On the 2nd of December 2010 Aon Corporation announced its intention to bid USD86 million to buy South African insurance firm Glenrand MIB, giving the worlds largest insurance broker a bigger presence in South Africa.
With an employee base of 59000 people and 500 offices in more than 120 countries, the Companys clients include corporations and businesses, insurance companies, professional organizations, independent agents and brokers, Governments, and other entities.
Headquartered in Johannesburg, Glenrand MIB provides insurance broking and risk advisory services. Their strength is in financial insurance, building and engineering insurance and professional indemnity and their main focus is on businesses (65% of its activities). Glenrand MIB focuses on short-term insurance.
Anton Roux, CEO for Aon Sub-Sahara Africa, said that prior to the merger the two firms had a “complementary strategic fit that could be exploited to grow market share”. In other words, the merger would result in an improved service offering to existing and potential clients of both companies.
Glenrand MIB is a company based in Johannesburg that specializes in insurance broking and risk advisory services. Their main areas of expertise lie in financial insurance, building and engineering insurance, and professional indemnity. With a primary focus on businesses, which accounts for 65% of their activities, Glenrand MIB primarily operates in the short-term insurance sector.
The merger between Glenrand MIB and Aon Sub-Sahara Africa was driven by the belief that the two companies had a complementary strategic fit. This strategic fit was seen as an opportunity to leverage their respective strengths and grow market share. By combining their resources and expertise, the merged entity aimed to enhance their service offering to both existing and potential clients.
The decision to merge was not taken lightly, as it required careful consideration of the potential benefits and risks involved. The leadership of both companies believed that the merger would result in an improved service offering. This would enable them to better meet the needs of their clients, providing them with a more comprehensive range of insurance broking and risk advisory services.
By joining forces, Glenrand MIB and Aon Sub-Sahara Africa sought to create a stronger and more competitive entity in the insurance industry. The merger aimed to capitalize on the synergies between the two companies, combining their respective strengths and capabilities. This would enable them to deliver greater value to their clients and position themselves as a leading player in the market.
Overall, the merger between Glenrand MIB and Aon Sub-Sahara Africa was driven by the desire to enhance their service offering and grow their market share. By leveraging their complementary strengths and capabilities, the merged entity aimed to provide a more comprehensive range of insurance broking and risk advisory services to businesses in the short-term insurance sector.