Aon

-15.18%

Aon has been punished by the market, falling to around $270 after trading near $382 earlier this year. The trigger is not a collapse in the underlying business, but the company’s $17 billion agreement to acquire USI Insurance Services. Investors are worried about the additional debt, integration risk, and the decision to pause share buybacks while Aon focuses on deleveraging. Yet the latest operating numbers remain encouraging. Second quarter revenue reached $4.25 billion, organic revenue increased 5%, and adjusted operating margin expanded to 28.9%. Adjusted earnings per share increased 9%. Aon maintained its 2026 outlook for at least mid-single-digit organic growth and continued margin expansion. The dividend is another positive. Aon raised its quarterly dividend to $0.82 per share in 2026, marking its sixth consecutive double-digit annual increase. From a value perspective, the sell-off creates an interesting setup: a high-quality business at a much lower valuation, but with substantially higher financial risk. USI could generate $395 million in annual synergies and become earnings accretive from 2028. The recovery potential therefore depends heavily on successful integration and debt reduction. This review is for informational and educational purposes only, not financial advice.