Aon plc (NYSE:AON) Q2 2020 Earnings Conference Call - Final Transcript

Jul 31, 2020 • 08:30 am ET


Aon plc (NYSE:AON) Q2 2020 Earnings Conference Call - Final Transcript


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Good morning, and thank you for holding. Welcome to Aon Plc's Second Quarter 2020 Conference Call. [Operator Instructions] 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 2020 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.

Greg Case

Thanks very much, and good morning, everyone. Welcome to our second quarter conference call. I'm joined virtually by Christa Davies, our CFO; and Eric Andersen, our President. As in previous quarters, we posted a detailed financial presentation on our website. To begin, I want to thank our global team for their extraordinary leadership in responding to the ongoing challenges presented by COVID-19. Even as the vast majority of our workforce continue to work remotely, their innovation, connectivity and engagement in support of our clients and each other is truly exceptional. And we see that engagement in colleague feedback, most recently in the near 90% approval rating of our response to the pandemic. Consistent with that sentiment, colleague retention is up across the organization. Further, our firm's response to more recent and fundamental issues of social injustice and inclusion have been resolute and inspiring. Our global team is committed to structural change that is meaningful and lasting, change that will make us a better and more inclusive firm. We view progress on this front as central to our future and are taking action fully reflecting this priority. Turning to our second quarter results. For Aon overall, organic revenue declined 1%, an outcome that demonstrates great work by our team and resilience of our business in the face of unprecedented challenges in the global economy. In particular, I'd like to highlight 9% organic revenue growth in Reinsurance Solutions, driven by net new business generation in trading and double-digit growth in facultative placements.

These results demonstrate the team's seamless transition to the new working environment and their focus on meeting evolving client needs. Within Commercial Risk, 1% organic revenue growth was driven by strong retention across most major geographies and particular strength in core property and casualty, partially offset by impact in more discretionary areas of the portfolio such as transaction liability, construction and project work. Retirement Solutions declined 1% in organic revenue, reflecting solid growth in investments, ability in retirement and pressure in the more discretionary aspects of our business, especially human capital. two areas of particular challenge for the quarter were Health Solutions and Data & Analytic Services. We expect the short-term headwinds impacting results in both the areas will reverse over time. In Health Solutions, which declined 18% in the quarter,