Capitalworks, an independent alternative asset management firm based in South Africa, has agreed to acquire Aon’s shareholding in its African insurance brokerage and employee benefit operations in a number of countries.

Garth Willis, Principal at Capitalworks, said: “We are excited about investing in a world-class operation which is one of the leading players in Africa. We will be working with management to build on the Aon heritage as a trusted partner to clients in protecting the future of their people and assets in Africa.”

“Capitalworks is looking forward to partnering with the management team that has grown the franchise to be the largest insurance broker and employee benefit network on the continent,” he said.

The new group will become Aon’s exclusive correspondent for Angola, Kenya, Lesotho, Malawi, Mozambique, Namibia, Swaziland, Tanzania, Uganda and Zambia.

The transaction will become effective once regulatory approval has been granted.

Aon operates successfully through correspondent arrangements in a number of countries globally, and in other African markets such as Ghana, Nigeria and Zimbabwe. 

This transaction will give Aon one of the most comprehensive correspondent networks on the continent, backed by an African-owned company.

The new group will have the benefit of consistency in leadership and staffing, with Joe Onsando, currently CEO of Aon Sub-Saharan Africa, leading the business, supported by his existing teams in all ten countries.

“The African continent presents great opportunities for growth and this transaction affirms a positive investment outlook for Africa driven by sound long-term fundamentals,” commented Onsando. 

“This transaction will enable us to be even more responsive to the needs of our clients, and should impact positively on both product development and client service. The combination of global and in-country expertise will help us to continue to lead the market in risk management on the continent,” he said.

The new group will be launched once all requisite regulatory approvals have been granted.

Until then the group will continue to trade under the Aon brand. 

Post launch, the group will trade under a new name and reflect the endorsement of being an Aon global network correspondent.

Chad Smart, Founder of the Capitalworks Group, said: "Africa offers a wealth of investment opportunities and we are pleased to be entering the broader Africa market alongside such a credible and established brand such as Aon. Capitalworks will continue to broaden its investment programme in Sub-Saharan Africa in the years to come.”