Risk Solutions is that the momentum continues to build here. Remember, we're in a lower rate environment, and Commercial Risk Solutions was 5% in the quarter, 6% through H1, well within our mid-single-digit or greater results. You are right that I highlighted M&A services muted the growth for the quarter. Remember, it was growing over an elevated Q2. The important point is that announced transactions are up over 60%. That's reflected in our pipeline. We recognize the revenue on M&A as the deals close. I will say that M&A becomes a tailwind for the rest of the year, given our leadership role within P&E.

Speaker #2: Remember, we're in a lower rate environment, and commercial risk was 5% for the quarter, 6% through the first six months—well within our mid-single-digit or greater results.

Speaker #2: You are right that I highlighted M&A services muted the growth for the quarter. And remember, it was growing over an elevated Q2, but the important point is that announced transactions are up over 60%.

Speaker #2: That's reflected in our pipeline. We recognize the revenue on M&A as the deals close. And I will say that M&A becomes a tailwind for the rest of the year, given our leadership role within P&E.

Speaker #2: But the important thing here is that every other significant component of revenue within Commercial Risk was mid-single-digit or greater. The growth was broad-based across the regions.

Edmund Reese: The important thing here is that every other significant component of revenue within Commercial Risk Solutions was mid-single-digit or greater. The growth was broad-based across the regions. I talked about strength in EMEA, talked about strength in North America in our core P&C business. I also emphasized the growth in the priority areas. You saw a fifth consecutive double-digit quarter in construction. That's data center, but I'd also highlight defense builds and pharmaceutical builds as well. We're progressing in the specialty business, especially as we combine NFP with our legacy platforms and integrate some of the companies that we just acquired. For us, the key is the consistency of the growth drivers here. New business was up over 10-point contribution. That's the thing to focus on. That's very much supported by the priority hires that we have. Retention was up another quarter, 40 basis points.

Speaker #2: I talked about strength in EMEA, talked about strength in North America in our core P&C business. I also emphasized the growth in the priority areas you saw a fifth consecutive double-digit quarter in construction.

See business. I also emphasize the growth in the priority areas. Um you saw a fifth consecutive double-digit quarter in construction. That's data center. But I'd also highlight defense, builds and pharmaceutical builds as well. And we're progressing in a specialty business especially as we combine NFP with our Legacy platforms and integrate some of the companies that we just acquired for us. The the key is the consistency of the growth drivers here. New business was up over 10 point contribution, that's the thing the focus on. That's very much supported by the priority hires that we have retention was up another quarter 40 basis points. That's our analyzers. Helping us win, uh, rfps. And we're rolling that out across our different geographies. And the net Market contribution was still positive. So m&a will be a Tailwind as we move forward. Uh, we will continue to focus on our investments, the drivers of growth talent and Technology. That's what gives us confidence in the guidance. Moving forward. But Greg, anything you want to add?

Speaker #2: That's data center, but I'd also highlight defense builds and pharmaceutical builds as well. And we're progressing in a specialty business, especially as we combine NFP with our legacy platforms and integrate some of the companies that we just acquired.

Speaker #2: For us, the key is the consistency of the growth drivers here. New business was up over 10-point contribution. That's the thing to focus on.

Uh, on this. Okay. And that was a terrific summary. I just think David look step back for a second. As I talked about 5% with a little bit of headwind from from 1 of our strongest businesses, uh on m&a services with the strong second half. But what I would just add is just the reflection. On the observation on risk Capital uh you see it in commercial risk, we may talk about it in reinsurance as well. Uh, risk Capital. This, this construct where you're bringing in an integrated View to a client and a very unique way, they're bringing content capability and expertise.

Speaker #2: That's very much supported by the priority hires that we have. Retention was up another quarter, 40 basis points. That's our analyzers helping us win RFPs, and we're rolling that out across our different geographies.

Edmund Reese: That's our Risk Analyzers helping us win RFPs, we're rolling that out across our different geographies, and the net market contribution was still positive. M&A will be a tailwind as we move forward. We'll continue to focus on our investments, the drivers of growth, talent, and technology. That's what gives us confidence in the guidance moving forward. Greg, anything you want to add on this?

Speaker #2: And the net market contribution was still positive. So M&A will be a tailwind as we move forward. We'll continue to focus on our investments, the drivers of growth, talent, and technology.

Speaker #2: That's what gives us confidence in the guidance moving forward.

Speaker #3: But Greg, is there anything you want to add on this?

Speaker #4: Well, Edmund, that was a terrific summary. I'm going to say, David, let's step back for a second. Edmund talked about 5%, with a little bit of headwind from one of our strongest businesses on M&A services, with the strong second half.

Greg Case: Well, Edmund, that was a terrific summary. I would say, David, let's step back for a second. Edmund talked about 5% with a little bit of headwind from one of our strongest businesses on M&A services with the strong H2. What I would just add is just the reflection on the observation on Risk Capital. You see it in Commercial Risk Solutions. We may talk about it in Reinsurance Solutions as well. Risk Capital, this construct where you're bringing an integrated view to a client in a very unique way, bringing content, capability, and expertise, our colleagues showing up together in the most important environments. This is a source of great strength, and it really is cutting across the entire business, as Edmund described.

Our colleagues showing up together in the most important environments. This is a source of great strength. Uh, and it really is cutting across the entire business as I've been described. And I think about some of the some of the work we've done on the data center front. Uh, some of the biggest balance sheets in the world, um, and our ability to bring new insight around how they understand exposure, how they transact risk, how they executed, how they Access Capital Access Capital. Well beyond traditional, including traditional. But well beyond is, um, is just really a proof Point around the strength of risk capital and you shut saw that show up in quarter as well. Uh, along with all the details that Edmond described

Speaker #4: But what I would just add is just the reflection on the observation on risk capital. You see it in commercial risk. We may talk about it in reinsurance as well.

Speaker #4: Risk capital, this construct where you're bringing an integrated view to a client and a very unique way, bringing content, capability, and expertise, our colleagues showing up together in the most important environments.

Speaker #4: This is a source of great strength. And it really is cutting across the entire business, as Edmund described. And I think about some of the work we've done on the data center front, some of the biggest balance sheets in the world, and our ability to bring new insight around how they understand exposure, how they transact risk, how they execute it, how they access capital well beyond traditional, including traditional, but well beyond, is just really a proof point around the strength of risk capital.

Greg Case: I think about some of the work we've done on the data center front, some of the biggest balance sheets in the world, and our ability to bring new insight around how they understand exposure, how they transact risk, how they execute it, how they access capital well including traditional, but well beyond, is just really a proof point around the strength of Risk Capital. You saw that show up in quarter as well, along with all the details that Edmund described.

Great, no, thank you for that. Um, maybe just following up, uh, just on on the pricing environment, uh, and within commercial risk, uh, as well. So, um, you know, noted the the modestly positive Market impact, um, what's, what's your outlook on that? Uh, as we go forward throughout the rest of the year? The pricing environment um is obviously changing sounds like casualty pricing is is moderating around the edges. Um, do you guys think that you can continue to offset? Um, some of the, the moderating pricing and Market impact with uh, with net new business?

Speaker #4: And you saw that show up in the quarter as well, along with all the details that Edmund described.

Speaker #3: Great. No, thank you for that. Maybe just following up, just on the pricing environment within commercial risk, as well. So noted the modestly positive market impact.

David Motemaden: Great. No, thank you for that. Maybe just following up just on the pricing environment within commercial risk as well. Noted the modestly positive market impact. What's your outlook on that as we go forward throughout the rest of the year? The pricing environment is obviously changing. It sounds like casualty pricing is moderating around the edges. Do you guys think that you can continue to offset some of the moderating pricing and market impact with net new business?

Speaker #3: What's your outlook on that as we go forward throughout the rest of the year, the pricing environment? It's obviously changing. It sounds like casualty pricing is moderating around the edges.

Speaker #3: Do you guys think that you can continue to offset some of the moderating pricing and market impact with net new business?

Speaker #4: Well, let me start, and then Edmund, feel free to add as well here. But listen, we start. I'll start. He'll probably finish as well.

