UK-based Aon has confirmed media reports that it is considering a possible merger with rival insurance brokerage Willis Towers Watson through an all-stock deal.
Willis Towers Watson, which is an Ireland-domiciled global multinational risk management, is currently valued at around $24bn, while Aon has a market value of nearly $38bn, as reported by BloombergQuint.
The British firm revealed that it is in the early stages of considering the all-share business combination with Willis Towers Watson.
Aon, in a statement, said: “The Company emphasizes that, at this point, its evaluation of a potential transaction is at a preliminary stage and there can be no certainty that any transaction will take place nor as to the form or terms on which any transaction might be pursued.
“A further announcement will be made in due course, as appropriate.”
Headquartered in London, the company provides commercial risk solutions, reinsurance solutions, retirement solutions, health solutions, and data and analytic services.
Earlier this month, Aon reported that its total revenue for the fourth quarter of 2018 declined 5% to $2.8bn compared to the same period in the previous year.
However, the company’s full year 2018 results saw its total revenue surge 8% to $10.8bn compared to the full year 2017 revenue.
In January 2019, the company completed a previously announced acquisition of alternative investment advisor Townsend Group.
Willis Towers Watson, on the other hand, reported a 3% increase in its fourth quarter 2018 revenue to $2.1bn, compared to the $2.08bn it registered for the same period in the previous year. The company’s full year 2018 revenue increased by 5% to $8.6bn compared to the $8.2bn revenue reported for the full year 2017.
Willis Towers Watson is an advisory, broking and solutions provider that helps reduce risks of its customers. The company has about 45,000 employees serving more than 140 countries and markets.
It was created in January 2016 through the $18bn merger between global risk advisor and insurance broker Willis Group and professional services firm Towers Watson.
Last month, Willis Towers Watson completed acquisition of Integra Capital, a Canadian investment management company.