Okay. Thanks, everyone, for being here. We're here with Greg Case, CEO of Aon. Aon is a leader in HR Solutions and risk services. It's one of the top reinsurance platforms in the world, top retail brokerage platforms in the world, one of the top benefit providers in the world. $25 billion market cap. Greg joined several years ago, has been part of a significant transformation in the company in both its businesses. We're excited to have Greg here to talk about Aon, and we'll have time for questions when he's done, and I'll turn it over to Greg.
Great.
Thank you.
Thanks, Mike. Appreciate it. It's good to be here today, and Mike wanted to say thank you for the opportunity to present to this group. I'm going to take you through the Aon story, not knowing sort of how much everybody knows about the details. I will cover three pieces as part of Aon. One, I want to give you a perspective on where we are today. I'll talk about the risk and people platforms at Aon, our current position in the global economy. To add a little credibility to that, I'm going to take you through a little bit of history, not a lot, two or three slides around where we've come over the last seven years, how we've evolved, and the commitment we had almost eight and a half, nine years ago as we thought about these two spaces around risk and people.
I want to talk about what I believe is the most exciting part of the Aon story, which is what we're planning to do over the coming years. That's the overall general format that I think Mike will open up to questions however you want to do it.
Perfect.
A little bit of history and where we are. Aon is a pretty straightforward firm. Not a whole lot to understand here. We are 65,000 colleagues who get up every day to focus on two topics in the global economy. Two, risk and people. On the risk side, helping companies understand, measure, and mitigate risk, and on the people side, helping companies understand their issues around their people, the most important issues around pension, retirement, health and benefits, and talent. That's the firm. Very straightforward. Risk and people. Turns out against those platforms, however, we've got some pretty interesting positions. On the risk side, we literally touch more companies every day on the topic of risk than virtually any company in the world. As an example, we move over $100 billion of risk every year on the premium side.
We are 22%, 23%, 24% of Lloyd's of London, as an example. Probably more than that from a profitability standpoint. We really literally touch more companies every day on the topic of risk, helping companies understand their risk, measure it, and do something about it. On this, as you can see, number 1 on the primary side, number 1 on the reinsurance side, not only working with risk with companies but also with insurance companies. Number 1 on the benefits brokerage side, leader in captive management, and you can go down the list. Suffice it to say, we can dive in as much as you want to. The risk platform of Aon is among the strongest in the world. Too is the people side, the HR Solutions side of Aon, if you get on that.
Number 1 in benefits administration, number 1 in HR business process outsourcing, number 1 in healthcare exchanges. A whole new area that's opened up in the last few years that we've been working on for a number of years, but it's been incredibly effective as we've launched it over the last few years. We have the only fully-insured corporate exchange in the market today. It's gone exceptionally well. We have 18 companies, clients going through that. It's going exceptionally well, as well as a number of investments on the retiree exchange. Happy to talk about that. Punchline here is straightforward. Aon is risk and people. About two-thirds risk, one-third people, but these are the 2 focal points of our firm. Couple more things about these platforms. Aon is a very global firm.
We're in 120 countries, and we touch literally large companies, medium-sized companies, small companies, all around the world. We're essentially a global focus group, if you look at it. 120 countries, over 500 offices around the world. Very mixed geographically from a revenue standpoint. About half our business or less in the U.S., everything else sort of all around the world. At its core, as I said before, Aon's pretty straightforward, risk and people. Serving all companies all around the world on these topics with platforms that are as strong as any in the world today. We'll come back and talk about that a little bit more. The other thing I want to make sure you understand is from our perspective, we are in these 2 categories for a very specific set of reasons.
This wasn't last week or last month or last year. 8 and a half years ago, we set out around a strategy to focus on these two areas. We saw at that point in time what we thought were two areas in the global economy that however you looked at it, were going to become more and more important over time. Let's say this is prior to 2008, we thought risk was important. Just kudos to our CFO if she were here. We truly believe this is an area of the economy that's expanding. A lot's going to be talked about in terms of insurance pricing and how that's going to evolve. This is way beyond that. If you just look at literally core non-life written premiums, they're growing around the world in mid-single digits. I'm just back from China. Go to Beijing, Suzhou, Shanghai.
