Aon Corporation, Royal & Sun Alliance USA, Inc., and ACE USA, Inc. Form New Underwriting Facility.

CHICAGO--(BUSINESS WIRE)--May 19, 1999--

Aon Corporation, Royal & Sun Alliance USA, Inc., Charlotte, North Carolina, and ACE USA, Inc., Atlanta, Georgia announced today that they have entered into a strategic partnership through the creation of an insurance and reinsurance underwriting facility known as Custom Risk Solutions, LLC (CRS). The new joint venture, based in Princeton, New Jersey, will work closely with clients, agents and brokers in crafting custom tailored insurance and reinsurance products and solutions, known in the industry as "alternative risk transfer" or ART. The partners have hired an experienced senior executive team with significant insurance, reinsurance and ART experience. CRS' targeted clientele includes Fortune 1000 companies, public entities and programs with significant self-insured retentions.

Ralph M. Serio, Custom Risk Solutions' President, noted, "CRS represents a cutting edge global underwriting facility which will access the extraordinary resources of three international leaders in the insurance, reinsurance and risk management businesses. Our CRS team offers valuable expertise in designing fundamentally sound programs to manage significant exposures, and reduce balance sheet volatility. By working with the brokerage community at large, we are offering custom risk solutions to a broad range of industries."

Kenneth J. LeStrange, Chairman of Aon's Alternative Market Operations, will serve as Chairman of the CRS Board of Managers. In a joint statement, Kenneth LeStrange, Terry Broderick, President of Royal & Sun Alliance USA, Inc., and Dennis Reding, President and CEO of ACE USA, said, "Custom Risk Solutions was formed to meet the market's unfulfilled opportunities. As partners and investors, we recognize that CRS must operate on an independent platform. This independence will allow CRS to interface with our various broker/producer relationships."

The ACE Group of Companies provides insurance and reinsurance for a diverse group of international clients. Operating subsidiaries are based in Bermuda, the United States, the United Kingdom (Lloyd's) and the Republic of Ireland. At March 31, 1999, ACE Limited had approximately $8.9 billion in assets and $4.0 billion in shareholders' equity. On January 12, 1999, ACE Limited (NYSE: ACL) agreed to acquire the international and domestic property and casualty businesses of CIGNA Corporation for US$3.45 billion in cash. The transaction, which is subject to receipt of necessary regulatory approvals and other customary closing conditions, is expected to be completed by July 1, 1999.

Royal & Sun Alliance USA, Inc. is part of Royal & Sun Alliance Insurance Group plc which operates in over 55 countries worldwide and transacts business in over 130 countries. Worldwide net premium income in 1998 was 9.7 billion pounds (approx. $16.1 billion) with assets of 64.8 billion pounds ($107.5 billion). The company is listed on the London Stock Exchange (RSA.L) and has a Level 1 American Depository Receipt Program (RSA1Y).

Aon Corporation is a holding company that comprises a family of insurance brokerage, consulting and underwriting subsidiaries. Aon's common stock (Symbol: AOC) is listed on the New York, Chicago, and London Stock exchanges.