My 2c on Financials: US Financials Sector Specialist Commentary Banks • Insurance • Diversified Financials

Research evidence excerpt

My 2c on Financials: US Financials Sector Specialist Commentary Banks • Insurance • Diversified Financials

Rob O'Dwyer - Specialist Sales - US Financials AC North America Specialist Sales J P M O R G A N

rob.odwyer@jpmorgan.com JPM | US Fins Daily - My 2c...V /

J.P. Morgan Securities LLC AON / ACGL / UNM / Read from UBS

/ Large Cap Banks

29 July 2026

a forward investment in spending trends and the OpEx was fully explained (severance + marketing), so no reason to

question the quality of the franchise here.

Insurance Prints

AON (=)To the extent there is a consensus long in insurance brokers, Aon is it, and I think there is enough here to keep the

longs encouraged, particularly on a relative basis. Small rev miss but organic growth still rounds to 5%, which should be

sufficient for owners subject to pricing commentary on the call. Operating income inline at $1,227mm with margins 10bps ahead

of cons at 28.9%. FCF of $483mm was light of expectations but buybacks of $600mm were well ahead of the $437mm

consensus, bringing YTD repurchases to $1.1bn. Bulls have also pointed to the organic growth delta between AON and

equivalent MRSH businesses over the past 3 years as quite notable, particularly AON Reinsurance vs. Guy Carpenter, where

AON has held up considerably better in recent periods.

ACGL (=)Underlying earnings picture not great but the buyback is helpful. Op EPS beat, though pretax operating income

was below expectations with the beat driven by tax and lower share count. Cats in line, reserve releases above expectations.

Headline combined ratio slightly better than cons, core combined ratio slightly worse. Premium growth was softer across most

segments except mortgage insurance, with segment earnings better in reinsurance, in line in mortgage, and below in insurance.