Posted on 25 Apr 12
Aon Takes Actions to Maximize Total Return for Shareholders
Aon plc announced that its Board of Directors has authorized a $5 billion share repurchase program and a 5% increase to its annual cash dividend paid quarterly on outstanding Class A ordinary shares.
"We have taken significant steps to strengthen our industry-leading product portfolio, position the firm for strong free cash flow generation and increase financial flexibility," said Greg Case, president and chief executive officer. "Today's announced actions highlight our belief in the underlying strength of the firm and our continued focus on maximizing total return for shareholders."
The Board of Directors authorized a $5 billion share repurchase program. Up to $5 billion of Class A ordinary shares may be repurchased from time to time depending on market conditions or other factors through open market or privately negotiated transactions. The authorized share repurchase program replaces and cancels the $2 billion share repurchase program previously authorized in January 2010, which had approximately $1.1 billion of remaining authorization.
Under U.K. law, Aon may repurchase its shares with prior approval of its shareholders authorized by special resolution, which authorization can last no longer than five years. A special resolution approving share repurchase for five years was adopted prior to the redomestication, and the amount authorized by the Board of Directors is intended to be sufficient to last for that time period.
Consistent with the increase in the dividend, the Board of Directors has declared a quarterly cash dividend of $0.1575 per share on outstanding Class A ordinary shares, reflecting a 5% increase from $0.15 per share. The dividend is payable May 15, 2012 to shareholders of record on May 1, 2012.
Aon plc is the leading global provider of risk management, insurance and reinsurance brokerage, and human resources solutions and outsourcing services. Through its more than 61,000 colleagues worldwide, Aon unites to empower results for clients in over 120 countries via innovative and effective risk and people solutions and through industry-leading global resources and technical expertise. Aon has been named repeatedly as the world's best broker, best insurance intermediary, reinsurance intermediary, captives manager and best employee benefits consulting firm by multiple industry sources. Visit www.aon.com for more information on Aon and www.aon.com/manchesterunited to learn about Aon's global partnership and shirt sponsorship with Manchester United.