Greg Case: Well, let me start and then, Edmund, feel free to add as well here. Listen, I'll start. You'll probably finish as well. We're absolutely committed to mid-single digit or greater under any pricing cycle. This is not about pricing cycle for us. This is about client need and client response. For us, we are going to drive mid-single digit or greater irrespective. The commentary, though, if you step back, think about it from a macro view versus quarter to quarter, demand continues to outpace supply as you think about the complexity of risks. We're talking about that. Risks are going up in all the different traditional areas. We talk about the four mega trends in trade, technology, weather, workforce. The new areas, data centers, all these are sources of demand.

Speaker #4: We're absolutely committed. Single-digit or greater under any pricing cycle. This is not about pricing cycle for us. This is about client need and client response and for us, we are going to drive mid-single-digit or greater irrespective the commentary though, if you step back, think about it from a macro view, versus quarter to quarter, demand continues to outpace supply.

To increase all these reasons uh you know that's going to work its way through pricing conditions over time in our view over the long term. Uh and we're seeing a number of different things that are happening in the micro markets. And you're right on property is down, casually still going up, just lower and, uh, you know, we're seeing flattening in different areas, but net, net. The real punchline here for us, is we support clients in different pricing, environments unit, pricing environments, it changes the way we change the way they think about their overall structure. And again, that's back to the power of what risk capital is all about, helping them, understand, measure, and mitigate risk. Um, some through Insurance some through retention whole range of different approaches. And that's the that's the power of client leadership. You know, with what we're doing in the 3 by 3.

Speaker #4: As you think about the complexity of risks, we're talking about that. Risks are going up. All the different traditional areas, we talk about the four mega trends in trade, technology, weather, workforce.

Speaker #4: The new areas—data centers—all these are sources of demand. And as that demand continues to increase for all these reasons, that's going to work its way through pricing conditions over time.

Greg Case: As that demand continues to increase for all these reasons, that's going to work its way through pricing conditions over time, in our view, over the long term. We're seeing a number of different things that are happening in the micro markets, and you're right on property is down. Casualty is still going up, just lower, and we're seeing flattening in different areas. Net net, the real punchline here for us is we support clients in different pricing environments, unit pricing environments. It changes the way we change the way they think about their overall structure. Again, that's back to the power of what Risk Capital is all about, helping them understand, measure, and mitigate risk, some through insurance, some through retention, whole range of different approaches. That's the power of client leadership with what we're doing in the Three by Three plan.

Speaker #4: In our view, over the long term. And we're seeing a number of different things that are happening in the micro markets. And you're right on property is down.

Speaker #4: Casualty is still going up just lower. And we're seeing flattening in different areas. But net net, the real punchline here for us is we support clients in different pricing environments, unit pricing environments.

Speaker #4: It changes the way we change the way they think about their overall structure. And again, that's back to the power of what risk capital is all about, helping them understand, measure, and mitigate risk.

David. This is 1 of the to Greg's point. This is 1 of the most important questions that emphasize on the call here. It was the key theme in our prepared remarks, which was performance through the cycle, Q2 is a heavy property quarter, uh, and reinsurance, as you know, is weighted towards the half first half of the year. So those are 2 biggest areas of pricing at uh, impact and we are still performing despite the rate pressure there and that reiterates. The point that we've been making that our organic growth is more correlated to business investment and property and equipment. So nominal GDP much less correlated to pricing. Greg's point is exactly right that we look at these as micro markets property has been down to Greg's Point casualties still growing, but maybe growing at a lower rate, there's a different Dynamic on dno, a different Dynamic on Cyber, which are probably flat to low single.

Speaker #4: Some through insurance, some through retention, whole range of different approaches. And that's the power of client leadership with what we're doing in the three by three.

Speaker #3: David, this is one of the to Greg's point, this is one of the most important questions the emphasize on the call here was the key theme in our prepared remarks, which was performance through the cycle.

Edmund Reese: David, to Greg's point, this is one of the most important questions to emphasize on the call here. It was the key theme in our prepared remarks, which was performance through the cycle. Q2 is a heavy property quarter, and reinsurance, as you know, is weighted towards the H1 of the year. Those are 2 biggest areas of pricing impact, and we are still performing despite the rate pressure there. That reiterates the point that we've been making that our organic growth is more correlated to business investment in property and equipment. Nominal GDP, much less correlated to pricing. Greg's point is exactly right, that we look at these as micro markets. Property has been down. To Greg's point, casualty is still growing, but maybe growing at a lower rate.

Speaker #3: Q2 is a heavy property quarter. And reinsurance, as you know, is weighted towards the first half of the year. So those are two biggest areas of pricing out impact.

Digit and we see differences by client segments, as well. It's more muted. Uh declines in the Middle Market, for instance. So when you think about that, we still expect the net Market impact to be in line with our expectations of 0 to 2 points. It's been positive throughout this and we expect that to continue here. Um, so back to Greg's final point that has his confidence in our mid single digit guidance or greater moving forward.

Awesome. Thank you.

Speaker #3: And we are still performing, despite the rate pressure there. That reiterates the point we've been making: our organic growth is more correlated to business investment and property and equipment.

Our next question comes from Rob Cox from Goldman Sachs. Please go ahead.

Speaker #3: So nominal GDP much less correlated to pricing. Greg's point is exactly right, that we look at these as micro markets, property has been down to Greg's point, casualty is still growing, but maybe growing at a lower rate.

Hey, good morning. Uh, just a question on the reinsurance business. Uh, so the the 5%

Speaker #3: There's a different dynamic on DNO, a different dynamic on cyber, which are probably flat to low single-digit. And we see differences by client segment as well.

Edmund Reese: There's a different dynamic on D&O, a different dynamic on cyber, which are probably flat to low single-digit. We see differences by client segment as well. It's more muted declines in the middle market, for instance. When you think about that, we still expect the net market impact to be in line with our expectations of 0 to 2 points. It's been positive throughout this, and we expect that to continue here. Back to Greg's final point, that has us confident in our mid-single-digit guidance or greater moving forward.

Speaker #3: It's more muted declines in the middle market, for instance. So when you think about that, we still expect the net market and impact to be in line with our expectations of 0 to 2 points.

Organic growth. Um, which I think is impressive uh, particularly compared to any period with this level of property, cap pricing declines. Um, and maybe the answer relates to some of your prepared remarks. But my question is, if you think there are, is something that has structurally changed within. Aoins reinsurance business to make it more resilient here or is there something unique about this time frame? From a cyclical standpoint with facultative or cat bonds. That's supporting the growth.

Speaker #3: It's been positive throughout this, and we expect that to continue here. So back to Greg's final point, that has us confident in our mid-single-digit guidance or greater moving forward.

Speaker #1: Awesome. Thank you.

David Motemaden: Awesome. Thank you.

Speaker #3: Our next question comes from Rob Cox from Goldman Sachs. Please go ahead.

Operator: Our next question comes from Rob Cox from Goldman Sachs. Please go ahead.

Speaker #5: Hey, good morning. Just a question on the reinsurance business. So the 5% organic growth, which I think is impressive particularly compared to any period with this level of property cap pricing declines.

Rob Cox: Hey, good morning. Just a question on the reinsurance business. The 5% organic growth, which I think is impressive, particularly compared to any period with this level of property cap pricing declines. Maybe the answer relates to some of your prepared remarks, but my question is, if you think there is something that has structurally changed within Aon's reinsurance business to make it more resilient here, or is there something unique about this timeframe from a cyclical standpoint with facultative or cat bonds that is supporting the growth?

Speaker #5: And maybe the answer relates to some of your prepared remarks, but my question is, if you think there are is something that has structurally changed within Aon's reinsurance business to make it more resilient here, or is there something unique about this time frame from a cyclical standpoint with facultative or cap bonds that's supporting the growth?

Well Rob uh Evan just described the prior questions 1 of the most important ones in the cycle. Your question around is structure changing and making a difference to our ability to serve clients. We'll spend all day long on that if you want to. The answer is a resounding. Yes. Uh it has been 15 years of Khan, you know, investment around, connecting the firm operationalizing through risk capital and human capital and then creating this massive engine called a business services which coordinates data and content such that we can bring it together on behalf of clients and to us Q2 uh in reinsurance is just um another example of exceptional performance in the quarter. But really this is this is a series of you know, great performance, quarters and real momentum, in the first half of the year and going forward. Uh, for all the reasons that Edmund, uh, you know, described in, in his remarks and the pricing cycle, Etc. All you described. And by the way, I would just highlight as well. We are disproportionately disproportionately, um, privileged to have the, uh, share. We've got on the on the, on the property side, we're glad to have it. Uh, so this is maximum price.

