Willis Group Divests Online Unit - Analyst Blog

Willis Group Holdings ( WSH ) recently inked a divestment deal with Insureon, the leading online insurance delivery platform for small-business owners. Per the agreement, Willis Group will divest Insurance Noodle to Insureon for an undisclosed amount. The divestiture is expected to culminate later this month.

Insurance Noodle is an online wholesale insurance broker and is a subsidiary of Willis Group.

The transaction will enhance the core competence of both Insureon as well as Insurance Noodle, besides enabling them to serve their clients in a more efficient manner. At the same time, the deal also underscores the potential contribution that the U.S. economy as well as the commercial insurance space stands to gain from the nation's 40 million-plus small and micro businesses.

Insureon, armed with superior online strategies, forms a unique combination with Insurance Noodle, which boasts of a geographically wide network of brokers/agents. Together, they can cater to the requirements of small and micro businesses across the country, combining the fruits of advanced technology and underwriting expertise.

With regard to benefits derived from the transaction by the parties involved, Insureon's agents and brokers will have greater exposure to a portfolio of "A" rated insurance carriers. Its annual premium is also expected to exceed the $100 million-mark post the acquisition.

On the other hand, Insurance Noodle's agents and brokers will have the opportunity to deploy Insureon's underwriting expertise in various key industries. Insureon possesses proprietary technology platform and products providing services to more than 550 industry segments. Insurance Noodle will hence be in a position to leverage these to better serve their clients in the small and micro business sector.

Willis Group presently carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the same sector include Aon plc ( AON ), Arthur J Gallagher & Co . ( AJG ) and Marsh & McLennan Companies, Inc . ( MMC ). All these stocks hold a Zacks Rank #2 (Buy).

GALLAGHER ARTHU (AJG): Free Stock Analysis Report

AON PLC (AON): Free Stock Analysis Report

MARSH &MCLENNAN (MMC): Free Stock Analysis Report

WILLIS GP HLDGS (WSH): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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