You look at these areas, premiums are going to increase. Same in India, back from recently. Same in Latin America. Premiums around the world are growing. In addition to that, on the risk side, our view is the magnitude of risk, the level of risk in the world today, is increasing. By the way, this is all the traditional risks, which I'm showing you on the chart here, but also all the non-traditional risks. Things that our companies have to look at every day. Things like cyber, things like pandemic, impact of sustainability and global warming, social media. All of these risks sort of are gathering at the feet of our clients. We are in a position to help them address them. Magnitude of risk in the world, our view is, going up. By the way, complexity, also going up.
Recently in Thailand, the Thai floods a few years ago were a horrific event in the region. They also turned out to be an incredible global supply chain event. Risk is interconnected more than ever before. Our view is the whole area of risk is more complex, more of it, and changing at a faster rate than it's ever changed before. The category of risk, forget Aon for a minute, the category of risk, we believe, is quite compelling. Interestingly enough, we believe the same is true on the HR Solutions on the people side. Think about the issues that our clients address in people every day. They think about their employees, do they have enough savings for retirement? Retirements and pension, the answer, largely no around the world. 20% of the population is prepared for retirement.
By the way, this issue is an issue virtually anywhere you go around the world. Powerful set of opportunities we're trying to address on behalf of our clients. The second piece here, around healthcare. Irrespective of your political affiliations, there's one thing to be said about healthcare in the U.S. today, whether you are in favor of the Affordable Care Act and all that comes with it or not, however you want to think about it, two things are true. Set that aside for a minute. Health in the U.S., deteriorating. Cost per unit of healthcare, going up. Issue becoming bigger and bigger and more complex. If you think about it from a company standpoint, you want to put your employees in as good a position as possible, the challenges you're facing with increasing costs are incredible.
Our opportunity is to help them address that, which we're doing. What it really means is these two topics around risk and people are pretty interesting segments in the global economy. Aon has two platforms that address these two topic areas around risk and people that are the most distinctive in the world today. That's kind of the current overall position of the firm. The last seven years, eight years, whatever you want to say. I've been asked a lot around these ideas of risk and people and what we're doing. Are you really serious about it? Why are you making so much investment in it? Why are you sacrificing some short-term performance for long-term opportunity? Why are you thinking about it the way you're thinking about it? I come back and say, talk's cheap, but we are absolutely focused on these two categories.
How serious are we? Go back and look at 2004. Left-hand bar, 2004, Aon. That's overall revenue. 32% of our firm was an underwriting company. We were a third of our firm an underwriting company. How serious are we? We sold off a third of our firm to make the biggest bets in history on risk and people. See what I'm serious? Deadly serious in terms of how we shaped our firm. If you think about how we evolved from 2004, just look at 2012. This is back to the two-thirds, one-third I described before. We fundamentally made a set of assessments around categories, risk and people. We also made a set of assessments around what we were going to try to do to compete in those segments. We said we are going to be a people firm. We're not going to be a balance sheet.
We exited all the balance sheet businesses, capital intensive, lower return, different type of regulation. We focused on a network firm of colleagues around the world with content and capability, addressing the two categories called risk and people. The fundamental change from 2004 to 2012 in the shape of Aon is quite profound. Interestingly enough, you wouldn't expect that a broker, which is really what we were referred to at the time, would really think about a metric that would shape the firm that would be based on capital, but we in fact did. The metric which drove a lot of this analysis and drove a lot of this outcome was return on invested capital.
It turns out, by the way, for our business, and by the way, anybody of our ilk, the highest, you can go back and do the math yourself, the highest correlation between market to book, PE, turns out to be return on invested capital. Correlation's incredible. When we looked at ourselves in 2004, it was clear to us we weren't competing with enough force in the right segments, and we were doing it in a way that was bringing capital into the equation we didn't need to do. You look at 2012, risk and people, fundamental change in the business that we've navigated through over the last eight years. In addition to getting positioned in these two segments, we also said we are going to continue to invest heavily on building content and capability.
