Following on from healthy Q2 results, Aon are exploring strategic options for CICA
Aon has announced that it is considering strategic options for Combined Insurance Company of America (CICA) and its subsidiaries.
Greg Case, Aon's president and CEO, said, "Combined is a great company with a longstanding record of success, and I'm confident that it will continue to succeed in the future. We are making preparations for a spin-off of the company to our shareholders, but we anticipate receiving inquiries from potential buyers and are prepared to respond accordingly."
CICA and its subsidiaries, including Sterling Life Insurance Company, provide accident, health and life insurance coverage, in the US, Canada, Europe, Asia and Australia, primarily through more than 7,000 career insurance agents.
Aon has engaged Credit Suisse Securities (USA) LLC, Merrill Lynch & Co., and Aon Capital Markets as advisors on any potential related transaction.
The possible sale of CICA comes on the back of Aon posting impressive second quarter results. Brokerage organic revenue growth was 6% - the highest since 2003 - whilst net income increased 24% to $240m.