Item 1. Financial Statements

Aon plc

Condensed Consolidated Statements of Income

(Unaudited)

						Three Months Ended March 31,
(millions, except per share data)						2022						2021
Revenue
Total revenue						$	3,670					$	3,525
Expenses
Compensation and benefits						1,767						1,719
Information technology						123						114
Premises						72						77
Depreciation of fixed assets						38						41
Amortization and impairment of intangible assets						28						40
Other general expense						275						289
Total operating expenses						2,303						2,280
Operating income						1,367						1,245
Interest income						3						3
Interest expense						(91)						(79)
Other income (expense)						25						(2)
Income before income taxes						1,304						1,167
Income tax expense						256						234
Net income						1,048						933
Less: Net income attributable to noncontrolling interests						25						20
Net income attributable to Aon shareholders						$	1,023					$	913
Basic net income per share attributable to Aon shareholders						$	4.75					$	4.02
Diluted net income per share attributable to Aon shareholders						$	4.73					$	4.00
Weighted average ordinary shares outstanding - basic						215.3						227.1
Weighted average ordinary shares outstanding - diluted						216.4						228.1

See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited).

Aon plc

Condensed Consolidated Statements of Comprehensive Income

(Unaudited)

						Three Months Ended March 31,
(millions)						2022						2021
Net income						$	1,048					$	933
Less: Net income attributable to noncontrolling interests						25						20
Net income attributable to Aon shareholders						1,023						913
Other comprehensive income (loss), net of tax:
Change in fair value of financial instruments						1						11
Foreign currency translation adjustments						(7)						(70)
Postretirement benefit obligation						33						29
Total other comprehensive income (loss)						27						(30)
Less: Other comprehensive income (loss) attributable to noncontrolling interests						(1)						—
Total other comprehensive income (loss) attributable to Aon shareholders						28						(30)
Comprehensive income attributable to Aon shareholders						$	1,051					$	883

See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited).

Aon plc

Condensed Consolidated Statements of Financial Position

						(Unaudited)
(millions, except nominal value)						March 31, 2022						December 31, 2021
Assets
Current assets
Cash and cash equivalents						$	595					$	544
Short-term investments						455						292
Receivables, net						3,625						3,094
Fiduciary assets						15,277						14,386
Other current assets						593						716
Total current assets						20,545						19,032
Goodwill						8,496						8,434
Intangible assets, net						530						492
Fixed assets, net						515						529
Operating lease right-of-use assets						754						786
Deferred tax assets						770						766
Prepaid pension						1,361						1,366
Other non-current assets						520						512
Total assets						$	33,491					$	31,917
Liabilities and equity
Liabilities
Current liabilities
Accounts payable and accrued liabilities						$	1,728					$	2,192
Short-term debt and current portion of long-term debt						599						1,164
Fiduciary liabilities						15,277						14,386
Other current liabilities						1,585						1,331
Total current liabilities						19,189						19,073
Long-term debt						9,685						8,228
Non-current operating lease liabilities						736						772
Deferred tax liabilities						399						401
Pension, other postretirement, and postemployment liabilities						1,320						1,375
Other non-current liabilities						871						910
Total liabilities						32,200						30,759
Equity
Ordinary shares - $0.01 nominal value Authorized: 500.0 shares (issued: 2022 - 212.9; 2021 - 214.8)						2						2
Additional paid-in capital						6,627						6,624
Accumulated deficit						(1,609)						(1,694)
Accumulated other comprehensive loss						(3,843)						(3,871)
Total Aon shareholders' equity						1,177						1,061
Noncontrolling interests						114						97
Total equity						1,291						1,158
Total liabilities and equity						$	33,491					$	31,917

See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited).

Aon plc

Condensed Consolidated Statements of Shareholders’ Equity

(Unaudited)

(millions)						Shares						Ordinary Shares and Additional Paid-in Capital						Retained Earnings (Accumulated Deficit)						Accumulated Other Comprehensive Loss, Net of Tax						Non- controlling Interests						Total
Balance at January 1, 2022						214.8						$	6,626					$	(1,694)					$	(3,871)					$	97					$	1,158
Net income						—						—						1,023						—						25						1,048
Shares issued - employee stock compensation plans						0.9						(116)						—						—						—						(116)
Shares purchased						(2.8)						—						(828)						—						—						(828)
Share-based compensation expense						—						119						—						—						—						119
Dividends to shareholders ($0.51 per share)						—						—						(110)						—						—						(110)
Net change in fair value of financial instruments						—						—						—						1						—						1
Net foreign currency translation adjustments						—						—						—						(6)						(1)						(7)
Net postretirement benefit obligation						—						—						—						33						—						33
Dividends paid to noncontrolling interests on subsidiary common stock						—						—						—						—						(7)						(7)
Balance at March 31, 2022						212.9						$	6,629					$	(1,609)					$	(3,843)					$	114					$	1,291

(millions)						Shares						Ordinary Shares and Additional Paid-in Capital						Retained Earnings (Accumulated Deficit)						Accumulated Other Comprehensive Loss, Net of Tax						Non- controlling Interests						Total
Balance at January 1, 2021						225.5						$	6,314					$	1,042					$	(3,861)					$	88					$	3,583
Net income						—						—						913						—						20						933
Shares issued - employee stock compensation plans						0.9						(87)						—						—						—						(87)
Shares purchased						(0.2)						—						(50)						—						—						(50)
Share-based compensation expense						—						131						—						—						—						131
Dividends to shareholders ($0.46 per share)						—						—						(104)						—						—						(104)
Net change in fair value of financial instruments						—						—						—						11						—						11
Net foreign currency translation adjustments						—						—						—						(70)						—						(70)
Net postretirement benefit obligation						—						—						—						29						—						29
Purchases of subsidiary shares from noncontrolling interests						—						(8)						—						—						(6)						(14)
Dividends paid to noncontrolling interests on subsidiary common stock						—						—						—						—						(1)						(1)
Balance at March 31, 2021						226.2						$	6,350					$	1,801					$	(3,891)					$	101					$	4,361

See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited).

