Aon to buy NFP for $13.4 billion
The move will enable Aon to push its footprint into the rapidly expanding middle-market.
Management consulting firm Aon has agreed to buy privately held insurance broker NFP Corp. for about $13.4 billion as part of a push into the middle-market segment of the insurance brokerage, wealth management and retirement plan advisory.
Founded in 1999, NFP is a leader in property and casualty brokerage, benefits consulting, wealth management and retirement plan consulting for middle-market clients with an estimated $2.2 billion in 2023 revenue. It forecasts a roughly 14% rise in total revenue in 2024 and 2025.
Demand for insurance products has remained firm in an uncertain economy and the sector is considered recession-proof as many policies are often guaranteed by employers, while some are mandated by the government, according to Reuters.
Following closing, NFP will run as an “independent but connected platform,” according to the acquiring firm. Doug Hammond, chairman and CEO of NFP, will continue to lead the business and will report to Eric Andersen, president of Aon.
“We have continually evolved our leading capabilities to better serve our clients’ growing needs amidst increasing volatility across the marketplace,” said Greg Case, CEO of Aon. “The acquisition will advance our relevance to clients, create opportunities for our colleagues and further strengthen our shared cultural values. 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.”
Both Aon and NFP will continue to operate independently until the closing date of the transaction.
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