One of the things that comes with being the largest provider on the risk side, the largest provider on the people side, is a tremendous amount of data. We probably, again, run more premium than anybody in the world. Coming with that is a tremendous amount of data. At the time, for the industry, what did it get us? What did all this data get us? At the time, not a lot of insight, not a lot of information, and not a lot of action. That's the story of the insurance world, which we live in. We're not picking on anybody. That's just the story of how it's worked.
We said, fundamentally, if we could actually understand our data flow, we understood where and how we made placements every day, we understood the prices upon which we place bound premium, and all the bid prices around that, and all the characteristics which drive client behavior and insured behavior, we would have something no one else has. That's called our Risk Insight Platform. We invested and have the single biggest repository of insurance information that exists in the world today. We believe we can drive specific actions. One theme you're going to see if you dig into Aon is in the end, all that I'm describing isn't worth anything unless we can help clients change performance, change behavior to change performance.
We track that back to if we can help a client change operating performance, strengthen their balance sheet, or reduce their volatility, we've done something for a client that's meaningful, measurable, and by the way, makes them a client. They pay for our services, and the retentions are pretty interesting. That's why you invest in data and analytics. We've invested in data and analytics, the systems around it. We've invested in a way to serve clients we call Aon Client Promise. We've invested in our global brand in Manchester United. We have fundamentally made a set of investments over the last number of years that are just now beginning to start to pay off.
One of the exciting parts of the Aon story, if you choose to dig into it, is we've made these investments and still been able to perform over the last few years, as I'll show you in a minute. The exciting part is now we're starting to see the benefit of those, and I want to talk to you about that today. It gives us tremendous operating leverage as we move forward. We hold ourselves, and if you listen to our conference calls, we talk about four metrics from a financial standpoint: organic growth, operating margin, EPS, and free cash flow. This is the story over the last seven years, eight years. Organic revenue, we've grown every year except one during the crisis, but then it's down 1%. Basically, this business is going to grow, and it's highly robust. We're growing organically, basically every year.
From a margin standpoint, you can see what the trackers look like. An increase of 450 basis points across the board. I'll dive into risk and people in a minute and how that's evolved. You can see where we made the investments, but the track record around performance improvement around margin is at the forefront of our list, and the track record is very strong. The priority is at the forefront, the track record is strong. EPS, you can see what we've done with EPS over the last number of years, increasing to 16% compounded over that period of time. Then the story I really want you to understand today is the characteristics of free cash flow and how they're evolving for Aon.
If you really look at how we've invested in the business and how it started to trend from 2009, 2010, 2011, 2012, the substantial increase, what I want you to take away from today is all I've described comes back to free cash flow. Our opportunity to dramatically improve free cash flow, I'm saying really more like almost doubling over the next three, four, or five years is upon us. We believe that's an interesting outcome in terms of where Aon could go. That's what we've done operationally, and that's what it's looked like over the last seven years. Now I want to talk about with that little bit of history, a little bit of situation assessment, is the part of the Aon story that our team is most excited about, and that is around what we're doing over the next few years.
I gave you a little history because I wanted what I'm about to say to have meaningful credibility. It has credibility because the story that I'm about to take you about the next chapter on isn't a story of yesterday, isn't a story we didn't work on this presentation two weeks ago or a month preparing for the Goldman conference. This is the same story we've had over the last eight years, it's continued to evolve and take shape, have results, as I've described before, is now about to, we believe, take another step forward, which we believe will be quite compelling.
One thing to understand, again, is while we have performed, it's true, I'll show you in a minute, we have outperformed from a total return standpoint, our competitors in the market at the one year, two year, three year, five year, et cetera. That's true. More important for you today is understanding what's gone behind the engine of Aon, the foundation of Aon, and the investments we've made to truly globalize the firm. Understand, Aon came together over 435 acquisitions over 20+ years. The thesis we had is if we can connect that firm, we've truly got a global distribution engine, the likes of which has not been seen before. That's the journey we're on, the preeminent firm in the world focused on risk and people, the same thesis held on the people side.
