Summary
This Form 8-K filing from Aon Corporation, filed on April 7, 2008, reports on the completion of significant divestitures. On April 1, 2008, Aon finalized the sale of Combined Insurance Company of America (CICA) to ACE Limited for approximately $2.56 billion in cash, subject to a post-closing adjustment. Additionally, Aon completed the sale of Sterling Life Insurance Company and Olympic Health Management Systems, Inc. to Munich-American Holding Corporation for $352 million in cash, also subject to a post-closing adjustment. These transactions represent a strategic shift for Aon, divesting its life insurance and health management businesses to focus on its core risk management and insurance brokerage operations.
Key Highlights
- 1Aon completed the sale of Combined Insurance Company of America (CICA) to ACE Limited for approximately $2.56 billion in cash (including a preliminary net worth adjustment).
- 2The CICA sale also involved a special dividend of $325 million in cash and non-cash financial assets paid to Aon immediately prior to the sale.
- 3Aon finalized the sale of Sterling Life Insurance Company and Olympic Health Management Systems, Inc. to Munich-American Holding Corporation for $352 million in cash.
- 4Both sales are subject to post-closing adjustments based on the net worth of the divested entities compared to target levels.
- 5The filing includes a press release dated April 1, 2008, announcing these transactions.
- 6Unaudited pro forma condensed consolidated financial statements are filed, reflecting the impact of these dispositions on Aon's financial position and results of operations.
Frequently Asked Questions
This filing reports the completion of two major divestitures by Aon Corporation on April 1, 2008. Aon sold its subsidiary, Combined Insurance Company of America (CICA), to ACE Limited and its subsidiaries, Sterling Life Insurance Company and Olympic Health Management Systems, Inc., to Munich-American Holding Corporation.
Aon received approximately $2.4 billion plus $161 million (totaling $2.56 billion) from ACE for CICA, subject to a post-closing net worth adjustment. Aon also received $352 million from Munich for Sterling and Olympic, also subject to a post-closing adjustment. In addition, Aon received a special dividend of $325 million from CICA prior to its sale.
Aon has filed unaudited pro forma condensed consolidated financial statements that present the financial position and results of operations as if these dispositions had occurred on specific dates (December 31, 2007, for the balance sheet and January 1, 2007, for the income statement). This provides investors with an adjusted view of the company's financial performance post-divestiture.
Aon divested its supplemental accident & health and life insurance products targeted primarily to middle-income consumers (CICA) and private Medicare-related insurance products targeted to the U.S. Senior market (Sterling Life Insurance Company), along with its third-party administrator for the Sterling business (Olympic Health Management Systems, Inc.).