The 2010 and 2011 Canterbury earthquakes had a sizeable impact on insurers globally. Now two insurance giants are seeking approval here as part of a deal to create the world’s biggest insurance brokerage.
Major insurer Aon has applied for Commerce Commission clearance to buy one of its rivals, Willis Towers Watson, as part of a global transaction.
The competition watchdog said Aon had 58 offices in New Zealand and Willis Towers Watson had five.
Both firms are publicly traded and specialise in risk management.
According to overseas reports, the all-stock deal is valued at US$30 billion (NZ$45.4b), with Aon shareholders holding 63 per cent.
The combined firm would have equity value of about US$80 billion earlier in the year, and would reportedly be the world’s biggest insurance broker.
Willis Towers Watson is Irish-based, while the originally Chicago-based Aon has recently moved its parent company’s incorporation to Ireland, reportedly to escape Brexit fallout.
In New Zealand, Aon and Willis Towers Watson coincide on a range of insurance brokerage services, including for commercial insurance, reinsurance, group health and welfare benefits, and personal and life insurance.
Both firms also provide investment consulting services to institutional investors.