Aon Study: Improvement in Homeowners Prospective ROE Continues.

CHICAGO -- Aon Corporation (NYSE:AOC) announced today the results of Aon Re's third annual study of return on capital in the United States Homeowners insurance marketplace. The results of the study reveal continuing improvement in expected return, although the line is still expected to return less than its cost of capital. Further moderate rate increases or underwriting actions are still needed in most states.

The findings of the update indicate an expected ROE of 8.0% countrywide. This expected result has improved from 6.3% a year ago, and 4.8% two years ago.

This study by Aon Re is the third in an annual series of updates to provide economic status of the market, given the history of volatile or negative returns experienced by many Homeowners insurance providers and the challenges faced by companies providing this coverage. The study offers a prospective look, taking into consideration rate changes that have been filed and capital or reinsurance requirements by state. The study is adaptable to assess prospective return on capital for individual companies.

The analysis includes the rate filings of the top five Homeowners insurers in each state for the states that represent over 80% of the U.S. population. Complete study results will be made available to clients of Aon Re.

About Aon

Aon Corporation (www.aon.com) is a leading provider of risk management services, insurance and reinsurance brokerage, human capital and management consulting, and specialty insurance underwriting. The company employs approximately 52,000 professionals in its 600 offices in more than 120 countries. Backed by broad resources, industry knowledge and technical expertise, Aon professionals help a wide range of clients develop effective risk management and workforce productivity solutions.

Aon Re provides traditional, alternative risk transfer and capital markets based reinsurance advisory and execution services to insurers and reinsurers. Aon Re's client advisory services include dynamic financial analysis, rating agency capital modeling assistance, capital allocation and optimization services, catastrophe modeling and portfolio optimization services, regulatory assistance, tax planning and capital markets structuring, and placement services.

This press release contains 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, exchange rates, rating agency actions, resolution of regulatory issues, including those related to compensation arrangements with underwriters, pension funding, ultimate paid claims may be different from actuarial estimates and actuarial estimates may change over time, changes in commercial property and casualty markets and commercial premium rates, the competitive environment, the actual costs of resolution of contingent liabilities and other loss contingencies, and the heightened level of potential errors and omissions liability arising from placements of complex policies and sophisticated reinsurance arrangements in an insurance market in which insurer reserves are under pressure. Further information concerning the Company and its business, including factors that potentially could materially affect the Company's financial results, is contained in the Company's filings with the Securities and Exchange Commission.