Aon (company)

Aon plc

File:Aon logo.svg Logo since 2010
Company type	Public company
Industry	Professional services, Risk management
Founded	1 January 1982 (1982-01-01) in Chicago, United States
Founder	Patrick Ryan
Headquarters	London , United Kingdom
Area served	Worldwide (over 120 countries)
Key people	Greg Case (CEO), Eric Andersen (President)
Products	Risk management solutions, Insurance brokerage, Consulting services
Number of employees	66,000+ (2023)
Website	www.aon.com

Aon plc () is a professional services company with British-American roots, specializing in a wide array of risk management solutions. The firm employs more than 66,000 individuals and operates in over 120 nations worldwide.

Established in 1982 in Chicago by Patrick Ryan, Aon originated from the merger of the Ryan Insurance Group and the Combined Insurance Company of America, which was led by W. Clement Stone. The holding entity adopted the name Aon in 1987, a Gaelic term meaning "one." Its worldwide headquarters is situated in London, while its North American base is located at the Aon Center in Chicago. The company is publicly listed on the New York Stock Exchange under the ticker symbol AON, boasting a market value of $65 billion as of April 2023.

History

W. Clement Stone began his career in insurance in 1918 by working at his mother’s modest Detroit agency, which sold affordable accident insurance and provided on-site underwriting services. In 1919, he launched his own firm named Combined Registry Co.

During the Great Depression, Stone enhanced operational efficiency and improved employee training programs. Due to health concerns for his son, he moved operations to Arkansas and Texas. In 1939, he acquired American Casualty Insurance Co. of Dallas and merged it into the Combined Insurance Co. of America by 1947. Despite economic downturns during the 1970s, the company pursued international growth.

Following a decade of limited progress under Clement Stone Jr., the elder Stone reassumed leadership in 1982 and subsequently merged with Ryan Insurance Co., headed by Patrick Ryan. Ryan shifted the company’s focus toward brokerage services and premium insurance offerings. In 1987, Ryan rebranded Combined as Aon and expanded through acquisitions such as Dutch broker Hudig-Langeveldt in 1992. By 1995, Aon divested its direct life insurance operations to concentrate on consulting services.

Aon's expansion gained momentum with strategic purchases like Berkely Arm, Inc., a travel insurance provider acquired in 1995 and later renamed Aon Affinity Travel Practice. The company broadened its international footprint by acquiring The Minet Group and Alexander Howden's brokerage in 1997, briefly becoming the largest insurance broker worldwide. Additional acquisitions included Spain’s Gil y Carvajal and entry into the Korean market.

In response to evolving industry expectations, Aon implemented a fee disclosure policy in 1999 and restructured to integrate acquisitions such as Italy’s Nikols Sedgwick Group. It also launched RiskAttack in partnership with Zurich US to serve technology sector clients. However, integration expenses affected profitability that year.

Despite these challenges, Aon acquired Reliance Group's accident and health division and Actuarial Sciences Associates in 2000 while reducing its workforce by approximately 6% amid restructuring efforts. Revenue increased in 2003 due to higher industry rates; during this period, Aon also played a role in establishing Endurance Specialty, a Bermuda-based underwriting firm that went public before Aon divested most of its stake.

Toward the end of 2007, Aon exited its underwriting businesses by selling Combined Insurance Company of America to ACE Limited for $2.4 billion and Sterling Life Insurance Company to Munich Re for $352 million, refocusing on brokerage services with higher profit margins.

Continuing its growth trajectory, Aon acquired Benfield Group Limited, a reinsurance intermediary, for $1.75 billion in 2008, reinforcing its position within reinsurance brokerage.

The company's most significant acquisition occurred in 2010 with the purchase of Hewitt Associates for $4.9 billion, greatly enhancing its human resources consulting and business process outsourcing capabilities by adding roughly 23,000 employees and generating over $3 billion in additional revenue.

In January 2012, Aon moved its corporate headquarters to London while retaining its North American operations center in Chicago.

On February 10, 2017, Aon sold its employee benefits outsourcing division to private equity firm The Blackstone Group for $4.8 billion.

In February 2020, Eric Andersen was appointed president following Michael O'Connor's departure; Andersen reports directly to CEO Greg Case.

During the COVID-19 pandemic, Aon announced in June 2020 that it would reimburse a temporary salary reduction of 20%, which had impacted approximately 70% of employees, restoring full pay plus an additional 5%.

Also in June 2020, Willis Towers Watson scheduled shareholder meetings concerning its proposed acquisition by Aon; however, the US Department of Justice requested supplementary antitrust information regarding the transaction.

September 11 attacks

During the September 11 tragedy, Aon's New York offices were situated on the 92nd and 98th through 105th floors of the South Tower at the World Trade Center. After the North Tower was struck at 8:46 a.m., executive Eric Eisenberg initiated an evacuation, enabling roughly 924 out of about 1,100 Aon staff to move below the 77th floor before United Airlines Flight 175 impacted between floors 77 and 85 at 9:03 a.m.

Despite this, many employees were unable to escape within the brief 17-minute window between the two impacts. In total, 176 Aon personnel lost their lives due to the crash, the collapse of the tower, or smoke inhalation. The South Tower fell at 9:59 a.m., resulting in the deaths of any remaining survivors, including Eisenberg and Kevin Cosgrove.

