Aon-Aminim, the local affiliate of international insurance brokerage Aon Corp (NYSE: AOC) announced today that it had acquired the business activity of a Haifa-based insurance agency, Fredy and Ilan Beck, subject to the approval of the relevant regulatory authorities. The two agencies will be merged to form one company named Aon Israel. The new company will operate out of Tel Aviv and will employ 90 people. The details of the deal have not been disclosed.
To complete the acquisition, Ilan Beck acquired Migdal Insurance ‘s (TASE: MGDL) 30% holding in his company, and sold all its activity to Aon-Aminim. Beck will hold a minority share in the new company Aon Israel and will serve as company CEO. Ephraim Kriel will serve as chairman.
The Freddy and Ilan Beck insurance agency was founded in 1966. It provides all types of insurance services with a focus on the industrial and engineering sectors. In 1998, Migdal acquired 30% of the agency, which is considered one the largest in northern Israel. The Beck family own a 70% stake of the agency, which employs 35 people and pays out annual premiums of more than NIS 170 million.
The global insurance market is currently controlled by three main brokerage firms: Aon, Willis Group (NYSE: WSH) and Marsh & McLennan Companies (NYSE:MMC) . Aon employs 46,000 people in more than 120 countries worldwide. Aon recently completed the acquisition from Ephraim Krriel of the Aminim agency, for which talks first began in 2003.
Published by Globes [online], Israel business news - www.globes.co.il - on August 28, 2006
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