HIMS Investors Have Opportunity to Join Hims & Hers Health, Inc. Fraud Investigation With the Schall Law Firm
The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Hims & Hers is the subject of an announcement by Novo Nordisk issued on June 23, 2025. According to Novo Nordisk, it is ending its relationship with the Company 'due to concerns about their illegal mass compounding and deceptive marketing.' According to the press release, 'the FDA resolved the Wegovy ® shortage based on its conclusion that Novo Nordisk is fully meeting current and projected nationwide demand for this medicine. In support of transitioning patients from knock-off compounded versions to authentic, FDA-approved Wegovy ® through NovoCare ® Pharmacy, Novo Nordisk began collaborating with telehealth companies. Over one month into the collaboration, Hims & Hers Health, Inc. has failed to adhere to the law which prohibits mass sales of compounded drugs under the false guise of 'personalization' and are disseminating deceptive marketing that put patient safety at risk.' Based on this news, shares of Hims & Hers fell by more than 32.4% in afternoon trading on the same day.
If you are a shareholder who suffered a loss, click here to participate.
We also encourage you to contact Brian Schall of the Schall Law Firm, 2049 Century Park East, Suite 2460, Los Angeles, CA 90067, at 310-301-3335, to discuss your rights free of charge. You can also reach us through the firm's website at www.schallfirm.com, or by email at bschall@schallfirm.com.
The Schall Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and rules of ethics.
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-- Diluted Loss Per Share of $(0.51); Adjusted Diluted Loss Per Share of $(0.16) -- ST. LOUIS, July 25, 2025 /PRNewswire/ -- Centene Corporation (NYSE: CNC) (the Company) announced today its financial results for the second quarter ended June 30, 2025. In summary, the 2025 second quarter results were as follows: Total revenues (in millions) $ 48,742 Premium and service revenues (in millions) $ 42,467 Health benefits ratio 93.0 % SG&A expense ratio 7.1 % Adjusted SG&A expense ratio (1) 7.1 % GAAP diluted loss per share $ (0.51) Adjusted diluted loss per share (1) $ (0.16) Total cash flow provided by operations (in millions) $ 1,785 (1) Represents a non-GAAP financial measure. A full reconciliation of the adjusted diluted loss per share and adjusted selling, general and administrative (SG&A) expenses is shown in the Non-GAAP Financial Presentation section of this release. "We are disappointed by our second quarter results, but we have a clear understanding of the trends that have impacted our performance, and are working with urgency and focus to restore our earnings trajectory," said Chief Executive Officer of Centene, Sarah M. London. "Despite the shifting landscape, we believe that the staying power of Medicaid, Medicare and the Individual Marketplace is as strong as it has ever been. Centene has significantly fortified our platform in service of these programs over the last three years, and as we move forward, we are focused on continuing to adapt with the market to deliver meaningful value to our members, our stakeholders and our shareholders over the long term." Awards & Community Engagement Since May, Centene and its Missouri subsidiary, Home State Health, have been supporting the St. Louis community impacted by tornadoes through donations as well as volunteer hours. 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(4) The income tax effects of adjustments are based on the effective income tax rates applicable to each adjustment. Three Months Ended June 30,Six Months Ended June 30,2025202420252024 GAAP selling, general and administrative expenses $ 3,036$ 2,894$ 6,389$ 6,112 Less:Acquisition and divestiture related expenses 16167 Restructuring costs —4—13 Adjusted selling, general and administrative expenses $ 3,035$ 2,884$ 6,388$ 6,032 To provide clarity on the way management defines certain key metrics and ratios, the Company is providing a description of how the metric or ratio is calculated as follows: Health Benefits Ratio (HBR) (GAAP) = Medical costs divided by premium revenues. SG&A Expense Ratio (GAAP) = Selling, general and administrative expenses divided by premium and service revenues. Adjusted SG&A Expense Ratio (non-GAAP) = Adjusted selling, general and administrative expenses divided by premium and service revenues. Adjusted Effective Tax Rate (non-GAAP) = GAAP income tax expense (benefit) excluding the income tax effects of adjustments to net earnings divided by adjusted earnings (loss) before income tax expense. Adjusted Net Earnings (non-GAAP) = Net earnings less amortization of acquired intangible assets, less acquisition and divestiture related expenses, as well as adjustments for other items, net of the income tax effect of the adjustments. Adjusted Diluted EPS (non-GAAP) = Adjusted net earnings divided by weighted average common shares outstanding on a fully diluted basis. Debt to Capitalization Ratio (GAAP) = Total debt, divided by total debt plus total stockholder's equity. Average Medical Claims Expense (GAAP) = Medical costs for the period divided by number of days in such period. Average medical claims expense is most often calculated for the quarterly reporting period. Days in Claims Payable (GAAP) = Medical claims liabilities divided by average medical claims expense. Days in claims payable is most often calculated for the quarterly reporting period. In addition, the following terms are defined as follows: State-directed Payments: Payments directed by a state that have minimal risk but are administered as a premium adjustment. These payments are recorded as premium revenue and medical costs at close to a 100% HBR. In many instances, the Company has little visibility to the timing of these payments until they are paid by a state. Pass-through Payments: Non-risk supplemental payments from a state that the Company is required to pass through to designated contracted providers. These payments are recorded as premium tax revenue and premium tax expense. About Centene Corporation Centene Corporation, a Fortune 500 company, is a leading healthcare enterprise that is committed to helping people live healthier lives. The Company takes a local approach – with local brands and local teams – to provide fully integrated, high-quality, and cost-effective services to government-sponsored and commercial healthcare programs, focusing on under-insured and uninsured individuals. Centene offers affordable and high-quality products to more than 1 in 15 individuals across the nation, including Medicaid and Medicare members (including Medicare Prescription Drug Plans) as well as individuals and families served by the Health Insurance Marketplace. Centene uses its investor relations website to publish important information about the Company, including information that may be deemed material to investors. Financial and other information about Centene is routinely posted and is accessible on Centene's investor relations website, Forward-Looking Statements All statements, other than statements of current or historical fact, contained in this press release are forward-looking statements. Without limiting the foregoing, forward-looking statements often use words such as "believe," "anticipate," "plan," "expect," "estimate," "guidance," "intend," "seek," "target," "goal," "may," "will," "would," "could," "should," "can," "continue" and other similar words or expressions (and the negative thereof). Centene Corporation and its subsidiaries (Centene, the Company, our or we) intends such forward-looking statements to be covered by the safe-harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and we are including this statement for purposes of complying with these safe-harbor provisions. In particular, these statements include, without limitation, statements about our expected future operating or financial performance, changes in laws and regulations, market opportunity, expectations concerning pricing actions, competition, expected contract start dates and