The acquisition strengthens Aon’s existing broking and advisory capabilities across the commercial risk, health and reinsurance markets, which combined with Aon’s talent consulting business, creates an integrated team of over 1,100 colleagues across Aon in India working together to accelerate our Aon United strategy, Rishi Mehra, head of Aon for India
Mumbai:–
Aon plc, the second largest global re/insurance broker today announced that with the approval of the Indian insurance regulator IRDAI, it has successfully completed the transaction to acquire Prabodh Thakker’s 50-year old Global Insurance Brokers (GIB).
This is the first acquisition of Aon in India and would significantly expands Aon’s existing capabilities in India to help clients navigate volatility and make better decisions, said the international broker.
Though, the financial details of the deal are yet to be known, industry grapevine puts the deal size between Rs 250 crore-Rs 300 crore.
Aon may be looking for more such acquisitions in India, which has currently over Rs 45,000 crore insurance broking market, they said.
Aon had a insurance broking joint venture with GIB, known for managing aviation accounts like Jet Airways (now defunct) and Air India, for almost 15 years before they parted ways in 2015.
GIB is now wholly owned by Aon and will formally integrate with Aon India Insurance Brokers (AIIB) following the finalisation of the National Company Law Tribunal merger process which is expected later this year.
Though, after the finalisation of the merger process, GIB will transition to Aon’s brand.
In the interim, GIB will operate independently as an Aon company.
Aon, effectively has emerged as the second largest re/insurance broker(excluding motor) in India after US major Marsh.
India has over 700 licensed brokers, out of which only seven are multinationals. Industry observers say a lot of players including big ones in the broking industry want to exit and looking for buyers.
The Indian insurance broking market is heavily skewed on half a dozen of brokers who almost corner over 80 per cent of the business.
Rishi Mehra, head of Aon for India, will join the GIB board as its chairman subject to customary approvals. Jon Pipe, CEO and principal officer of AIIB and GIB’s existing executive leadership team, will work closely with Mehra to help clients make better decisions to protect and grow their business.
“This is an exciting milestone in Aon’s journey in India and reflects our commitment to the Indian market. The exceptional talent and breadth of capabilities across our two firms will create opportunities for our colleagues and expand our ability to better serve the growing needs of our clients,” said Mehra.
The acquisition strengthens Aon’s existing broking and advisory capabilities across the commercial risk, health and reinsurance markets, which combined with Aon’s talent consulting business, creates an integrated team of over 1,100 colleagues across Aon in India working together to accelerate our Aon United strategy.
“India presents significant opportunities for growth and innovation. GIB and Aon share common values and a firm commitment to client excellence. We are excited to come together to help clients face today’s rapidly changing and increasingly complex and interconnected challenges,” said Pipe.
Prabodh Thakker, outgoing chairman of GIB, said, “The Indian insurance market has
evolved significantly during my time as GIB’s leader and Aon’s ability to deliver capabilities in Risk Capital and Human Capital makes them well-placed to take the business forward. GIB clients will benefit from Aon’s global resources and advanced capabilities while GIB colleagues will have exciting new opportunities to deliver client
value in a dynamic market.”