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Aquiline Makes Another RK Acquisition

Citing regulatory considerations related to its pending merger with Willis Towers Watson, Aon announced plans to sell off its U.S. retirement business and retiree health exchange platform.

Aon has signed definitive agreements to sell its U.S. retirement business to Aquiline—which acquired Ascensus in 2015  and recently made a capital investment in SageView Advisory Group—and its Aon Retiree Health Exchange™ business to Alight for total gross consideration of $1.4 billion.

According to a press release, the agreements are intended to address certain questions raised by the U.S. Department of Justice in relation to the combination with respect to the markets in which these businesses are active. Aon and Willis Towers Watson continue to work toward obtaining regulatory approval in all relevant jurisdictions, according to the firms.

“These agreements further accelerate our momentum to close our proposed combination with Willis Towers Watson,” said Aon CEO Greg Case. “These are very capable teams that have demonstrated exceptional dedication to our clients and our firm. I want to recognize their contributions and reinforce that we are confident they will have similar opportunities with Aquiline and Alight.”

Retirement Acquisition

The U.S. retirement business Aquiline will acquire includes approximately 1,000 staff, and includes U.S. core retirement consulting, U.S. pension administration and the U.S.-based portion of Aon’s  international retirement consulting business, along with a number of solutions and tools, including:

  • Benefit Index and SpecSelect
  • Risk Analyzer
  • DBCalc and YPR
  • Aon Pooled Employer Plan (PEP)

The agreement with Aquiline does not include Aon’s non-U.S. actuarial, non-U.S. pension administration or international retirement businesses based outside the United States.

Aquiline Capital Partners is a private investment firm based in New York and London that invests in companies across financial services, technology, business services, and health care. “The retirement solutions sector is benefitting from an increased focus on long-term investment security and risk management of plans,” said Jeff Greenberg, Aquiline’s Chairman and CEO. “Aquiline’s significant experience across retirement and investments positions us to build on the strong business Aon has created. We look forward to working closely with the clients, management and colleagues of Aon's U.S. retirement business to create further value for all stakeholders.”

Alight Acquisition

The Aon Retiree Health Exchange™ that Alight will acquire is an individual market solution that supports employers and their retirees. According to the firms, it was the first retiree exchange to meet the National Council on Aging (NCOA) standards and continues to meet or exceed those rigorous standards of excellence in consumer education and health insurance brokerage services for people with Medicare.

All of the announced regulatory divestitures are contingent on the completion of the pending Aon and Willis Towers Watson combination, as well as other customary closing conditions. While Aon and WTW are working toward completing the proposed combination as soon as possible in the third quarter of 2021, the completion remains subject to the receipt of required regulatory approvals and clearances, including with respect to United States antitrust laws, as well as other customary closing conditions.