Aon buys Willis for $30 billion in world's largest insurance deal

Aon | March 09, 2020

Aon Plc (AON.N) said on Monday it would buy Willis Towers Watson Plc (WLTW.O) for nearly $30 billion, in an all-stock deal which will make it the world’s biggest insurance broker and give it more pricing power, but also attract regulatory scrutiny. The acquisition, the insurance sector’s largest ever, unifies the second and third largest brokers globally into a company worth almost $80 billion, overtaking market leader Marsh & McLennan Companies Inc (MMC.N). It comes at a time when insurers are facing rising claims and new threats from the global outbreak of coronavirus and climate change. Aon had scrapped plans last year to pursue a merger with Willis, a day after media reports forced it to reveal it was in the early stages of considering an all-stock offer for the Irish-domiciled company. The merger agreement came right after a 12-month restriction under Irish rules for revisiting the deal expired.

Spotlight

As previous generations retire and move to a life stage in which they consume fewer products and services, younger millennial and Gen Z adults between the ages of 18 and 38 are becoming more relevant to the insurance industry in terms of size and spending power. Of the global population, millennials and Gen Z account for 27% (2 billion people)1 and 24% (1.83 billion people)2 respectively, and combined, have purchasing power estimated to be in the trillions of dollars annually.

Spotlight

As previous generations retire and move to a life stage in which they consume fewer products and services, younger millennial and Gen Z adults between the ages of 18 and 38 are becoming more relevant to the insurance industry in terms of size and spending power. Of the global population, millennials and Gen Z account for 27% (2 billion people)1 and 24% (1.83 billion people)2 respectively, and combined, have purchasing power estimated to be in the trillions of dollars annually.

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