Aon plc

Condensed Consolidated Statements of Cash Flows

(Unaudited)

						Three Months Ended March 31,
(millions)						2022						2021
Cash flows from operating activities
Net income						$	1,048					$	933
Adjustments to reconcile net income to cash provided by operating activities:
Gain from sales of businesses						(25)						—
Depreciation of fixed assets						38						41
Amortization and impairment of intangible assets						28						40
Share-based compensation expense						119						131
Deferred income taxes						(18)						19
Change in assets and liabilities:
Receivables, net						(544)						(485)
Accounts payable and accrued liabilities						(449)						(356)
Current income taxes						153						142
Pension, other postretirement and postemployment liabilities						(27)						(59)
Other assets and liabilities						140						155
Cash provided by operating activities						463						561
Cash flows from investing activities
Proceeds from investments						45						11
Payments for investments						(9)						(18)
Net sales (purchases) of short-term investments - non fiduciary						(164)						138
Acquisition of businesses, net of cash and funds held on behalf of clients						(134)						—
Sale of businesses, net of cash and funds held on behalf of clients						22						—
Capital expenditures						(23)						(29)
Cash provided by (used for) investing activities						(263)						102
Cash flows from financing activities
Share repurchase						(828)						(50)
Issuance of shares for employee benefit plans						(116)						(87)
Issuance of debt						3,128						250
Repayment of debt						(2,208)						(650)
Increase in fiduciary liabilities, net of fiduciary receivables						647						28
Cash dividends to shareholders						(110)						(104)
Noncontrolling interests and other financing activities						(13)						(68)
Cash provided by (used for) financing activities						500						(681)
Effect of exchange rates on cash and cash equivalents and funds held on behalf of clients						(50)						(34)
Net increase (decrease) in cash and cash equivalents and funds held on behalf of clients						650						(52)
Cash, cash equivalents and funds held on behalf of clients at beginning of period						6,645						6,573
Cash, cash equivalents and funds held on behalf of clients at end of period						$	7,295					$	6,521
Reconciliation of cash and cash equivalents and funds held on behalf of clients:
Cash and cash equivalents						$	595					$	822
Funds held on behalf of clients						6,700						5,699
Total cash and cash equivalents and funds held on behalf of clients						$	7,295					$	6,521
Supplemental disclosures:
Interest paid						$	22					$	36
Income taxes paid, net of refunds						$	121					$	74

See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited).

Notes to Condensed Consolidated Financial Statements (Unaudited)

1. Basis of Presentation

The accompanying Condensed Consolidated Financial Statements have been prepared in accordance with U.S. GAAP. The Condensed Consolidated Financial Statements include the accounts of Aon plc and all of its controlled subsidiaries (“Aon” or the “Company”). Intercompany accounts and transactions have been eliminated. The Condensed Consolidated Financial Statements include, in the opinion of management, all adjustments (consisting of normal recurring adjustments and reclassifications) necessary to present fairly the Company’s consolidated financial position, results of operations and cash flows for all periods presented.

Certain information and disclosures normally included in the Financial Statements prepared in accordance with U.S. GAAP have been condensed or omitted. The Financial Statements should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. The results for the three months ended March 31, 2022 are not necessarily indicative of operating results that may be expected for the full year ending December 31, 2022, particularly in light of the continuing effect of the COVID-19 pandemic.

Use of Estimates

The preparation of the accompanying Condensed Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the Condensed Consolidated Financial Statements, and the reported amounts of reserves and expenses. These estimates and assumptions are based on management’s best estimates and judgments. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment. Management believes its estimates to be reasonable given the current facts available. Aon adjusts such estimates and assumptions when facts and circumstances dictate. Illiquid credit markets, volatile equity markets, foreign currency exchange rate movements, and the COVID-19 pandemic increase the uncertainty inherent in such estimates and assumptions. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in estimates resulting from continuing changes in the economic environment would, if applicable, be reflected in the Condensed Consolidated Financial Statements in future periods.

Revision of Previously Issued Financial Statements

During the fourth quarter of 2021, the Company identified and corrected an immaterial presentation error related to Funds held on behalf of clients in the Condensed Consolidated Statements of Cash Flows. The Company made appropriate revisions to its Condensed Consolidated Statements of Cash Flows for historical periods. Further information is contained in Note 1 “Basis of Presentation” of the Notes to Consolidated Financial Statements in Part II, Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2021.

2. Accounting Principles and Practices

All issued, but not yet effective, guidance has been deemed not applicable or not significant to the Condensed Consolidated Financial Statements.

3. Revenue from Contracts with Customers

Disaggregation of Revenue

The following table summarizes revenue from contracts with customers by principal service line (in millions):

						Three Months Ended March 31,
						2022						2021
Commercial Risk Solutions						$	1,719					$	1,640
Reinsurance Solutions						976						922
Health Solutions						638						615
Wealth Solutions						345						355
Eliminations						(8)						(7)
Total revenue						$	3,670					$	3,525

Consolidated revenue from contracts with customers by geographic area, which is attributed on the basis of where the services are performed, is as follows (in millions):

						Three Months Ended March 31,
						2022						2021
United States						$	1,417					$	1,308
Americas other than United States						276						250
United Kingdom						528						530
Ireland						29						33
Europe, Middle East, & Africa other than United Kingdom and Ireland						1,058						1,091
Asia Pacific						362						313
Total revenue						$	3,670					$	3,525

Contract Costs

An analysis of the changes in the net carrying amount of costs to fulfill contracts with customers are as follows (in millions):

						Three Months Ended March 31,
						2022						2021
Balance at beginning of period						$	361					$	339
Additions						348						346
Amortization						(457)						(443)
Impairment						—						—
Foreign currency translation and other						2						(1)
Balance at end of period						$	254					$	241

An analysis of the changes in the net carrying amount of costs to obtain contracts with customers are as follows (in millions):

						Three Months Ended March 31,
						2022						2021
Balance at beginning of period						$	179					$	184
Additions						15						13
Amortization						(12)						(12)
Impairment						—						—
Foreign currency translation and other						2						—
Balance at end of period						$	184					$	185

4. Cash and Cash Equivalents and Short-Term Investments

Cash and cash equivalents include cash balances and all highly liquid instruments with initial maturities of three months or less. Short-term investments consist of money market funds. The estimated fair value of Cash and cash equivalents and Short-term investments approximates their carrying values.

At March 31, 2022, Cash and cash equivalents and Short-term investments were $1,050 million compared to $836 million at December 31, 2021, an increase of $214 million. Of the total balances, $163 million and $160 million were restricted as to their use at March 31, 2022 and December 31, 2021, respectively. Included within Short-term investments as of March 31, 2022 and December 31, 2021, were £84.3 million ($111.1 million at March 31, 2022 exchange rates and $112.8 million at December 31, 2021 exchange rates) of operating funds required to be held by the Company in the U.K. by the FCA, a U.K.-based regulator.

