Global insurance broker Aon has agreed to sell its US annuity business to private investment firm Aquiline and its individual health insurance business Retiree Health Exchange to Illinois-based digital services company Alight for a total gross purchase price of $ 1.4 billion.

Aon said the sales are designed to answer certain questions raised by the U.S. Department of Justice regarding Aon’s proposed $ 30 billion acquisition of rival Willis Towers Watson, creating the world’s largest insurance broker.

Aon and Willis Towers Watson said they are continuing to work to complete the proposed merger as soon as possible in the third quarter of 2021.

“These agreements further accelerate our momentum towards the completion of our proposed combination with Willis Towers Watson,” said Greg Case, CEO of Aon.

Aon and Willis Towers Watson previously announced the sale of Willis Re, a group of Willis Towers Watson corporate risks and bRoking and health and welfare benefits to rival Arthur J. Gallagher, and Aons Pension and investment business in Germany. Total sales for 2020, announced or offered for sale depending on the combination, are $ 2.3 billion. Of the $ 2.3 billion, approximately 35% was in the 1st quarter, 23% in the second quarter, 18% in the third quarter, and 24% in the fourth quarter.

The US annuity business that Aquiline will take over includes approximately 1000 colleagues and the agreement includes US core pension advice, US pension administration and the US-based portion of Aon’s international pension advisory business, as well as many solutions and tools including: Benefit Index and SpecSelect; Risk analyzer; DBCalc and YPR; and Aon Pooled Employer Plan (PEP).

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The agreement with Aquiline does not include Aon’s non-US actuaries, non-US pension management companies, or international annuity companies located outside the United States. Aquiline Capital Partners invests in companies in the financial services, technology, business services, and healthcare sectors.

“The retirement solutions sector will benefit from an increased focus on long-term investment security and risk management of the plans,” said Jeff Greenberg, Chairman and CEO of Aquiline. “Aquiline’s extensive retirement and investment experience enables us to build on the strong business that Aon has built.”

The Aon Retiree Health Exchange, which Alight will take over, is an individual market platform for employers and their retirees.

All announced regulatory disposals are subject to the completion of the upcoming Aon and Willis Towers Watson merger and other customary closing conditions.

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