Aon eyes sale of $5 billion division – report

Aon eyes sale of $5 billion division – report | Insurance Business America

Aon eyes sale of $5 billion division – report
Major international broker Aon is reportedly exploring the sale of its employee benefits outsourcing business valued at more than US$5 billion.
 
Citing unnamed sources familiar with the matter, Reuters reported that the brokerage is working with investment bank Morgan Stanley on a sale process for the unit.
 
The sources told the news agency that the division has supposedly gained the interest of private equity firms.
 
They said the negotiations about the potential sale are complex and may take several more weeks, adding that there is no assurance that Aon will choose to sell the business.
 
“We are always exploring opportunities that enable us to accelerate innovation on behalf of our clients. Per company policy, we do not comment on rumours or speculation regarding our business,” Reuters quoted Aon as saying in a statement.
 
According to the news agency, the division being discussed for sale is used by other companies to outsource the administration of employee benefits.
 
It is part of Hewitt Associates, the human resources services provider that Aon acquired in 2010 for US$4.9 billion.
 
Reuters noted that the sale of the unit would signal the company’s intention to focus more on its insurance and risk management businesses.


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