Spitzer investigation

From 2004 to 2005, regulatory authorities led by New York Attorney General Eliot Spitzer, alongside other state attorneys general, investigated Aon together with brokers Marsh & McLennan and Willis. The inquiry focused on contingent commissions—payments from insurers to brokers—that were alleged to create conflicts of interest favoring insurance carriers over clients. In spring 2005, Aon resolved the matter by agreeing to pay $190 million over a period of 30 months without admitting any wrongdoing.

UK regulatory breach

In January 2009, the UK Financial Services Authority imposed a £5.69 million fine on Aon for insufficient controls against bribery and corruption from January 2005 through September 2007. The regulator determined that Aon had failed to adequately evaluate risks associated with dealings involving foreign companies but found no evidence that funds were directed to illicit organizations. Due to cooperation with the investigation, Aon received a 30% reduction in the penalty and maintained that its actions were not intentional while committing to enhance oversight concerning third-party engagements.

US Foreign Corrupt Practices Act violations

In December 2011, Aon paid $16.26 million in penalties to both the U.S. Securities and Exchange Commission and Department of Justice for breaches of the Foreign Corrupt Practices Act. Subsidiaries made improper payments exceeding $3.6 million between 1983 and 2007 to officials in countries including Costa Rica, Egypt, Vietnam, Indonesia, UAE, Myanmar, and Bangladesh to secure insurance contracts.

Major acquisitions

On January 5, 2007, Aon's Affinity division purchased the WedSafe Wedding Insurance program.

On August 22, 2008, Aon acquired Benfield Group, a London-based firm, for $1.75 billion (£935 million), which included $170 million in debt.

On March 5, 2010, Hewitt Associates expanded its retiree medical insurance capabilities by acquiring Senior Educators Ltd.

On July 12, 2010, Aon announced its acquisition of Hewitt Associates for $4.9 billion through a combination of cash and stock.

On April 7, 2011, Aon purchased Glenrand MIB based in Johannesburg; financial terms were not disclosed.

On July 19, 2011, Aon acquired Westfield Financial Corp., owner of Ward Financial Group; terms remained confidential.

On October 22, 2012, Aon added OmniPoint—a Workday consulting company—to its portfolio; financial details were undisclosed.

On June 16, 2014, Aon agreed to purchase National Flood Services, a leading processor in flood insurance.

On October 31, 2016, Aon's Risk Solutions division completed its acquisition of Stroz Friedberg LLC, specialists in cybersecurity risk management.

On November 14, 2016, Aon acquired CoCubes, an Indian online assessment platform targeting entry-level engineers.

On February 10, 2017, Aon divested its human resources outsourcing platform for $4.8 billion to Blackstone Group, resulting in the creation of Alight Solutions.

In September 2017, Aon revealed plans to acquire The Townsend Group from Colony NorthStar for $475 million to broaden its real estate investment management offerings.

On March 9, 2020, Aon announced an all-stock merger with Willis Towers Watson valued at nearly $30 billion aiming to establish the largest insurance brokerage globally; however, regulatory challenges led to the deal’s cancellation in July 2021.

In December 2023, Aon agreed to acquire NFP—a middle-market advisory firm specializing in risk management, benefits, wealth management, and retirement planning—for $13.4 billion.

In March 2024, Aon expanded its commercial fleet services by acquiring technology assets and intellectual property from Humn.ai, an AI-driven platform.

Manchester United

On 3 June 2009, Aon entered into a four-year agreement to become the shirt sponsor for the renowned English football club Manchester United. By 1 June 2010, Aon had succeeded American insurer AIG as the club’s main sponsor. The Aon emblem was prominently displayed on the team’s jerseys until the conclusion of the 2014/2015 season, after which Chevrolet assumed the sponsorship role. This partnership was reportedly valued at £80 million over four years, marking it as the most financially significant shirt sponsorship deal at that time.

In April 2013, Aon extended its relationship with Manchester United through an eight-year contract to rename the club’s training facility as the Aon Training Complex and to sponsor the training apparel. This arrangement was estimated to be worth around £180 million.

Awards

• At the FT’s 2014 Pension and Investment Provider Awards, Aon received honors for Investment Consultancy of the Year and Fiduciary Manager of the Year
• Achieved a flawless rating on the Human Rights Campaign's 2013 Corporate Equality Index
• Included in Working Mother’s 2012 list of the 100 Best Companies
• In Business Insurance's Buyers Choice Awards 2012, Aon Risk Solutions was recognized as the most recommended broker for service and expertise among middle market clients
• Received Broker of the Year and Training Programme of the Year accolades from Insurance Times in 2012
• At the 2012 European Intelligent Insurer Awards, Aon Benfield was named European Reinsurance Broker of the Year, Best European Property Reinsurance Broker, and Best European Casualty Reinsurance Broker
• Honored as Best Global Reinsurance Broking Company for Analytics at Reactions Global Awards 2012
• Recognized by PLANSPONSOR Magazine as Top Retirement Consultant of 2012
• Awarded Actuarial and Investment Consultant of the Year at the Professional Pensions Awards in 2012