5. Other Financial Data

Condensed Consolidated Statements of Income Information

Other Income (Expense)

Other income (expense) consists of the following (in millions):

			Three Months Ended March 31,
			2022						2021
Foreign currency remeasurement			$	(28)					$	4
Pension and other postretirement			(3)						6
Equity earnings			1						1
Gain from sales of businesses			25						—
Financial instruments and other			30						(13)
Total			$	25					$	(2)

Condensed Consolidated Statements of Financial Position Information

Allowance for Doubtful Accounts

Changes in the net carrying amount of allowance for doubtful accounts are as follows (in millions):

			Three Months Ended March 31,
			2022						2021
Balance at beginning of period			$	90					$	98
Provision			6						6
Accounts written off, net of recoveries			(3)						(4)
Foreign currency translation and other			—						1
Balance at end of period			$	93					$	101

Other Current Assets

The components of Other current assets are as follows (in millions):

As of			March 31, 2022						December 31, 2021
Costs to fulfill contracts with customers (1)			$	254					$	361
Prepaid expenses			132						137
Taxes receivable			48						53
Other			159						165
Total			$	593					$	716

(1)Refer to Note 3 “Revenue from Contracts with Customers” for further information.

Other Non-Current Assets

The components of Other non-current assets are as follows (in millions):

As of			March 31, 2022						December 31, 2021
Costs to obtain contracts with customers (1)			$	184					$	179
Taxes receivable			93						95
Leases			57						63
Investments			62						64
Other			124						111
Total			$	520					$	512

(1)Refer to Note 3 “Revenue from Contracts with Customers” for further information.

Other Current Liabilities

The components of Other current liabilities are as follows (in millions):

As of			March 31, 2022						December 31, 2021
Deferred revenue (1)			$	323					$	321
Taxes payable			269						149
Leases			207						213
Other			786						648
Total			$	1,585					$	1,331

(1)During the three months ended March 31, 2022, revenue of $203 million was recognized in the Condensed Consolidated Statements of Income. During the three months ended March 31, 2021, revenue of $171 million was recognized in the Condensed Consolidated Statements of Income.

Other Non-Current Liabilities

The components of Other non-current liabilities are as follows (in millions):

As of			March 31, 2022						December 31, 2021
Taxes payable (1)			$	631					$	609
Leases			42						46
Deferred revenue			34						70
Compensation and benefits			57						58
Other			107						127
Total			$	871					$	910

(1)Includes $145 million for the non-current portion of the one-time mandatory transition tax on accumulated foreign earnings as of March 31, 2022 and December 31, 2021.

6. Acquisitions and Dispositions of Businesses

Completed Acquisitions

The Company completed one acquisition during the three months ended March 31, 2022 and no acquisitions during the three months ended March 31, 2021. The following table includes the preliminary fair values of consideration transferred, assets acquired, and liabilities assumed as a result of the Company’s acquisition (in millions):

						March 31, 2022
Consideration transferred
Cash						$	134
Deferred and contingent consideration						3
Aggregate consideration transferred						$	137
Assets acquired
Goodwill						74
Intangible assets						65
Other assets						6
Total assets acquired						145
Liabilities assumed:
Total liabilities assumed						8
Net assets acquired						$	137

The results of operations of this acquisition are included in the Condensed Consolidated Financial Statements as of the acquisition date. The Company’s results of operations would not have been materially different if this acquisition had been reported from the beginning of the period in which it was acquired.

2022 Acquisitions

On March 1, 2022, the Company completed the acquisition of Tyche, an actuarial software platform based in the U.K.

2021 Acquisitions

On December 22, 2021, the Company completed the acquisition of 100% of the share capital of For Welfare S.r.l, a company focused on bancassurance programs in Italy.

On September 1, 2021, the Company completed the acquisition of the remaining 51% of Aon India Insurance Brokers Limited (formerly known as Anviti Insurance Brokers Private Limited). Prior to the acquisition date, the Company accounted for its 49% interest in Anviti as an equity-method investment. The acquisition-date fair value of the previous equity interest was $15 million and was included in the measurement of consideration transferred. There was no significant impact as a result of remeasuring the carrying value of the Company’s prior equity interest in Anviti held before the business combination.

Completed Dispositions

The Company completed two dispositions during the three months ended March 31, 2022 and no dispositions during the three months ended March 31, 2021.

The pretax gains recognized related to dispositions were $25 million for the three months ended March 31, 2022. There were no pretax gains recognized related to dispositions for the three months ended March 31, 2021. Gains recognized as a result of a disposition are included in Other income in the Condensed Consolidated Statements of Income.

7. Goodwill and Other Intangible Assets

The changes in the net carrying amount of goodwill for the three months ended March 31, 2022 are as follows (in millions):

Balance as of December 31, 2021			$	8,434
Goodwill related to current year acquisitions			74
Goodwill related to disposals			(7)
Foreign currency translation and other			(5)
Balance as of March 31, 2022			$	8,496

Other intangible assets by asset class are as follows (in millions):

			March 31, 2022																		December 31, 2021
			Gross Carrying Amount						Accumulated Amortization and Impairment						Net Carrying Amount						Gross Carrying Amount						Accumulated Amortization and Impairment						Net Carrying Amount
Customer-related and contract-based			$	2,307					$	1,866					$	441					$	2,289					$	1,848					$	441
Tradenames			14						14						—						14						13						1
Technology and other			447						358						89						407						357						50
Total			$	2,768					$	2,238					$	530					$	2,710					$	2,218					$	492

The estimated future amortization for finite-lived intangible assets as of March 31, 2022 is as follows (in millions):

Remainder of 2022			$	81
2023			97
2024			82
2025			69
2026			48
2027			33
Thereafter			120
Total			$	530

8. Debt

Notes

On February 28, 2022, Aon Corporation, a Delaware corporation, and Aon Global Holdings plc, a public limited company formed under the laws of England and Wales, both wholly owned subsidiaries of the Company, co-issued $600 million of 2.85% Senior Notes due May 2027 and $900 million of 3.90% Senior Notes due February 2052. The Company intends to use the net proceeds from the offering for general corporate purposes.

On December 2, 2021, Aon Corporation and Aon Global Holdings plc, co-issued $500 million of 2.60% Senior Notes set to mature on December 2, 2031. The Company intends to use the net proceeds of the offering for general corporate purposes.

