A.M. Best Affirms Ratings of Life/Health Subsidiaries of Aon Corporation.

OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating (FSR) of A (Excellent) and the issuer credit ratings (ICR) of "a" of Aon Corporation's (Aon) (NYSE: AOC) (Chicago, IL) life/health operations, Combined Insurance Company of America (CICA) (Glenview, IL) and Combined Life Insurance Company of New York (CLICNY) (Latham, NY), and the FSR of A- (Excellent) and the ICR of "a-" of Sterling Life Insurance Company (Sterling) (Glenview, IL). The outlook for these ratings is stable.

The rating affirmations are based on efforts made by CICA over the past few years to improve its invested asset quality by reducing its exposure to below investment grade bonds and taking actions to reduce potential foreign currency exchange risk. Additionally, CICA has maintained favorable operating results and a strong risk-based capital position. While CICA's risk-adjusted capitalization continues to be favorable, Aon has resumed taking sizeable dividends from CICA over the past two years.

The rating affirmation for Sterling is based on its close relationship and support from CICA. Sterling has experienced very strong revenue growth over the past few years from its Medicare Advantage product line. However, due to increased competition and potential future government reimbursement reductions for Medicare Advantage, A.M. Best is becoming increasingly concerned about Sterling's ability to continue to report favorable operating results, while at the same time maintaining adequate capital for its current rating.

For Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

Founded in 1899, A.M. Best Company is a full-service credit rating organization dedicated to serving the financial services industries, including the banking and insurance sectors. For more information, visit www.ambest.com.