Bermuda-based ACE Limited announced yesterday that it has completed its $2.56 billion cash deal to acquire Combined Insurance Company of America and certain subsidiaries from Aon Corp. brokerage.
As per the purchase agreement, the price reflects on a dollar-for-dollar basis an increase to Combined's net worth that occurred between the signing and the closing of the transaction. It was originally announced as $2.4 billion in December of last year.
Combined Insurance is an underwriter and distributor of specialty individual accident and supplemental health insurance. Chicago-based Aon, on the same day it announced the Combined deal with ACE, also said it was selling its Sterling Life Insurance Company for $352 million to Munich Re.
Evan G. Greenberg, chairman and chief executive officer of ACE Limited, commented: "We are delighted to close this important transaction ahead of schedule. ACE and Combined teams have been working closely together, making plans to achieve both our efficiency and growth objectives. We have been building considerable momentum over the last three months so we can hit the ground running beginning today."
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