Aon’s $13.4 billion acquisition of NFP is expected to fortify its standing in core markets and strategically expand its influence in secondary markets, as noted by insights from Insuramore.
NFP, a significant player across various broking segments, currently holds notable worldwide rankings, including seventh for employee benefits activity, life and health insurance retail broking, 12th for reinsurance broking, and 18th for commercial P&C retail broking.
Analysing data from 2022, the acquisition is expected to yield key changes in Aon’s positioning within the insurance broking sector. Aon’s global market share will rise from 7.6% to 8.8%, securing its second-place position globally, just behind Marsh McLennan.
Aon’s global market share in this segment will advance from 8.9% to 9.7%, maintaining its second-place status behind Marsh McLennan.
A significant surge is anticipated, with Aon’s global market share increasing from 1.0% to 1.7%, propelling it from 22nd to ninth position in a comparatively fragmented segment.
Aon’s global market share will grow from 6.4% to 8.5%, solidifying its third-place position, trailing only WTW and Marsh McLennan.
Aon will maintain its top-ranking position worldwide, with a global market share increasing from 30.8% to 31.8%.
Furthermore, the combined strength of Aon and NFP in wholesale broking and MGA/MGU/cover-holder activity is expected to elevate their global rankings to approximately 15th and 10th, respectively.
Overall, this strategic acquisition promises to not only reinforce Aon’s dominance in core markets but also to strengthen its foothold in segments where it previously had less influence.
The deal, more than twice the value of Marsh McLennan’s historic acquisition of Jardine Lloyd Thompson in 2018/19, positions Aon well ahead of a rapidly growing pack of competitors, including Acrisure, Alliant, Gallagher, HUB, and Lockton, establishing a new era in the global insurance broking landscape.
