Analyst Note| Brett Horn, CFA |
Like its peers, Aon reported unusually strong growth in the second quarter, as the company benefited from both strong insurance market pricing and the bounceback in the economy. Overall revenue was up 16% year over year in the quarter, or 11% excluding currency impacts and acquisitions. We think near-term tailwinds and easy comparisons will drive outsized growth for the company this year, but would caution that modest and stable organic growth has been the norm for Aon historically and is our expectation over the long term. We will maintain our $222 fair value estimate and narrow moat rating.