Aon Will Provide Claims Administration Services On Behalf of Reliance.

Business Editors

CHICAGO--(BUSINESS WIRE)--Aug. 29, 2000

Aon Corporation (NYSE:AOC) today announced that it has entered into an agreement in principle with Reliance Group Holdings, Inc. (NYSE:REL) to provide claims management services for the majority of Reliance's outstanding insurance policies. Under the terms of the agreement, Aon and its subsidiaries will not assume any underwriting risk.

The agreement contemplates a multi-year arrangement in which Cambridge Integrated Services Group, Inc., an Aon subsidiary, will manage claims from investigations through settlements to fulfill the terms of policies issued by Reliance's wholly owned insurance companies. Cambridge is a leader in providing claims and loss cost management services to insurance carriers, self-insured companies, reinsurers and managing general agents.

Cambridge will employ the majority of Reliance's claims staff and will manage claims administration from both Reliance's and Cambridge's offices under the proposed agreement. Aon and Reliance plan to finalize a definitive agreement in the near term that will require the approval of Reliance's board of directors as well as certain insurance regulators.

Patrick G. Ryan, chairman and CEO of Aon Corporation, commented, "We are very pleased that Aon was chosen to provide an outsourcing solution for Reliance's claims administration needs. The addition of the Reliance business further strengthens our position as a leading claims administrator, and we welcome Reliance's employees, who have an excellent reputation for claims services."

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

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 and the actual cost of resolution of contingent liabilities. 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.