terms, expected activities in connection with completed and future acquisitions and dispositions, our investments, and the adequacy of our available cash resources. These forward-looking statements reflect our current views with respect to future events and are based on numerous assumptions and assessments made by us in light of our experience and perception of historical trends, current conditions, business strategies, operating environments, future developments, and other factors we believe appropriate. By their nature, forward-looking statements involve known and unknown risks and uncertainties and are subject to change because they relate to events and depend on circumstances that will occur in the future, including economic, regulatory, competitive, and other factors that may cause our or our industry's actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by these forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties, and assumptions. All forward-looking statements included in this press release are based on information available to us on the date hereof. Except as may be otherwise required by law, we undertake no obligation to update or revise the forward-looking statements included in this press release, whether as a result of new information, future events, or otherwise, after the date hereof. You should not place undue reliance on any forward-looking statements, as actual results may differ materially from projections, estimates, or other forward-looking statements due to a variety of important factors, variables, and events including, but not limited to: our ability to design and price products that are competitive and/or actuarially sound; our ability to accurately predict and effectively manage health benefits and other operating expenses and reserves, including fluctuations in medical costs; rate cuts, insufficient rate changes or other payment reductions or delays by government payors affecting our government businesses; the effect of social, economic, and political conditions, geopolitical events and state and federal policies, including the amount and terms of state and federal funding for government-sponsored healthcare programs, including as a result of changes in U.S. presidential administrations or Congress; changes in federal or state laws or regulations, including changes with respect to income tax reform or government healthcare programs as well as changes with respect to the Patient Protection and Affordable Care Act and the Health Care and Education Affordability Reconciliation Act (collectively referred to as the ACA) and any regulations enacted thereunder, including the timing and terms of renewal or modification of the enhanced advance premium tax credits or program integrity initiatives that could have the effect of reducing membership or profitability of our products; unanticipated increased healthcare costs, including due to changes in consumer and provider behaviors, inflation and tariffs; our ability to maintain or achieve improvement in the Centers for Medicare and Medicaid Services (CMS) Star ratings and maintain or achieve improvement in other quality scores in each case that could impact revenue and future growth; competition, including for providers, broker distribution networks, contract reprocurements and organic growth; our ability to adequately anticipate demand and timely provide for operational resources to maintain service level requirements in compliance with the terms of our contracts and state and federal regulations; our ability to comply with the terms of our contracts and state and federal regulations and our ability to effectively oversee our third-party vendors to comply with the terms of their contracts with us and state and federal regulations; our ability to manage our information systems effectively; disruption, unexpected costs, or similar risks from business transactions, including acquisitions, divestitures, and changes in our relationships with third-party vendors; impairments to real estate, investments, goodwill and intangible assets; changes in senior management, loss of one or more key personnel or an inability to attract, hire, integrate and retain skilled personnel; membership and revenue declines or unexpected trends; changes in healthcare practices, new technologies, and advances in medicine; our ability to effectively and ethically use artificial intelligence and machine learning in compliance with applicable laws; changes in macroeconomic conditions, including inflation, interest rates and volatility in the financial markets; negative public perception of the Company and the managed care industry; uncertainty concerning government shutdowns, debt ceilings or funding; tax matters; disasters, climate-related incidents, acts of war or aggression or major epidemics; changes in expected contract start dates and terms; changes in provider, broker, vendor, state, federal and other contracts and delays in the timing of regulatory approval of contracts, including due to protests and our ability to timely comply with any such changes to our contractual requirements or manage any unexpected delays in regulatory approval of contracts; the expiration, suspension, or termination of our contracts with federal or state governments (including, but not limited to, Medicaid, Medicare or other customers); the difficulty of predicting the timing or outcome of legal or regulatory audits, investigations, proceedings or matters including, but not limited to, our ability to resolve claims and/or allegations on acceptable terms, or at all, or whether additional claims, reviews or investigations will be brought; challenges to our contract awards; cyber-attacks or other data security incidents or our failure to comply with applicable privacy, data or security laws and regulations; the exertion of management's time and our resources, and other expenses incurred and business changes required in connection with complying with the terms of our contracts and the undertakings in connection with any regulatory, governmental, or third party consents or approvals for acquisitions or dispositions; any changes in expected closing dates, estimated purchase price, or accretion for acquisitions or dispositions; losses in our investment portfolio; restrictions and limitations in connection with our indebtedness; a downgrade of our corporate family rating, issuer rating or credit rating of our indebtedness; the availability of debt and equity financing on terms that are favorable to us and risks and uncertainties discussed in the reports that Centene has filed with the Securities and Exchange Commission (SEC). This list of important factors is not intended to be exhaustive. We discuss certain of these matters more fully, as well as certain other factors that may affect our business operations, financial condition, and results of operations, in our filings with the SEC, including our annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. Due to these important factors and risks, we cannot give assurances with respect to our future performance, including without limitation our ability to maintain adequate premium levels or our ability to control our future medical and selling, general and administrative costs. CENTENE CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In millions, except shares in thousands and per share data in dollars) June 30,2025December 31, 2024(Unaudited) ASSETSCurrent assets:Cash and cash equivalents $ 14,513$ 14,063 Premium and trade receivables 21,55219,713 Short-term investments 2,7682,622 Other current assets 1,5561,601 Total current assets 40,38937,999 Long-term investments 18,79717,429 Restricted deposits 1,4111,390 Property, software and equipment, net 2,1222,067 Goodwill 17,55817,558 Intangible assets, net 5,0105,409 Other long-term assets 1,108593 Total assets $ 86,395$ 82,445 LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND STOCKHOLDERS' EQUITYCurrent liabilities:Medical claims liability $ 20,117$ 18,308 Accounts payable and accrued expenses 13,52013,174 Return of premium payable 2,4422,008 Unearned revenue 682661 Current portion