Aon Risk Services, the risk management and insurance brokerage business of Aon Corp., said it has agreed to acquire Allied North America, one of the largest independent surety and construction insurance brokerage firms in the United States.
Financial terms of the acquisition were not disclosed. Closing is expected by year’s end.
Bill Marino, current chairman of Allied, will assume the role of president of Aon’s global construction business and vice chairman of Aon Construction Services Group, post-acquisition.
Steve McGill, chairman and chief executive officer of Aon Risk Services, said the deal “reinforces” Aon’s already-strong position in the construction sector.
“Through the increased broking capability provided by Allied North America, we are enhancing our global construction powerhouse as well as our abilities to better serve our clients and grow our business around the world,” added Gregory C. Case, president and chief executive officer of Aon Corp.
A.M. Best deemed Aon the number one insurance broker based on brokerage revenues in 2007, 2008 and 2009.
The parties said that their combination will result in a construction entity with more than $3 billion in premium volume and 750 construction experts in more than 26 offices globally.
They said the new partnership can boast more than 3,000 contractors and project owners, with a retention rate of 97 percent, and will offer products across all major lines including in public-private partnerships, builders’ risk, residential, and technical services.
Allied North America is based in Jericho, New York. It was founded in 1979 with a singular focus on the construction sector. With more than $850 million in property/casualty premiums in 2008, it ranks seventh in Insurance Journal’s list of top privately-held independent insurance agencies.