Speaker #4: Well, Rob, Edmund just described the prior question as one of the most important on performance of the cycle. Your question around is structure changing and making a difference to our ability to serve clients.

Greg Case: Well, Rob, Edmund just described the prior question as one of the most important on performance through the cycle. Your question around is structure changing and making a difference to our ability to serve clients? We will spend all day long on that if you want to. The answer is a resounding yes. It has been 15 years of investment around connecting the firm, operationalizing through Risk Capital and Human Capital, and then creating this massive engine called Aon Business Services, which coordinates data and content such that we can bring it together on behalf of clients. To us, Q2, in reinsurance, is just another example of exceptional performance in the quarter. Really, this is a series of great performance quarters and real momentum in the H1 of the year and going forward.

Speaker #4: We'll spend all day long on that if you want to. The answer is a resounding yes. It has been 15 years of investment around connecting the firm, operationalizing through risk capital and human capital, and then creating this massive engine called Aon Business Services, which coordinates data and content such that we can bring it together on behalf of clients.

Pressure from that standpoint. And what we've done against that is just continue to grow the business. And this again, reflects the power of risk Capital, this is if you think about it, integrated capability, you know, the ability to kind of help clients calibrate exposure, not just insurers, but clients around the world. When you think about the biggest technology, the technology example, I provided my remarks was, you know, a very, very large sophisticated client. Massive balance sheet, trying to think about, uh, data center, investment digital, you know, infrastructure investment.

Speaker #4: And to us, Q2 in reinsurance is just another example of exceptional performance in the quarter, but really this is a series of great performance quarters and real momentum in the first half of the year and going forward.

Speaker #4: For all the reasons that Edmund described in his remarks, and the pricing cycle, etc.—all you described—and by the way, I would just highlight as well, we are disproportionately privileged to have the share we've got on the property side.

Greg Case: For all the reasons that Edmund described in his remarks and the pricing cycle, et cetera, all you described. By the way, I would just highlight as well, we are disproportionately privileged to have the share we have got on the property side. We are glad to have it. This is maximum pressure from that standpoint. What we have done against that is just continue to grow the business. This, again, reflects the power of Risk Capital. This is, if you think about it, integrated capability, the ability to help clients calibrate exposure, not just insurers, but clients around the world. When you think about the biggest technology, the technology example I provided in my remarks was a very large, sophisticated client, massive balance sheet, trying to think about data center investment, digital infrastructure investment. How do they calibrate exposure? How do they think about their risk strategy?

Speaker #4: We're glad to have it. So this is maximum pressure from that standpoint. And what we've done against that is just continue to grow the business.

Speaker #4: And this, again, reflects the power of risk capital. This is, if you think about it, integrated capability. The ability to kind of help clients calibrate exposure, not just insurers, but clients around the world.

Speaker #4: When you think about the biggest technology—the technology example I provided in my remarks was a very, very large, sophisticated client with a massive balance sheet trying to think about data center investment and digital infrastructure investment.

Speaker #4: How do they calibrate exposure? How do they think about the risk strategy? Then seriously, having done that, that requires a level of analytics that is not just commercial risk analytics.

Greg Case: Seriously, having done that requires a level of analytics that is not just Commercial Risk analytics, it is Reinsurance analytics. It is what Aon Business Services gives us that no one has ever had before. With the data source and data set we have got, the way that it has been curated, the way that the fidelity of that content is just different. If you show up, not just with the content, but with a group of colleagues who are together acting on behalf of a client, you are going beyond somebody's P&L, you are going beyond who gets credit. You are just serving a client. We are seeing that show through. You see that in reinsurance, where there is just a disproportionate amount of content that actually provides tremendous value across our entire portfolio beyond the reinsurance piece.

It's just a disproportionate amount of content that actually is provides tremendous value across our entire portfolio beyond the reinsurance piece. In addition to just basic raw horsepower in treaty fact in ILS, it's a record first half and we're you know, we're we're near half the business on the ALS front so it is it is absolutely core in the in the in the key areas Capital advisory but really this construct of risk Capital, the organization or risk capital and human capital and how they fit together. That is different that exists. Nowhere else. Uh, and for us that the client response that that's been tremendous in your, you you see it in Q2 and your insurance.

Speaker #4: It's reinsurance analytics. It is what Aon Business Services gives us the no one's ever had before with the data source and data set we've got, the way that it's been curated, the way that the fidelity of that content is just different.

Speaker #4: And if you show up not just with the content, but with a group of colleagues who are together acting on behalf of a client, you're going beyond somebody's P&L.

Speaker #4: You're going beyond who gets credit. You're just serving a client. And we're seeing that show through. And you see that in reinsurance where there's just a disproportionate amount of content that actually is provides tremendous value across our entire portfolio beyond the reinsurance piece.

Thank you. Uh and just to follow up. Um, I wanted to ask on AI adoption. It seems like from the outside, there's somewhat of a Divergence between large Insurance Brokers, with respect to partnering with external firms or building internally to achieve their AI strategy. I was just hoping you could talk about aoins approach um, with respect to that and your confidence, that that's the right move for Aon.

Speaker #4: In addition to just basic raw horsepower in treating fact in ILS, it's a record first half, and we're near half the business on the ILS front.

Greg Case: In addition to just basic raw horsepower in treating fac in ILS, it's a record H1, and we're near half the business on the ILS front. It is absolutely core in the key areas, Capital Advisory. Really this construct of Risk Capital, the organization of Risk Capital and Human Capital and how they fit together, that is different. That exists nowhere else. For us, the client response to that's been tremendous, and you see it in Q2 and Reinsurance.

Speaker #4: So it is absolutely core in the key areas, capital advisory, but really this construct of risk capital, the organization of risk capital and human capital and how they fit together, that is different.

Um well listen I would build up Rob that history here. We didn't start with an AI strategy that to us doesn't exist. AI accelerates what we've been working on and actually in many respects, the track we laid down uh, over the last 15 years, to connect our firm. And again, how we operationalize this through risk capital and human capital and AI Business Services. Means we have already been doing multiple multiple.

Speaker #4: That exists nowhere else. And for us, the client response to that's been tremendous. And you see it in Q2 and reinsurance.

Speaker #5: Thank you. And just to follow up, I wanted to ask about AI adoption. It seems like, from the outside, there's somewhat of a divergence among large insurance brokers with respect to partnering with external firms or building internally to achieve their AI strategy.

Rob Cox: Thank you. Just to follow up, I wanted to ask on AI adoption. It seems like from the outside, there's somewhat of a divergence between large insurance brokers with respect to partnering with external firms or building internally to achieve their AI strategy. I was just hoping you could talk about Aon's approach, with respect to that and your confidence that that's the right move for Aon.

Able years of work, connecting the dots such that we can actually bring together a data Lake different than anyone else could do. We could curate it in Great Fidelity around that data and way. No 1 else could do. Uh, we could then, by the way, that's not enough, it's not just about the analytics. It's about how you get it in the hands of the great practitioners, The Trusted advisors, who sit across the table from clients. And that's it's again the organization of risk capital and human capital, and how we deliver it all those things robbery in place and then and then all of a sudden we get we get an acceleration opportunity and that's AI. Can we've been doing? Um

Speaker #5: I was just hoping you could talk about Aon's approach with respect to that and your confidence that that's the right move for Aon.

Speaker #4: Well, listen, I would build off Rob's history here. We didn't start with an AI strategy. That to us doesn't exist. AI accelerates what we've been working on.

Greg Case: Listen, I would build off, Rob, the history here. We didn't start with an AI strategy. That to us doesn't exist. AI accelerates what we've been working on. Actually, in many respects, the track we laid down over the last 15 years to connect our firms, and again, how we operationalize this through Risk Capital, Human Capital, and Aon Business Services, means we have already been doing multiple years of work connecting the dots such that we can actually bring together a data lake different than anyone else could do. We could curate it and create fidelity around that data in a way no one else could do. By the way, that's not enough. It's not just about the analytics. It's about how you get it in the hands of the great practitioners, the trusted advisors who sit across the table from clients.