of long-term debt 25110 Total current liabilities 36,78634,261 Long-term debt 17,55218,423 Deferred tax liability 651684 Other long-term liabilities 3,9032,567 Total liabilities 58,89255,935 Commitments and contingenciesRedeemable noncontrolling interests 1110 Stockholders' equity:Preferred stock, $0.001 par value; authorized 10,000 shares; no shares issued or outstanding at June 30, 2025 and December 31, 2024 —— Common stock, $0.001 par value; authorized 800,000 shares; 622,834 issued and 491,128 outstanding at June 30, 2025, and 620,195 issued and 495,907 outstanding at December 31, 2024 11 Additional paid-in capital 20,67120,562 Accumulated other comprehensive (loss) (231)(504) Retained earnings 16,40615,348 Treasury stock, at cost (131,706 and 124,288 shares, respectively) (9,441)(8,997) Total Centene stockholders' equity 27,40626,410 Nonredeemable noncontrolling interest 8690 Total stockholders' equity 27,49226,500 Total liabilities, redeemable noncontrolling interests and stockholders' equity $ 86,395$ 82,445 CENTENE CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except shares in thousands and per share data in dollars) (Unaudited) Three Months Ended June 30,Six Months Ended June 30,2025202420252024 Revenues:Premium $ 41,740$ 35,140$ 83,452$ 70,669 Service 7278331,5041,641 Premium and service revenues 42,46735,97384,95672,310 Premium tax 6,2753,86310,4067,933 Total revenues 48,74239,83695,36280,243 Expenses:Medical costs 38,80830,76575,31161,697 Cost of services 6416801,3391,349 Selling, general and administrative expenses 3,0362,8946,3896,112 Depreciation expense 141133283268 Amortization of acquired intangible assets 173173346346 Premium tax expense 6,3463,96210,5638,123 Impairment 55—5513 Total operating expenses 49,20038,60794,28677,908 Earnings (loss) from operations (458)1,2291,0762,335 Other income (expense):Investment and other income 3714637531,008 Interest expense (170)(176)(340)(354) Earnings (loss) before income tax (257)1,5161,4892,989 Income tax expense 2370434685 Net earnings (loss) (259)1,1461,0552,304 Loss attributable to noncontrolling interests 6—35 Net earnings (loss) attributable to Centene Corporation $ (253)$ 1,146$ 1,058$ 2,309 Net earnings (loss) per common share attributable to Centene Corporation: Basic earnings (loss) per common share $ (0.51)$ 2.16$ 2.14$ 4.34 Diluted earnings (loss) per common share $ (0.51)$ 2.16$ 2.13$ 4.32 Weighted average number of common shares outstanding: Basic 493,548529,602494,896532,385 Diluted 493,548530,755496,328534,517 CENTENE CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions, unaudited) Six Months Ended June 30,20252024 Cash flows from operating activities:Net earnings $ 1,055$ 2,304 Adjustments to reconcile net earnings to net cash provided by operating activitiesDepreciation and amortization 629614 Stock compensation expense 94132 Impairment 5513 Deferred income taxes (116)40 (Gain) loss on divestitures, net 10(103) Other adjustments, net 16(11) Changes in assets and liabilities Premium and trade receivables (1,801)(1,059) Other assets (543)(404) Medical claims liabilities 1,809173 Unearned revenue 21(118) Accounts payable and accrued expenses 209(1,704) Other long-term liabilities 1,8571,838 Other operating activities, net —4 Net cash provided by operating activities 3,2951,719 Cash flows from investing activities:Capital expenditures (343)(337) Purchases of investments (3,593)(3,434) Sales and maturities of investments 2,5082,497 Divestiture proceeds, net of divested cash —959 Net cash (used in) investing activities (1,428)(315) Cash flows from financing activities:Proceeds from long-term debt 750350 Payments and repurchases of long-term debt (1,707)(565) Common stock repurchases (473)(954) Proceeds from common stock issuances 1825 Other financing activities, net (12)(4) Net cash (used in) financing activities (1,424)(1,148) Effect of exchange rate changes on cash, cash equivalents and restricted cash —7 Net increase in cash, cash equivalents and restricted cash and cash equivalents 443263 Cash, cash equivalents and restricted cash and cash equivalents, beginning of period 14,15617,452 Cash, cash equivalents and restricted cash and cash equivalents, end of period $ 14,599$ 17,715 Supplemental disclosures of cash flow information:Interest paid $ 320$ 352 Income taxes paid, net $ 504$ 551 The following table provides a reconciliation of cash, cash equivalents and restricted cash and cash equivalents reported within the Consolidated Balance Sheets to the totals above:June 30,20252024 Cash and cash equivalents $ 14,513$ 17,605 Restricted cash and cash equivalents, included in restricted deposits 86110 Total cash, cash equivalents and restricted cash and cash equivalents $ 14,599$ 17,715 CENTENE CORPORATION SUPPLEMENTAL FINANCIAL DATA Q2Q1Q4Q3Q2 20252025202420242024 MEMBERSHIPTraditional Medicaid (1) 11,227,40011,369,40011,408,10011,478,60011,640,900 High Acuity Medicaid (2) 1,592,3001,589,4001,595,4001,590,2001,499,000 Total Medicaid 12,819,70012,958,80013,003,50013,068,80013,139,900 Marketplace 5,862,8005,626,0004,382,1004,501,3004,401,300 Individual and Commercial Group (3) 449,700448,200431,400426,600426,400 Total Commercial 6,312,5006,074,2004,813,5004,927,9004,827,700 Medicare (4) 1,026,9001,043,2001,110,9001,129,9001,138,400 Medicare PDP 7,845,8007,867,8006,925,7006,766,4006,603,600 Total at-risk membership 28,004,90027,944,00025,853,60025,893,00025,709,600 TRICARE eligibles ——2,747,0002,747,0002,768,000 Total 28,004,90027,944,00028,600,60028,640,00028,477,600 (1) Membership includes TANF, Medicaid Expansion, CHIP, Foster Care and Behavioral Health. (2) Membership includes ABD, IDD, LTSS and MMP Duals. (3) Membership includes Commercial Group, ICHRA and Other Off-Exchange Individual. (4) Membership includes Medicare Advantage and Medicare Supplement. NUMBER OF EMPLOYEES 60,30060,40060,50060,70060,000 DAYS IN CLAIMS PAYABLE 4749535154 CASH, INVESTMENTS AND RESTRICTED DEPOSITS (in millions) Regulated $ 36,403$ 35,922$ 34,433$ 35,558$ 37,421 Unregulated 1,0861,0421,0711,1541,078 Total $ 37,489$ 36,964$ 35,504$ 36,712$ 38,499 DEBT TO CAPITALIZATION 39.0 %39.5 %41.2 %39.1 %39.1 % OPERATING RATIOS Three Months Ended June 30,Six Months Ended June 30,2025202420252024 HBR 93.0 %87.6 %90.2 %87.3 % SG&A expense ratio 7.1 %8.0 %7.5 %8.5 % Adjusted SG&A expense ratio 7.1 %8.0 %7.5 %8.3 % HBR BY PRODUCT Three Months Ended June 30,Six Months Ended June 30, 2025202420252024 Medicaid 94.9 %92.8 %94.2 %91.8 % Commercial 90.6 %73.4 %82.8 %73.4 % Medicare (5) 90.9 %89.2 %88.6 %90.0 % (5) Medicare includes Medicare Advantage, Medicare Supplement, D-SNPs and Medicare PDP. MEDICAL CLAIMS LIABILITY The changes in medical claims liability are summarized as follows (in millions): Balance, June 30, 2024$ 18,173 Less: Reinsurance recoverables58 Balance, June 30, 2024, net18,115 Incurred related to: Current period141,488 Prior periods(2,221) Total incurred139,267 Paid related to: Current period123,150 Prior periods14,229 Total paid137,379 Plus: Premium deficiency reserve54 Balance, June 30, 2025, net20,057 Plus: Reinsurance recoverables60 Balance, June 30, 2025$ 20,117 Centene's claims reserving process utilizes a consistent actuarial methodology to estimate Centene's ultimate liability. Any reduction in the "Incurred related to: Prior periods" amount may be offset as Centene actuarially determines the "Incurred related to: Current period." Additionally, approximately $124 million was recorded as a reduction to premium revenues resulting from development within "Incurred related to: Prior periods" due to minimum HBR and other return of premium programs. The amount of the "Incurred related to: Prior periods" above represents favorable development and includes the effects of reserving under moderately adverse conditions, new markets where we use a conservative approach in setting reserves during the initial periods of operations, receipts from other third party payors related to coordination of benefits and lower medical utilization and cost trends for dates of service June 30, 2024, and prior. View original content: SOURCE Centene Corporation Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
