Aon Announces Completion of $2 Billion Reinsurance Program for Employers Insurance Company of Nevada.CHICAGO--(BUSINESS WIRE)--July 26, 1999-- Aon Corporation (Aon) announced that its global reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. intermediary, Aon Re Worldwide, has completed a major quota share For This article is about quota shares (shares of the quota). For other usages of quota, see, see . A quota share is a specified number or percentage of the allotment as a whole (quota), that is prescribed to each individual entity (see Non-tariff barriers to trade). reinsurance program for Employers Insurance Company of Nevada. The transaction reinsures all losses incurred prior to July 1, 1995 up to a limit of $2 billion. This transaction brings Employers Insurance Company of Nevada one-step closer to its anticipated reorganization into a private mutual insurance company, effectively removing the State of Nevada from the business of workers' compensation workers' compensation, payment by employers for some part of the cost of injuries, or in some cases of occupational diseases, received by employees in the course of their work. insurance. Aon Re, who has served as Employers Insurance Company of Nevada's reinsurance advisor for many years, structured and placed the transaction, which was led by the Financial Products group of Gerling Global with supporting participation from XL Mid Ocean Reinsurance Ltd and ACE Bermuda Insurance Ltd. David M. Kelley, vice chairman of Aon Re Inc. (Aon Re Worldwide's US operation) commented, "Employers Insurance Company of Nevada's privatization privatization: see nationalization. privatization Transfer of government services or assets to the private sector. State-owned assets may be sold to private owners, or statutory restrictions on competition between privately and publicly owned efforts created a very exciting and challenging opportunity for Aon Re to be a part of an industry first - privatizing a state agency into a new mutual insurance company. This unique transaction was made possible for our client by our entrepreneurial approach and the leverage of Aon's vast resources." Douglas D. Dirks, chief executive officer of Employers Insurance Company of Nevada added, "The completion of this agreement positions Employers Insurance Company of Nevada to be a strong and viable competitor in the commercial insurance business in Nevada." Employers Insurance Company of Nevada, with policyholders' surplus of over $420 million, is a full service workers' compensation insurance company providing claims management, loss prevention consulting and rehabilitation services to employees within the State of Nevada since 1913. Aon Re Worldwide is the world's largest reinsurance intermediary. Aon Corporation is a holding company that comprises a family of insurance brokerage, consulting, and underwriting subsidiaries. Aon's common stock (Symbol: AOC AOC, n an acronym for the Aromatherapy Organizations Council. ) is listed on the New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , Chicago, and London stock exchanges London Stock Exchange London marketplace for securities. It was formed in 1773 by a group of stockbrokers who had been doing business informally in local coffeehouses. . |
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