By James Thaler

March 4 - (The Insurer) - Aon is currently deploying capital “back into the business” after the recent acquisitions of NFP and UK-focused Griffiths & Armour, with the firm’s management team focused on growth regions that will position the company for the next 25 years.

Those were among the key takeaways in an interview with Aon president Eric Andersen and Risk Capital CEO Andy Marcell, who highlighted numerous key regions where the global broking firm is looking to broaden its footprint.

“We see opportunity globally to deploy capital back into the business in a way that gives us an opportunity to serve clients in either different geographies or different segments where we think we can do something different,” Andersen said.

He was speaking against a backdrop of gathering momentum for major broker M&A, including Arthur J Gallagher’s $13.5 billion deal for AssuredPartners and Marsh McLennan’s $7.75 billion swoop for McGriff in addition to the Aon acquisitions.

“We're not really chasing the U.S. market dynamics of the PE world that dominates the headlines, but honestly, we're trying to play the long game here of saying India (for instance), will be a growth market for 25 years,” he said of areas where Aon is looking to grow.

“Are we positioned appropriately to capture that and be a part of it? Japan is changing with their deregulation. What does that mean for their in-house agents?” Andersen continued.

“How do we take advantage of health (care) in Europe, where some of the national systems are under stress and private markets are developing, how do we take advantage of that? So it's not just trying to figure out how PE firm Number Two gets out of a deal they bought,” he added.

FOCUS ON BEING 'WHERE WE NEED TO BE'

“If there's opportunistic things there for us sure, we'll take a look,” the executive commented.

“But we're trying to position the firm so that in 2050 we're where we need to be, where growth is going to happen… we're fortunate enough to be able to make those investments, and we make them seriously,” Andersen of targeted growth regions.

“So we're trying not to get caught up in the frenzy of what are today's issues in this market,” he noted.

“We have capital to deploy, and we have choice. So we're fortunate with that. But the reality is, India is a monster market. The Middle East is a monster market,” Andersen said of two major growth regions.

The Aon president said that the firm is focused on making decisions in geographies that will set the company up for growth in the coming decades, similar to how the company positioned itself in the 1990s, having made strides then that continue to shape the firm today.

“How do we make sure we're taking advantage of that where, 20 years from now, people will look back and say, ‘That was a great move’, but just like in the early nineties, when we were able to acquire the European assets that today are phenomenal for our firm that happened 25 years ago.”

“And how do we keep playing forward that way, so that when the footprint is done, it's where the growth is going, and can we get there and take advantage of it.”