Aon plc, a global professional services firm, has entered into a definitive agreement to purchase the in-house insurance agency business of Mitsubishi Chemical Group (MCG) in Japan.
This acquisition is intended to enhance Aon’s presence in the Japanese market and expand its risk and health service capabilities.
The insurance agency, part of MCG’s internal service provider Dia Rix, offers corporate and personal insurance products to MCG’s subsidiaries and employees in Japan.
By divesting the unit, MCG aims to reallocate resources toward its primary business areas while leveraging Aon’s expertise in risk management to support its global governance needs.
Upon completion of the transaction, the insurance agency will adopt Aon’s branding and operational framework.
The integration will be led by Tatsuya Yamamoto, head of Aon Japan, with the combined workforce expected to exceed 400 employees.
In a statement, Anne Corona, CEO of Aon’s Asia-Pacific operations, emphasised the importance of the Japanese market in the firm’s strategy.
“The existing synergies we share with Dia Rix in terms of capability and culture will allow us to better serve MCG as well as strengthen broader capability and development opportunities for colleagues at the combined firm,” she said.
Tatsuya Yamamoto commented on the market’s evolving landscape, highlighting that the move aligns with MCG’s strategy to enhance efficiency by divesting non-core operations.
“The current changes in the non-life insurance environment in Japan will foster an environment in which global companies like the MCG Group can focus on their core business by divesting their in-house insurance agency operations,” he said.
He added that the transition would enable Aon to offer advanced global risk management solutions tailored to the needs of MCG and other clients in Japan.
The acquisition is expected to close in the first half of 2025. Until then, the companies will continue operating as separate entities.
The agreement follows the release of Aon’s third-quarter financial results for 2024, showing increased revenue but a drop in net income attributable to shareholders compared to the same period in 2023.
The company’s revenue growth was largely driven by its commercial risk solutions unit, which contributed US$1.85 billion.
Other revenue streams included US$870 million from health solutions, US$503 million from reinsurance solutions, and US$499 million from wealth solutions, all of which experienced year-over-year increases.
Aon CEO Greg Case attributed the revenue growth to strong performance across all business segments, citing a 7% organic revenue increase. He highlighted the company’s ability to expand its adjusted operating margin and achieve a 17% rise in adjusted earnings per share.
However, operating income declined, partially due to costs related to the company’s acquisition of NFP earlier in 2024. These transaction and integration expenses totalled US$35 million in the third quarter and US$151 million for the year to date.
