Aon Reports Fourth Quarter and Full Year 2020 Results

Total revenue increased 3% to $3.0 billion, including organic revenue growth of 2%...

• Total revenue increased 3% to $3.0 billion, including organic revenue growth of 2%
• Operating margin increased to 24.0%, and operating margin, adjusted for certain items, decreased 100 basis points to 26.9%
• EPS increased to $2.27, and EPS, adjusted for certain items, increased 4% to $2.62
• Repurchased 3.9 million Class A Ordinary Shares for approximately $800 million
• Announced the authorization of a new $5 billion share repurchase program
• Announced the expansion of its Apprenticeship program, designed to bridge the gap from education to employment, with an investment of $30 million over the next five years

Full Year Key Metrics From Continuing Operations and Highlights

• Total revenue was flat at $11.1 billion, including organic revenue growth of 1%
• Operating margin increased to 25.1%, and operating margin, adjusted for certain items, increased 100 basis points to 28.5%
• EPS increased to $8.45, and EPS, adjusted for certain items, increased 7% to $9.81
• Cash flows from operations increased 52% to $2,783 million and free cash flow increased 64% to $2,642 million
• Repurchased 8.5 million Class A Ordinary Shares for approximately $1.8 billion

Aon plc has reported results for the three and twelve months ended December 31, 2020.

Net income from continuing operations attributable to Aon shareholders in the fourth quarter was $524 million, or $2.27 per share, compared to $374 million, or $1.58 per share, in the prior year period. Net income per share from continuing operations, adjusted for certain items, increased 4% to $2.62, including a favorable impact of $0.02 per share if the Company were to translate prior year period results at current period foreign exchange rates ("foreign currency translation"), compared to $2.53 in the prior year period. Certain items that impacted fourth quarter results and comparisons with the prior year period are detailed in "Reconciliation of Non-GAAP Measures - Operating Income from Continuing Operations and Diluted Earnings Per Share" on page 10 of this press release.

"We delivered a strong finish to 2020, with 2% organic revenue growth and 4% EPS growth in the fourth quarter. For the full year, free cash flow increased by $1.0 billion to $2.6 billion, the highest in our firm's history, demonstrating the stability of our business and the efficiency of our Aon Business Services platform," said Greg Case, Chief Executive Officer. "Our team is incredibly proud of the tremendous resiliency demonstrated by our colleagues. Understanding the opportunity and the need in front of them, they responded by bringing the best of our firm to our clients and each other, allowing the firm to excel during a year filled with unprecedented challenges. We enter 2021 in a position of strength, with momentum for Aon and our pending combination with Willis Towers Watson."

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