Aon to buy NFP for $13.4 billion

Management consulting firm Aon has agreed to buy privately held insurance broker NFP Corp. for about $13.4 billion as part of a push into the middle-market segment of the insurance brokerage, wealth management and retirement plan advisory.

Aon, a leading professional services firm that provides a range of risk, reinsurance, retirement and health solutions, employs 50,000 employees in 120 countries.

Founded in 1999, NFP is a leader in property and casualty brokerage, benefits consulting, wealth management and retirement plan consulting for middle-market clients with more than 7,700 colleagues and an estimated $2.2 billion in 2023 revenue. It forecast a roughly 14% rise in total revenue in 2024 and 2025.

Demand for insurance products has remained firm in an uncertain economy and the sector is considered recession-proof as many policies are often guaranteed by employers, while some are mandated by the government, according to Reuters.

Through strong local relationships and a people-first approach focused on well-being, belonging and impact, NFP helps companies and individuals address their most significant risk, workforce, wealth management and retirement challenges.

NFP, the 13^th largest brokerage in the U.S., sees Aon as an ideal partner for growth and serving the dynamic needs of clients, according to an Aon press release. NFP will be part of the firm’s Aon United strategy but will run as an “independent but connected platform.” Doug Hammond, chairman and CEO of NFP, will continue to lead the business as an independent but connected platform within Aon, reporting to Eric Andersen, president of Aon. Hammond will continue to lead the business and will report to Aon President Eric Andersen.

“We have continually evolved our leading capabilities to better serve our clients’ growing needs amidst increasing volatility across the marketplace,” said Greg Case, CEO of Aon. “The acquisition will advance our relevance to clients, create opportunities for our colleagues and further strengthen our shared cultural values. Doug and NFP have built an exceptional team, with a complementary one-firm mindset, and we expect to both learn from their entrepreneurial culture and share with them the depth and breadth of our capabilities to create more value for clients, colleagues and shareholders.”

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“This is an exciting milestone in NFP’s evolution that reflects the tremendous quality of the business we’ve built and the exceptional people who drive our success,” said Hammond in a press realease. “Aon is an industry leader in delivering Risk Capital and Human Capital capabilities and this acquisition is compelling for many reasons. Our clients will benefit from Aon’s global resources and distribution, while our people will have more opportunities to accelerate the growth of NFP. With aligned values and capabilities across different-sized market segments, we look forward to working with the Aon team to elevate performance and make the transaction successful for everyone involved.”

Both Aon and NFP will continue to operate independently until the closing date of the transaction.