The investments we've made to drive that start with truly connecting the firm. I literally, this is just a sample. The investment around Salesforce, the Revenue Engine. What's the Revenue Engine? It really is helping all of our colleagues around the world understand the year in the life of a client. When I was with the CEO yesterday of a very large financial services company you'd know the name of, what was interesting to the CEO was not what we're doing for them in New York, but what we're doing for them in Asia, what we're doing for them in Latin America. To be able to connect global Aon and tell them that story immediately was a powerful, compelling set of insights to help that CEO change behavior. That's the power of global Aon. That's where these investments come in.
As I said, Salesforce, huge investment, Revenue Engine, big investment. The investment around risk analytics. Understand Aon, as I said, has this tremendous repository of information, which we're now investing to harness. We also spend more than probably anyone in the world on this set of topics, maybe more than many of our competitors combined. In the reinsurance business alone, we spend $125 million a year, hard dollars on data and analytics, Ph.D., statistician, modeling risk around the world. Another like amount in the retail business. We're talking a quarter of a billion dollars a year spent on content capability and trying to help our colleagues succeed. This is an unprecedented set of investments we've made. Our investors rightfully ask, "That's interesting. What's the return? When's it coming, and how's it playing out?" That brings us to today.
While we were making these investments, we still beat our competitors, and we still beat the market from a total return standpoint. That's why we believe we're able to do that and strengthen the foundation at a very significant time. This last point around Aon United is truly about how we connect our global firm. We have a view that when we bring our global capability to our clients in a local way, we almost always win. By the way, it's fact-based, I can show you lots of analytic backup. The issue that the management team of Aon is addressing is not do you have the right idea to double the size of your firm? I'm here to tell you today, we have the idea. We know it. We've seen it. We've touched it. We see it work.
The issue is whether the management of Aon can actually scale what we know. We've proved Aon United. We know it works. The question is, how fast can we continue to scale a proven idea to build a firm? That's why we get excited about it. Forgive me if I get a little positive on Aon. It's because we've built these platforms around risk and people. We've done it at a time when the economy needs what we have more than ever before, and we have demonstrated that connectivity around the firm translates into client wins, client retention, and greater profitability and performance. Our clients are happier than ever before. The question is, how do we continue to scale that?
We've obviously made some progress, or we wouldn't have the performance we have, but the opportunity, we would say, by the way, against this set of investments on a scale of 0 to 10, we're at about a 3 in terms of where we're going to be. We're not at a 9 or a 10. The Aon story around our ability to impact the global economy and support our clients is not a tank that's three-quarters or nine-tenths full. We're a 3 on a scale of 0 to 10. The opportunity, we believe, is quite profound. That will manifest itself with our investor partners in mind in a few places. I'm going to talk about those. The first is around operating performance. We have said we don't give guidance. We've talked about 2 targets, in terms of margin return, 1 in Risk Solutions and 1 in HR Solutions.
The target in Risk Solutions was a 26% return, as you see there. You can see the progress we've made over the last few years against that. What we want you to understand is we have line of sight into the march toward 26. We list 5 items up here. 3 are fully under our control. 2 are outside of our control. The 2 outside of our control, we do not need to get to 26%. Repeat that again. We do not need to get to 26%. If we get any benefit from items 4 and 5, which is really around the increase in short-term interest rates or a strengthening of the global economy, that will accelerate our march to 26%.
The 3 items that we have under our full control start with continuing to capture the benefits of the restructuring, which is finishing up this year, 2013, and 2014 will finish up. Continue to roll out the Revenue Engine, connecting global Aon, as I described to you before, and continue to work with data analytics to improve our broking capability, to improve the yield we get per dollar of premium placed. Imagine, we place $100 billion of premium. Categories of it sort of aren't fully applicable under this. Let's say $50 billion of it is, just cut it in half. If we're able to improve yield by a point, 1 point on $50 billion, almost real money in terms of what the opportunity is.
