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Daily Insurance Industry News
Sunday 21st of January 2018
November 30, 2008

Aon to cut 700 jobs in merger with Benfield

by Gill Montia

Story link: Aon to cut 700 jobs in merger with Benfield

Aon to cut 700 jobs in merger with Benfield

Having completed its acquisition of the UK-based Benfield Group Ltd, Aon Corporation has announced plans to reduce its global headcount by 700, as the businesses integrate.

Benfield is the world’s third-largest reinsurance broker and Aon, the world’s largest insurance broker.

Benfield will merge with Aon’s existing reinsurance operations, to form Aon Benfield.

The transaction will extend Aon’s presence in developing markets in Asia and Latin America and should also boost the group’s standing in property catastrophe markets in Florida and the south-eastern states of the US.

However, up to 17% of the combined workforce will be cut with back office jobs most likely to be affected, although it is not yet clear which locations will see redundancies.

The restructure is expected to save $33 million to $41 million in 2009, $84 million to $94 million in 2010 and $122 million in 2011.

According to news agency, Bloomberg, the acquisition has been made for $1.43 billion, or $320 million below the price announced in August, because of a stronger US dollar.

 

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