v3.25.1
Segment Information
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Segment Information Segment Information
Reportable segments were determined using a management approach. They are consistent with how the CODM assesses the performance of the Company and allocates resources based on two segments: Risk Capital and Human Capital. This segmentation allows the CODM, who is our Chief Executive Officer and President, to align the assessment of performance and allocation of resources, based on segment operating income and operating margin, with how the Company addresses client need, accelerating its Aon United strategy through growth in Risk Capital and Human Capital and maximizing value for Aon and its shareholders.
Risk Capital supports clients through its Commercial Risk and Reinsurance solution lines. Commercial Risk includes insurance and specialty brokerage, global risk consulting, captives management, and Affinity programs. Reinsurance includes treaty reinsurance, facultative reinsurance, Strategy and Technology Group, and capital markets.
Human Capital supports clients through its Health and Wealth solution lines. Health includes consulting and brokerage, consumer benefits solutions, and talent advisory services. Wealth includes retirement consulting, pension administration, and investments consulting. Refer to Note 3 “Revenue from Contracts with Customers” for information on revenue by principal service line.
The Company does not present assets by reportable segment and this information is not used by the CODM to assess the performance of, or allocate resources to the Company’s reportable segments. As such, segment assets are not provided to the CODM.
The following tables include information about our reportable segments, including total segment revenue, consolidated revenue, segment operating income, and income before income taxes:
Three Months Ended March 31, 2025
(millions, except per share data)Risk CapitalHuman CapitalCorporate/EliminationsTotal Consolidated
Revenue
Total revenue (1)
$3,191 $1,545 $(7)$4,729 
Expenses
Compensation and benefits1,461 774 14 2,249 
Information technology90 45 1 136 
Premises52 29 1 82 
Other expenses (2)
391 294 116 801 
Total operating expenses1,994 1,142 132 3,268 
Operating income1,197 403 (139)1,461 
Operating margin37.5 %26.1 %30.9 %
Non-operating expenses
Interest income5 
Interest expense(206)
Other income (expense)(10)
Income before income taxes$1,250 
(1)Includes fiduciary investment income of $65 million in Risk Capital and $2 million in Human Capital for the three months ended March 31, 2025.
(2)Includes expenses related to Depreciation of fixed assets, Amortization and impairment of intangible assets, Accelerating Aon United Program expenses, and Other general expenses.
Three Months Ended March 31, 2024
(millions, except per share data)Risk CapitalHuman CapitalCorporate/EliminationsTotal Consolidated
Revenue
Total revenue (1)
$2,975 $1,103 $(8)$4,070 
Expenses
Compensation and benefits1,354 527 2 1,883 
Information technology89 35 — 124 
Premises50 21 — 71 
Other expense (2)
297 133 97 527 
Total operating expenses1,790 716 99 2,605 
Operating income1,185 387 (107)1,465 
Operating margin39.8 %35.1 %36.0 %
Non-operating expenses
Interest income28 
Interest expense(144)
Other income (expense)75 
Income before income taxes$1,424 
(1)Includes fiduciary investment income of $78 million in Risk Capital and $1 million in Human Capital for the three months ended March 31, 2024.
(2)Includes expenses related to Depreciation of fixed assets, Amortization and impairment of intangible assets, Accelerating Aon United Program expenses, and Other general expenses.
Revenue
Reportable segment revenue includes inter-segment revenue of $5 million for Risk Capital and $2 million for Human Capital for the three months ended March 31, 2025 and $6 million for Risk Capital and $2 million for Human Capital for the three months ended March 31, 2024. This inter-segment revenue is eliminated as a Corporate adjustment to reconcile to the Company's Consolidated Total revenue.
Segment Operating Expenses
The Company’s segment operating expenses are generally attributed to the function of the business. Segment expenses exclude governance costs, post-retirement benefits, and other costs that are not directly attributable to a specific segment. These expenses are considered corporate expenses/eliminations.
Non-operating Expenses
The Company’s non-operating income (expenses) primarily consist of Interest income, Interest expense and Other income (expense) which are not allocated to our reportable segments, as the CODM assesses performance based on operating income results. Interest income represents income earned on Cash and cash equivalents and Short-term investments. Interest expense represents the cost of debt obligations. Other income (expense) consists of equity earnings (loss), realized gains or losses on the sale of investments, gains on the disposal of businesses, gains or losses on derivatives, and gains or losses on foreign currency remeasurement.