Speaker #4: And actually, in many respects, the track we laid down over the last 15 years to connect our firm, then again, how we operationalize this through risk capital and human capital and AI business services, means we have already been doing multiple, multiple years of work connecting the dots such that we can actually bring together a data lake, different than anyone else could do.

Speaker #4: We could curate it and create fidelity around that data in a way no one else could do. We could then by the way, that's not enough.

Speaker #4: It's not just about the analytics. It's about how you get it in the hands of the great practitioners. The trusted advisors who sit across the table from clients.

Speaker #4: And that's, again, the organization of risk capital and human capital and how we deliver it. All those things, Rob, are in place. And then all of a sudden, we get an acceleration opportunity.

Greg Case: That's, again, the organization of Risk Capital and Human Capital and how we deliver it. All those things, Rob, are in place. All of a sudden we get an acceleration opportunity, and that's AI. We've been doing artificial intelligence for quite some time and engineering of our business for quite some time, machine learning. Really it is the generative AI which is an accelerant for us. For Aon, this is a massive opportunity to actually accelerate what we've already been working on. So it's not a new strategy, it's an accelerator. We're working with all the partners. We're happy to chat with them. By the way, one of the things we bring to the table that's fundamentally different is this isn't just productivity orientation. We orient around revenue. We orient around growth.

Artificial intelligence for quite some time and, uh, and, you know, engineering of our business for quite some time, machine learning. But really, it is a generative AI which is an accelerant for us. So for for, for Aon, this is a massive opportunity to actually accelerate what we've already been working on since it's not a new strategy, the accelerator and we're working with all of our partners um and we're happy to chat with them. By the way, 1 of the things we bring to the table. That's fundamentally different is isn't just productivity orientation? We're we Orient around Revenue, we Orient around growth. So if you think about the analyzers, that we've got the the risk, analyzer is the house analyzers. Think about what we've done in a on client treaty, what we're, we would just announce what we're doing, um, on the overall Global Exchange in terms of how we're thinking about our business. So these are things that are Revenue generating engines on behalf of clients that are driven and reinforced through our ABS strategy with AI. So, um, you know, for us, it isn't about, you know, coming up with something new and hoping we have the right strategy.

Speaker #4: And that's AI, and we've been doing artificial intelligence for quite some time. And engineering of our business for quite some time, machine learning, but really it is the generative AI, which is an accelerant for us.

Speaker #4: So for Aon, this is a massive opportunity to actually accelerate what we've already been working on. So it's not a new strategy. It's an accelerator.

Speaker #4: And we're working with all of the partners, and we're happy to chat with them. By the way, one of the things we bring to the table that's fundamentally different is it isn't just productivity orientation.

We we tap into the best Partners in the world and everywhere we can to accelerate our proven strategy and Edmond, I think described it very well at the end of his remarks. This is what's making a difference for us and it's making a difference for us with clients in terms of how many we win, uh, how we retain them and what we do with them and it's just a very integrated approach data driven, analytic driven through our colleagues uh that really is responding to very specific client need. Uh and that's really that, that's how we think about it.

Got it. Thanks for all the color.

Speaker #4: We orient around revenue. We orient around growth. So if you think about the analyzers that we've got, the risk analyzers, the health analyzers, think about what we've done in Aon client treaty, what we just announced what we're doing on the overall global exchange in terms of how we're thinking about our business.

Greg Case: If you think about the analyzers that we've got, the Risk Analyzers, the health analyzers, think about what we've done in Aon Client Treaty. We just announced what we're doing on the overall global exchange in terms of how we're thinking about our business. These are things that are revenue-generating engines on behalf of clients that are driven and reinforced through our ABS strategy with AI. For us, it isn't about coming up with something new and hoping we have the right strategy. We tap into the best partners in the world and everywhere we can to accelerate our proven strategy. Edmund, I think described it very well at the end of his remarks.

All right, next question comes from Tracy, benei with wolf research. Please go ahead.

Morning.

Um, you've linked

uh, commercial risk.

Speaker #4: So these are things that are revenue generating engines on behalf of clients that are driven and reinforced through our ABS strategy with AI. So for us, it isn't about coming up with something new and hoping we have the right strategy.

Speaker #4: We tap into the best partners in the world and everywhere we can to accelerate our proven strategy and Edmund, I think, described it very well, at the end of his remarks, this is what's making a difference for us.

Greg Case: This is what's making a difference for us, and it's making a difference for us with clients in terms of how many we win, how we retain them, and what we do with them. It's just a very integrated approach. Data-driven, analytic-driven through our colleagues, that really is responding to very specific client need. That's how we think about it.

Speaker #4: And it's making a difference for us with clients in terms of how many we win, how we retain them, and what we do with them.

Speaker #4: And it's just a very integrated approach. Data-driven analytic-driven through our colleagues that really is responding to very specific client need. And that's really that's how we think about it.

Organic Revenue to nominal, GDP rather than pricing, but it's worth noting that hyperscaler capex is roughly 750 billion. They probably counts to 2 points of nominal GP GDP. So let's say x hyperscaler. It's closer to 3 and a half percent. So on that note, I'm curious. What is the largest known limit or shared underwriting capacity available for data center development? Um, since I think individual projects could reach 20 to 50 billion, um, and given hyperscalers balance sheets dwarfs. The entire insurance industry is this mostly risk, uh, self-insured, um, with morphe bias rather than commission, based

Speaker #5: Got it. Thanks for all the color. Our next question comes from Tracy Bengigi with Wolf Research. Please go ahead.

Operator: Got it. Thanks for all the color. Our next question comes from Tracy Benguigui with Wolfe Research. Please go ahead.

Speaker #6: Good morning. You've linked commercial risk organic revenue to nominal GDP, rather than pricing, but it's worth noting that hyperscaler capex is roughly $750 billion.

Tracy Benguigui: Morning. You've linked commercial risk organic revenue to nominal GDP rather than pricing, but it's worth noting that hyperscaler CapEx is roughly $750 billion. It probably counts to two points of nominal GDP. Let's say ex hyperscaler, it's closer to 3.5%. On that note, I'm curious, what is the largest known limit or shared underwriting capacity available for data center development? Since I think individual projects could reach $20 to 50 billion. Given hyperscalers' balance sheet dwarfs the entire insurance industry, is this mostly risk self-insured, with more fee bias rather than commission-based?

Speaker #6: It probably counts to two points of nominal GDP. So let's say X hyperscaler, it's closer to $3.5%. So on that note, I'm curious, what is the largest known limit or shared underwriting capacity available for data center development?

Will actually need non-traditional capital and this is as well and we've been working with it. But we to answer your specific question, we started out doing sort of single billion dollar. Uh,

Speaker #6: Since I think individual projects could reach 20 to 50 billion, and given hyperscaler's balance sheet dwarfs the entire insurance industry, is this mostly risk self-insured with more fee bias rather than commission-based?

Speaker #7: So it's a great question. We actually just had one of our leaders leading this actually write an article on that particular or actually response to an article on that particular item.

Edmund Reese: It's a great question. We actually just had one of our leaders leading this actually write an article on that particular, or actually respond to an article on that particular item. First for us, you know that we've now increased our facility itself to $5 billion over 30 carriers participating in that. We think because of the point that you're raising, we'll actually need non-traditional capital in this as well, and we've been working with it. To answer your specific question, we started out doing sort of single billion-dollar types of data centers. We now, I think in that article you saw, can do for a single facility, up $13, $15 billion for a single facility. The point is, these facilities are costing the amount that you just talked about. You mentioned $15, $20 billion.

Speaker #7: First, for us, you know that we've now increased our facility itself to $5 billion over 30 carriers participating in that. We think because of the point that you're raising, we'll actually need non-traditional capital in this as well.

Types of data centers. We now I think in that article you saw can do for a single facility up 1315 billion dollars for a single facility. But the point is these facilities are costing. The amount that you just talked about you mentioned 1520 and we think some are 40 billion, 50 billion and that's going to require Capital, that goes beyond traditional uh, traditional Insurance capital and that's back to remarks. Greg was making at the beginning. The key for us is that we have a leadership position here. We talked about the pipeline being up over 3 timeslot.

Speaker #7: And we've been working with it. But to answer your specific question, we started out doing sort of single, billion-dollar types of data centers.

