Chicago-based insurance broker Aon Corp. has completed the sale of AIS Management, LLC, which is the parent company of Auto Insurance Specialists, LLC, to Mercury General Corp.
Aon said it received $120 million in cash at the closing on Jan. 2, and may receive potential earn out of up to $34.7 million in additional consideration payable over the two year period following the transaction closing date.
AIS is an independent broker and major producer of automobile insurance in California. It reported $400 million of direct premiums written during 2007.
The sale includes business transacted under the Auto Insurance Specialists Inc., PoliSeek and Aon Recreation Insurance brands.
Aon said the sale is consistent with its previously announced plan to shape the firm around risk management and commercial lines insurance brokerage, reinsurance brokerage, and human capital consulting.
Mercury General Corp. and its subsidiaries sell predominantly personal automobile and homeowners insurance through independent producers in several states.