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Aon Reports Second Quarter 2025 Results
DUBLIN, July 25, 2025 /PRNewswire/ -- Aon plc (NYSE: AON) today reported results for the three months ended June 30, 2025. Aon delivered another quarter of strong performance, including 11% total revenue growth and 6% organic revenue growth. We are executing our Aon United strategy through the 3x3 Plan to meet client demand Strong Free Cash Flow is powering our capital allocation strategy – supporting debt reduction, disciplined middle-market M&A and capital return to shareholders Our first-half performance reinforces our confidence in achieving our full-year 2025 financial guidanceSecond Quarter 2025First Half 202520252024Change20252024Change Total revenue $4,155$3,76011 %$8,884$7,83013 % Organic revenue growth (Non-GAAP) 6 %5 % Operating income $859$65631 %$2,320$2,1219 % Adjusted operating income (Non-GAAP) $1,171$1,02914 %$2,987$2,64413 % Operating margin 20.7 %17.4 %26.1 %27.1 % Adjusted operating margin (Non-GAAP) 28.2 %27.4 %33.6 %33.8 % Diluted EPS $2.66$2.468 %$7.10$7.72(8) % Adjusted EPS (Non-GAAP) $3.49$2.9319 %$9.17$8.508 % Cash provided by operations $796$51355 %$936$82214 % Free cash flow (Non-GAAP) $732$46059 %$816$72113 % "We delivered strong second quarter results, including 6% organic revenue growth, 19% growth in adjusted EPS, and 59% free cash flow growth," said Greg Case, president and CEO of Aon. "This performance reflects the growing demand for our advice and solutions, driven by an increasingly complex environment and the need to unlock new sources of capital. Our solutions are resonating with clients and we are effectively meeting that demand. The continued successful execution of our Aon United strategy – operationalized by our 3x3 Plan and powered by Aon Business Services – is fueling sustainable organic growth, margin expansion and free cash flow growth, as we invest in our business. Looking ahead, we remain confident in our outlook and are reaffirming our full-year 2025 guidance." Net income attributable to Aon shareholders increased 8%, to $2.66 per share on a diluted basis, compared to $2.46 per share on a diluted basis, in the prior year period. Adjusted net income per share attributable to Aon shareholders increased 19% to $3.49 on a diluted basis compared to $2.93 in the prior year period. Certain items that impacted second quarter results and comparisons with the prior year period are detailed in "Reconciliation of Non-GAAP Measures - Operating Income, Operating Margin and Diluted Earnings Per Share" on page 11 of this press release. SECOND QUARTER 2025 FINANCIAL SUMMARY Total revenue in the second quarter increased 11% to $4.2 billion compared to the prior year period, reflecting 6% organic revenue growth, the contribution from NFP and 1% favorable impact from foreign currency translation. Risk Capital revenue increased $216 million, or 8%, to $2.9 billion and Human Capital revenue increased $166 million, or 15%, to $1.3 billion. Total operating expenses in the second quarter increased 6% to $3.3 billion compared to the prior year period due primarily to the inclusion of NFP's ongoing operating expenses, an increase in intangible asset amortization associated with the NFP acquisition and an increase in expense associated with 6% organic revenue growth and investments in long-term growth, partially offset by transaction costs incurred in the prior year period, lower Accelerating Aon United program expense and $35 million of net restructuring savings. Risk Capital operating expenses increased $136 million, or 7%, to $2.0 billion and Human Capital operating expenses increased $139 million, or 13%, to $1.2 billion. Foreign currency translation had a de minimis impact on EPS in the second quarter. If currency were to remain stable at today's rates, the Company would expect an unfavorable impact on adjusted EPS of approximately $0.05 per share for the full year 2025. Effective tax rate was 15.5% in the second quarter compared to 22.9% in the prior year period. After adjusting to exclude the applicable tax impact associated with certain non-GAAP adjustments, the adjusted effective tax rate for the second quarter of 2025 was 16.5% compared to 22.2% in the prior year period. The primary drivers of the change in adjusted effective tax rate were the net favorable impact from discrete items and changes in the geographical distribution of income. Weighted average diluted shares outstanding increased to 217.3 million in the second quarter compared to 213.3 million in the prior year period. The Company repurchased 0.7 million class A ordinary shares for approximately $250 million in the second quarter. As of June 30, 2025, the Company had approximately $1.8 billion of remaining authorization under its share repurchase program. YEAR TO DATE 2025 CASH FLOW SUMMARY Cash flows provided by operations for the first six months of 2025 increased $114 million, or 14%, to $936 million compared to the prior year period, primarily due to strong adjusted operating income growth and days sales outstanding improvements, partially offset by higher payments related to incentive compensation, interest, and restructuring. Free cash flow, defined as cash flow from operations less capital expenditures, increased 13%, to $816 million for the first six months of 2025 compared to the prior year period, reflecting an increase in cash flows provided by operations, partially offset by a $19 million increase in capital expenditures. SECOND QUARTER 2025 REVENUE REVIEW The second quarter revenue reviews provided below include supplemental information related to Organic revenue growth, which is a non-GAAP measure that is described in detail in "Reconciliation of Non-GAAP Measures - Organic Revenue Growth and Free Cash Flow" on page 10 of this press release. Three Months Ended June 30, (millions)20252024% ChangeLess: Currency ImpactLess: Fiduciary Investment IncomeLess: Acquisitions, Divestitures & OtherOrganic Revenue Growth Risk Capital Revenue: Commercial Risk Solutions$ 2,178$ 2,0158 %1 %— %1 %6 % Reinsurance Solutions68863581—16 Human Capital Revenue: Health Solutions77266217——116 Wealth Solutions519463122—73 Eliminations(2)(15)N/AN/AN/AN/AN/A Total revenue$ 4,155$ 3,76011 %1 %— %4 %6 % Total revenue increased $395 million, or 11%, to $4.2 billion, compared to the prior year period, reflecting 6% organic revenue growth, the contribution from NFP and a 1% favorable impact from foreign currency translation. Risk Capital revenue increased $216 million, or 8%, to $2.9 billion and Human Capital revenue increased $166 million, or 15%, to $1.3 billion. Risk Capital Commercial Risk Solutions Organic revenue growth of 6% reflects growth across all major geographies driven by net new business and ongoing strong retention. Performance was highlighted by strong growth globally in core P&C and strength in M&A services relative to the prior year. Market impact was modestly positive. Reinsurance Solutions Organic revenue growth of 6% reflects double-digit increases in insurance-linked securities and facultative placements. Results also reflect growth in treaty, driven by net new business and ongoing strong retention, partially offset by a modest unfavorable market impact. Human Capital Health Solutions Organic revenue growth of 6% reflects strength in core health and benefits, driven by net new business, ongoing strong retention, and a modestly positive market impact. The core performance was highlighted by double-digit growth internationally. Results also reflect strength in executive benefits and pharmacy benefits in NFP. Wealth Solutions Organic revenue growth of 3% reflects growth in Retirement driven by advisory related to the ongoing impact of regulatory change. In Investments, results reflect strength in NFP, driven by net asset inflows and market performance. SECOND QUARTER 2025 EXPENSE REVIEW Three Months Ended June 30, (millions)20252024$ Change% Change Expenses Compensation and benefits$ 2,360$ 2,130$ 23011 % Information technology13613243 Premises858234 Depreciation