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The Actuary The magazine of the Institute & Faculty of Actuaries
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Aon acquires Benfield for %241.75bn

Aon the insurance broker has acquired reinsurance intermediary Benfield for $1.75bn. Greg Case, president and chief executive officer of Aon Corporation said: “Over the past several years, we have made significant progress in strengthening Aon’s operational platform and global network, becoming a more client-focused organisation with a broader portfolio of innovative products and services. With Aon Benfield Re, we will build on this progress to further enhance organic growth, expand margins, and drive shareholder value.”

The transaction is estimated to facilitate cost savings of over £65m a year, to be phased in by 2011, primarily in the companies’ support and administrative areas. Aon also acquires Benfield’s successful ReMetrics operation, which significantly strengthens its quantitative offering, and its presence in Florida and the US South East coast. Benfield’s strong links with the Asia Pacific and Latin American markets are also likely to have attracted Aon as it seeks to expand in faster-growing regions.