Aon Acquires Risk Solution Provider Grana y Asociados

Aon plc’s (AON) global risk management business, Aon Risk Solutions has acquired a Lima-Peru based risk and insurance solutions provider, Grana y Asociados. However, this news failed to drive the share price owing to broader market conditions, and shares declined almost 0.1% to $83.48 in the last trading session.

Grana y Asociados provides comprehensive advice and professional assistance for risk management to individuals and businesses globally. Moreover, Grana is a renowned name when it comes to risk management in the Peruvian circle.

Thus, the addition of this 19-year old risk manager will expectedly boost Aon’s services portfolio. Moreover, the company’s strong knowledge and expertise should help Aon to serve its clients better. Additionally, the strong brand recognition of Grana in Peru will likely help Aon gain more clients.

Since Latin America is one of the fastest-growing regions, establishing a strong foothold in the region will help Aon succeed in attaining long-term growth. The long-term growth of this stock is 11.80%.

Aon has been focused to improve its portfolio to serve clients more effectively and for this, it has resorted to acquisitions time and again. Last month too, the company acquired StoneRiver National Flood Services, Inc. and related entities (National Flood Services) from StoneRiver Group, L.P. to enhance its flood offerings and distribution.

At present, Aon carries a Zacks Rank #3 (Hold). Better-ranked stocks in the insurance space that look attractive at current levels include Alleghany Corp. (Y), Amtrust Financial Services, Inc. (AFSI) and Endurance Specialty Holdings Ltd. (ENH). All three stocks sport a Zacks Rank #1 (Strong Buy).

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