I’m thrilled to sit down with Simon Glairy, a renowned expert in insurance and Insurtech, with deep expertise in risk management and AI-driven risk assessment. Today, we’re diving into the impressive third-quarter financial results of a leading global professional services firm for 2025, exploring the factors behind their revenue growth, operational efficiencies, and strategic vision. Simon brings a unique perspective to unpack how these numbers reflect broader industry trends and what they mean for the future of risk and human capital solutions.
How do you see the 7% total revenue increase reflecting the company’s strategic priorities for this quarter?
That 7% revenue bump to nearly $4 billion is a clear sign of strong execution on core priorities. I think it’s largely driven by their focus on organic growth, which also hit 7%, showing they’re not just relying on external factors but are genuinely expanding their client base and service offerings. Their emphasis on data-driven solutions and analytics, especially in high-demand areas like risk and human capital, seems to be paying off. It’s about meeting clients where the market is hottest—think cybersecurity risks or health benefits optimization—and delivering tailored value.
What’s your take on how organic growth stacked up against other influences like foreign currency impacts in achieving this revenue result?
Organic growth at 7% is the real star here—it’s the engine driving the revenue increase. The 1% favorable impact from foreign currency is a nice bonus, likely tied to a weaker dollar against key currencies in their operating regions. But it’s a smaller piece of the puzzle. Organic growth reflects deeper, sustainable progress in their business model, like winning new clients or upselling existing ones, rather than just riding currency fluctuations. It shows they’re building momentum from within.
Can you shed some light on what might have caused the 1% unfavorable impact from acquisitions and divestitures?
That 1% unfavorable impact likely comes from strategic portfolio adjustments. They might have divested a non-core or underperforming unit, which temporarily drags on revenue. Alternatively, an acquisition could have been integrated in a way that didn’t immediately contribute to the top line—maybe it’s more about long-term synergies than instant gains. These moves often reflect a focus on streamlining operations or doubling down on high-growth areas, even if there’s a short-term hit.
Turning to operating income, which surged 31% to $816 million, what do you believe were the key contributors to this impressive jump?
A 31% increase in operating income is massive, and I’d point to a combination of strong revenue growth and disciplined cost management. They’ve likely optimized their expense base while seeing returns from investments in high-margin services. The report hints at scale efficiencies and restructuring savings, which suggests they’ve streamlined processes—perhaps through technology or workforce realignment—to keep more of that revenue as profit. It’s a textbook case of growing the top line while tightening the belt on costs.
On an adjusted basis, operating income grew by 15% with a margin expansion of 170 basis points. How do you think they achieved such a significant improvement in efficiency?
That 15% adjusted growth with a margin expansion to 26.3% speaks to operational excellence. They’re probably leveraging technology to automate routine tasks, especially in areas like claims processing or data analysis, which cuts down on labor costs. Additionally, their focus on scale—handling more business without a proportional increase in overhead—plays a big role. It’s about doing more with less, whether that’s through centralized platforms or smarter resource allocation. That kind of margin improvement doesn’t happen by accident; it’s strategic.
The company highlighted scale efficiencies and restructuring savings as factors. Can you break down what these might look like in their day-to-day operations?
Scale efficiencies often mean consolidating operations—think shared service centers for back-office functions like HR or IT, which reduce duplication across regions. Restructuring savings could involve trimming redundant roles or renegotiating vendor contracts for better rates. On a day-to-day level, you might see teams using integrated digital tools to handle client queries faster or automated workflows for underwriting risks. These changes cut costs while maintaining, or even boosting, service quality. It’s about working smarter across the board.
Looking at the Risk Capital segment, which grew 7% to $2.5 billion, what do you think fueled this performance, particularly in Commercial Risk Solutions?
The 7% growth in Risk Capital, especially in Commercial Risk Solutions, likely stems from heightened demand for risk management in a volatile global environment. Businesses are facing complex challenges—supply chain disruptions, geopolitical tensions, cyber threats—and they’re turning to tailored solutions. Strong performance in North America and EMEA suggests they’ve captured market share by addressing region-specific risks, like regulatory changes or natural disaster exposure. It’s about being a trusted partner in navigating uncertainty.