of fixed assets474524 Amortization and impairment of intangible assets2011287357 Other general expense373455(82)(18) Accelerating Aon United Program expenses94132(38)(29) Total operating expenses$ 3,296$ 3,104$ 1926 % Compensation and benefits expense increased $230 million, or 11%, compared to the prior year period due primarily to the inclusion of operating expenses from NFP and expense associated with 6% organic revenue growth, partially offset by savings from Accelerating Aon United restructuring actions. Information technology expense increased $4 million, or 3%, compared to the prior year period due primarily to the inclusion of ongoing operating expenses from NFP. Premises expense increased $3 million, or 4%, compared to the prior year period, due primarily to the inclusion of ongoing operating expenses from NFP. Depreciation of fixed assets increased $2 million, or 4%, compared to the prior year period. Amortization and impairment of intangible assets increased $73 million, or 57%, compared to the prior year period due primarily to an increase in intangible assets related to the acquisition of NFP. Other general expense decreased $82 million, or 18%, compared to the prior year period due primarily to a decrease in transaction and integration costs. Accelerating Aon United Restructuring Program expense decreased $38 million, or 29%, compared to the prior year period due to lower costs related to workforce optimization and asset impairments, partially offset by higher costs related to technology and other costs. SECOND QUARTER 2025 INCOME SUMMARY Certain noteworthy items impacted adjusted operating income and Adjusted operating margin in the second quarters of 2025 and 2024, which are also described in detail in "Reconciliation of Non-GAAP Measures - Operating Income, Operating Margin and Diluted Earnings Per Share" on page 11 of this press release. Three Months Ended June 30, (millions)20252024% Change Revenue$ 4,155$ 3,76011 % Expenses3,2963,1046 % Operating income$ 859$ 65631 % Operating margin20.7 %17.4 % Adjusted operating income $ 1,171$ 1,02914 % Adjusted operating margin28.2 %27.4 % Operating income increased $203 million and operating margin increased 330 basis points to 20.7%, each compared to the prior year period. Adjusted operating income increased $142 million, or 14%, and Adjusted operating margin increased 80 basis points to 28.2%, each compared to the prior year period. The increase in adjusted operating income reflects organic revenue growth, the impact from NFP, and net restructuring savings, partially offset by increased expenses and investments in long-term growth. Interest income decreased $31 million compared to the prior year period due primarily to interest earned in the prior year period on the investment of $5 billion of term debt proceeds which were used to fund the purchase of NFP. Interest expense decreased $13 million compared to the prior year period, reflecting lower total debt. Other income was $56 million compared to $236 million in the prior year period, primarily due to gains related to the sale of a business in the prior year period, partially offset by deferred consideration from the 2017 sale of our outsourcing business. Adjusted other expense was $32 million compared to $15 million in the prior year period, primarily due to the unfavorable impact of exchange rates on the remeasurement of assets and liabilities in non-functional currencies and an increase in non-cash pension expense. Net income attributable to Aon shareholders increased 10% to $579 million compared to $524 million in the prior year period. Adjusted net income attributable to Aon shareholders increased 22% to $759 million compared to $624 million in the prior year period. Conference Call, Presentation Slides, and Webcast Details The Company will host a conference call on Friday, July 25, 2025 at 7:30 a.m., central time. Interested parties can listen to the conference call via a live audio webcast and view the presentation slides at About AonAon plc (NYSE: AON) exists to shape decisions for the better — to protect and enrich the lives of people around the world. Through actionable analytic insight, globally integrated Risk Capital and Human Capital expertise, and locally relevant solutions, our colleagues provide clients in over 120 countries with the clarity and confidence to make better risk and people decisions that protect and grow their businesses. Follow Aon on LinkedIn, X, Facebook, and Instagram. Stay up-to-date by visiting the Aon Newsroom and sign up for News Alerts Safe Harbor StatementThis communication contains certain statements related to future results, or states Aon's intentions, beliefs and expectations or predictions for the future, all of which are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from either historical or anticipated results depending on a variety of factors. These forward-looking statements include information about possible or assumed future results of Aon's operations. All statements, other than statements of historical facts, that address activities, events or developments that Aon expects or anticipates may occur in the future, including such things as our outlook, market and industry conditions, including competitive and pricing trends, the development and performance of our services and products, our cost structure and the outcome of cost-saving or restructuring initiatives, including the impacts of the Accelerating Aon United Program, the integration of NFP, actual or anticipated legal settlement expenses, future capital expenditures, growth in commissions and fees, changes to the composition or level of our revenues, cash flow and liquidity, expected tax rates, expected foreign currency translation impacts, business strategies, competitive strengths, goals, the benefits of new initiatives, growth of our business and operations, plans, references to future successes, and expectations with respect to the benefits of the acquisition of NFP are forward-looking statements. Also, when Aon uses words such as "anticipate", "believe", "continue", "could", "estimate", "expect", "forecast", "intend", "looking forward", "may", "might", "plan", "potential", "opportunity", "commit", "probably", "project", "positioned", "should", "will", "would" or similar expressions, it is making forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in or anticipated by the forward looking statements: changes in the competitive environment, due to macroeconomic conditions or otherwise, or damage to Aon's reputation; fluctuations in currency exchange, interest, or inflation rates that could impact our financial condition or results; changes in global equity and fixed income markets that could affect the return on invested assets; changes in the funded status of Aon's various defined benefit pension plans and the impact of any increased pension funding resulting from those changes; the level of Aon's debt and the terms thereof reducing Aon's flexibility or increasing borrowing costs; rating agency actions that could limit Aon's access to capital and our competitive position; volatility in Aon's global tax rate due to being subject to a variety of different factors, including the adoption and implementation in the European Union, the United States, the United Kingdom, or other countries of the Organization for Economic Co-operation and Development tax proposals or other pending proposals in those and other countries, which could create volatility in that tax rate; changes in Aon's accounting estimates or assumptions on Aon's financial statements; limits on Aon's subsidiaries' ability to pay dividends or otherwise make payments to Aon; the impact of legal proceedings and other contingencies, including those arising from acquisition or disposition transactions, errors and omissions and other claims against Aon (including proceeding and contingencies relating to transactions for which capital was arranged by Vesttoo Ltd. or related to actions we may take in being responsible for making decisions on behalf of clients in our investment business or in other advisory services that we