Mercury General Buys Aon Unit

0

Mercury General Corp. said Wednesday that it has agreed to buy the specialty insurance lines of insurance broker Aon Corp. of Chicago for $120 million.

The companies said the deal, which is expected to close in the first quarter of 2009, includes a potential earn out of up to $34.7 million payable over the two years following the sale. The transaction is expected to close in the first quarter of 2009.

Los Angeles-based Mercury General, which sells automobile and homeowners insurance, said the deal includes these businesses: Auto Insurance Specialists Inc., a California auto insurance broker; PoliSeek, which provides online and over-the-phone quotes of various types of insurance for comparison purposes; and Aon Recreation Insurance, which sells insurance for recreational vehicles.

Mercury General shares were down $2.44, or 5 percent, to $49.21 in morning trading on the New York Stock Exchange.

No posts to display