Within Risk Capital, Reinsurance Solutions saw an 8% organic revenue increase. How critical were treaty and facultative placements to this success?
Treaty and facultative placements were likely pivotal to that 8% growth in Reinsurance Solutions. Treaty placements, which are broader agreements covering multiple risks, provide stable, recurring revenue by spreading exposure for insurers. Facultative placements, being more bespoke, cater to unique or high-value risks, often commanding premium fees. Together, they address a wide spectrum of client needs, from routine coverage to specialized protection. That balance probably drove significant uptake, especially as insurers seek to offload risk in an unpredictable market.
Can you elaborate on the role of the Strategy and Technology Group in achieving double-digit gains within this segment?
The Strategy and Technology Group’s double-digit gains are a testament to the power of innovation in reinsurance. They’re likely developing cutting-edge tools—think AI models for risk prediction or data platforms for real-time analytics—that help clients make better decisions. This group probably acts as a differentiator, offering insights that traditional reinsurance can’t match. For instance, they might simulate catastrophe scenarios or optimize capital allocation, which adds huge value for clients and justifies higher fees. Tech is becoming the backbone of growth here.
Shifting to Human Capital, which reported an 8% revenue increase to $1.5 billion, what do you see as the main drivers behind this robust growth?
The 8% growth in Human Capital to $1.5 billion reflects a growing corporate focus on workforce solutions amid tight labor markets and evolving employee expectations. Companies are investing in benefits, wellness programs, and talent retention strategies to stay competitive. This segment likely thrived by offering data-backed insights into employee engagement or health costs, helping clients attract and keep top talent. It’s a priority area as businesses recognize people as their biggest asset.
Within Human Capital, Health Solutions grew organically by 6%. How did talent analytics and core health benefits play into this result?
Health Solutions’ 6% organic growth ties directly to the rising importance of employee well-being. Talent analytics probably helped by identifying trends—like which benefits reduce turnover—allowing companies to allocate resources effectively. Core health benefits, meanwhile, are a staple; as healthcare costs climb, employers rely on expertise to design plans that balance cost and coverage. Together, these offerings address both strategic and practical needs, making the segment a go-to for clients looking to optimize their health programs.
Wealth Solutions within Human Capital grew by 5% organically. Can you discuss how Retirement advisory work and Investments contributed to this?
The 5% organic growth in Wealth Solutions likely comes from increased demand for retirement planning as aging workforces and economic uncertainty push companies to refine pension strategies. Retirement advisory work helps design sustainable plans, ensuring long-term financial security for employees. Investments, on the other hand, probably grew by guiding clients on asset allocation for pension funds or other wealth vehicles, maximizing returns in a choppy market. Both areas tap into a critical need for stability and growth in employee financial planning.
CEO comments highlighted the ‘Aon United strategy’ as a key driver of these results. How do you interpret this strategy’s role in shaping the company’s performance?
The Aon United strategy seems to be about aligning the entire organization around a unified vision—breaking down silos to deliver integrated solutions across risk and human capital. It’s likely fostering collaboration, so teams can cross-sell services or bundle offerings for greater client impact. For instance, a client might get risk management and employee benefits advice in one package. This holistic approach, accelerated by their 3×3 Plan, appears to be resonating with clients, driving both revenue and loyalty by addressing interconnected needs.
What is your forecast for the future of risk and human capital solutions based on these trends?
Looking ahead, I see risk and human capital solutions becoming even more intertwined with technology and data analytics. The demand for predictive tools in risk management—whether for cyber threats or climate impacts—will only grow, pushing firms to invest heavily in AI and machine learning. On the human capital side, personalization will be key; expect more tailored benefits and wellness programs driven by employee data. Overall, companies that can blend tech with human insight will lead the market, creating a more proactive, client-centric industry in 2026 and beyond.
