Aon signs $2.7 billion deal to divest majority of NFP's wealth business

(Reuters) -Aon on Wednesday agreed to sell NFP's wealth business to private equity firm Madison Dearborn Partners for $2.7 billion, as it looks to sharpen focus on its core insurance brokerage operations.

Aon had acquired privately held NFP in April 2024 from Madison Dearborn in a $13 billion deal, aiming to expand in the fast-growing middle-market for insurance brokerage, wealth management and retirement advisory services.

But the company is now shedding some of those assets. Analysts believed wealth management was a non-core business for Aon, which has traditionally focused on insurance brokerage and risk advisory.

Insurance brokers serve as a bridge between an insurer and its customers, helping clients find a policy that best suits their needs.

"This transaction (divestment) reinforces our ongoing commitment to investing in and growing our core risk capital and human capital capabilities," said Aon CEO Greg Case.

The deal will see businesses including Wealthspire Advisors, Fiducient Advisors, Newport Private Wealth and related platforms return to Chicago-based Madison Dearborn.

The deal, expected to close in the final quarter of the year, was first reported by the Financial Times.

(Reporting by Ananya Palyekar and Manya Saini in Bengaluru; Editing by Harikrishnan Nair and Shinjini Ganguli)