Aon Corp.'s plan to purchase London-based reinsurance broker Benfield Group Ltd. for some $1.75 billion has drawn mixed reviews from the three major rating agencies, with concerns raised about the deal's impact on Aon's liquidity and integration risks.
Fitch Ratings, Moody's Investor's Service and Standard & Poor's said they believe the company's move would solidify the position of Chicago-based insurance broker Aon as the top reinsurance intermediary. However, they differed over how the acquisition will be executed and its impact on Aon's financial position.
Aon said on Aug. 22 that it would buy Benfield for about $6.55 a share–29 percent above Benfield's Aug. 21 closing stock price. As part of the deal, Aon will assume $170 million of the company's debt, which one rating service termed modest. The all-cash deal is expected to be completed by the end of this year.
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