In November 2021, the Company’s $500 million 2.20% Senior Notes due November 2022 were classified as Short-term debt and current portion of long-term debt in the Condensed Consolidated Statements of Financial Position as the date of maturity was within one year.

On August 23, 2021, Aon Corporation and Aon Global Holdings plc, co-issued $400 million of 2.05% Senior Notes due August 2031 and $600 million of 2.90% Senior Notes due August 2051. The Company intends to use the net proceeds of the offering for general corporate purposes.

On January 13, 2021, Aon Global Limited, a limited company organized under the laws of England and Wales and a wholly owned subsidiary of the Company, issued an irrevocable notice of redemption to holders of its 2.80% Senior Notes for the redemption of all $400 million outstanding aggregate principal amount of the notes, which were set to mature in March 2021 and classified as Short-term debt and current portion of long-term debt as of December 31, 2020. The redemption date was on February 16, 2021 and resulted in an insignificant loss due to extinguishment.

Revolving Credit Facilities

As of March 31, 2022, Aon had two primary committed credit facilities outstanding: its $1.0 billion multi-currency U.S. credit facility expiring in September 2026 and its $750 million multi-currency U.S. credit facility expiring in October 2023. In aggregate, these two facilities provide $1.75 billion in available credit.

Each of these primary committed credit facilities includes customary representations, warranties, and covenants, including financial covenants that require Aon to maintain specified ratios of adjusted consolidated EBITDA to consolidated interest expense and consolidated debt to adjusted consolidated EBITDA, in each case, tested quarterly. At March 31, 2022, Aon did not have borrowings under either of these primary committed credit facilities, and was in compliance with the financial covenants and all other covenants contained therein during the rolling 12 months ended March 31, 2022.

Commercial Paper

Aon Corporation has established a U.S. commercial paper program (the “U.S. Program”) and Aon Global Holdings plc has established a European multi-currency commercial paper program (the “European Program” and, together with the U.S. Program, the “Commercial Paper Programs”). Commercial paper may be issued in aggregate principal amounts of up to $1 billion under the U.S. Program and €625 million ($686 million at March 31, 2022 exchange rates) under the European Program, not to exceed the amount of the Company’s committed credit facilities, which was $1.75 billion at March 31, 2022. The U.S. Program is fully and unconditionally guaranteed by Aon plc, Aon Global Limited, and Aon Global Holdings plc and the European Program is fully and unconditionally guaranteed by Aon plc, Aon Global Limited, and Aon Corporation.

Commercial paper outstanding, which is included in Short-term debt and current portion of long-term debt in the Condensed Consolidated Statements of Financial Position, is as follows (in millions):

			March 31, 2022			December 31, 2021
Commercial paper outstanding			$	100		$	665

The weighted average commercial paper outstanding and its related interest rates are as follows (in millions, except percentages):

						Three Months Ended March 31,
						2022						2021
Weighted average commercial paper outstanding						$	571					$	17
Weighted average interest rate of commercial paper outstanding						(0.16)		%				0.19		%

9. Income Taxes

The effective tax rate on Net income was 19.6% for the three months ended March 31, 2022. The effective tax rate on Net income was 20.1% for the three months ended March 31, 2021.

For the three months ended March 31, 2022 and March 31, 2021, the tax rate was primarily driven by the geographical distribution of income and certain discrete items, primarily the favorable impacts of share-based payments.

10. Shareholders’ Equity

Ordinary Shares

Aon has a share repurchase program authorized by the Company’s Board of Directors (the “Repurchase Program”). The Repurchase Program was established in April 2012 with $5.0 billion in authorized repurchases, and was increased by $5.0 billion in authorized repurchases in each of November 2014, June 2017, November 2020, and by $7.5 billion in February 2022 for a total of $27.5 billion in repurchase authorizations.

Under the Repurchase Program, the Company’s class A ordinary shares may be repurchased through the open market or in privately negotiated transactions, from time to time, based on prevailing market conditions, and will be funded from available capital.

The following table summarizes the Company’s share repurchase activity (in millions, except per share data):

			Three Months Ended March 31,
			2022						2021
Shares repurchased			2.8						0.2
Average price per share			$	294.47					$	217.70
Repurchase costs recorded to retained earnings			$	828					$	50

At March 31, 2022, the remaining authorized amount for share repurchases under the Repurchase Program was approximately $8.4 billion. Under the Repurchase Program, the Company has repurchased a total of 152.4 million shares for an aggregate cost of approximately $19.1 billion.

Weighted Average Ordinary Shares

Weighted average ordinary shares outstanding are as follows (in millions):

			Three Months Ended March 31,
			2022						2021
Basic weighted average ordinary shares outstanding			215.3						227.1
Dilutive effect of potentially issuable shares			1.1						1.0
Diluted weighted average ordinary shares outstanding			216.4						228.1

Potentially issuable shares are not included in the computation of Diluted net income per share attributable to Aon shareholders if their inclusion would be antidilutive. There were 0.9 million shares excluded from the calculation for the three months ended March 31, 2022 and 0.1 million shares excluded from the calculation for the three months ended March 31, 2021.

Accumulated Other Comprehensive Loss

Changes in Accumulated other comprehensive loss by component, net of related tax, are as follows (in millions):

			Change in Fair Value of Financial Instruments (1)						Foreign Currency Translation Adjustments						Postretirement Benefit Obligation (2)						Total
Balance at December 31, 2021			$	2					$	(1,333)					$	(2,540)					(3,871)
Other comprehensive income (loss) before reclassifications, net			—						(6)						10						4
Amounts reclassified from accumulated other comprehensive income
Amounts reclassified from accumulated other comprehensive income			1						—						31						32
Tax expense			—						—						(8)						(8)
Amounts reclassified from accumulated other comprehensive income, net (3)			1						—						23						24
Net current period other comprehensive income (loss)			1						(6)						33						28
Balance at March 31, 2022			$	3					$	(1,339)					$	(2,507)					$	(3,843)

			Change in Fair Value of Financial Instruments (1)						Foreign Currency Translation Adjustments						Postretirement Benefit Obligation (2)						Total
Balance at December 31, 2020			$	1					$	(1,045)					$	(2,817)					$	(3,861)
Other comprehensive income (loss) before reclassifications, net			10						(70)						2						(58)
Amounts reclassified from accumulated other comprehensive income
Amounts reclassified from accumulated other comprehensive income			1						—						36						37
Tax expense			—						—						(9)						(9)
Amounts reclassified from accumulated other comprehensive income, net (3)			1						—						27						28
Net current period other comprehensive income (loss)			11						(70)						29						(30)
Balance at March 31, 2021			$	12					$	(1,115)					$	(2,788)					$	(3,891)

(1)Reclassifications from this category included in Accumulated other comprehensive loss are recorded in Total revenue, Interest expense, and Compensation and benefits in the Condensed Consolidated Statements of Income. Refer to Note 13 “Derivatives and Hedging” for further information regarding the Company’s derivative and hedging activity.

