Legendary value investor Seth Klarman’s Baupost Group disclosed a $248 million position in AON amid margin growth and AI integration efforts.
Baupost Group, led by value investor Seth Klarman, acquired a $248,218,000 stake in insurance broker AON (NYSE:AON) in Q1 2026. The firm ranks AON among its top value stock picks for the year, citing organic revenue growth and margin expansion.
AON expects mid-single-digit organic revenue growth and adjusted operating margin expansion of 70 to 80 basis points in 2026, down from 90 basis points last year. The company’s operating margin improved to 34.1% in Q1 2026 from 30.9% a year earlier, though total debt rose to $14.66 billion, pushing debt-to-EBITDA to 2.6x.
AON is expanding its Data Center Lifecycle Insurance Protection Program, increasing capacity to $2.5 billion. The firm is also deploying AI tools like Aon Broker Copilot and Claims Copilot to enhance productivity, countering concerns about disintermediation from AI-driven insurance platforms.