10 Best Insurance Stocks to Buy According to Hedge Funds

6. Aon plc (NYSE:AON)

No. of Hedge Fund Holders: 59

Aon plc (NYSE:AON) is a London-based professional services firm. It specializes in risk management, human capital consulting, and insurance brokerage. The company operates in more than 120 countries. Its services include Commercial Risk Solutions, Health Solutions, Reinsurance Solutions, and Wealth Solutions.

Aon plc (NYSE:AON) demonstrated strong performance in 2024. The company posted a revenue growth of 17% to $16 billion from a year ago. A 6% revenue growth was driven organically. Aon executed the first year of its 3 by 3 plan, which focuses on Risk Capital and Human Capital, Aon client leadership, and Aon Business Services. The company posted earnings of $15.60 per share, recording a 10% increase in adjusted earnings. In 2024, Aon generated around $2.8 billion in FCF and returned over $1.6 billion to shareholders. This reflects its ability to generate capital and return it to the shareholders.

Diamond Hill Large Cap Concentrated Fund stated the following regarding Aon plc (NYSE:AON) in its Q4 2024 investor letter:

“As valuations have continued rising and the economic cycle has gotten relatively long in the tooth, we’ve thought carefully about where and how we are exposed to more cyclical stocks. As such, we initiated just three new positions in Q4: Berkshire Hathaway, Aon plc (NYSE:AON) and Waste Management.”