Aon has agreed a $13.4bn deal to buy NFP, a privately-owned mid-market brokerage that also offers benefits consulting, wealth management and captive services.
Aon’s purchase will be financed by $7bn of cash and $6.4bn of Aon stock, acquiring the broker from Madison Dearborn Partners (MDP) and HPS Investment Partners.
NFP will operate as an “independent but connected platform”, going to market as “NFP, an Aon company”, with Doug Hammond, chairman and CEO of NFP, continuing to lead the platform.
“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.”
NFP has been growing its captive consulting and management business since hiring industry experts Tracy Stopford and Kara Tencellent in October 2020 to co-lead its Risk & Insurance Strategy Collective (RISC) under NFP’s Captive and Alternative Risk practice.
In July 2022, NFP opened a captive management business in Alberta and in August 2023 hired Amanda Wescott as vice president, director of US captive management operations, for RISC.