currently provide, or may provide in the future); the impact of, and potential challenges in complying with, laws and regulations in the jurisdictions in which Aon operates, particularly given the global nature of Aon's operations and the possibility of differing or conflicting laws and regulations, or the application or interpretation thereof, across jurisdictions in which Aon does business; the impact of any regulatory investigations brought in Ireland, the U.K., the U.S. and other countries; failure to protect intellectual property rights or allegations that Aon infringes on the intellectual property rights of others; general economic and political conditions in different countries in which Aon does business around the world; the failure to retain, attract and develop experienced and qualified personnel; international risks associated with our global operations, including geopolitical conflicts, tariffs, or changes in trade policies; the effects of natural or human-caused disasters, including the effects of health pandemics and the impacts of climate related events; any system or network disruption or breach resulting in operational interruption or improper disclosure of confidential, personal, or proprietary data, and resulting liabilities or damage to our reputation; Aon's ability to develop, implement, update and enhance new technology; the actions taken by third parties that perform aspects of Aon's business operations and client services; Aon's ability to continue, and the costs and risks associated with, growing, developing and integrating acquired business, and entering into new lines of business or products; Aon's ability to secure regulatory approval and complete transactions, and the costs and risks associated with the failure to consummate proposed transactions; changes in commercial property and casualty markets, commercial premium rates or methods of compensation; Aon's ability to develop and implement innovative growth strategies and initiatives intended to yield cost savings (including the Accelerating Aon United Program), and the ability to achieve such growth or cost savings; the effects of Irish law on Aon's operating flexibility and the enforcement of judgments against Aon; adverse effects on the market price of Aon's securities and/or operating results for any reason, including, without limitation, because of a failure to realize the expected benefits of the acquisition of NFP (including anticipated revenue and growth synergies) in the expected timeframe, or at all; and significant integration costs or difficulties in connection with the acquisition of NFP or unknown or inestimable liabilities. Any or all of Aon's forward-looking statements may turn out to be inaccurate, and there are no guarantees about Aon's performance. The factors identified above are not exhaustive. Aon and its subsidiaries operate in a dynamic business environment in which new risks may emerge frequently. Accordingly, you should not place undue reliance on forward-looking statements, which speak only as of the dates on which they are made. In addition, results for prior periods are not necessarily indicative of results that may be expected for any future period. Further information concerning Aon and its businesses, including factors that could materially affect Aon's financial results, is contained in Aon's filings with the SEC. See Aon's Annual Report on Form 10-K for the year ended December 31, 2024 for a further discussion of these and other risks and uncertainties applicable to Aon and its businesses. These factors may be revised or supplemented in subsequent reports filed with the SEC. Aon is not under, and expressly disclaims, any obligation to update or alter any forward-looking statement that it may make from time to time, whether as a result of new information, future events or otherwise. Explanation of Non-GAAP MeasuresThis communication includes supplemental information not calculated in accordance with generally accepted accounting principles in the United States ("U.S. GAAP"), including Organic revenue growth, free cash flow, adjusted operating income, adjusted operating margin, adjusted earnings per share (EPS), adjusted net income attributable to Aon shareholders, adjusted diluted net income per share, adjusted effective tax rate, adjusted other income (expense), and adjusted income before income taxes that exclude the effects of intangible asset amortization and impairment, Accelerating Aon United Program expenses, contingent consideration, NFP transaction and integration costs, certain pension settlements, capital expenditures, and certain other noteworthy items that affected results for the comparable periods. Organic revenue growth includes the impact of intercompany activity and excludes foreign exchange rate changes, acquisitions (provided that Organic revenue growth includes Organic growth of an acquired business as calculated assuming that the acquired business was part of the combined company for the same proportion of the relevant prior year period), divestitures (including held for sale disposal groups, if any), transfers between revenue lines, fiduciary investment income, and gains or losses on derivatives accounted for as hedges. Currency impact represents the effect on prior year period results if they were translated at current period foreign exchange rates. Reconciliations to the closest U.S. GAAP measure for each non-GAAP measure presented in this communication are provided in the attached appendices. Supplemental Organic revenue growth information and additional measures that exclude the effects of certain items noted above do not affect net income or any other U.S. GAAP reported amounts. Free cash flow is cash flows from operating activity less capital expenditures. The adjusted effective tax rate excludes the applicable tax impact associated with adjustments previously described, generally at the estimated annual effective tax rate or jurisdictional rate, where appropriate. Beginning in the third quarter of 2024, the adjusted effective tax rate also excludes interest accruals for income tax reserves related to the termination fee payment made in connection with the Company's terminated proposed combination with Willis Towers Watson. Management believes that these measures are important to make meaningful period-to-period comparisons and that this supplemental information is helpful to investors. Management also uses these measures to assess operating performance and performance for compensation. Non-GAAP measures should be viewed in addition to, not in lieu of, Aon's Condensed Consolidated Financial Statements. Industry peers provide similar supplemental information regarding their performance, although they may not make identical adjustments. Aon does not provide a reconciliation of forward-looking non-GAAP measures, where Aon believes such a reconciliation would imply a degree of precision and certainty that could be misleading and is unable to reasonably predict certain items contained in the corresponding GAAP measures without unreasonable efforts. This is due to the inherent difficulty of forecasting the timing or amount of various items that have not yet occurred and are out of the Aon's control, or cannot be reasonably predicted. For these reasons, Aon is also unable to address the probable significance of the unavailable information. Investor Contact:Media Contact: Hallie MillerWill Dunn +1 847 442 0622Toll-free (U.S., Canada and Puerto Rico): +1 833 751 8114 +1 312 381 3024 mediainquiries@ Aon plcCondensed Consolidated Statements of Income (Unaudited)Three Months Ended June 30,Six Months Ended June 30, (millions, except per share data)20252024% Change20252024% Change Revenue Total revenue$ 4,155$ 3,76011 %$ 8,884$ 7,83013 % Expenses Compensation and benefits2,3602,13011 %4,6094,01315 % Information technology1361323 %2722566 % Premises85824 %1671539 % Depreciation of fixed assets47454 %93894 % Amortization and impairment of intangible assets20112857 %400144178 % Other general expense373455(18) %8198032 % Accelerating Aon United Program expenses94132(29) %204251(19) % Total