This is a significant development for the HR Services industry with Aon perhaps acknowledging that basic employee benefits services are commoditised and no longer a core channel for product distribution. Aon has spent many years building up this capability, principally through M&A, and it seems likely that the division will be snapped up by PE. Outsourced administrative services in the HR space are very attractive to PE for their recurring revenues.

There is clearly more to play out here. Will Aon keep any of the talent management or leadership development activities? Will Marsh & McLennan and Willis follow suit?