Aon to undergo major restructuring; McGill and Devine to head new global retail business
Aon Corp is set to unveil a major restructuring which will see the formation of a new global retail business led by Steve McGill, the current head of the firm's Americas division, The Insurance Insider can reveal.
According to sources, Aon Risk Services will be formally unveiled later today when the Chicago-headquartered firm announces its fourth quarter 2007 results.
The unit will effectively become the world's largest insurance broker with approximately $5bn of annual revenues and up to 26,000 employees. Steve McGill will be chief executive and chairman and he will be joined by Ted Devine, the current Aon Re chief executive, who will become president of Aon Risk Services.
The Insurance Insider understands the reorganisation is the culmination of nearly three years of work and is regarded by Aon Corp's chief executive Greg Case as the next logical step in the group's development. Driving the changes is thought to be a focus on client services, together with greater co-ordination of Aon's diverse insurance operations.
Currently, Aon's risk and insurance businesses are segmented into geographical regions - such as the Americas, UK, Europe and the Middle East and Asia/Pacific - together with global units such as Aon Global, its large accounts business.
The Insurance Insider understands that Andrew Appel, the former McKinsey & Co senior partner and current chairman of Aon Consulting, will replace Devine as the chief executive of Aon Re Global. Michael O'Halleran will remain executive chairman of the reinsurance arm.
An Aon spokesman declined to comment. The firm's results are due out after the US markets close later today.