We believe there are substantial opportunities in buckets 1, 2, and 3, restructuring, Revenue Engine, year in the life of an Aon client, and broking, that will get us to 26%. If we get any help from interest rates, if we get any help from the global economy, if we get any help from insurance rates, doesn't look promising on the horizon, we can talk about that. Maybe a question that Mike wants to ask, possibly. Great. It'll accelerate it. Understand 1 more thing about the Aon management team. That we haven't seen a lot of tailwinds over the last 9 years as, or 8 years, as we put this in place. Basically, we've seen rates go down. We've seen global economic recession. We've seen interest rates at an all-time low. We're not anticipating we're getting any of the 4 and 5 year.
We're basically going to drive this off of one, two, and three. If we get something around four and five, great. That'll accelerate it. It won't change the answer. Bottom part of the chart, HR Solutions, the march to 22%. As you look at that, again, three items specifically under our control. We have line of sight into how we're going to march toward 22%. First is around completing the restructuring. We can take you through exactly where we are in that in 2013, exactly where we're going to be in 2014, and we're going to be done with it. We'll take you through exactly how we're continuing to grow and build the core businesses. Talk about the exchanges and the investments we've made there and how we're starting to see a real return on those investments and a real ramping up of that set of investments.
Continuing to work on the HR BPO profit improvement program. One manifestation you're going to see as you see the benefits from this set of investments, and many others not on this page, is on the operating side of the P&L as you see us march toward 26% and 22% on the Risk Solutions and HR Solutions side. Another piece that I want to make sure you understand is our focus on our performance against free cash flow. We have always been coming to free cash flow. As we pulled the firm together, created a way to measure cash, manage cash, make sure we get return on capital and cash, you're starting to see the real benefit from our global firm doing this. If you look at literally 2011 to 2012, bottom part of the chart here, $777 million to $1.15 billion.
That is a 48% improvement in free cash flow from 2011 to 2012. That's interesting. More interesting is where we're going with free cash flow. Our opportunity to generate and build cash at Aon is now, again, back to think about it. Restructure the firm, focus on the two platforms, risk and people, improve the operating performance of the two platforms, risk and people, invest behind the two platforms, risk and people, now starting to reap the benefits of it. The benefits of it start to manifest themselves and will ultimately always manifest themselves in cash, free cash flow. We're up 48% this year. Our view is we can double our free cash flow, double the $1.15 billion over the next three to five years, and we can do it from a number of different places.
One thing that's interesting is, we're going to come back, the most exciting part of it is doubling free cash flow from the operations part of the firm. That's what you invest behind us to do. That's what you partner with us to do. You count on management to do that. Management can't get that done, need new management. Got to improve the operations of the firm. In addition to that, you need to understand this part of the story, in addition to that, we have a number of areas that are non-operating that are going to fundamentally improve the free cash flow of the firm as well, that we've worked on for many years that are now coming to fruition. I'm going to highlight two here. First one is around pension, the second is around restructuring. We were a substantially underfunded pension.
Over the coming years, we will fully fund our pensions, we will thereby decrease uses of cash in a very substantial way. If you can look at literally the decreased uses of cash on the pension contribution line. Toggle down to the restructuring cash. We've done immense amounts of restructuring over the last number of years. We're done with restructuring. Doesn't mean we're not going to make changes. We are certainly going to make changes in terms of what we're doing, but all that's going to go through the P&L. Our restructuring is done in this category. If you just add those up over the next three to four years, five years, six years, that's $500 million of additional freed up free cash flow on top of the $1.15 billion. That's a 40%-45% improvement in free cash flow just from non-operating alone.
This does not include, by the way, the impact of a redomicile to the U.K., which we would argue is not really well understood at this point in terms of what the impacts could be over time. That will also have a positive impact on our free cash flow. What I'm trying to highlight for you is here's Aon, these platforms I described with the investments I described. We had performance, we're at a place in our history where we're about to generate the most significant amounts of free cash flow we ever have. A big piece of it will come from the operations. A big piece of it will come from non-operations. We think that's a pretty unique situation and pretty positive for our investor partners. I've mentioned return a couple of times. I'm not going to dwell on this.
