Aon has agreed to sell its Sheffield Insurance Corporation, a specialty property and casualty insurance subsidiary, to Bermuda’s Axis Specialty Limited for an undisclosed price, subject to regulatory approval.
Aon had previously announced plans to spin-off its P/C underwriting operations, but had postponed doing so in the face of declining stock market values. The sale of part of its Combined Specialty operations to Axis, which was established last year by Marsh’s Trident II investment trust , CSFB and other investors, marks a shift in its strategy.
Axis will take over the current management team at Sheffield and Dennis B. Reding, the former chairman and CEO of Combined Specialty, will head the new subsidiary, AXIS Specialty Insurance Company. Aon’s chairman and CEO Patrick G. Ryan stated that “We are pleased that AXIS has chosen to purchase Sheffield Insurance. We wish Dennis B. Reding and his team great success in the future.”
Aon said that David L. Cole would succeed Reding as chairman and CEO of Combined Specialty Group and will also continue to run Aon’s extended warranty business. Richard M. Ravin, chairman and CEO of Combined Insurance Company of America, will continue to lead Aon’s supplemental accident and health insurance business.
John R. Charman, Axis President and CEO commented that, “We are delighted that Dennis and his team have chosen to join us at AXIS. We are fortunate to have someone of Dennis’ reputation and expertise in the industry available to take on the leadership of our Specialty Insurance business here in the U.S. and we welcome him to our senior management team.”
“AXIS Specialty Insurance Operations will be headquartered in Atlanta with locations in New York, Chicago, Los Angeles and Glastonbury, Connecticut,” said the bulletin.
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