AON TO SELL WARRANTY BUSINESS TO CANADA’S ONEX CORP

US broking group Aon has agreed to sell its warranty operations to Toronto-based Onex Corp for around $710m as part of its ongoing strategy to cut costs and reduce its underwriting exposure. Onex said that $513m of the purchase would be contributed by its Onex Partners private-equity unit, and that Aon Warranty Group’s senior managers would contribute a “substantial investment”. Among the businesses that Aon is selling is Virginia Surety Co. The deal is expected to close during Q4.