1. Aon plc (NYSE:AON)
Number of Hedge Fund Holders: 54
Aon plc (NYSE:AON) is an insurance broker and risk management firm that operates in over 120 countries. The company provides a wide range of services, including Commercial Risk Solutions, Reinsurance Solutions, Retirement Solutions, Health Solutions, and Data & Analytic Services. Aon plc’s (NYSE:AON) expertise in risk capital and human capital allows it to deliver valuable insights that help clients make informed decisions to protect and grow their businesses.
In April 2024, the company completed the acquisition of NFP for an enterprise value of $13 billion. This strategic move enhances Aon plc’s (NYSE:AON) presence in the growing middle-market segment, adding over 7,700 colleagues and expanding its capabilities in property and casualty brokerage, benefits consulting, wealth management, and retirement planning. Additionally, Aon plc (NYSE:AON) made six middle-market acquisitions in Q3 2024, demonstrating its commitment to capitalizing on opportunities in this fast-growing sector.
Aon plc (NYSE:AON) reported total revenues of $3.7 billion for Q3 2024, including a 7% organic revenue growth.
The company is implementing its 3×3 Plan, which focuses on delivering integrated risk capital and human capital solutions through the Aon Client Leadership Model supported by its Aon Business Services platform. The company is also actively investing in advanced analytics and AI-driven services to position itself well for future growth.
Over the past 5 years, Aon plc (NYSE:AON) has grown its revenue at a compound annual growth rate (CAGR) of 6.49%, while its net income has increased at a CAGR of 10.14% during the same period.
With its robust growth strategy and recent acquisitions, Aon plc (NYSE:AON) stands out as a compelling investment opportunity in the insurance brokerage sector.
According to Insider Monkey’s Q2 database of over 900 hedge funds, 54 hedge funds held stakes in AON. Weitz Investment Management stated the following regarding Aon plc (NYSE:AON) in its “Partners III Opportunity Fund” second-quarter 2024 investor letter:
“The second quarter saw an elevated level of portfolio activity, including three new holdings. We re-initiated a position in global insurance broker and benefits provider Aon plc (NYSE:AON), as dissatisfaction over a recent, highly valued acquisition and the announced retirement of its well-regarded CFO pressured shares. Despite these near-term headwinds, we remain confident in Aon’s ongoing leadership team and demonstrated track record of execution.”
While we acknowledge the potential of insurance brokerage companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AIG but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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