This doesn't really mean anything unless we can actually do much more over the coming years. As I said before, our view is on a scale of zero to 10, we're at a three in terms of potential. However, while we've shaped the firm, we have done reasonably okay against the market metrics and the competitor metrics around total shareholder return, assuming this group has an interest in that metric, at the one-year level, the two-year, five-year, eight-year, and 10-year level. It's a reasonably consistent story over a reasonably long period of time, for whatever that's worth in your book. I want to just end here. I'm not sure how the clock's working of how much time I have left. I want to end here with just a couple of thoughts. Again, simple story around risk and people.
Single biggest, most significant platform in the world on risk, single biggest, most significant platform in the world on people. At a time in the global economy when we think those two topics actually matter a lot. We've made tremendous investments behind those two categories, we've gotten benefits from it. I talked to you about that. The most interesting part of what we're about is the next three to five years. As those investments continue to pay off, as we continue to connect and unite the firm, Aon United, as we continue to serve clients in a way that we believe is distinctive. Coming with that, outcome of that will be operating performance, improvement up to the 26% and the 22%, the key manifestation will be the substantial change in free cash flow, we believe, which is going to come from non-operating sources and operating sources.
We think puts us in an interesting position to substantially strengthen the firm, serve our clients more effectively, and we believe be a very good partner for our investors. That's a little bit of the overall story of Aon. Happy to open it up and take any questions if you have them. Sure.
If that free cash flow story comes true, what are you going to do with it?
Shelby, Mike right here, could you repeat?
Free cash flow story comes true in the next three to five years. I know some of it's locked in pretty much. What are you going to do with it?
Yeah. Great question. You can go back and look at it. First of all, we evaluate our investments back to this overall idea of basically it's a cash on cash return, a return on invested capital. If our CFO were here, Christa would describe to you literally the metrics we use to sort of make a set of judgments around where we place capital. If you think about what we've done historically, you can ask the question, are you going to open up the third or the fourth new platform beyond Risk and People? Answer, no. We are focused on Risk and People. We love these two platforms. We're going to keep investing behind them. Other opportunities around the world, we'll look at those, yes, but we love the platforms we've got. For us, it's improving those platforms.
If you think about the single biggest set of investments we made over the last number of years, it's share buyback in excess of $4 billion. By the way, we have historically believed and currently believe our shares are substantially undervalued. In the context of that, when you stack up return on invested capital with what we believe is going to happen over time, turns out share buyback ends up being the metric or has been the standard that really everything else has to beat, and that's still going to remain the case. From our standpoint, we're going to look at everything from a return on invested capital standpoint, prioritize against that. Historically, you can see where we've made our bets. Yeah.
In terms of the underfunded pensions, how do you plan to move out of there with that going on, interest rates continuing to go up or any potential risk transfer?
No. The question here is on, sorry for those on the webcast, question, if you could again, is about pensions.
Underfunded pensions on your balance sheet. We're just literally We do this for a living, so we actually touch from a pension standpoint, just for reference, from the $31 trillion pension money around the world, give or take, Aon has the privilege of touching about $6 trillion of it. Literally, we don't manage money. We advise companies on who they get to manage money, and we literally touch $6 trillion part of $31 trillion. This is not an assumption-based game. This is given current assumptions, we can go through them with you, very conservative. We are making hard dollar investments and then de-risking investments. It's basically a program we use for clients all around the world. We've got an incredible team against it. Chris has done a tremendous job making it happen, and that's what's really going to result in sort of the outcome that you see here.
I'm happy to talk more about it in detail. For us, we knew eight years ago we needed to get to a better place. By the way, we didn't get a lot of help. Getting back to nothing's really gone as a tailwind here. If interest rates changed 100 basis points, that goes away. We're not assuming that at all. We're assuming true everything stays the same, how do we actually fully fund it? Like I said, it's accelerated dramatically in a different rate environment. Other questions?
Sure. Yeah. I've got one. Obviously, a topic of interest recently has been the healthcare exchanges. In terms of your offering currently as a full risk offering, have you thought internally about where you think covered lives just on exchanges broadly, maybe not Aon specifically, might be over the next three to five years, and do you anticipate at some point broadening that offering either to smaller corporates or to include a self-insurance option at some point?