operating expenses3,2963,1046 %6,5645,70915 % Operating income85965631 %2,3202,1219 % Interest income—31(100) %559(92) % Interest expense(212)(225)(6) %(418)(369)13 % Other income (expense)56236(76) %4631185 % Income before income taxes7036981 %1,9532,122(8) % Income tax expense (1)109160(32) %377491(23) % Net income59453810 %1,5761,631(3) % Less: Net income attributable to redeemable and nonredeemable noncontrolling interests15147 %3236(11) % Net income attributable to Aon shareholders$ 579$ 52410 %$ 1,544$ 1,595(3) %Basic net income per share attributable to Aon shareholders$ 2.68$ 2.479 %$ 7.14$ 7.75(8) % Diluted net income per share attributable to Aon shareholders$ 2.66$ 2.468 %$ 7.10$ 7.72(8) % Weighted average ordinary shares outstanding - basic216.2212.52 %216.3205.85 % Weighted average ordinary shares outstanding - diluted217.3213.32 %217.6206.75 % (1) The effective tax rate was 15.5% and 22.9% for the three months ended June 30, 2025 and 2024, respectively, and 19.3% and 23.1% for the six months ended June 30, 2025 and 2024, respectively. Aon plcSegment Results (Unaudited) Three Months Ended June 30,Risk CapitalHuman CapitalCorporate/Eliminations (1)Total Consolidated20252024202520242025202420252024 RevenueTotal revenue $ 2,866$ 2,650$ 1,291$ 1,125$ (2)$ (15)$ 4,155$ 3,760 ExpensesCompensation and benefits 1,5411,39079671023302,3602,130 Information technology 889345393—136132 Premises 545430281—8582 Other expenses (2) 31932930325893173715760 Total operating expenses 2,0021,8661,1741,0351202033,2963,104 Operating income $ 864$ 784$ 117$ 90$ (122)$ (218)$ 859$ 656 Operating margin 30.1 %29.6 %9.1 %8.0 %20.7 %17.4 %Six Months Ended June 30,Risk CapitalHuman CapitalCorporate/Eliminations (1)Total Consolidated20252024202520242025202420252024 RevenueTotal revenue $ 6,057$ 5,625$ 2,836$ 2,228$ (9)$ (23)$ 8,884$ 7,830 ExpensesCompensation and benefits 3,0022,7441,5701,23737324,6094,013 Information technology 17818290744—272256 Premises 10610459492—167153 Other expenses (2) 7106265973912092701,5161,287 Total operating expenses 3,9963,6562,3161,7512523026,5645,709 Operating income $ 2,061$ 1,969$ 520$ 477$ (261)$ (325)$ 2,320$ 2,121 Operating margin 34.0 %35.0 %18.3 %21.4 %26.1 %27.1 % (1) Corporate expenses/eliminations include governance costs, post-retirement benefits, and other costs that are not directly attributable to a specific segment. (2) Includes expenses related to Depreciation of fixed assets, Amortization and impairment of intangible assets, Accelerating Aon United Program expenses, and Other general expenses. Aon plcReconciliation of Non-GAAP Measures - Organic Revenue Growth and Free Cash Flow (Unaudited)Organic Revenue Growth (Unaudited) Three Months Ended June 30, 20252024% ChangeLess: Currency Impact (1)Less: Fiduciary Investment Income (2)Less: Acquisitions, Divestitures & Other Organic Revenue Growth (3) Risk Capital Revenue: Commercial Risk Solutions$ 2,178$ 2,0158 %1 %— %1 %6 % Reinsurance Solutions68863581—16 Human Capital Revenue: Health Solutions77266217——116 Wealth Solutions519463122—73 ...Eliminations(2)(15)N/AN/AN/AN/AN/A Total revenue$ 4,155$ 3,76011 %1 %— %4 %6 %Six Months Ended June 30, 20252024% ChangeLess: Currency Impact (1)Less: Fiduciary Investment Income (2)Less: Acquisitions, Divestitures & Other Organic Revenue Growth (3) Risk Capital Revenue: Commercial Risk Solutions$ 4,180$ 3,8239 %(1) %— %5 %5 % Reinsurance Solutions1,8771,8024———4 Human Capital Revenue: Health Solutions1,7981,39529(1)—246 Wealth Solutions1,038833251—186 Eliminations(9)(23)N/AN/AN/AN/AN/A Total revenue$ 8,884$ 7,83013 %(1) %— %9 %5 % (1) Currency impact represents the effect on prior year period results if they were translated at current period foreign exchange rates. (2) Fiduciary investment income for the three months ended June 30, 2025 and 2024 was $66 million and $75 million, respectively. Fiduciary investment income for the six months ended June 30, 2025 and 2024 was $133 million and $154 million, respectively. (3) Organic revenue growth includes the impact of certain intercompany activity and excludes the impact of changes in foreign exchange rates, fiduciary investment income, acquisitions (provided that Organic revenue growth includes Organic growth of an acquired business as calculated assuming that the acquired business was part of the combined company for the same proportion of the relevant prior year period), divestitures (including held for sale disposal groups, if any), transfers between revenue lines, and gains or losses on derivatives accounted for as hedges. Free Cash Flow (Unaudited)Three Months Ended June 30, (millions)20252024% Change Cash Provided by Operating Activities$ 796$ 51355 % Capital Expenditures(64)(53)21 % Free Cash Flow (1)$ 732$ 46059 % Six Months Ended June 30, (millions)20252024% Change Cash Provided by Operating Activities$ 936$ 82214 % Capital Expenditures(120)(101)19 % Free Cash Flow (1)$ 816$ 72113 % (1) Free cash flow is defined as cash flows from operations less capital expenditures. This non-GAAP measure does not imply or represent a precise calculation of residual cash flow available for discretionary expenditures. Aon plcReconciliation of Non-GAAP Measures - Operating Income and Operating Margin (Unaudited) (1) Three Months Ended June 30,Risk CapitalHuman CapitalCorporate/Eliminations (2)Total Consolidated (millions, except percentages) 20252024202520242025202420252024 Revenue $ 2,866$ 2,650$ 1,291$ 1,125$ (2)$ (15)$ 4,155$ 3,760 Operating income $ 864$ 784$ 117$ 90$ (122)$ (218)$ 859$ 656 Amortization and impairment of intangible assets 865311575——201128 Change in the fair value of contingent consideration (9)3(1)15——(10)18 Accelerating Aon United Program expenses (3) 3248612567294132 Transaction and integration costs (4)(5) 3391815742795 Adjusted operating income $ 976$ 891$ 246$ 210$ (51)$ (72)$ 1,171$ 1,029 Operating margin 30.1 %29.6 %9.1 %8.0 %20.7 %17.4 % Adjusted operating margin 34.1 %33.6 %19.1 %18.7 %28.2 %27.4 %Six Months Ended June 30,Risk CapitalHuman CapitalCorporate/Eliminations (2)Total Consolidated (millions, except percentages) 20252024202520242025202420252024 Revenue $ 6,057$ 5,625$ 2,836$ 2,228$ (9)$ (23)$ 8,884$ 7,830 Operating income $ 2,061$ 1,969$ 520$ 477$ (261)$ (325)$ 2,320$ 2,121 Amortization and impairment of intangible assets 1706523079——400144 Change in the fair value of contingent consideration (3)31015——718 Accelerating Aon United Program expenses (3) 51921023143136204251 Transaction and integration costs (4)(5) 1432118218956110 Adjusted operating income $ 2,293$ 2,132$ 791$ 612$ (97)$ (100)$ 2,987$ 2,644 Operating margin 34.0 %35.0 %18.3 %21.4 %26.1 %27.1 % Adjusted operating margin 37.9 %37.9 %27.9 %27.5 %33.6 %33.8 % (1) Certain noteworthy items impacting operating income in the three and six months ended June 30, 2025 and 2024 are described in this schedule. The items shown with the caption "adjusted" are non-GAAP measures. (2) Corporate expenses/eliminations include governance costs, post-retirement benefits, and other costs that are not directly attributable to a specific segment. (3) Total charges include technology-related costs to facilitate streamlining and simplifying operations, headcount reduction costs, and costs associated with asset impairments, including real estate consolidation. (4) Transaction costs include advisory, legal, accounting, regulatory, and other professional or consulting fees required to complete the NFP Transaction. No transaction costs were recognized for the three and six months ended June 30, 2025. $85 million and $96 million of transaction costs were recognized for the three and six months ended June 30, 2024, respectively. Of these amounts, $79 million and $90 million were recognized, respectively, in Total operating expenses and $6 million were recognized in Other income (expense) related to the extinguishment of acquired NFP debt for the three and six months ended June 30, 2024. (5) The NFP Transaction has and will continue to result in certain non-recurring integration costs associated with colleague severance, retention bonus awards, termination of redundant