Aon and Willis Towers Watson, two of the world’s largest insurance, risk and professional services companies – and employee benefits consultancies – are to merge.
Aon said that it has agreed to buy Willis Towers Watson for $30bn in an all-share deal that will combine the world’s second and third-largest insurance brokers into a new industry leader.
The move is the latest – and a hugely significant – sign of the ongoing consolidation taking place across the insurance broking industry.
It also lays down the gauntlet for Marsh & McLennan, which until now has been the world’s number one in the sector by revenues.
Last year, Marsh & McLennan completed the acquisition of Jardine Lloyd Thompson in a £4.3bn deal – but that seems like loose change compared to the £30bn deal announced by Aon.
Look out for reaction and analysis to follow.