Aon plc AON has been favored by investors on the back of cost-curbing measures and inorganic growth strategies.
This bullish sentiment is retained by the companys continued beat streak in three of the last four quarters (missing the mark in one), the average earnings surprise being 2.1%. This upside further underlines its operational excellence.
Its return-on-equity (ROE) reflects growth potential. The companys trailing 12-month ROE of 64.6% compares favorably with the industry average of 26.9%, reflecting its efficiency in utilizing its shareholders funds.
Being a leading insurance brokerage company, Aon always made buyouts to boost its portfolio like many of its peers. Its acquisitions mainly aim at expanding its health and benefits business, flood insurance solutions, and risk and insurance solution operations.
Strategic collaborations also expand the companys capacity and make it one of the largest insurance brokers. In 2019 and 2020, it acquired businesses for a total valuation of $38 million and $368 million, respectively. In fact, it is going to close its Willis Towers Watson purchase in the first half of 2021.