Speaker #7: We now, I think in that article you saw, can do for a single facility up 13, 15 billion dollars for a single facility. But the point is these facilities are costing the amount that you just talked about.

Greg. Yeah, I just said you summarized it perfectly and Tracy this is it. I mean this is this is a old Gig. If you think about the next big Frontier in what we can do together as an industry, this is the fight for relevance. How do we bring it? You're 100% correct on a 4 trillion, dollar Capital pool uh which is the insurance World, which we love wonderful Partners every day. Uh, it's not big enough, but by the way, tremendous expertise tremendous Insight. Uh, what we have to do is draw capital in.

Speaker #7: You mentioned 15, 20 billion. We think some are 40 billion, 50 billion. And that's going to require capital that goes beyond traditional insurance capital.

Edmund Reese: We think some are $40 billion, $50 billion, and that's going to require capital that goes beyond traditional insurance capital, and that's back to the remarks Greg was making at the beginning. The key for us is that we have a leadership position here. We've talked about a pipeline being up over three times what it was last year. We're seeing that flow through our revenue. We've been advising on data centers. We have engineering expertise. Our facility's one of the largest out there. It's a driver of growth for us moving forward, we think there's an opportunity for all to grow, thinking about the size of these facilities. Greg

Speaker #7: And that goes back to remarks Greg was making at the beginning. The key for us is that we have a leadership position here. We've talked about the pipeline being up over three times what it was last year.

Do our industry in a way in which they see the opportunity for Meaningful return. And they come in and serve and against that pool. Tracy, it's not the 4 trillion. It's a 250 trillion dollar pool. So this is accessing pension, Sovereign, funds, private Equity, Etc and liquid aoins doing

Speaker #7: We're seeing that flow through our revenue. We've been advising on data centers. We have engineering expertise. Our facility is one of the largest out there.

Speaker #7: It's a driver of growth for us moving forward. But we think there's an opportunity for all to grow thinking about the size of these facilities.

Speaker #7: But Greg.

Speaker #4: Yeah, I'll just say you summarized it perfectly, Edmund. But Tracy, this is it. I mean, this is the old gig. If you think about the next big frontier and what we can do together as an industry, this is the fight for relevance.

Greg Case: Yeah, I just said, you summarized it perfectly, Edmund. Tracy, this is it. I mean, this is the whole gig. If you think about the next big frontier and what we can do together as an industry, this is the fight for relevance. How do we bring it? You are 100% correct. On a $4 trillion capital pool, which is the insurance world, which we love, wonderful partners every day, it is not big enough. By the way, tremendous expertise, tremendous insight. What we have to do is draw capital into our industry in a way in which they see the opportunity for meaningful return and they come in and serve. Against that pool, Tracy, it is not the $4 trillion, it is a $250 trillion pool. This is accessing pension, sovereign funds, private equity, et cetera. Look what Aon's doing. We are doing traditional in the way Edmund described.

Speaker #4: How do we bring it? You're 100% correct. On a $4 trillion capital pool, which is the insurance world, which we love, wonderful partners every day.

Speaker #4: It's not big enough. But by the way, tremendous expertise, tremendous insight. What we have to do is draw capital into our industry in a way in which they see the opportunity for meaningful return and they come in and serve.

Speaker #4: And against that pool, Tracy, it's not the $4 trillion. It's a $250 trillion pool. So this is accessing pension, sovereign funds, private equity, etc.

We are doing traditional in the Way, Edmond described in addition, the content that we have is drawing the capital from outside the industry into this category and ask yourself. What is the engine that does that? It's not our Goodwill? It is our content. It is our analytics when we can do the work and show them exactly how to come into our industry, how and where they're going to make a return and how that durable enough, that they'll bet their balance sheet, I'll pension fund a sovereign fund a private Equity Firm. Then we've increased capacity. The Tam is always there in the insurance world that, you know, the addressable Market. We just can't access it because we can't actually bring capital and until aeon came along with this construct, called risk capital and the data and the analytics to pull it in. So, for us, we love your challenge. Uh, and by the way these, the knife edge here is, if we bring it in, we are becoming more and more relevant. If you don't, we'll do fine work. But we won't actually make a meaningful difference as an industry. And what the potential is here, we like our chances, uh, because we think the return opportunity is tremendous. And, and frankly, the way to think about risk management in a day,

Speaker #4: And look what Aon's doing. We are doing traditional in the way Edmund described, in addition, the content that we have is drawing capital from outside the industry into this category.

Greg Case: In addition, the content that we have is drawing capital from outside the industry into this category. Ask yourself, what is the engine that does that? It's not our goodwill. It is our content. It is our analytics. When we can do the work and show them exactly how to come into our industry, how and where they're going to make a return, and have it durable enough that they'll bet their balance sheet, a pension fund, a sovereign fund, a private equity firm, then we've increased capacity. The TAM is always there in the insurance world, the addressable market. We just can't access it because we can't actually bring capital in until Aon came along with this construct called Risk Capital and the data and the analytics to pull it in. For us, we love your challenge.

Speaker #4: And ask yourself, what is the engine that does that? It's not our goodwill. It is our content. It is our analytics. When we can do the work and show them exactly how to come into our industry, how and where they're going to make a return, and have it durable enough that they'll bet their balance sheet, a pension fund, a sovereign fund, a private equity firm, then we've increased capacity.

Data center goes Way Beyond, just the build of the ongoing performance if you get the risk management rate and you get the, you get the the risk dispersed in in the right way and understood in the right way, you frankly can change the operating cost of a data center. You can change the volatility by the way. Remember business Interruption here is going to be measured in millions of dollars, a minute. You've changed the game and that's our aspiration. And that's what we're trying to do with risk capital. And, uh, it's a massive opportunity. We think it is unique in our industry's history.

Speaker #4: The TAM is always there in the insurance world, the addressable market. We just can't access it because we can't actually bring capital in until Aon came along with this construct called risk capital.

I'm really enthused on this topic. I I appreciate the the response. Um, but can you just clarify this more fee based business?

Speaker #4: And the data and the analytics to pull it in. So for us, we love your challenge. And by the way, the knife edge here is if we bring it in, we are becoming more and more relevant.

Greg Case: By the way, the knife edge here is if we bring it in, we are becoming more and more relevant. If you don't, we'll do fine work, but we won't actually make a meaningful difference as an industry and what the potential is here. We like our chances, because we think the return opportunity is tremendous. Frankly, the way to think about risk management in a data center goes way beyond just the build of the ongoing performance. If you get the risk management right, and you get the risk dispersed in the right way and understood in the right way, you frankly can change the operating cost of a data center. You can change the volatility. By the way, remember, business interruption here is going to be measured in millions of dollars a minute. You've changed the game.

Speaker #4: If you don't, we'll do fine work, but we won't actually make a meaningful difference as an industry. And what the potential is here. We like our chances.

Speaker #4: Because we think the return opportunity is tremendous. And frankly, the way to think about risk management in a data center goes way beyond just the build of the ongoing performance.

Speaker #4: If you get the risk management right and you get the risk dispersed in the right way and understood in the right way, you frankly can change the operating cost of a data center.

Speaker #4: You can change the volatility. By the way, remember, business interruption here is going to be measured in millions of dollars a minute. You change the game.

Speaker #4: And that's our aspiration. And that's what we're trying to do with risk capital and it's a massive opportunity. We think it is unique in our industry's history.

Greg Case: That's our aspiration, and that's what we're trying to do with Risk Capital, and it's a massive opportunity. We think it is unique in our industry's history.

Its value based business you show up with a client and you provide value, they provide compensation. So it's all the different angles. We we, we don't, we're not, we don't discriminate in either way, we provide value, we we do fine and if we don't provide value, we're not relevant. We don't get, we don't, you know, we don't get commentated but from our standpoint, we think the opportunity for, you know, value Creation in so many different angles, the bills, the operations, by the way, not just the hyperscalers, it's also the money being raised to fund the hypers scales. It's the builders who frankly can't get in the game. I mean, there are 50 Builders 100 billion Builders trying to do this. Many of them have never really done this before. They can't get financing, unless they get the risk capital and the risk management, right? They can't, you know, so in our view is there's opportunities here, all along the value chain, uh, in all of which, by the way, if you add value and help them succeed, we're going to do very very fine from the payment standpoint.

