) is successfully moving toward its goal of portfolio expansion. In
its latest move, the company has closed the acquisition of
StoneRiver National Flood Services, Inc. and related entities
(National Flood Services). Last month, one of the subsidiaries of
Aon, namely Aon U.S. Holdings, Inc. had entered into a definitive
agreement to acquire National Flood services from StoneRiver Group,
The acquisition of National Flood Services, a leading flood
insurance processor is aimed to help Aon Affinity cater to the
growing demand for flood insurance solutions. Aon Affinity is the
consumer, association and group program business of Aon Risk
Solutions - the global risk management business of the holding
Aon Affinity has been providing customized and innovative insurance
solutions to more than 18 million individual customers for the past
60 years. The latest acquisition will complement the company's
services by increasing its flood offerings and distribution. The
acquirer intends to capitalize on National Flood Services' high-end
flood risk assessment technology for commercial and residential
markets, to boost its existing portfolio of flood solutions.
Over the past century, due to the transition toward a more urban
society, the U.S. witnessed changes in land use that led to an
increased number of floods. As per sources, on an average, 100
people are killed every year due to U.S. floods. This death toll is
by far the highest per year figure when compared to deaths caused
by other natural catastrophes.
Consequently, the demand for insurance coverage products has
increased. Thus, we believe that at this juncture, the acquisition
of National Flood Services and consequently, the upgrade in its
services will enable Aon to become more attractive to clients.
Currently, Aon carries a Zacks Rank #3 (Hold). Better-ranked
players in the insurance space that look attractive at current
Blue Capital Reinsurance Holdings Ltd.
). All these stocks sport a Zacks Rank #1 (Strong Buy).
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