(2)Reclassifications from this category included in Accumulated other comprehensive loss are recorded in Other income (expense) in the Condensed Consolidated Statements of Income.

(3)It is the Company’s policy to release income tax effects from Accumulated other comprehensive loss using the portfolio approach.

11. Employee Benefits

The following table provides the components of the net periodic (benefit) cost recognized in the Condensed Consolidated Statements of Income for Aon’s significant U.K., U.S., and other major pension plans, which are located in the Netherlands and Canada. Service cost is reported in Compensation and benefits and all other components are reported in Other income (expense) as follows (in millions):

			Three Months Ended March 31,
			U.K.												U.S.												Other
			2022						2021						2022						2021						2022						2021
Service cost			$	—					$	—					$	—					$	—					$	—					$	—
Interest cost			23						16						17						14						5						3
Expected return on plan assets, net of administration expenses			(36)						(34)						(27)						(32)						(9)						(8)
Amortization of prior-service cost			1						1						—						—						—						—
Amortization of net actuarial loss			7						8						16						19						4						4
Net periodic (benefits) cost			(5)						(9)						6						1						—						(1)
Loss on pension settlement			—						—						1						—						—						—
Total net periodic (benefit) cost			$	(5)					$	(9)					$	7					$	1					$	—					$	(1)

In the first quarter of 2022, the Company recognized a non-cash settlement charge of approximately $1 million. Settlements from a certain U.S. pension plan exceeded the plan’s service and interest cost. This triggered settlement accounting which required the immediate recognition of a portion of the accumulated losses associated with the plan.

Contributions

Assuming no additional contributions are agreed to with, or required by, the pension plan trustees, the Company expects to make total cash contributions of approximately $7 million, $52 million, and $15 million, (at December 31, 2021 exchange rates) to its significant U.K., U.S., and other major pension plans, respectively, during 2022. The following table summarizes contributions made to the Company’s significant pension plans (in millions):

						Three Months Ended March 31,
						2022						2021
Contributions to U.K. pension plans						$	3					$	4
Contributions to U.S. pension plans						18						38
Contributions to other major pension plans						8						8
Total contributions						$	29					$	50

12. Share-Based Compensation Plans

The following table summarizes share-based compensation expense recognized in the Condensed Consolidated Statements of Income in Compensation and benefits (in millions):

			Three Months Ended March 31,
			2022						2021
Restricted share units			$	87					$	66
Performance share awards			27						61
Employee share purchase plans			4						4
Total share-based compensation expense			$	119					$	131

Restricted Share Units

RSUs generally vest between three and five years. The fair value of RSUs is based upon the market value of the Company’s class A ordinary shares at the date of grant. With certain limited exceptions, any break in continuous employment will cause the forfeiture of all non-vested awards. Compensation expense associated with RSUs is recognized on a straight-line basis over the requisite service period. Dividend equivalents are paid on certain RSUs, based on the initial grant amount.

The following table summarizes the status of the Company’s RSUs (shares in thousands, except fair value):

			Three Months Ended March 31,
			2022												2021
			Shares						Fair Value (1)						Shares						Fair Value (1)
Non-vested at beginning of period			3,075						$	203					3,309						$	163
Granted			428						$	307					372						$	226
Vested			(396)						$	189					(452)						$	160
Forfeited			(53)						$	207					(70)						$	166
Non-vested at end of period			3,055						$	219					3,159						$	171

(1)Represents per share weighted average fair value of award at date of grant.

Unamortized deferred compensation expense amounted to $478 million as of March 31, 2022, with a remaining weighted average amortization period of approximately 2.0 years.

Performance Share Awards

The vesting of PSAs is contingent upon meeting a cumulative level of earnings per share related performance over a three-year period. The actual issuance of shares may range from 0-200% of the target number of PSAs granted, based on the terms of the plan and level of achievement of the related performance target. The grant date fair value of PSAs is based upon the market price of the Company’s class A ordinary shares at the date of grant. The performance conditions are not considered in the determination of the grant date fair value for these awards. Compensation expense is recognized over the performance period based on management’s estimate of the number of units expected to vest. Management evaluates its estimate of the actual number of shares expected to be issued at the end of the programs on a quarterly basis. The cumulative effect of the change in estimate is recognized in the period of change as an adjustment to Compensation and benefits in the Condensed Consolidated Statements of Income, if necessary. Dividend equivalents are not paid on PSAs.

The following table summarizes the Company’s target PSAs granted and shares that would be issued at current performance levels for PSAs granted during the three months ended March 31, 2022 and the years ended December 31, 2021 and 2020, respectively (shares in thousands and dollars in millions, except fair value per share):

			March 31, 2022						December 31, 2021						December 31, 2020
Target PSAs granted during period			292						382						500
Weighted average fair value per share at date of grant			$	313					$	225					$	163
Number of shares that would be issued based on current performance levels			292						730						962
Unamortized expense, based on current performance levels			$	91					$	106					$	38

13. Derivatives and Hedging

The Company is exposed to market risks, including changes in foreign currency exchange rates and interest rates. To manage the risk related to these exposures, the Company enters into various derivative instruments that reduce these risks by creating offsetting exposures. The Company does not enter into derivative transactions for trading or speculative purposes.

Foreign Exchange Risk Management

The Company is exposed to foreign exchange risk when it earns revenues, pays expenses, enters into monetary intercompany transfers or other transactions denominated in a currency that differs from its functional currency. The Company uses foreign exchange derivatives, typically forward contracts, options and cross currency swaps, to reduce its overall exposure to the effects of currency fluctuations on cash flows. These exposures are hedged, on average, for less than two years. These derivatives are accounted for as hedges, and changes in fair value are recorded each period in Other comprehensive income (loss) in the Condensed Consolidated Statements of Comprehensive Income.

