Aon’s year-to-date performance reinforces the company’s confidence in achieving its full-year 2025 financial guidance, the report said.
Total revenue in the third quarter increased 7% to USD 4.0 billion compared to the prior year period, reflecting 7% organic revenue growth and a 1% favorable impact from foreign currency translation, partially offset by a 1% unfavorable impact from acquisitions, divestitures and other items. Risk Capital revenue increased USD 170 million, or 7%, to USD 2.5 billion and Human Capital revenue increased USD 106 million, or 8%, to USD 1.5 billion.
Total operating expenses in the third quarter increased 3% to USD 3.2 billion compared to the prior year period due primarily to an increase in expense associated with 7% organic revenue growth and an unfavorable impact from FX, partially offset by lower Accelerating Aon United program expenses, USD 35 million of net restructuring savings and a reduction in integration costs related to NFP. Risk Capital operating expenses increased USD 146 million, or 8%, to USD 1.9 billion and Human Capital operating expenses decreased USD 24 million, or 2%, to USD 1.1 billion.
Effective tax rate was 21.3% in the third quarter compared to 20.9% 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 third quarter of 2025 was 19.2% compared to 18.0% in the prior year period. The primary drivers of the change in the effective tax rate and adjusted effective tax rate were changes in the geographical distribution of income and a lower favorable impact from discrete items.
Cash flows provided by operations for the first nine months of 2025 increased USD 249 million, or 14%, to USD 2.1 billion compared to the prior year period, primarily due to strong adjusted operating income growth and lower NFP-related transaction costs, partially offset by higher payments related to incentive compensation, interest and restructuring.
"Our Aon United strategy, accelerated through our 3x3 Plan, is delivering strong results. We are attracting top talent in high-growth areas, scaling our data analytics across our core Risk Capital and Human Capital businesses, expanding in the middle market and unlocking new sources of capital", commented Greg Case, president and CEO. "Our strong capital position, fueled by robust cash generation and disciplined portfolio management, enables us to execute our capital allocation model – balancing high-return investment for future growth and capital return to shareholders", Case added. "We remain confident in achieving our full-year 2025 financial targets and are well positioned to deliver sustainable growth in 2026 and beyond", the president and CEO said.
The full report can be found here.
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