Integration RiskAON has recently underperformed the insurance broker peer group due to below-average organic growth, integration risk from the $13.4bn NFP acquisition, and management changes.
Organic GrowthWhile activity rebounded in Q2, it is still well below peak levels and is not expected to be a meaningful contributor to AON's organic growth.
ValuationThe stock fell -6% on the announcement given the associated premium valuation, shareholder dilution, increase in leverage, and presumed reduction in share repurchases.