Aon Hewitt has come a long way since the merger of the two companies in 2010.  2012 revenues were $3.9bn, accounting for a little more than one-third of Aon plc’s total revenue.

Across its HR Solutions business, which includes both consulting and outsourcing, Aon Hewitt has ~30,000 employees, ~20,000 clients, and operates in ~90 countries. Organizationally, the company is divided into three business segments: health, retirement, and talent.  I’ll highlight some key updates within each area.

Health:

With U.S. health care reform underway, there are lots of exciting things happening including:

• The launch of Your Coverage Resources (YCR): helps employers support employees who are not eligible for employer coverage find health plans through public programs such as Medicaid, Medicare, etc. and public health exchanges
  • YCR includes a portal, call center support, and advocacy services
  • The offering is available to existing H&W administration clients or can be purchased on a standalone basis
• New client wins for its private exchange: 15 new clients added including Walgreens for 2014 enrollment
• The integration of the “measurement method” into its administration systems to make FTE determinations for the purpose of complying with the employer mandate (i.e., offering full-time employees coverage or paying a penalty).

In addition to the 15 new clients for its private exchange, Aon Hewitt has added nine new H&W administration clients, and renewed another 10 H&W clients.

Retirement:

On the retirement front, which includes both its DB and DC administration businesses, Aon Hewitt has added clients in both the U.S. and U.K.

In the U.S., two new clients were added in Q2: one for DC administration and one for DB administration, and there were six existing client renewals.

In the U.K., new clients and services provided include:

• Lookers: DB administration, actuarial advice, and investment consulting for ~5,000 members
• Servier Laboratories: pensions administration; actuarial, investment, secretarial, DC advice and services; and DC brokering services for ~1,000 members
• RNIB: pensions administration and brokering services for ~3,000 members (actuarial and investment advice were current services)
• University of Leicester: DB administration and actuarial advice for ~2,200 members.

In late 2012, Aon Hewitt also acquired Babcock International Group’s pension administration office in Scotland to expand its public sector pensions business in the U.K., adding ~80,000 members.

Talent:

Before Aon Hewitt acquired OmniPoint, it had a solid HR BPO business, adding or renewing ~2 clients a year.  Now, however, the company has seen this number more than double.  Last year, it renewed some of its key logos including BMO.

The relationship with OmniPoint is mutually beneficial.  OmniPoint does ~30 implementations a year and NelsonHall estimates that ~15% of these clients will likely become BPO clients.   Of its existing HR BPO client base, Aon Hewitt has already transitioned a handful to the Workday platform, and NelsonHall expects this proportion to increase to ~20% by the end of 2013.

Further investments the company is making include:

• Launching a new portal
• Enhancing customer interaction, case management, and knowledge management tools
• Expanding capacity at two service centers: Winston-Salem, N.C. and San Juan, Puerto Rico.

Considering all the enhancements, new offerings, and acquisitions, Aon Hewitt is poised for further growth within all three business segments.