third-party agreements, costs associated with legal entity rationalization, and professional or consulting fees related to alignment of management processes and controls, as well as costs associated with the assessment of NFP information technology environment and security protocols. Aon incurred $27 million and $16 million of integration costs in the three months ended June 30, 2025 and 2024, respectively, and $56 million and $20 million of integration costs in the six months ended June 30, 2025 and 2024, respectively. Aon plcReconciliation of Non-GAAP Measures - Diluted Earnings Per Share (Unaudited) (1)Three Months Ended June 30,Six Months Ended June 30, (millions, except percentages)20252024% Change20252024% Change Adjusted operating income$ 1,171$ 1,02914 %$ 2,987$ 2,64413 % Interest income—31(100) %559(92) % Interest expense(212)(225)(6) %(418)(369)13 % Other income (expense): Other income (expense) - pensions(21)(11)91 %(44)(21)110 % Adjusted other income (expense) - other (2)(3)(4)(11)(4)175 %(18)(1)1,700 % Adjusted other income (expense)(32)(15)113 %(62)(22)182 % Adjusted income before income taxes 92782013 %2,5122,3129 % Adjusted income tax expense (5)153182(16) %485519(7) % Adjusted net income77463821 %2,0271,79313 % Less: Net income attributable to redeemable and nonredeemable noncontrolling interests15147 %3236(11) % Adjusted net income attributable to Aon shareholders$ 759$ 62422 %$ 1,995$ 1,75714 % Adjusted diluted net income per share attributable to Aon shareholders$ 3.49$ 2.9319 %$ 9.17$ 8.508 % Weighted average ordinary shares outstanding - diluted 217.3213.32 %217.6206.75 % Effective tax rates (5) U.S. GAAP15.5 %22.9 %19.3 %23.1 % Non-GAAP16.5 %22.2 %19.3 %22.4 % (1) Certain noteworthy items impacting operating income in the three and six months ended June 30, 2025 and 2024 are described in this schedule. The items shown with the caption "adjusted" are non-GAAP measures. (2) Adjusted Other income (expense) excluded gains from dispositions of $257 million related to the sale of a business for the three and six months ended June 30, 2024. (3) Adjusted Other income (expense) excluded approximately $6 million of debt extinguishment charges related to the repayment of NFP debt, which is considered a transaction related cost incurred in the second quarter of 2024. (4) For the three months ended June 30, 2025 and 2024, Other income was $56 million and $236 million, respectively. For the six months ended June 30, 2025 and 2024, Other income was $46 million and $311 million, respectively. During the three and six months ended June 30, 2025, gains of $88 million and $108 million were recognized, respectively, compared to $82 million recognized for the six months ended June 30, 2024, all of which was recognized in the first quarter of 2024. These gains related to deferred consideration from the affiliates of The Blackstone Group L.P. and the other designated purchasers related to a divestiture completed in a prior year period and were excluded from Adjusted other income (expense). Adjusted other expense for the three months ended June 30, 2025 and 2024 was $32 million and $15 million, respectively. Adjusted other expense for the six months ended June 30, 2025 and 2024 was $62 million and $22 million, respectively. (5) Adjusted items are generally taxed at the estimated annual effective tax rate, except for the applicable tax impact associated with Accelerating Aon United Program expenses, deferred consideration from a prior year sale of business, certain gains from dispositions, certain transaction and integration costs related to the acquisition of NFP, and changes in the fair value of contingent consideration, which are adjusted at the related jurisdictional rate. The tax adjustment also excludes interest accruals for income tax reserves related to the termination fee payment made in connection with the Company's terminated proposed combination with Willis Towers Watson. Aon plcCondensed Consolidated Statements of Financial PositionAs of (Unaudited) (millions) June 30,2025December 31,2024 Assets Current assets Cash and cash equivalents$ 1,008$ 1,085 Short-term investments379219 Receivables, net4,9053,803 Fiduciary assets (1)20,67717,566 Other current assets854759 Total current assets27,82323,432 Goodwill16,02415,234 Intangible assets, net6,7336,743 Fixed assets, net664637 Operating lease right-of-use assets735711 Deferred tax assets861654 Prepaid pension598556 Other non-current assets572998 Total assets$ 54,010$ 48,965Liabilities, redeemable noncontrolling interests, and equity Liabilities Current liabilities Accounts payable and accrued liabilities$ 2,294$ 2,905 Short-term debt and current portion of long-term debt1,837751 Fiduciary liabilities20,67717,566 Other current liabilities2,2671,773 Total current liabilities27,07522,995 Long-term debt15,45116,265 Non-current operating lease liabilities705685 Deferred tax liabilities363319 Pension, other postretirement, and postemployment liabilities1,0781,127 Other non-current liabilities1,2491,144 Total liabilities45,92142,535Redeemable noncontrolling interests81125Equity Ordinary shares - $0.01 nominal value Authorized: 500 shares (issued: 2025 – 215.7; 2024 - 216.0)22 Additional paid-in capital13,25813,173 Accumulated deficit(1,574)(2,309) Accumulated other comprehensive loss(3,843)(4,745) Total Aon shareholders' equity7,8436,121 Nonredeemable noncontrolling interests165184 Total equity8,0086,305 Total liabilities, redeemable noncontrolling interests and equity $ 54,010$ 48,965 (1) Includes cash and short-term investments of $8.3 billion and $7.2 billion as of June 30, 2025 and December 31, 2024, respectively. Aon plcCondensed Consolidated Statements of Cash Flows (Unaudited)Six Months Ended June 30, (millions) 20252024 Cash flows from operating activities Net income$ 1,576$ 1,631 Adjustments to reconcile net income to cash provided by operating activities: Gain from sales of businesses—(257) Depreciation of fixed assets9389 Amortization and impairment of intangible assets400144 Share-based compensation expense266247 Deferred income taxes(242)(122) Other, net(111)(112) Change in assets and liabilities: Receivables, net(902)(959) Accounts payable and accrued liabilities(738)(251) Accelerating Aon United Program liabilities1561 Current income taxes(73)60 Pension, other postretirement and postemployment liabilities(12)(17) Other assets and liabilities664308 Cash provided by operating activities936822 Cash flows from investing activities Proceeds from investments71146 Purchases of investments(42)(91) Net purchases (sales) of short-term investments - non fiduciary(153)189 Acquisition of businesses, net of cash and funds held on behalf of clients(143)(2,780) Sale of businesses, net of cash and funds held on behalf of clients119352 Capital expenditures(120)(101) Cash used for investing activities(268)(2,285) Cash flows from financing activities Share repurchase(500)(500) Proceeds from issuance of shares3327 Cash paid for employee taxes on withholding shares(194)(176) Commercial paper issuances, net of repayments480(591) Issuance of debt—7,926 Repayment of debt(300)(4,328) Increase in fiduciary liabilities, net of fiduciary receivables569283 Cash dividends to shareholders(308)(269) Redeemable and nonredeemable noncontrolling interests, and other financing activities(153)(108) Cash provided by (used for) financing activities(373)2,264 Effect of exchange rates on cash and cash equivalents and funds held on behalf of clients696(202) Net increase in cash and cash equivalents and funds held on behalf of clients991599 Cash, cash equivalents and funds held on behalf of clients at beginning of period8,3337,722 Cash, cash equivalents and funds held on behalf of clients at end of period$ 9,324$ 8,321 Reconciliation of cash and cash equivalents and funds held on behalf of clients: Cash and cash equivalents$ 1,008$ 974 Cash and cash equivalents and funds held on behalf of clients classified as held for sale138 Funds held on behalf of clients8,3157,309 Total cash and cash equivalents and funds held on behalf of clients$ 9,324$ 8,321 View original content: SOURCE Aon plc
