Aon Agrees to Sell AIS Unit

Chicago insurance broker Aon Corp. disclosed recently that it has definitively agreed to sell its AIS Management Group unit to California's Mercury Insurance Group for $120 million. AIS's holdings are centered around Auto Insurance Specialists Inc., a CA-based insurance provider. Aon said the sale includes an "earn-out" provision that could add up to $34.7 million to the sales price if AIS meets certain post-sale profit goals over the following two years. The divestiture, which is expected to close in the 1st-Q of 2009, is part of Aon's plan to focus on brokerage and consulting operations.