Aon Announces Plans For Additional Underwriting Activities and New Executive Appointment For Spin-off; Third Quarter Earnings Announcement Scheduled for the Week of November 5th.

Business Editors

CHICAGO--(BUSINESS WIRE)--Oct. 12, 2001

Aon Corporation (NYSE:AOC) today announced plans for its underwriting operations to be expanded to include direct property and casualty insurance and reinsurance policies. This coverage will be provided in addition to existing warranty, specialty property and casualty lines, accident, health and life insurance through the operations to be spun-off as Combined Specialty Corporation (CSC).

Much of the infrastructure to underwrite these expanded lines currently resides within CSC, including licensed insurance companies and solid financial strength, which will facilitate the raising of additional capital and the efficient introduction of new products.

"We had been preparing for a turn in the insurance cycle through our spin-off plans announced in April of this year," stated Patrick G. Ryan, chairman and CEO of Aon Corporation. "The events of September 11 have emphasized the need for enhanced property and casualty capacity." Ryan added, "Through our already planned spin-off, CSC will be well-positioned to provide disciplined underwriting capacity to the market."

In conjunction with this strategic announcement, Aon also reported that Kenneth J. LeStrange, currently head of Aon's retail brokerage operations for the Americas, will become chairman and CEO of Combined Specialty Corporation. He will assume his new role effective immediately. Mr. Ryan will be a board member of CSC and will be its largest individual stockholder.

Richard Ravin will continue to lead all accident and health insurance business within CSC and David Cole will continue to run all warranty operations. Mr. Ravin and Mr. Cole will be members of CSC's board of directors. Kevin Brooks will focus on specialty property and casualty coverage as previously announced. Additional executive management appointments are expected to address the expansion into direct property and casualty and reinsurance lines.

Mr. LeStrange has extensive insurance and reinsurance industry experience including direct insurance, excess and surplus lines, facultative reinsurance, treaty reinsurance and alternative risk transfer. He began his career at Hartford Insurance Group and held management positions at Swiss Re. Prior to joining Aon, he worked at American Re-Insurance Company for twelve years, most recently as executive vice president responsible for underwriting, alternative risk transfer and strategic planning.

Mike O'Halleran, president and COO of Aon Corporation said, "Ken has done an outstanding job, especially in his leadership role in the business transformation process, and we wish him well in his new endeavor. He has formed an outstanding team of leaders within the Americas retail brokerage organization who will continue to implement the business transformation that has been designed to improve overall operational efficiency and capacity for growth."

Mr. Ryan said, "Mike will continue as president and COO of Aon Corporation and will focus his leadership and management skills on the Aon retail brokerage business in the Americas, while partnering with me to lead our company through these challenging times for our industry."

"The devastating events of September 11 will be with all of us forever, especially the loss of our people and our colleagues at the World Trade Center," Mr. Ryan stated. "The primary role of risk management and insurance professionals is to provide an increased level of certainty to an uncertain world. Our announcement today is representative of Aon's mission to move forward, and to give our clients the highest degree of assurance possible so that they can focus on their individual goals for the future."

Third Quarter Earnings Release

Aon also reported that it expects to release earnings and host its regular quarterly conference call the week of November 5th and will provide customary notice of the specific date and time in advance. The delay in the third quarter announcement was anticipated in Aon's September 17 press release at which time the Company also indicated that near-term financial results would likely be unfavorable due in part to delayed billings resulting from policy extensions arranged for clients as a result of the September 11 tragedy, as well as slower new business growth.

Aon Corporation (www.aon.com) is a holding company that is comprised of a family of insurance brokerage, consulting and insurance underwriting subsidiaries. Aon's common stock is listed on the New York, Chicago, Frankfurt and London stock exchanges.

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 historical results or those anticipated, depending on a variety of factors such as general economic conditions in different countries around the world, fluctuations in global equity and fixed income markets, changes in commercial property and casualty premium rates, the competitive environment, the actual cost of resolution of contingent liabilities, the final form of the business transformation plan, the ultimate cost and timing of the implementation thereof, the actual cost savings and other benefits resulting therefrom, whether the Company ultimately implements the proposed spin-off of its underwriting operations, and the timing and terms associated therewith, and events surrounding terrorists attacks 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.