The Company also uses foreign exchange derivatives, typically forward contracts and options, to economically hedge the currency exposure of the Company’s global liquidity profile, including monetary assets or liabilities that are denominated in a non-functional currency of an entity, typically on a rolling 90-day basis, but may be for up to one year in the future. These derivatives are not accounted for as hedges, and changes in fair value are recorded each period in Other income (expense) in the Condensed Consolidated Statements of Income.

The notional and fair values of derivative instruments are as follows (in millions):

			Notional Amount												Net Amount of Derivative Assets Presented in the Statements of Financial Position (1)												Net Amount of Derivative Liabilities Presented in the Statements of Financial Position
			March 31, 2022						December 31, 2021						March 31, 2022						December 31, 2021						March 31, 2022						December 31, 2021
Foreign exchange contracts
Accounted for as hedges			$	631					$	629					$	26					$	27					$	—					$	—
Not accounted for as hedges (2)			402						412						2						2						—						—
Total			$	1,033					$	1,041					$	28					$	29					$	—					$	—

(1)Included within Other current assets ($17 million at March 31, 2022 and $21 million at December 31, 2021) or Other non-current assets ($11 million at March 31, 2022 and $8 million at December 31, 2021).

(2)These contracts typically are for 90-day durations and executed close to the last day of the most recent reporting month, thereby resulting in nominal fair values at the balance sheet date.

The amounts of derivative gains recognized in the Condensed Consolidated Financial Statements are as follows (in millions):

			Three Months Ended March 31,
			2022						2021
Gain recognized in Accumulated other comprehensive loss			$	1					$	13

The amounts of derivative gains (losses) reclassified from Accumulated other comprehensive loss to the Condensed Consolidated Statements of Income are as follows (in millions):

						Three Months Ended March 31,
						2022						2021
Total revenue						$	(1)					$	(1)

The Company estimates that approximately $3 million of pretax gains currently included within Accumulated other comprehensive loss will be reclassified into earnings in the next twelve months.

During the three months ended March 31, 2022 and March 31, 2021, the Company recorded a gain of $32 million and a loss of $7 million, respectively, in Other income (expense) for foreign exchange derivatives not designated or qualifying as hedges.

14. Fair Value Measurements and Financial Instruments

Accounting standards establish a three tier fair value hierarchy that prioritizes the inputs used in measuring fair values as follows:

• Level 1 — observable inputs such as quoted prices for identical assets in active markets;

• Level 2 — inputs other than quoted prices for identical assets in active markets, that are observable either directly or indirectly; and

• Level 3 — unobservable inputs in which there is little or no market data which requires the use of valuation techniques and the development of assumptions.

The following methods and assumptions are used to estimate the fair values of the Company’s financial instruments:

Money market funds consist of institutional prime, treasury, and government money market funds. The Company reviews treasury and government money market funds to obtain reasonable assurance that the fund net asset value is $1 per share, and reviews the floating net asset value of institutional prime money market funds for reasonableness.

Equity investments consist of equity securities and equity derivatives valued using the closing stock price on a national securities exchange. Over-the-counter equity derivatives are valued using observable inputs such as underlying prices of the underlying security and volatility. On a sample basis, the Company reviews the listing of Level 1 equity securities in the portfolio, agrees the closing stock prices to a national securities exchange, and independently verifies the observable inputs for Level 2 equity derivatives and securities.

Fixed income investments consist of certain categories of bonds and derivatives. Corporate, government, and agency bonds are valued by pricing vendors who estimate fair value using recently executed transactions and proprietary models based on observable inputs, such as interest rate spreads, yield curves, and credit risk. Asset-backed securities are valued by pricing vendors who estimate fair value using DCF models utilizing observable inputs based on trade and quote activity of securities with similar features. Fixed income derivatives are valued by pricing vendors using observable inputs such as interest rates and yield curves. The Company obtains an understanding of the models, inputs, and assumptions used in developing prices provided by its vendors through discussions with the fund managers. The Company independently verifies the observable inputs, as well as assesses assumptions used for reasonableness based on relevant market conditions and internal Company guidelines. If an assumption is deemed unreasonable, based on internal Company guidelines, it is then reviewed by management and the fair value estimate provided by the vendor is adjusted, if deemed appropriate. These adjustments do not occur frequently and historically are not material to the fair value estimates used in the Condensed Consolidated Financial Statements.

Derivatives are carried at fair value, based upon industry standard valuation techniques that use, where possible, current market-based or independently sourced pricing inputs, such as interest rates, currency exchange rates, or implied volatility.

Debt is carried at outstanding principal balance, less any unamortized issuance costs, discount or premium. Fair value is based on quoted market prices or estimates using DCF analyses based on current borrowing rates for similar types of borrowing arrangements.

The following tables present the categorization of the Company’s assets and liabilities that are measured at fair value on a recurring basis at March 31, 2022 and December 31, 2021 (in millions):

									Fair Value Measurements Using
			Balance at March 31, 2022						Quoted Prices in Active Markets for Identical Assets (Level 1)						Significant Other Observable Inputs (Level 2)						Significant Unobservable Inputs (Level 3)
Assets
Money market funds (1)			$	3,580					$	3,580					$	—					$	—
Other investments
Government bonds			$	1					$	—					$	1					$	—
Derivatives (2)
Gross foreign exchange contracts			$	41					$	—					$	41					$	—
Liabilities
Derivatives (2)
Gross foreign exchange contracts			$	13					$	—					$	13					$	—

									Fair Value Measurements Using
			Balance at December 31, 2021						Quoted Prices in Active Markets for Identical Assets (Level 1)						Significant Other Observable Inputs (Level 2)						Significant Unobservable Inputs (Level 3)
Assets
Money market funds (1)			$	2,918					$	2,918					$	—					$	—
Other investments
Government bonds			$	1					$	—					$	1					$	—
Derivatives (2)
Gross foreign exchange contracts			$	40					$	—					$	40					$	—
Liabilities															0
Derivatives (2)
Gross foreign exchange contracts			$	11					$	—					$	11					$	—

(1)Included within Fiduciary assets or Short-term investments in the Condensed Consolidated Statements of Financial Position, depending on their nature and initial maturity.

(2)Refer to Note 13 “Derivatives and Hedging” for additional information regarding the Company’s derivatives and hedging activity.

There were no transfers of assets or liabilities between fair value hierarchy levels in the three months ended March 31, 2022 or 2021. The Company recognized no realized or unrealized gains or losses in the Condensed Consolidated Statements of Income during the three months ended March 31, 2022 or 2021 related to assets and liabilities measured at fair value using unobservable inputs.

