Aon Earnings: Multiple Tailwinds Drive Strong Results, but Aon Lags Closest Peer

Aon continued to produce good results in the second quarter as the company continues to benefit from multiple tailwinds across its business. However, results also continue to lag what we're seeing from the company's closest peer, Marsh McLennan. We appreciate Aon's strong near-term position, but historically the company has produced only modest growth, and we think a return to more normalized growth is inevitable. We think that the market is overly focused on near-term prospects, and the shares are overvalued as a result. We will maintain our $275 per share fair value estimate for the narrow-moat company.