Aon to acquire NFP in major brokerage merger

Aon expanded its worldwide property and casualty insurance market presence by today acquiring NFP — a leading middle market P&C broker, benefits consultant, wealth manager and retirement plan advisor.

Aon will acquire NFP for an estimated $13.4 billion at the time of close. Under the deal’s terms, the transaction will be funded by $7 billion in cash and $6.4 billion in Aon stock.

“We have continually evolved our leading capabilities to better serve our clients’ growing needs amidst increasing volatility across the marketplace,” Aon CEO Greg Case said in a press release. “The acquisition will advance our relevance to clients, create opportunities for our colleagues and further strengthen our shared cultural values.”

Following the merger, NFP will operate as an independent company facing the market under the moniker ‘NFP, an Aon company.’ Aon is a global professional services firm with significant insurance brokerage business. NFP chairman and CEO Doug Hammond will continue to lead the business as an independent but connected platform. He will report to Aon president Eric Andersen.

Acquiring NFP expands Aon’s middle-market presence with capabilities across risk, benefits, wealth and retirement plan advisory, the release said.

“NFP is a leader in property and casualty brokerage, benefits consulting, wealth management and retirement plan consulting for middle-market clients…[It] helps companies and individuals address their most significant risk, workforce, wealth management and retirement challenges,” the release added.

“This is an exciting milestone in NFP’s evolution that reflects the tremendous quality of the business we’ve built and the exceptional people who drive our success,” said Hammond. “Aon is an industry leader in delivering risk capital and human capital capabilities and this acquisition is compelling for many reasons. Our clients will benefit from Aon’s global resources and distribution, while our people will have more opportunities to accelerate the growth of NFP.”

The transaction, subject to customary conditions, including regulatory approvals, is expected to occur in mid-2024. Financial metrics are calculated conservatively based on a Jun. 30, 2025, closing date. Until the closing date, Aon and NFP will continue to operate independently.

Neither Aon or NFP were able to provide any specifics regarding how the merger would affect Canadian operations at press time.

Feature image courtesy of iStock.com/marrio31