Aon planning acquisitions in South America
AON Corp., the world's largest insurance brokerage, is planning acquisitions in Brazil to increase sales in the South American country by 20 percent a year, the vice-president of the local unit said.
AON, based in Chicago, aims to gain control of brokerages and firms specialized in consulting in niche businesses in which it isn't already a market leader, Fernando Pereira said.
"Brazil is priority number one for AON because of its economic growth and the opportunities that lie ahead," he said in an Aug. 10 interview from the company's office in Sao Paulo.
Sales from the company's Brazilian unit rose 19 percent in 2009, the best performance among the 120 countries where the group has a presence, Pereira said.
The expansion efforts will begin in 2011. This year, the goal is to generate 210 million reais ($118.7 million) in revenue, an increase of 11 percent from last year, he said. The Brazilian unit employs 700 staff and has 12 regional offices.
"We've already invested $30 million in Brazil, buying brokerages and consultancies and expanding organically," he said.
In 2007, AON bought control of Aldebaran Corretora de Seguros in Rio de Janeiro, which specializes in the oil and gas industry. A year earlier, the U.S. company bought Total Corretora, based in Ribeirao Preto, which focuses on ethanol.
World Cup, OlympicsAON also aims to target consultancies specializing in corporate benefits. In July, the company announced the acquisition of Hewitt Associates Inc. in the U.S. for $4.9 billion. In Brazil, its AON Consulting unit bought control of Ticket Seg, which belonged to the Accor SA group.AON wants to boost business from the oil and gas industries as well as civil construction and entertainment, Pereira said."The exploration of the pre-salt oil layer will drive growth in maritime services," he said, "in the same way that loans, income growth and sporting events like the 2014 World Cup and the 2016 Rio Olympics will attract investment and lead more companies to seek policies."