Speaker #6: Yeah, I'm really enthused on this topic. I appreciate the response but can you just clarify is this more fee-based business?

Tracy Benguigui: I'm really enthused on this topic. I appreciate the response, but can you just clarify, is this more fee-based business?

Speaker #4: It's value-based business. You show up with a client and you provide value, they provide compensation. So it's all the different angles. We're not discriminate in either way.

Greg Case: It's value-based business. You show up with a client and you provide value, they provide compensation. It's all the different angles. We don't discriminate in either way. We provide value, we do fine. If we don't provide value, we're not relevant, we don't get compensated. From our standpoint, we think the opportunity for value creation in so many different angles, the build, the operations. By the way, not just the hyperscalers, it's also the money being raised to fund the hyperscalers. It's the builders who frankly can't get in the game. I mean, there are 50 builders, 100 builders trying to do this. Many of them have never really done this before. They can't get financing unless they get the risk capital, their risk management right.

Great. Um, my follow-up is, I believe on a rooms conference Joe, Heiser spoken about a pricing, correction over 18 months, rather than a traditional soft cycle is that correction included in your organic Revenue Outlook,

Speaker #4: We provide value. Where do you find it? And if we don't provide value, we're not relevant. We don't get compensated. But from our standpoint, we think the opportunity for value creation is present from so many different angles.

Speaker #4: The bill, the operations. By the way, not just the hyperscalers. It's also the money being raised to fund the hyperscalers. It's the builders who frankly can't get in the game.

Speaker #4: I mean, there are 50 builders, 100 builders, trying to do this. Many of them have never really done this before. They can't get financing unless they get the risk capital and the risk management right.

Speaker #4: They can't so in our view is there's opportunities here all along the value chain in all of which, by the way, if you add value and help them succeed, we're going to do very, very fine from a payment standpoint.

Greg Case: Our view is there's opportunities here all along the value chain, in all of which, by the way, if you add value and help them succeed, we're going to do very fine from a payment standpoint.

Speaker #6: Great. My follow-up is, I believe out of Rome's conference, Joe Peyser spoke about a pricing correction over 18 months rather than a traditional soft cycle.

Tracy Benguigui: Great. My follow-up is, I believe at a RIMS conference, Joe Peiser spoken about a pricing correction over 18 months rather than a traditional soft cycle. Is that correction included in your organic revenue outlook?

Speaker #6: Is that correction included in your organic revenue outlook?

Speaker #7: Again, I mean, you hit on it at the beginning of your first question. We think the correlation and the explanation of variance between pricing in our organic revenue growth is low.

Edmund Reese: Look, again, you hit on it at the beginning of your first question. We think the correlation and explanation of variance between pricing and our organic revenue growth is low. We continue to emphasize sort of the nominal GDP point that you just raised, we do think, listening to Joe's comments, I think they're indicative. We do think this pricing cycle and environment is more nuanced than a single cycle. We view these, as Greg said earlier, as a collection of micro markets across geography, across product, and segment. Some of those products are going in different directions right now. The key point, and I think the point that Joe was raising, is that structural risk trends, primarily loss severity, argue against an extended, prolonged softness. The duration is likely measured.

Speaker #7: We've continued to emphasize the nominal GDP point that you just raised. But we do think, listening to Joe's comments, that they're indicative.

Is more nuanced than the single cycle. We view these, as Greg said earlier, as a collection of micro markets, across geography, across products and segment. Some of those products are going in different directions. Right now, the key point and I think the point that Joe was Raising is that structural risk Trends, primarily loss severity argue against this extended prolonged softness. So the duration is likely measured, uh, and we're also beginning to see sort of underwriting focused limiting the some of the aggressive price competition as you look at the carriers here for us. Our focus is going to continue to be client Centric. Uh, we're hyper focused on helping our clients. In this environment, expand their coverage increased. The limits Greg's point is the right 1. The point that we just made that value capture is not in the rate. It's in our the placement complexity in the solution, uh, design. So 0 to 2 points is what's showing in our results today.

Speaker #7: We do think this pricing cycle and environment is more nuanced than a single cycle. We view these as Greg said earlier as a collection of micro markets across geography, across product and segment.

And as of now we continue to expect that moving forward, that has a strongly in line with the guidance that we've set.

Thank you so much.

Speaker #7: Some of those products are going in different directions. Right now, the key point, and I think the point that Joe was raising is that structural risk trends primarily loss severity argue against an extended.

Our next question comes from, Bob Wong with Morgan Stanley. Please go ahead.

Speaker #7: Prolonged softness. So the duration is likely measured. And we're also beginning to see sort of underwriting focus limiting some of the aggressive price competition as you look at the carriers here.

Edmund Reese: We're also beginning to see sort of underwriting focus limiting some of the aggressive price competition as you look at the carriers here. For us, our focus is going to continue to be client-centric. We're hyper-focused on helping our clients in this environment expand their coverage, increase the limits. Greg's point is the right one, the point that he just made, that value capture is not in the rate, it's in our placement complexity in the solution design. Zero to two points is what's showing in our results today. As of now, we continue to expect that moving forward. That has us strongly in line with the guidance that we've set.

Speaker #7: For us, our focus is going to continue to be client-centric. We're hyper-focused on helping our clients. In this environment, expand their coverage, increase the limits.

Hi, uh, good morning. Uh, my first question is around Capital, uh, Edmond. I, I know you kind of addressed the buyback, and, uh, maybe just if you can't help us unpack a little bit, right? Like first first, half, like you said, over a billion dollars of buyback already, just given the strong earnings and the cash flow generation.

Going forward.

Speaker #7: Greg's point is the right one. The point that he just made that value capture is not in the rate. It's in our placement complexity in the solution design.

Is there a reason not to think that you cannot maintain the current buyback momentum or, or in other words, is there a reason to believe the current level of capital return? Cannot be maintained.

Speaker #7: So, 0 to 2 points is what's showing in our results today, and as of now, we continue to expect that moving forward. That is strongly in line with the guidance that we've set.

Speaker #6: Thank you so much.

Tracy Benguigui: Thank you so much.

Speaker #1: Our next question comes from Bob Ong with Morgan Stanley. Please go ahead.

Operator: Our next question comes from Bob Huang with Morgan Stanley. Please go ahead.

Speaker #5: Hi, good morning. My first question is around capital. Edmund, I know you kind of addressed the buyback and maybe just if you can help us unpack a little bit, right?

Bob Huang: Hi. Good morning. My first question is around capital. Edmund, I know you kind of addressed the buyback, and maybe just if you can help us unpack a little bit, right? Like H1, like you said, over $1 billion of buyback already. Just given the strong earnings and the cash flow generation going forward, is there a reason not to think that you cannot maintain the current buyback momentum? In other words, is there a reason to believe the current level of capital return cannot be maintained?

It can absolutely be maintained. We talked about coming in the 2026 with over 7 billion. The capacity what we're playing for here is the Strategic flexibility, given the position that we're in right now. And the first point I'd make is that sharing purchases. That's a key part of the balance Capital, allocation model, the 1.1 billion in the first half. We clearly hint that objective to the point that you've made many and I am very pleased to say 79% of the capital deployment. In the first half has been shareholder returns.

Speaker #5: Like first half, like you said, over a billion dollars of buyback already. Just given the strong earnings and the cash flow generation, going forward, is there a reason not to think that you cannot maintain the current buyback momentum or in other words, is there a reason to believe the current level of capital return cannot be maintained?

Speaker #7: It can absolutely be maintained. We talked about coming into 2026 with over $7 billion. The capacity what we're playing for here is the strategic flexibility given the position that we're in right now.

Edmund Reese: It can absolutely be maintained. We talked about coming into 2026 with over $7 billion in capacity. What we're planning for here is the strategic flexibility given the position that we're in right now. The first point I'd make is that share repurchases, that's a key part of the balanced capital allocation model. The $1.1 billion in the H1, we've clearly hit that objective to the point that you've made. I am very pleased to say 79% of the capital deployment in the H1 has been shareholder return, with buybacks representing the majority of that. We are very excited about the position of strength we're in and the strategic flexibility. That means that we're evaluating the pipeline opportunities. We determine that they fit our strategic objectives. We determine that they fit our financial criteria, which I've talked about before.

