Aon Announces Completion of Workers' Compensation Catastrophe Models.

Business Editors

CHICAGO--(BUSINESS WIRE)--Nov. 15, 2002

Aon Corporation's (NYSE:AOC) subsidiary, Aon Re Inc., announced today that its catastrophe modeling affiliate Impact Forecasting has completed development of its workers' compensation catastrophe model for all significant U.S. earthquake regions. The detail model that utilizes worksite level data provides insurers and large employers with estimates of the range of potential injuries and deaths associated with a range of potential earthquakes in the U.S. The financial consequences of these potential injuries and deaths are also projected by the model. An aggregate model that operates on less granular data has also been completed.

Building a competent tool to estimate these exposures for insurers and large employers has been a top priority for Aon given the significant change in the cost of insurance and reinsurance protection for potential worksite catastrophes. After several months of testing the model along with leading workers' compensation insurers, Aon Re is now uniquely positioned to help clients understand, manage and mitigate through risk transfer and risk financing products the potential negative financial effects of worksite catastrophes caused by earthquakes.

Aon Re has assembled billions of dollars of capacity for Workers' Compensation this year, although insurers and reinsurers have not had their usual common framework for considering their relative exposure to catastrophic earthquakes. While Aon expects to be able to consider estimates from multiple modeling firms once other modeling firms complete development and license their tools, having an initial baseline model is an important step toward bringing rational pricing to products that cover and protect against the financial consequences of worksite catastrophes.

About Aon

Aon Corporation is a holding company that is comprised of a family of insurance brokerage, consulting, and insurance underwriting subsidiaries. Aon Re Inc. is part of Aon Re Worldwide and provides traditional, alternative risk transfer and capital markets based reinsurance advisory and execution services to insurers and reinsurers. Aon Re Worldwide's client advisory services include, dynamic financial analysis, rating agency capital modeling assistance, capital allocation and optimization services, catastrophe modeling services, regulatory assistance, tax planning and capital markets structuring and placement services.

This press release may contain certain statements relating to future results, which are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from either historical or anticipated results, depending on a variety of factors. Potential factors that could impact results include the general economic conditions in different countries around the world, fluctuations in global equity and fixed income markets, rating agency actions, the cost and availability of financing, the completion, cost and timing of the capital enhancement plan, changes in commercial property and casualty premium rates, the competitive environment, the actual cost of resolution of contingent liabilities and other loss contingencies, the ultimate impact of the business transformation plan, and the timing and resolution of related insurance and reinsurance issues relating to the events of September 11, 2001. Further information concerning the Company and its business, including factors that potentially could materially affect the Company's financial results, are contained in the Company's filings with the Securities and Exchange Commission.