Yeah. One of the interesting things about the entire exchange discussion is there's so much sort of different information out there.
You're right.
Misinformation, wrong information, misguided information in terms of how people think about it overall. We're not saying we're great shakes, but we do administer benefits for 22 million Americans, more than anyone else in terms of how they play out. We just literally signed up nine million people in the last six-week period. Worked fantastically well. We looked at the space in a great deal of detail. It's true, we have the only fully insured corporate exchange, large market. Only one, multi-carrier. Doesn't exist anywhere in the world. Fully insured, multi-carrier, large market. By the way, we just put 18 companies through it, put three through last year. Got a huge demand going forward. We also do self-insured, and we do it for more companies than anybody in the world, and we focus on middle market as well.
All we have said is the fully insured model, which by the way is a difficult one to operationally put in place, that's why no one else has it at this point, is a very compelling model for large companies. It literally aligns capital, the insurers, with company behavior and desires, and employee behavior. It's the first time ever you've got employees with an opportunity to have choice. Haven't had that before. They can make choices to actually change their insurance profile, health insurance profile, and invest more. Never had that before. Aligned with companies who take the risk off their balance sheet, and they actually then can manage literally the healthcare costs over time much more effectively. Equally compelling, you've got a set of markets, balance sheets, who have a true absolutely focused incentive to make sure people change behaviors, become healthier because they get paid for it.
The opportunity here is absolutely substantial. We have this fully insured model, but we're not about a model. We're a solutions provider on behalf of clients. We'll always come back to our clients, what's in the best interest of our clients, and drive that. The reason we end up having a fully insured model on the corporate side is because our clients ask for it. They describe their set of needs, and we developed a market that would address those needs. The fact that it's a hard thing to do and nobody has it yet is what it is. It's, we think, truly compelling. Having said that, it may not be the right answer for all clients, we have a range of solutions to address those.
Great. We have probably time for one more question from the audience, if you have one. Okay. Well, I guess the question came up about, I think you touched on it briefly, about the reinsurance markets. Where do you see the reinsurance market evolving from here, just kind of given the dynamics in place there, and how are you positioning Aon Benfield in particular to be able to assert its leadership position there?
Are you asking about price or capital or all of the above?
Capital. Yeah.
Look, we come back to first principles. What are we doing in Aon Benfield? What's the reinsurance world supposed to be doing? They're supposed to be helping insurers improve their return on capital. They happen to use this thing called treaty to do it, and they happen to access a form of capital called reinsurers to help them do that. That's what we're trying to do. By the way, we added into that a set of analytics that truly magnify kind of classic core treaty. Very powerful. What's happened? You've got a reinsurance world that's got $500 billion of capital in it. That's an all-time record, 510 to be precise. That's an all-time record of capital. We've got an abundant supply of capital to serve those needs. In addition to that, remember that $31 trillion of pension assets I described before?
They've decided that maybe a 5% allocation of those pension assets, never been done before in this way, might be interesting for that category. 5% of $31 trillion, big number against the $500 billion. In the fullness of time, there will be an abundance of capital addressing these issues. For us, we want to help clients perform better. We will look at all kinds of capital sources to do that. We think those are opportunities. We will look at a range of client needs to do that. For us, the fundamental power of Global Aon Benfield is truly a connected global firm with a set of data and analytics and a set of ideas on how companies, insurance companies in this case, can change behavior to perform better.
Respectfully, we may not be perfect at it, we may not spend it in the right places, but we spend more on the topic of how you get clients to improve performance than anyone in the world. Quite simply, no one comes close to what we do around the data and analytics to help insurance companies make better decisions. The industry will certainly evolve. It will certainly continue to change as it always has. The new capital will also change that. It'll put short-term pressure on prices, which by the way, is opportunity for our clients. Make no mistake about it, the core insurance world continues to have pressure on return, and that's the fundamental premise of Aon Benfield is how we help them change that perspective. Again, operating performance, balance sheet strength, and volatility. We're very well-positioned to do that. Maybe the best.
Great.
Okay.
Great. Thank you for your time.
Thanks very much. Appreciate it.