Aon Announces Tornado/Hail Loss Solutions.

Business Editors

CHICAGO--(BUSINESS WIRE)--March 26, 2002

Aon (NYSE: AOC) announced today that its reinsurance services unit has assembled substantial capacity for clients that are exposed to potentially significant tornado/hail losses. The capacity is available on either an indemnity or index basis.

Despite the fact that reinsurers paid significant losses for tornado/hail exposures during 2001, sufficient capacity continues to exist in the marketplace in order to assist insurers that wish to protect against major events. While high levels of tornado/hail events have occurred in each of the last four years, the significant losses in 2001, including the first ever $2 billion single event, have prompted insurance company management and investors to consider additional protection.

Ken Selzer, Senior Vice President of Aon Re Inc. said, "In prior years, insurers have thought of tornado/hail events as nuisances. Now, insurers better understand that potentially severe individual events can substantially reduce quarterly earnings. " Selzer continued, "Aon can assist clients by modeling potential losses from tornado/hail events, using its own proprietary models as well as multiple third party models, and has the capacity to provide solutions to identified exposures."

"Many insurers are in the process of finalizing their approach to the homeowners business given the increased tornado/hail losses, " said Michael Bungert, President and CEO of Aon Re Inc. "Additional coverage for tornado/hail events in 2002 makes sense given the need to protect earnings until these plans are fully executed." he added.

Aon offers consulting and reinsurance solutions to insurance company clients. Its services have made it a leader in developing solutions for the management of catastrophe exposures including tornado/hail. Its Homeowners Parametrics(TM) tool provides insurers with access to dynamic financial and economic return analysis for the homeowners and other personal lines property businesses. Given the challenging homeowners results over the past four years, several insurers have used these and other services to define an optimal and rational business plan for the line.

Aon Corporation (http://www.aon.com) is a holding company that is comprised of a family of insurance brokerage, consulting and insurance underwriting subsidiaries.

Aon Re Inc. is a subsidiary of Aon Corporation and part of Aon Re Worldwide, the world's largest global reinsurance intermediary and leading brokerage and consulting organization.

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, including the timing and resolution of related insurance and reinsurance issues. 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.