AON Acquires Humn.ai to Enhance Fleet & Mobility Offerings
Aon plc AON recently announced that it has acquired the technology assets and intellectual property of Humn.ai. Aon, as a professional services firm, will benefit from enhanced offerings to clients, further improving its core value proposition. The new capability will provide tools and data-powered insights, which are expected to improve business decision making.
This move bodes well for AON’s Commercial Risk Solutions business, which experienced an organic revenue growth of 4% year over year in the fourth quarter. More commissions earned will increase the company’s top line in the future. This collaboration will benefit from the AI capability, aiding Aon’s clients to get a real-time view of their fleet performance, thereby reducing the total cost of risk and accidents. The AI platform will provide insights based on vehicle, driver and contextual data.
This initiative highlights Aon’s continuous investments in technology and innovative products. Aon will be able to further advance its analytics, insights and technology footprint, by serving mobility and fleet clients. The company is also expanding this technology’s reach by launching a comprehensive risk analytics offering to deliver personalized data-driven insights. AON aims to provide innovative solutions to help clients make better decisions regarding their insurance coverage.
This partnership marks a significant step toward achieving the goal of technological innovation and better customer-centric services. The company aims to deliver mid-single-digit or higher organic revenue growth for 2024 and beyond. Moves like this should lend a hand in achieving its long-term growth objectives. Moreover, enhanced offerings will help the company win and retain more customers.
Price Performance
Shares of Aon have gained 8.8% year to date compared with the industry’s rise of 11.3%.
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Zacks Rank & Key Picks
Aon currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Brokerage Insurance space are Ryan Specialty Holdings, Inc. RYAN, Brown & Brown, Inc. BRO and Erie Indemnity Company ERIE. While Ryan Specialty sports a Zacks Rank #1 (Strong Buy), Brown & Brown and Erie Indemnity carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Ryan Specialty has a decent track record of beating earnings estimates in two of the last four quarters, meeting twice, the average being 5.1%. In the year-to-date period, RYAN has gained 26.2%.
The Zacks Consensus Estimate for Ryan Specialty 2024 and 2025 earnings per share (EPS) is pegged at $1.77 and $2.13, indicating a year-over-year increase of 28.3% and 20.3%, respectively.
The Zacks Consensus Estimate for Brown & Brown 2024 and 2025 EPS is pegged at $3.20 and $3.48, indicating a year-over-year increase of 13.9% and 8.6%, respectively. In the year-to-date period, BRO has gained 20.7%.
BRO beat estimates in each of the last four quarters, the average being 11.2%.
Erie Indemnity’s bottom line outpaced estimates in three of the trailing four quarters, missing once, the average being 11.2%. The Zacks Consensus Estimate for ERIE’s 2024 earnings indicates an 18.3% rise, while the same for revenues suggests 11.4% growth from the respective prior-year reported figures. The consensus mark for ERIE’s 2024 earnings has moved 2.4% north in the past 30 days.
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