Insurance broker Aon said Friday that the final cost of its Benfield purchase was $1.4 billion, $350 million less than originally projected because of the strong dollar.
In August Chicago-based Aon Corp. said the acquisition of the London-based reinsurance broker, for ?3.50 a share plus the assumption of ?91 million of the firm's debt, was expected to cost Aon $1.75 billion. However, Aon explained, with improvement in the U.S. dollar, the actual cost as of Nov. 25 works out to $1.43 billion.
Aon announced today that Grahame Chilton, the former chief executive of Benfield and now vice chairman of Aon Group, will lead the effort to consolidate the units and also head a new unit, Aon Specialty, which will focus on construction, energy, marine, space and aviation clients. He will work directly with Greg Case, president and chief executive officer of Aon.
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