AON To Buy Middle-Market Insurance Broker NFP In $13.4 Bln Deal

By Shahnawaz Alam

December 21, 2023

AON To Buy Middle-Market Insurance Broker NFP

toc impalement

On December 20, AON (AON.N) announced its acquisition of privately held NFP for $13.4 billion, targeting the expanding middle-market segment of insurance brokerage, wealth management, and retirement plan advisory. The deal is set to close in mid-2024, financed with $7 billion in cash and $6.4 billion in Aon stock, including a new debt raise of $5 billion in 2024.

In the context of resilient demand for insurance products, considered recession-proof due to employer guarantees and government mandates, Aon CFO Christa Davies outlined the funding structure. “The price does seem rich at 15 times expected adjusted EBITDA,” noted Brett Horn, a senior equity analyst at Morningstar, emphasizing Aon’s anticipation of $60 million in cost synergies.

This move follows Aon’s abandoned $30 billion merger with Willis Towers Watson in July 2021, which faced regulatory hurdles. Despite Aon shares declining 6% due to expected $400 million one-time costs, Davies expressed confidence in long-term adjusted operating margin expansion.

NFP, a property and casualty brokerage founded in 1999, specializes in benefits consulting, wealth management, and retirement plan consulting. CEO Doug Hammond will continue to lead the business. UBS Investment Bank and Citi served as exclusive financial advisors for Aon on the transaction and deal financing, respectively. Aon foresees NFP generating $2.2 billion in annual revenue in 2023, with an estimated 14% rise in total revenue forecasted for 2024 and 2025.

Read Also:


Shahnawaz Alam

Shahnawaz is a passionate and professional Content writer. He loves to read, write, draw and share his knowledge in different niches like Technology, Cryptocurrency, Travel,Social Media, Social Media Marketing, and Healthcare.

0 comment


Health Stay December 22, 2023 at 6:11 pm

This is really interesting, You’re a very skilled blogger. I’ve joined your feed and look forward to seeking more of your magnificent post. Also, I’ve shared your site in my social networks! Reply


Temp Mail December 25, 2023 at 1:47 am

Nice post. I learn something totally new and challenging on websites Reply

Related Articles