Aon and Impact Forecasting Announce First Multi-Line Risk Analyses: Life, Accident, Property Terrorism and Earthquake Catastrophe.

Business Editors

CHICAGO--(BUSINESS WIRE)--March 11, 2003

Aon Corporation's (NYSE:AOC) subsidiary, Aon Re Inc., announced today that in conjunction with its catastrophe modeling unit, Impact Forecasting, it has recently completed the first probabilistic catastrophe risk analysis of a combined portfolio of life, accident, and property risks for a major insurer. The analysis also included an evaluation of the risk to property investments made by the insurer within its investment portfolio.

"The Impact Forecasting model helped our client evaluate the terrorism risk that exists on both sides of the balance sheet," said Roger Smith, managing director of Aon Re's Accident & Health Reinsurance Practice. "Many client companies are looking at their catastrophe exposures at a corporate level as well as a profit center level."

Smith added, "Since completing the first analysis of life and accident risk in the first quarter of 2002, we have worked with Impact Forecasting to customize its model to address the specific needs of life and accident insurers."

In the life, accident and health field, Aon Re and Impact Forecasting have completed studies of risk concentration from loss of life and injury as a result of natural perils and terrorism. "Being excluded to date from the Terrorism Risk Insurance Act leaves the life insurance community saddled with considerable potential exposure," Smith said. "Our clients have found our modeling capabilities invaluable in evaluating their respective exposures and driving risk management and reinsurance solutions."

Aon Re and Impact Forecasting have also completed over 60 studies of terrorism and earthquake risk on both workers compensation and property portfolios.

Aon Re views catastrophe modeling as an integral function within its consultative approach to reinsurance. Aon Re uses a multi-model approach, providing clients with a full range of outcomes from accepted market practitioners for each line of business where available.

About Aon

Aon Corporation is a holding company that is comprised of a family of insurance brokerage, consulting, and insurance underwriting subsidiaries.

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

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 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, pension funding, changes in commercial property and casualty markets and commercial premium rates, the competitive environment, the actual cost of resolution of contingent liabilities and other loss contingencies, the ultimate impact of the business transformation plan, and the timing and resolution of related insurance and reinsurance issues relating to the events 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.