The proposed $30bn merger deal was cleared by shareholders in August 2020. Credit: Dylan Gillis on Unsplash.

Aon has finalised agreements to divest its two retirement-related businesses in the US for total consideration of $1.4bn.

Aon said deals are intended to address certain questions raised by the US Department of Justice over its merger with Willis Tower Watson (WTW), which was first announced in March 2020.

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The insurer will sell its US retirement business to Aquiline and its Aon Retiree Health Exchange business to Alight.

With $6.4 billion in assets under management, Aquiline is a private investment firm based in New York and London. It invests in companies across financial services, technology, business services, and healthcare.

Alight on the other hand leverages its proprietary AI and data analytics to enhance the business process as a service (BPaaS) to deliver better outcomes for employees and employers across a comprehensive portfolio of services.

Aon CEO Greg Case said: “These agreements further accelerate our momentum to close our proposed combination with Willis Towers Watson.

“These are very capable teams that have demonstrated exceptional dedication to our clients and our firm. I want to recognize their contributions and reinforce that we are confident they will have similar opportunities with Aquiline and Alight.”

Aquiline chairman and CEO Jeff Greenberg said:” We look forward to working closely with the clients, management and colleagues of Aon’s U.S. retirement business to create further value for all stakeholders.”

In December 2020, the European Commission launched an in-depth probe to evaluate the proposed acquisition of Willis Towers Watson by Aon. The investigation followed the commission’s concern that the proposed deal could cut down the competition.

To obtain regulatory clearance in Europe, Aon and WTW agreed to sell Willis Re to Arthur J. Gallagher for $3.57bn in May 2021.

In the same month, Aon also agreed to sell its German pension business to Lane Clark & Peacock (LCP).