Aon’s insurance brokerage is selling its 2 insurance companies for close to $3 billion to ACE Limited and Munich Re Group in an all-cash deal.
Aon, Chicago, said it will sell Combined Insurance Company of America, Glenview, Ill., for $2.4 billion in cash to ACE, Bermuda. Combined Insurance underwrites and distributes specialty individual accident and supplemental health insurance.
Munich Re will purchase Sterling Life Insurance Company, Bellingham, Wash., for $352 million. Sterling provides health care benefits to Americans over the age of 50. The company also has a strong presence in the Medicare program.
Aon announced in August of last year that it would sell off its underwriting interests.
“Through these divestitures, we have further simplified our global organization and successfully executed our strategy to exit the lower margin and more capital-intensive insurance underwriting business,” said Greg Case, president and chief executive officer of Aon.