The fair value of debt is classified as Level 2 of the fair value hierarchy. The following table provides the carrying value and fair value for the Company’s term debt (in millions):

			March 31, 2022												December 31, 2021
			Carrying Value						Fair Value						Carrying Value						Fair Value
Current portion of long-term debt			$	499					$	501					$	499					$	507
Long-term debt			$	9,685					$	9,824					$	8,228					$	9,204

15. Claims, Lawsuits, and Other Contingencies

Aon and its subsidiaries are subject to numerous claims, tax assessments, lawsuits, and proceedings that arise in the ordinary course of business, which frequently include E&O claims. The damages claimed in these matters are or may be substantial, including, in many instances, claims for punitive, treble, or extraordinary damages. While Aon maintains meaningful E&O insurance and other insurance programs to provide protection against certain losses that arise in such matters, Aon has exhausted or materially depleted its coverage under some of the policies that protect the Company and, consequently, is self-insured or materially self-insured for some claims. Accruals for these exposures, and related insurance receivables, when applicable, are included in the Condensed Consolidated Statements of Financial Position and have been recognized in Other general expense in the Condensed Consolidated Statements of Income to the extent that losses are deemed probable and are reasonably estimable. These amounts are adjusted from time to time as developments warrant. Matters that are not probable and reasonably estimable are not accrued for in the financial statements.

The Company has included in the current matters described below certain matters in which (1) loss (including interest and costs) is probable, (2) loss (including interest and costs) is reasonably possible (that is, more than remote but not probable), or (3) there exists the reasonable possibility of loss (including interest and costs) greater than the accrued amount. In addition, the Company may from time to time disclose matters for which the probability of loss could be remote but the claim amounts associated with such matters are potentially significant. The reasonably possible range of loss (including interest and costs) for the matters described below for which loss is estimable, in excess of amounts that are deemed probable and estimable and therefore already accrued, is estimated to be between $0 and $0.4 billion, exclusive of any insurance coverage. These estimates are based on available information as of the date of this filing. As available information changes, the matters for which Aon is able to estimate, and the estimates themselves, may change. In addition, many estimates involve significant judgment and uncertainty. For example, at the time of making an estimate, Aon may only have limited information about the facts underlying the claim, and predictions and assumptions about future court rulings and outcomes may prove to be inaccurate. Although management at present believes that the ultimate outcome of all matters described below, individually or in the aggregate, will not have a material adverse effect on the consolidated financial position of Aon, legal proceedings are subject to inherent uncertainties and unfavorable rulings or other events. Unfavorable resolutions could include substantial monetary or punitive damages imposed on Aon or its subsidiaries. If unfavorable outcomes of these matters were to occur, future results of operations or cash flows for any particular quarterly or annual period could be materially adversely affected.

Current Matters

On October 3, 2017, CCC invoked arbitration to pursue a claim that it asserts against Aon New Zealand. Aon provided insurance broking services to CCC in relation to CCC’s 2010-2011 material damage and business interruption program. In December 2015, CCC settled its property and business interruption claim for its losses arising from the 2010-2011 Canterbury earthquakes against the underwriter of its material damage and business interruption program and the reinsurers of that underwriter. CCC contends that acts and omissions by Aon caused CCC to recover less in that settlement than it otherwise would have. CCC claims damages of approximately NZD 320 million ($223 million at March 31, 2022 exchange rates) plus interest and costs. Aon believes that it has meritorious defenses and intends to vigorously defend itself against these claims.

Aon Hewitt Investment Consulting, Inc., now known as Aon Investments USA, Inc. (“Aon Investments”), Lowe’s Companies, Inc. and the Administrative Committee of Lowe’s Companies, Inc. (collectively “Lowe’s”) were sued on April 27, 2018 in the U.S. District Court for the Western District of North Carolina (the “Court”) in a class action lawsuit brought on behalf of participants in the Lowe’s 401(k) Plan (the “Plan”). Aon Investments provided investment consulting services to Lowe’s under the ERISA. The plaintiffs contend that in 2015 Lowe’s imprudently placed the Hewitt Growth Fund in the Plan’s lineup of investments, the Hewitt Growth Fund underperformed its benchmarks, and that Aon had a conflict of interest in recommending the proprietary fund for the Plan. The plaintiffs allege the Plan suffered over $200 million in investment losses when compared to the eight funds it replaced. The plaintiffs allege that Aon Investments breached its duties of loyalty and prudence pursuant to the ERISA statute. The matter was tried to the Court the last week of June 2021, and the Court entered judgment in favor of Aon on all claims on October 12, 2021. Plaintiffs have filed an appeal with the United States Court of Appeals for the Fourth Circuit. Aon believes it has meritorious defenses and intends to vigorously defend itself against these claims.

A retail insurance brokerage subsidiary of Aon was sued on September 6, 2018 in the United States District Court for the Southern District of New York by a client, Pilkington North America, Inc., that sustained damage from a tornado to its Ottawa, Illinois property. The lawsuit seeks between $45 million and $85 million in property and business interruption damages from either its insurer or Aon. The insurer contends that insurance proceeds were limited to $15 million in coverage by a windstorm sub-limit purportedly contained in the policy procured by Aon for Pilkington. The insurer therefore has tendered $15 million to Pilkington and denied coverage for the remainder of the loss. Pilkington sued the insurer and Aon seeking full coverage for the loss from the insurer or, in the alternative, seeking the same damages against Aon on various theories of professional liability if the court finds that the $15 million sub-limit applies to the claim. Aon believes it has meritorious defenses and intends to vigorously defend itself against these claims.

Aon faces legal action arising out of a fatal plane crash in November 2016. Aon U.K. Limited placed an aviation civil liability reinsurance policy for the Bolivian insurer of the airline. After the crash, the insurer determined that there was no coverage under the airline’s insurance policy due to the airline’s breach of various policy conditions. In November 2018, the owner of the aircraft filed a claim in Bolivia against Aon, the airline, the insurer and the insurance broker. The claim is for $16 million plus any liability the owner has to third parties. In November 2019, a federal prosecutor in Brazil filed a public civil action naming three Aon entities as defendants, along with the airline, the insurer and the lead reinsurer. That claim seeks pecuniary damages for families affected by the crash in the sum of $300 million; or, in the alternative, $50 million; or, in the alternative, $25 million; plus “moral damages” of an equivalent sum. Separately, in March 2020, the Brazilian Federal Senate invited Aon to give evidence to a Parliamentary Commission of Inquiry in an investigation into the accident. Aon is cooperating with that inquiry. In August 2020, 43 individuals (surviving passengers and estates of the deceased) filed a motion in the Circuit Court of the 11th Judicial Circuit in and for Miami-Dade County, Florida, seeking permission to commence proceedings against Aon (and the insurer and reinsurers) for claims totaling $844 million. Finally, in April 2021, representatives of 16 passengers issued a claim against Aon in the High Court in England seeking damages under the Fatal Accidents Act 1976 in the sum of £29 million ($38 million at March 31, 2022 exchange rates). Aon believes that it has meritorious defenses and intends to vigorously defend itself against these claims.

