Aon Corporation has completed the sale of Combined Insurance Companies of America to the ACE Group for $2.56 billion, and of Sterling Life Insurance Companies to Munich Re for $352 million.
The company has also extracted a one-time dividend of $325 million from Combined Insurance Companies of America prior to the close of the transaction. The purchase price reflects on a dollar-for-dollar basis an increase to Combined’s net worth that occurred between the signing and the close of the transaction.
Aon Capital Markets, Credit Suisse and Merrill Lynch acted as advisers for the transaction.
Greg Case, president and CEO of Aon, said: With the completed sales of both Combined and Sterling, we have executed on our strategy to exit our more capital intensive insurance underwriting businesses. Our team is excited about the prospect of our increased focus on our risk advice and human capital consulting businesses.