Chicago-based Aon Corp. has announced the completion of its $1.43 billion acquisition of smaller British rival Benfield Group Limited, thereby creating the world’s premiere reinsurance intermediary and capital advisor named ‘Aon Benfield’ to be launched on December 1.

About the takeover, Aon said it was launching a “global restructuring plan” designed to integrate the Aon and Benfield operations. The plan is expected to permit the firm to eliminate between 500 and 700 jobs. A spokesman said the cuts will take place in Europe and the US, and that too primarily in back-office functions.

Greg Case, president and chief executive officer of Aon Corporation, said: “The completion of this transaction marks an important milestone in the history of our firm and a new era of leadership for the global reinsurance industry.”

Aon as well as Benfield are insurance brokers - serving as middlemen between corporate clients that have complex or large-scale insurance needs and the companies that provide such policies. Benfield especially serves as a broker in the “reinsurance” market, in which insurance companies that have taken on potential liabilities seek to spread their risk by taking out reinsurance of their insurance.

The combination of the talent and capabilities of Aon and Benfield will create a powerful global franchise capable of expanding and redefining reinsurance and capital market solutions, as well as a compelling opportunity for current and prospective clients.

Aon Benfield’s chief executive officer, Andrew Appel, noted: “We will be ready for action on day one, and our entire team is totally focused on continuing to deliver the best possible solutions for our combined clients during these turbulent times.”