With BuyBacks representing the majority of that. But we are very excited about the position of strength, we're in. And the Strategic flexibility, that means that we're evaluating the pipeline opportunities. We determine if they fit our strategic objectives, we determine that they fit our financial criteria, which I've talked about before, I'd be happy to go in the detail about that. We won't let. If we don't see those objectives being met, we won't let any excess Cash. Cash sit on the balance sheet. We'll return that, uh, and and be a more Sherry purchases here. So this is Bob, just a continuation of our Capital, allocation model. We are looking at investment for growth.

Speaker #7: And the first point I'd make is that sharing purchases, that's a key part of the balanced capital allocation model. The $1.1 billion in the first half, we've clearly hit that objective to the point that you've made.

Because that's what helps the medium and the long term with capital return to shareholders. And we continue to be in the good good position of strength with flexibility moving forward here.

Speaker #7: And I am very pleased to say 79% of the capital deployment in the first half has been shareholder return, with buybacks representing the majority of that.

Speaker #7: But we are very excited about the position of strength we're in and the strategic flexibility. That means that we're evaluating the pipeline. We determined if they fit our strategic objectives.

Speaker #7: We determined if they fit our financial criteria, which I've talked about before. I'd be happy to go into detail about that. We won't let if we don't see those objectives being met, we won't let any excess cash sit on the balance sheet.

Edmund Reese: I'd be happy to go into detail about that. If we don't see those objectives being met, we won't let any excess cash sit on the balance sheet. We'll return that via more share repurchases here. This is, Bob, just a continuation of our capital allocation model. We are looking at investment for growth because that's what helps the medium and the long term with capital return to shareholders, and we continue to be in a good position of strength with flexibility moving forward here.

Got it really appreciate that. Uh the second question is on the international uh emia business is 1 of the callouts you had on Commercial Risk Solutions. Um can you maybe talk about the durability of growth in the emia segment intuitively? Um it feels like you Mia may be seeing the similar pricing pressure as the us but GDP growth. Kind of really varies depending on jurisdiction. Just curious about your thoughts on the emia side uh related to commercial Risk Solutions. Yeah. The the GDP growth is more uneven in the international markets but not disruptive is what I I would.

Speaker #7: We'll return that via more share repurchases here. So this is, Bob, just a continuation of our capital allocation model. We are looking at investment for growth.

Speaker #7: Because that's what helps the medium and the long term with capital return, the shareholders. And we continue to be in a good position of strength with flexibility moving forward here.

Speaker #5: Got it. Really appreciate that. The second question is on the international. EMEA business is one of the callouts you had on commercial risk solutions.

Bob Huang: Got it. Really appreciate that. The second question is on the international EMEA business was one of the call-outs you had on Commercial Risk Solutions. Can you maybe talk about the durability of growth in the EMEA segment? Intuitively, it feels like EMEA may be seeing the similar pricing pressure as US, but GDP growth kind of really varies depending on jurisdiction. Just curious about your thoughts on the EMEA side related to Commercial Risk Solutions.

Speaker #5: Can you maybe talk about the durability of growth in the EMEA segment? Intuitively, it feels like EMEA may be seeing similar pricing pressure as the US, but GDP growth really varies depending on jurisdiction.

Speaker #5: Just curious about your thoughts on the EMEA side. Related to commercial risk solutions.

Speaker #7: Yeah, the GDP growth is more uneven in the international markets, but not disruptive, is what I would say. When you think about the regulatory environment and the geopolitical environment, that increases demand for our business.

Edmund Reese: Yeah. The GDP growth is more uneven in the international markets, but not disruptive, is what I would say. When you think about the regulatory environment and the geopolitical environment, that increases demand for our business. You think about our global footprint, we have a very diversified portfolio and a moderate sensitivity to any particular international region. You're seeing strong growth across these markets that I've been calling out in EMEA, but I'd also throw LATAM in that mix, where solid GDP growth is actually seeing more foreign direct investment that's actually higher than that GDP growth and helping us in those markets. Commercial risk, our efforts on the new business side and now in specialty, and then health on global benefits, plus the regulatory environment.

And levels of growth in individual markets, but this Diversified portfolio gives us resilient growth in the international locations continue to be strong contributors for us.

Speaker #7: And you think about our global footprint. We have a very diversified portfolio and a moderate sensitivity to any particular international region. So you're seeing strong growth across these markets that I've been calling out in EMEA, but I'd also throw LATAM in that mix.

Got it really appreciate that. Thank you.

Our next question comes from Katie sakes with autonomous research. Please go ahead

Speaker #7: We're solid GDP growth is actually seeing more foreign direct investment that's actually higher than that GDP growth and helping us in those markets. Commercial risk, our efforts on the new business side and now in specialty and in health on global benefits, plus the regulatory environment I just read an article this morning that I think will actually drive more demand on the regulatory front in the UK and EMEA.

Edmund Reese: I just read an article this morning that I think will actually drive more demand on the regulatory front in the UK and EMEA. Those things are helping to drive that business. For us, it's really this diversified portfolio. You might see uneven levels of growth in individual markets, but this diversified portfolio gives us resilient growth, and the international locations continue to be strong contributors for us.

Thanks, good morning. Um, I guess I want to Circle back to the discussion of um you know, growth and revenue generating producers I think the the 3% year to date is a little bit below the full year guide there. Um, could you help us understand if that was subject to any, you know, impacts from from timing and when hires are made, and then could you also help us understand what's driving your confidence and being able to accelerate that pace and growth back up to the 4 to 8% range.

Speaker #7: Those things are helping to drive that business. So for us, it's really this diversified portfolio. You might see uneven levels of growth in individual markets, but this diversified portfolio gives us resilient growth in the international locations continue to be strong contributors for us.

Speaker #5: Got it. Really appreciate that. Thank you.

Bob Huang: Got it. Really appreciate that. Thank you.

Speaker #1: Our next question comes from Katie Six with Autonomous Research. Please go ahead.

Operator: Our next question comes from Katie Sakys with Autonomous Research. Please go ahead.

Speaker #6: Thanks. Good morning. I guess I want to circle back to the discussion of growth and revenue-generating producers. I think the 3% year-to-date is a little bit below the full-year guide there.

Katie Sakys: Thanks. Good morning. I guess I wanted to circle back to the discussion of growth and revenue-generating producers. I think the 3% year-to-date is a little bit below the full-year guide there. Could you help us understand if that was subject to any impacts from timing and when hires are made? Could you also help us understand what's driving your confidence in being able to accelerate that pace of growth back up to the 4% to 8% range.

Wow, through through 6 months, we're quite excited by 3% growth. Uh, through the first 6 months. This, this is, you know, our recruiting efforts and the recruiting efforts of other firms. I would say are intense right now the competition is intense so we're not immune to that. We're up 3% through the first 6 months, our 24 and 25 cohorts are contributing over a 100 basis points. We're seeing the contribution from them to show up in the areas that we've been focused on constructions, energy health. So because 3% through 6 months, we're maintaining that

Speaker #6: Could you help us understand if that was subject to any impacts from timing and when also help us understand what's driving your confidence in being able to accelerate that pace of growth back up to the 4 to 8% range?

Speaker #7: Wow. Through six months, we're quite excited by 3% growth in the first six months. Our recruiting efforts—and the recruiting efforts of other firms, I would say—are intense right now.

Edmund Reese: Wow. Through six months, we're quite excited by 3% growth through the first six months. Our recruiting efforts and the recruiting efforts of other firms, I would say, are intense right now. The competition is intense, and we're not immune to that. We're up 3% through the first six months. Our 2024 and 2025 cohorts are contributing over 100 basis points. We're seeing the contribution from them show up in the areas that we've been focused on, construction, energy, and health. Because 3% through six months, we're maintaining that 4% to 8% objective. We've always said we'd like to be at the higher end of that objective. We've sort of built our plans upon achieving that. The competitive environment is intense. We do think that the capabilities that we have that allow us to help and retain clients, those things are helping us attract and retain folks.

Speaker #7: The competition is intense, and we're not immune to that. We're up 3% through the first six months. Our 24 and 25 cohorts are contributing over 100 basis points.

