Aon, one of the world's leading reinsurance brokers, plans a significant corporate acquisition for the middle of next year. With the acquisition of the brokering firm for property and casualty insurance, NFP, Aon expects pre-tax profits of 2.8 billion euros. The transaction is to be paid in cash with seven billion dollars and 6.4 billion dollars in Aon shares. This strategic decision was announced by Aon on Wednesday.
The expected pre-tax profits from Aon's acquisition amount to more than $2.8 billion, excluding one-time transaction and integration costs of about $400 million. Insurance brokers act as intermediaries between insurers and their customers, assisting them in selecting tailor-made insurance policies. In economically uncertain times, the demand for insurance products has remained stable. The insurance sector is considered immune to recessions as many policies are often guaranteed by employers and others are mandated by governments.
The acquisition of NFP by Aon highlights the ongoing competition in the insurance industry and the need to strengthen through strategic acquisitions. Aon itself has made several smart investments in recent years that have helped establish the company as one of the leading global forces in the reinsurance business.
In a constantly changing insurance landscape, where customer demands and technological advancements are continuously evolving, Aon strives to increase its market share and enhance its position as a trusted broker. The acquisition of NFP will contribute to expanding Aon's range of services and reaching a broader customer portfolio.
The German Bank acted as the sole financial advisor to Aon in this transaction and supported the company in making the right choice. The final agreement is subject to customary regulatory approvals and is expected to be concluded in the second quarter of next year.
For Aon, the planned acquisition of NFP is an important milestone in its growth strategy and underscores its determination to establish itself as a leading reinsurance broker in a dynamic and demanding market. With a strengthened range of services and a broader customer base, Aon is well-equipped to continue to be successful in the future.
