Marsh & Mclennan threatens Aon’s takeover of Benfield

by Gill Montia

Story link: Marsh & Mclennan threatens Aon’s takeover of Benfield

According to a report in the Telegraph this weekend, US insurance broker Marsh & McLennan is now assessing whether it can make a counter bid.

Benfield is the world’s third-largest reinsurance broker and has long been a takeover target for larger rivals Aon, Marsh & McLennan and Willis Group Holdings.

Aon made an £844 million cash offer for Benfield a fortnight ago and plans to merge the business with its existing reinsurance operations, Aon Re Global.

The takeover has been agreed unanimously by both boards, although the price paid by Aon is seen as high by some analysts.

The potential acquisition could extend Aon’s presence in developing markets in Asia and Latin America and boost its standing in property catastrophe markets in Florida and the south-eastern states of the US.

It would also enhance the group’s analytical capacity via Benfield’s ReMetrics unit, which specialises in quantitative risk modelling.

Ownership of Benfield would give the firm the opportunity to create one of the world’s biggest reinsurance brokers by merging the business with Guy Carpenter, its own reinsurance broking division.