Aon picks up Wrightson's insurance business

Rural services company Wrightson is to sell its insurance broking business to Aon NZ.

The two companies said today the sale was part of an agreement to establish "a new partnership to focus on rural New Zealand".

The transaction will result in a capital gain of about $5 million, for Wrightson which will be included in the company's earnings for the current year.

The re-jigged insurance broking business will operate under the Wrightson/Aon brand and be administered by Aon.

It will continue to service existing customers, and will expand the services available through Wrightson's rural service network.

Aon NZ chief executive Geoff Blampied said the deal would give his company an opportunity to improve its position in the rural and provincial markets, increasing its coverage from 29 to 48 offices.

Aon will offer existing Wrightson insurance broking staff re-employment and they would continue to work from Wrightson premises.

Wrightson shares were up a cent at 171 shortly after midday today.

- NZPA