Aon Corporation, a provider of risk and insurance brokerage services, has signed separate definitive agreements to sell its Combined Insurance Company of America to ACE for cash consideration of $2.4 billion and Sterling Life Insurance Company to Munich Re Group for cash consideration of $352 million.
The Sterling transaction is expected to be completed by the end of the first quarter 2008 and Combined Insurance Company of America (CICA) is expected to be completed by the end of the second quarter 2008. Aon has also announced that it will devote the proceeds of these transactions to an increase in its previously authorized share repurchase program.
Greg Case, president and CEO of Aon, said: 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.