Aon swoops for NFP
Aon swoops for NFP | Insurance Business America
Insurance News
Aon swoops for NFP
Move enables group to expand footprint in rapidly growing middle-market segment
Insurance News
By
Roxanne Libatique
Aon plc (Aon) has announced a definitive agreement to acquire NFP, a prominent middle-market property and casualty (P&C) broker, benefits consultant, wealth manager, and retirement plan advisor.
The deal, valued at an estimated $13.4 billion at the time of closure, involves $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,” said Aon CEO Greg Case. “The acquisition will advance our relevance to clients, create opportunities for our colleagues, and further strengthen our shared cultural values.”
Changes following acquisition
Doug Hammond, the current chairman and CEO of NFP, is set to continue leading the business as an independent yet connected platform within Aon. He will report to Aon president Eric Andersen.
“NFP has one of the most high-performing leadership teams and cultures that I’ve come across in the marketplace in my 30-plus years in the business,” Andersen said. “NFP’s team shares our one-firm mindset and commitments to client excellence and growth, and I’m looking forward to working with Doug and all the colleagues at NFP when they join our firm as an Aon company.”
Case added: “Doug and NFP have built an exceptional team, with a complementary one-firm mindset, and we expect to both learn from their entrepreneurial culture and share with them the depth and breadth of our capabilities to create more value for clients, colleagues, and shareholders.”
NFP brings a team of over 7,700 colleagues.
Aon expects the acquisition to generate more than $2.8 billion in value creation, factoring in expected pre-tax synergies and capital structure, net of approximately $400 million in one-time transaction, and integration costs.
The transaction, subject to customary conditions and regulatory approvals, is anticipated to close in mid-2024.
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