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Aon (AON) Acquires Tyche to Aid Insurance Consulting
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Aon plc (AON - Free Report) purchased actuarial software platform Tyche to boost its insurance consulting capabilities for clients. However, further details of the deal were kept under wraps. The leading insurance broker bought the actuarial modelling system Tyche from the technology and software firm RPC Tyche.
This latest strategic move adds to the insurance brokerage player’s current functionalities that in turn will help re/insurer clients take informed business decisions. The addition of Tyche allows Aon to offer a single technology platform for insurance clients to integrate capital modelling, pricing and reserving.
Tyche provides services to some of the major life, non-life, and composite insurers and pension firms plus professional services providers. Aon’s management expects the solution to reach the underpenetrated markets, enhancing its portfolio further.
This is expected to lower risks and regulatory requirements of the insurance broker. Aon undertakes strategic buyouts every now and then to boost its capabilities and provide advanced solutions to clients. In September 2021, AON acquired 51% of Aon India Insurance Brokers Limited (formerly known as Anviti Insurance Brokers Private Limited). AON spent $14 million on buyouts last year and has sealed many acquisition deals over the past few years. Its acquisitions mainly aim at expanding its health and benefits business, flood insurance solutions, and risk and insurance solutions operations.
Given the insurance industry’s adequate capital level, players like Brown & Brown Inc. (BRO - Free Report) , Arthur J. Gallagher & Co. (AJG - Free Report) and First American Financial Corporation (FAF - Free Report) are pursuing strategic mergers and acquisitions.
Brown & Brown’s subsidiary Brown & Brown Lone Star Insurance Services purchased HARCO to boost its presence in Texas. BRO and its subsidiaries continuously make strategic acquisitions to expand globally, add capabilities and boost operations. Also, these strategic buyouts help BRO increase commissions and fees, which in turn, drive revenues. BRO recently agreed to buy the general insurance operating companies of BdB.
Arthur J. Gallagher & Co. acquired Risk Transfer Insurance Agency, LLC. AJG also bought Romford, Essex-based Devitt Insurance Services in the United Kingdom. Its impressive inorganic story features a strong merger and acquisition pipeline with about $400 million revenues associated with nearly 50 term sheets either agreed upon or being prepared. The insurance broker estimates more than $2.5 billion of mergers and acquisitions, consisting of $1 billion cash, about $650 million of net cash generation in the second half of 2021, and $600-$700 million of borrowing capacity.
First American Financial agreed to acquire Mother Lode Holding Company to broaden its exposure in the crucial growth markets, enhance its capabilities to better serve customers across the strongest housing markets and fortify its presence in the United States. In line with its strategic initiatives, FAF actively pursues acquisitions to boost and expand its core business. The title insurer also pursued small title agency buyouts in the regions that it identifies as growth markets.
Shares of Brown and Brown, Arthur J. Gallagher and First American have gained 42.8%, 27.6% and 21%, respectively, in a year’s time.
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Aon (AON) Acquires Tyche to Aid Insurance Consulting
Aon plc (AON - Free Report) purchased actuarial software platform Tyche to boost its insurance consulting capabilities for clients. However, further details of the deal were kept under wraps. The leading insurance broker bought the actuarial modelling system Tyche from the technology and software firm RPC Tyche.
This latest strategic move adds to the insurance brokerage player’s current functionalities that in turn will help re/insurer clients take informed business decisions. The addition of Tyche allows Aon to offer a single technology platform for insurance clients to integrate capital modelling, pricing and reserving.
Tyche provides services to some of the major life, non-life, and composite insurers and pension firms plus professional services providers. Aon’s management expects the solution to reach the underpenetrated markets, enhancing its portfolio further.
This is expected to lower risks and regulatory requirements of the insurance broker. Aon undertakes strategic buyouts every now and then to boost its capabilities and provide advanced solutions to clients. In September 2021, AON acquired 51% of Aon India Insurance Brokers Limited (formerly known as Anviti Insurance Brokers Private Limited). AON spent $14 million on buyouts last year and has sealed many acquisition deals over the past few years. Its acquisitions mainly aim at expanding its health and benefits business, flood insurance solutions, and risk and insurance solutions operations.
Shares of AON have gained 27.2% in a year’s time, outperforming its industry’s growth of 15.2%. The stock carries a Zacks Rank #3 (Hold), currently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Given the insurance industry’s adequate capital level, players like Brown & Brown Inc. (BRO - Free Report) , Arthur J. Gallagher & Co. (AJG - Free Report) and First American Financial Corporation (FAF - Free Report) are pursuing strategic mergers and acquisitions.
Brown & Brown’s subsidiary Brown & Brown Lone Star Insurance Services purchased HARCO to boost its presence in Texas. BRO and its subsidiaries continuously make strategic acquisitions to expand globally, add capabilities and boost operations. Also, these strategic buyouts help BRO increase commissions and fees, which in turn, drive revenues. BRO recently agreed to buy the general insurance operating companies of BdB.
Arthur J. Gallagher & Co. acquired Risk Transfer Insurance Agency, LLC. AJG also bought Romford, Essex-based Devitt Insurance Services in the United Kingdom. Its impressive inorganic story features a strong merger and acquisition pipeline with about $400 million revenues associated with nearly 50 term sheets either agreed upon or being prepared. The insurance broker estimates more than $2.5 billion of mergers and acquisitions, consisting of $1 billion cash, about $650 million of net cash generation in the second half of 2021, and $600-$700 million of borrowing capacity.
First American Financial agreed to acquire Mother Lode Holding Company to broaden its exposure in the crucial growth markets, enhance its capabilities to better serve customers across the strongest housing markets and fortify its presence in the United States. In line with its strategic initiatives, FAF actively pursues acquisitions to boost and expand its core business. The title insurer also pursued small title agency buyouts in the regions that it identifies as growth markets.
Shares of Brown and Brown, Arthur J. Gallagher and First American have gained 42.8%, 27.6% and 21%, respectively, in a year’s time.