Aon plc (NYSE:AON) Q2 2019 Earnings Conference Call - Final Transcript

Jul 26, 2019 • 08:30 am ET


Aon plc (NYSE:AON) Q2 2019 Earnings Conference Call - Final Transcript


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Good morning and thank you for holding. Welcome to Aon Plc's Second Quarter 2019 Earnings Conference Call. At this time, all parties will be in a listen-only mode until the question-and-answer portion of today's call. 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 this time.

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. Such statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or those anticipated. Information concerning risk factors that could cause such differences are described in the press release covering our second quarter 2019 results as well as having been posted on our website.

Now it is my pleasure to turn the call over to Greg Case, CEO of Aon Plc. You may now begin.

Greg Case

Thank you, and good morning to everyone. Welcome to our second quarter 2019 conference call. Joining me today is our CFO, Christa Davies. In addition, we have our two Co-Presidents, Eric Andersen and Michael O'Connor, joining the discussion to help lead our Q&A session with their frontline perspective of client impact and Aon United at work. Like previous quarters, we posted a detailed financial presentation on our website as we focus our time on these quarterly calls to provide you more insight into longer-term view for the firm.

I'd like to start today by acknowledging the tremendous work of my Aon colleagues around the world. Their collective efforts continue to strengthen the firm and create long-term momentum, reflected through strong operational results in the second quarter, including 6% organic revenue growth. I would highlight this is the fourth consecutive quarter of achieving 6% organic revenue growth reflecting continued acceleration of our historical trend. Substantial operating margin expansion of 240 basis points, 13% operational income growth and 9% EPS growth overcoming further FX headwinds in the quarter.

Our results reflect continued progress this year on our indirect reflection of the strategic actions, we progressively taken to drive Aon United and achieve our potential, operating as one united global professional services firm. As we've previously discussed, we've been laying the foundation for Aon United for over a decade, evolving our portfolio, investing in new content capability and breaking down internal barriers, all focused on increasing our relevance and strengthen our ability to serve clients. Open a client improved operational performance, reduce volatility or strengthen our capital position is at the core of our mission. In today's evolving world nearly every organization, industry and economy are confronting greater challenges than ever before while at the same time many organizations report, that they are less prepared than ever before. This is what we're hearing from CEOs and other business leaders across the globe and it was validated and the global survey Aon conducts every two years. The