Speaker #7: We're seeing the contribution from them to show up in the areas that we've been focused on, construction, energy, health. So because 3% through six months, we're maintaining that 4 to 8% objective, we've always said we'd like to be at the higher end of that objective.

4 to 8% objective. We've always said we'd like to be at the higher end of that objective. We've sort of built our plans upon achieving that, but the competitive environment is intense. We do think that the capabilities that we have, that allow us to help and retain clients. Those things are helping us attract and retain folks and for us it's not about. We always it's not about the quantity it's about the quality of folks in areas that are growing higher than GDP. So we feel good about the 4 to 8% but this is going to be hand to hand combat for the rest of the year for us to get to where we want to be. And we got to know that you're very imp passionate about this topic and our efforts. So please speak up. Well, listen, you covered it very well. I would just call that 1 Thing Katie. Um, we we got, we're fortunate, we have a lot of momentum on the client front risk. Capital human capital. We talked a lot about on the call, but think about it. If you're a, if you're a colleague and you and you want to, you know, practitioner in our world, the opportunity to

Speaker #7: We've sort of built our plans upon achieving. The environment is intense. We do think that the capabilities we have, that allow us to help and retain clients, are helping us attract and retain folks.

Speaker #7: And for us, it's not quantity. It's about the quality of folks in areas that are growing higher than GDP. So we feel good about the 4 to 8%, but this is going to be hand-in-hand combat for the rest of the year for us to get to where we want to be.

Edmund Reese: For us, like we always say, it's not about the quantity, it's about the quality of folks in areas that are growing higher than GDP. We feel good about the 4% to 8%, but this is going to be hand-to-hand combat for the rest of the year for us to get to where we want to be. Gregory, I know that you're very impassioned about this topic and our efforts, please speak up.

come in, no matter how good you are. And it really is not just a number and percentage, but but really quality leaders. Um, if you can be better professionally, if you get more content capability, more more, more more, more more, more more stuff to do your business, to do your work. Uh, it makes us more attractive and we have, um, lots of folks seeking us out. And so we've been very fortunate and um, we'll take this at a very measured Pace to accomplish what? Edmonds, described. And in the end, um, you know, we've got great momentum here as well and uh, it will contribute but not just

Number. But, but, but really capability as they come in.

Yeah, so certainly I appreciate that. It's a very competitive environment. Um, I'm just trying to

Speaker #7: And Gregory, I know that you're very impassioned about this topic and our efforts, so please speak up.

Speaker #3: Well, listen, Edmund, you covered it very well. I would just highlight one thing, Katie. We're fortunate—we have a lot of momentum on the client front: risk capital, human capital.

Greg Case: Well, listen, Edmund, you covered it very well. I would just highlight one thing, Katie. We're fortunate. We have a lot of momentum on the client front, Risk Capital, Human Capital, we talked a lot about on the call. Think about it. If you're a colleague, a practitioner in our world, the opportunity to come in, no matter how good you are, and it really is not just number and percentage, but really quality leaders. If you can be better professionally, if you get more content capability, more stuff to do your business, to do your work, it makes us more attractive. We have lots of folks seeking us out, we've been very fortunate. We'll take this at a very measured pace to accomplish what Edmund's described.

Speaker #3: We talked a lot about it on the call. But think about it. If you're a colleague and you want to practitioner in our world, the opportunity to come in, no matter how good you are, and it really is not just number and percentage, but really quality, leaders, if you can be better professionally, if you get more content, capability, more stuff to do your business, to do your work, it makes us more attractive.

The bridge right from 3% year to date to 4% on the full year guide versus getting all the way up to 6% or you know, better than the midpoint of the full year guide. Do you think that your relative value proposition to new hires will help you win additional.

Producers in the back half of the Year here. Like is that enough to set you apart from your competitors?

Speaker #3: And we have lots of folks seeking us out. And so we've been very fortunate. And we'll take this at a very measured pace to accomplish what Edmund's described.

Speaker #3: And in the end, we've got great momentum here as well. And it will contribute, but not just number, but really capability as they come in.

Greg Case: In the end, we've got great momentum here as well, it will contribute, not just number, really capability as they come in.

Speaker #6: Yeah. So certainly, I appreciate the very competitive environment. I'm just trying to understand the bridge, right, from 3% year-to-date to 4% on the full-year guide versus getting all the way up to 6% or better than the midpoint of the full-year guide.

Katie Sakys: Yeah. Certainly, I appreciate the very competitive environment. I'm just trying to understand the bridge, from 3% year to date to 4% on the full year guide versus getting all the way up to 6% or better than the midpoint of the full year guide. Do you think that your relative value proposition to new hires will help you win additional producers in the back half of the year here? Is that enough to set you apart from your competitors?

Speaker #6: Do you think that your relative value proposition to new hires will help you win additional producers in the back half of the year here?

Well listen the history over the last number of years would say, the answer to that is absolutely yes. But again, the highest quality 4% is better than a lower quality 7 or 8%. So what we're going for is true leaders who come in practitioners who can make a difference, um, and and then what we, you know, our aspirations, we help them even be better and our colleagues, you know, lead the way with the content capability we've got. So from our standpoint, uh, we are uh, quite enthusiastic about the momentum. We have on bringing College into the firm the right College, where even more enthusiastic about the momentum, as they come in together and working with our colleagues in the risk, Capital human capital construct. We described bringing, you know, frankly opportunities to, wow, clients in ways that other people can't do. And so for us, it's it's, uh, it's we're very optimistic and, um, we've made great progress and I just would reinforce evans's Point. Uh, 3% for the first half.

That's great progress and we'll continue to drive it. Sometimes it'll be higher. Sometimes it'll be lower, but the momentum is exceptionally strong.

Speaker #6: Is that enough to set you apart from your competitors?

Thank you. I appreciate the color.

Speaker #3: Well, listen, the history over the last number of years would say the answer to that is absolutely yes. But again, the highest quality 4% is better than a lower quality 7 or 8%.

Greg Case: Well, listen, the history over the last number of years would say the answer to that is absolutely yes. Again, the highest quality 4% is better than a lower quality 7% or 8%. What we're going for is true leaders who come in, practitioners who can make a difference. Our aspiration is we help them even be better, and our colleagues lead the way with the content capability we've got. From our standpoint, we are quite enthusiastic about the momentum we have on bringing colleagues into the firm, the right colleagues. We're even more enthusiastic about the momentum as they come in together and working with our colleagues in the Risk Capital, Human Capital construct we've described, bringing frankly, opportunities to wow clients in ways that other people can't do. For us, we're very optimistic, and we've made great progress.

Speaker #3: So what we're going for is true leaders who come in—practitioners who can make a difference. And then, what our aspiration is, is we help them even be better.

And look forward to catching up next quarter. Take care.

Speaker #3: And our colleagues lead the way with the content capability we've got. So from our standpoint, we are quite enthusiastic about the momentum we have on bringing colleagues into the firm, the right colleagues.

This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

Speaker #3: We're even more enthusiastic about the momentum as they come in together and working with our colleagues in the risk capital, human capital construct. We've described bringing frankly, opportunities to wow clients in ways that other people can't do.

Speaker #3: And so for us, we're very optimistic, and we've made great progress. I would just reinforce Edmund's point: 3% for the first half is great progress, and we'll continue to drive it.

Greg Case: I just want to reinforce Edmund's point. 3% for the H1, great progress, and we'll continue to drive it. Sometimes it'll be higher, sometimes it'll be lower, the momentum is exceptionally strong.

Speaker #3: Sometimes it'll be higher. Sometimes it'll be lower, but the momentum is exceptionally strong.

Speaker #6: Thank you. I appreciate the color.

Katie Sakys: Thank you. I appreciate the color.

Speaker #1: Thank you. I would now like to turn the call back over to Greg Case for closing remarks. Please go ahead.

Operator: Thank you. I would now like to turn the call back over to Greg Case for closing remarks. Please go ahead.

Speaker #3: All right. Thanks, Dylan. Listen, just wanted to say on behalf of Edmund and I, thanks everyone for joining. We appreciate it. And look forward to catching up next quarter.

Greg Case: All right. Thanks, Dylan. Listen, just wanted to say on behalf of Edmund and I, thanks everyone for joining. We appreciate it, and look forward to catching up next quarter. Take care.

Speaker #3: Take care.

Operator: This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

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