Profile: Aon PLC (AON.N)
18 Dec 2013
Aon plc (Aon), incorporated on August 12, 2011, is a global provider of risk management services, insurance and reinsurance brokerage, and human resource consulting and outsourcing, delivering distinctive client value via risk management and workforce productivity solutions. The Company operates in two segments: Risk Solutions and Human Resource (HR) Solutions.
The Risk Solutions acts as an advisor and insurance and reinsurance broker, helping clients manage their risks via consultation, as well as negotiation and placement of insurance risk with insurance carriers through its global distribution network. During the year ended December 31, 2012, the Risk Solutions segment generated approximately 66% of its consolidated total revenue. It provides risk and insurance brokerage and related services. Its products and services include retail brokerage and reinsurance brokerage.
Retail brokerage includes its retail brokerage services, affinity products, managing general underwriting, placement, and captive management services. The Americas' operations provide products and services to clients in North, Central and South America, the Caribbean, and Bermuda. Its International operations in the United Kingdom; Europe, Middle East and Africa, and Asia Pacific offer similar products and services to clients throughout the rest of the world. It delivers advice and services in such industries as technology, financial services, agribusiness, aviation, construction, health care and energy. Through its global affinity business, it provides products for professional liability, life, disability income and personal lines for individuals, associations and businesses worldwide.
Reinsurance brokerage offers advisory services in program design and claim recoveries that enhance the risk/return characteristics of insurance policy portfolios, improve capital utilization, and evaluate and mitigate catastrophic loss exposures worldwide. Reinsurance brokerage also offers capital management transaction and advisory services. It acts as a broker or intermediary for all classes of reinsurance. It provides two main types of property and casualty reinsurance: treaty reinsurance, which involves the transfer of a portfolio of risks, and facultative reinsurance, which entails the transfer of part or all of the coverage provided by a single insurance policy. It also place specialty lines, such as professional liability, workers' compensation, accident, life and health.
The Company also provides actuarial, enterprise risk management, catastrophe management and rating agency advisory services. Aon Benfield Securities provides global capital management transaction and advisory services for insurance and reinsurance clients. Aon Benfield Securities provides the structuring, underwriting and trading of insurance-linked securities; the arrangement of financing for insurance and reinsurance companies, including Lloyd's syndicates, and providing advice on strategic and capital alternatives, including mergers and acquisitions. Its Inpoint business is a provider of consulting services to the insurance and reinsurance industry. Health and Benefits advises clients about structuring, funding, and administering employee benefit programs. Benefits consulting and brokerage includes health and welfare, executive benefits, workforce strategies and productivity, absence management, data-driven health, compliance, employee commitment, and elective benefits services.
HR Solutions partners with organizations to solve their complex benefits, talent and related financial challenges, and improve business performance by designing, implementing, communicating and administering a range of human capital, retirement, investment management, health care, compensation and talent management strategies. During the year ended December 31, 2012, the HR Solutions segment generated approximately 34% of its consolidated total revenues. The HR Solution segment operates in the United States, Canada, the United Kingdom, Europe, South Africa, Latin America and the Asia Pacific region. Its products and services include retirement, compensation, strategic human capital, investing consulting, exchanges,
benefits administration and human resource business process outsourcing (HR BPO). Retirement specializes in providing global actuarial services, defined contribution consulting, investment consulting, tax and ERISA consulting, and pension administration. Compensation focuses on compensation advisory/counsel, including compensation planning design, executive reward strategies, salary survey and benchmarking, market share studies and sales force effectiveness assessments, with special expertise in the financial services and technology industries.
Strategic Human Capital delivers advice to global organizations on talent, change and organizational effectiveness issues, including talent strategy and acquisition, executive on-boarding, performance management, leadership assessment and development, communication strategy, workforce training and change management. Investment consulting advises public and private companies, other institutions and trustees on developing and maintaining investment programs across a range of plan types, including defined benefit plans, defined contribution plans, endowments and foundations.
Benefits Administration applies its HR expertise primarily through defined benefit (pension), defined contribution, and health and welfare administrative services. HR BPO provides solutions to manage employee data; administer benefits, payroll and other human resources processes, and record and manage talent, workforce and other core HR process transactions, as well as other complementary services, such as absence management, flexible spending, dependent audit and participant advocacy.
The Company competes with Marsh & McLennan Companies, Inc. and Willis Group Holdings Ltd.
8 DEVONSHIRE SQUARE
LONDON EC2M 4PL