Aon Corp. said the brokerage has completed selling off two of its units in transactions worth more than $800 million.
The Chicago-based firm said it had closed on the sale of Aon Warranty Group, including Virginia Surety Company, to Warrior Acquisition Corp., an affiliate of Onex Corporation. Also sold was Construction Program Group to Old Republic Insurance Company.
The sale of Aon Warranty and Construction Program, announced in late October, is expected to result in sales proceeds and dividends in excess of $85 million, said Aon.
The sales are part of a strategy announced by Aon to exit the property-casualty underwriting business and concentrate on its life, health and accident insurance business known as Combined Insurance Company of America.
The insurance brokerage said it expects to record a pretax gain and a modest after-tax loss associated with these transactions during the fourth quarter of this year.
Chicago-based Old Republic International Corporation is an insurance holding company whose subsidiaries market, underwrite and provide risk management services for a wide variety of coverages primarily in the property and liability, mortgage guaranty, and title insurance fields.
Warrior Acquisition Corp., a subsidiary of Onex Corporation of Toronto, Canada, purchased Aon Warranty Group for $710 million. The sale was originally announced in June.
Onex is a diversified holding company with annual consolidated revenues of $17.9 billion.
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