LCP is buying Aon’s pensions consulting, pension insurance broking, pensions administration and investment consulting business in Germany, in a deal that is contingent on Aon acquisition of Willis Towers Watson completing.
Aon CEO Greg Case says the deal shows the ‘momentum’ behind the proposed combination of the two insurance broking giants, announced last year. Earlier this month the European Commission was reported to have pushed back its decision on whether the deal satisfied its competition rules until August, with a final decision now expected on August 3rd.
Aon’s retirement and investment business in Germany employs 350 people and has offices in five locations.
The business in Germany will be rebranded as LCP upon completion. LCP says the acquisition provides substantial potential for innovation and growth in the German pensions market.
This acquisition follows on from a period of growth at LCP, which posted a record income of £126.5m during the financial year 2019/20, an increase of 10.1 per cent driven by growth across a wide range of sectors including pensions, investments, insurance, energy and health.
LCP CEO Aaron Punwani says: “A key part of LCP’s strategy is diversifying the business into different markets with long-term growth potential. The German pensions consulting market is the third largest in the world, after the US and the UK, which makes it a natural place for LCP to achieve a leading position, mirroring what we have achieved in the UK in recent years.
“The business we are acquiring is well-respected and has a strong blue-chip client base, complementing that of LCP in the UK and Ireland. The German pensions consulting market is extremely well-placed for innovation and growth as businesses review their pensions strategy with a greater focus on funded and insured solutions, and it is ripe for a technological transformation of the type that LCP has delivered for its clients in the UK and Ireland in recent years.
“We see a meeting of minds with the knowledgeable and dynamic people who lead the business in Germany. We are truly excited about welcoming Fred Marchlewski and his fantastic team as part of LCP and achieving great things together for the benefit of our people and our clients.”
Aon CEO Greg Case says: “This agreement demonstrates further momentum on the path to close our proposed combination with Willis Towers Watson. We recognize the significant contributions these colleagues have made on behalf of our clients during their time with Aon. LCP shares with us a culture of innovation and excellence and we know these colleagues have a positive future at LCP.”
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