Global insurance broker Aon Corporation will expand its consulting and outsourcing operations through a $US4.9 billion ($5.55 billion) merger with US-based human resources consultancy Hewitt Associates.

The companies announced a merger agreement last week. Aon will now merge its consulting division with Hewitt to create Aon Hewitt, a global “human capital solutions” business with combined revenue of $US4.3 billion ($4.9 billion).

The deal is expected to be finalised in mid-November.

Hewitt Chairman and CEO Russ Fradin will become the Chairman and CEO of Aon Hewitt, and the merger is forecast to generate about $US355 million ($402 million) in annual cost savings in 2013.

“This merger will give us a broader portfolio of innovative products and services focused on what we believe are two of the most important topics in the global economy today – risk and people,” Aon Corporation CEO Greg Case said.

Hewitt specialises in consulting, benefits outsourcing and HR business process outsourcing.