Aon Investments and AGI were sued on September 16, 2020, in the U.S. District Court for the Southern District of New York by the Blue Cross and Blue Shield Association NEBC. Aon Investments and its predecessors provided investment advisory services to NEBC since 2009. The NEBC contends that it suffered investment losses exceeding $2 billion in several Structured Alpha funds managed by AGI and recommended by Aon. The NEBC asserted claims against Aon Investments for breach of fiduciary duty and breach of co-fiduciary duty, and alleged that Aon Investments and AGI were jointly and severally liable for damages, which include the restoration of investment losses, disgorgement of fees and profits, and attorneys’ fees. AGI recently settled with the NEBC but Aon Investments was not a party to that settlement. Aon believes that it has meritorious defenses to the claims asserted against it and intends to vigorously defend itself in the litigation.

In April 2017, the FCA announced an investigation relating to suspected competition law breaches in the aviation and aerospace broking industry, which, for Aon in 2016, represented less than $100 million in global revenue. The European Commission assumed jurisdiction over the investigation in place of the FCA, and the European Commission has now closed its investigation. Other antitrust agencies outside the E.U. are conducting formal or informal investigations regarding these matters. Aon intends to work diligently with all antitrust agencies concerned to ensure they can carry out their work as efficiently as possible. At this time, in light of the uncertainties and many variables involved, Aon cannot estimate the ultimate impact on our company from these investigations or any related private litigation, nor any damages, penalties, or fines related to them.

Guarantees and Indemnifications

The Company provides a variety of guarantees and indemnifications to its customers and others. The maximum potential amount of future payments represents the notional amounts that could become payable under the guarantees and indemnifications if there were a total default by the guaranteed parties, without consideration of possible recoveries under recourse provisions or other methods. These amounts may bear no relationship to the expected future payments, if any, for these guarantees and indemnifications. Any anticipated amounts payable are included in the Financial Statements, and are recorded at fair value.

The Company expects that, as prudent business interests dictate, additional guarantees and indemnifications may be issued from time to time.

Guarantee of Registered Securities

On April 1, 2020, a scheme of arrangement under English law was completed, as described in the proxy statement filed with the SEC on December 20, 2019 (the “Ireland Reorganization”). In connection with the Ireland Reorganization, Aon plc and Aon Global Holdings plc, entered into various agreements pursuant to which they agreed to guarantee the obligations of Aon Corporation arising under issued and outstanding debt securities, which were previously guaranteed solely by Aon Global

Limited and the obligations of Aon Global Limited arising under issued and outstanding debt securities, which were previously guaranteed solely by Aon Corporation. Those agreements include: (1) Second Amended and Restated Indenture, dated April 1, 2020, among Aon Corporation, Aon Global Limited, Aon plc, and Aon Global Holdings plc and The Bank of New York Mellon Trust Company, N.A., as trustee (the “Trustee”) (amending and restating the Amended and Restated Indenture, dated April 2, 2012, among Aon Corporation, Aon Global Limited and the Trustee); (2) Amended and Restated Indenture, dated April 1, 2020, among Aon Corporation, Aon Global Limited, Aon plc, Aon Global Holdings plc and the Trustee (amending and restating the Indenture, dated December 12, 2012, among Aon Corporation, Aon Global Limited plc and the Trustee); (3) Second Amended and Restated Indenture, dated April 1, 2020, among Aon Corporation, Aon Global Limited, Aon plc, Aon Global Holdings plc and the Trustee (amending and restating the Amended and Restated Indenture, dated May 20, 2015, among Aon Corporation, Aon Global Limited and the Trustee); (4) Amended and Restated Indenture, dated April 1, 2020, among Aon Corporation, Aon Global Limited, Aon plc, Aon Global Holdings plc and the Trustee (amending and restating the Indenture, dated November 13, 2015, among Aon Corporation, Aon Global Limited and the Trustee); and (5) Amended and Restated Indenture, dated April 1, 2020, among Aon Corporation, Aon Global Limited, Aon plc, Aon Global Holdings plc and the Trustee (amending and restating the Indenture, dated December 3, 2018, among Aon Corporation, Aon Global Limited and the Trustee).

Letters of Credit

Aon has entered into a number of arrangements whereby the Company’s performance on certain obligations is guaranteed by a third party through the issuance of LOCs. The Company had total LOCs outstanding of approximately $74 million at March 31, 2022, and $75 million at December 31, 2021. These LOCs cover the beneficiaries related to certain of Aon’s U.S. and Canadian non-qualified pension plan schemes and secure deductible retentions for Aon’s own workers compensation program. The Company has also obtained LOCs to cover contingent payments for taxes and other business obligations to third parties, and other guarantees for miscellaneous purposes at its international subsidiaries.

Premium Payments

The Company has certain contractual contingent guarantees for premium payments owed by clients to certain insurance companies. The maximum exposure with respect to such contractual contingent guarantees was approximately $85 million at March 31, 2022 compared to $153 million at December 31, 2021.

16. Segment Information

The Company operates as one segment that includes all of Aon’s operations, which as a global professional services firm provides a broad range of risk, health, and wealth solutions through four solution lines which make up its principal products and services. The CODM assesses the performance of the Company and allocates resources based on one segment: Aon United.

The Company’s reportable operating segment has been determined using a management approach, which is consistent with the basis and manner in which the CODM uses financial information for the purposes of allocating resources and evaluating performance. The CODM assesses performance and allocates resources based on total Aon results against its key four metrics, including organic revenue growth, expense discipline, and collaborative behaviors that maximize value for Aon and its shareholders, regardless of which solution line it benefits.

As Aon operates as one segment, segment profit or loss is consistent with consolidated reporting as disclosed in the Condensed Consolidated Statements of Income. Refer to Note 3 “Revenue from Contracts with Customers” for further information on revenue by principal service line.