Aon and Xchanging Announce Partnership with Initial 10-Year Service Contract Worth GBP 230 Million.GREENWICH, Conn. -- Aon Limited, a leading insurance broking Bro´king a. 1. Of or pertaining to a broker or brokers, or to brokerage. Redeem from broking pawn the blemished crown. - Shak. and risk management specialist, and Xchanging, the business processing services company, have announced a partnership with an initial 10-year service contract, effective from 1 September 2006. The ground-breaking deal, involving the outsourcing of Aon's Client Operations division (which handles current and legacy insurance claims administration and processing, as well as accounting and settlement for clients within Aon's reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. division and its specialist and wholesale units), will transform and evolve the way Aon conducts its business in the London insurance market, allowing it to focus on its core areas of expertise and deliver differentiated levels of service to its clients. The initiative further demonstrates Aon's and Xchanging's status as leaders in London market reform. Cambridge Solutions Ltd., a leading offshore process and technology skills company, is the incumbent off-shore service provider to Aon UK for claims processing. Cambridge continues to be the exclusive supplier and will expand the offshore services it provides to the new Xchanging/Aon partnership. As part of the agreement, more than 500 employees, based primarily in Romford, Leicester and Glasgow, will transfer from Aon to Xchanging. The partnership agreement is based on Xchanging's unique Enterprise Partnership model(a) approach to the outsourcing, which is designed to handle complexity, minimise any disruption and to start-up with an 'as-is' business as usual for Aon, while assuming the delivery risk and ensuring guaranteed savings to Aon. The partnership will also leverage the significant talents and capabilities of the transferring employees in order to create a platform to offer market-facing services to the London Market and the larger insurance industry. Commenting on the appointment of Xchanging, David Mead, Group Operations Director, Aon Limited, said, "Our strategy at Aon is the realignment re·a·lign tr.v. re·a·ligned, re·a·lign·ing, re·a·ligns 1. To put back into proper order or alignment. 2. To make new groupings of or working arrangements between. of our business more closely around our client needs and core areas of expertise. By partnering with Xchanging, we will improve the overall client experience, delivering greater levels of service and efficiency, while offering our transferring employees the opportunity to work with Xchanging, a world-class business processing services company. "After an exhaustive selection process for the right partner, we decided that Xchanging's business servicing approach offered us the best proposition in terms of scope, ability and expertise. Together we look forward to the Partnership contributing to a fully-integrated and optimised London Market that will benefit all parties. This move by Aon further reinforces our credentials as a leader and innovator in the London Market." Clive Buesnel, Executive Director at Xchanging, said of the deal, "Aon is a very important and exciting win for Xchanging. It's a great partnership and a landmark for us, Aon and the industry. It optimises the value chain and as a result we will be able to transform the way business processing is done in the London market, thereby strengthening London's competitiveness in an increasingly global insurance market. We are absolutely delighted to be providing processing services for yet another premier global brand, adding Aon to our portfolio of long-term partners who, like Aon, are all leaders in their industries." Satyen Patel, Executive Vice Chairman, Cambridge Solutions Ltd., said, "We consider this innovative partnership to be a ground-breaking one. It leverages the complementary strengths of each partner effectively and provides continuity to an established offshore-outsourcing relationship that Cambridge Solutions Ltd. enjoys with Aon UK. More importantly, Cambridge now looks forward to working with Xchanging to service the broader London Insurance Market." About Aon Aon Corporation (http://www.aon.com) is a leading provider of risk management services, insurance and reinsurance brokerage, human capital and management consulting Noun 1. management consulting - a service industry that provides advice to those in charge of running a business service industry - an industry that provides services rather than tangible objects , and specialty insurance underwriting. There are 46,000 employees working in Aon's 500 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. This press release contains certain statements related to future results, or states our intentions, beliefs and expectations or predictions for the future which are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and 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: general economic conditions in different countries in which we do business around the world, changes in global equity and fixed income markets that could affect the return on invested assets, fluctuations in exchange and interest rates that could influence revenue and expense, rating agency actions that could affect our ability to borrow funds, funding of our various pension plans, changes in the competitive environment, our ability to implement restructuring initiatives and other initiatives intended to yield cost savings, our ability to execute the stock repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. program, changes in commercial property and casualty markets and commercial premium rates that could impact revenues, changes in revenues and earnings due to the elimination of contingent commissions Contingent commissions is a term used in the American insurance industry for any kind of broker's commission which is contingent upon some event occurring (instead of a commission paid on the sale itself). In the UK this form of payment is known as Overriders. , other uncertainties surrounding a new compensation model, the impact of investigations brought by state attorneys general, state insurance regulators, federal prosecutors and federal regulators, the impact of class actions and individual lawsuits including client class actions, securities class actions, derivative actions, and ERISA See Employee Retirement Income Security Act. ERISA See Employee Retirement Income Security Act (ERISA). class actions, the cost of resolution of other contingent liabilities and loss contingencies, and the difference in ultimate paid claims in our underwriting companies from actuarial estimates. 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. Aon Limited is authorised and regulated by the Financial Services Authority The Financial Services Authority ("FSA") is an independent non-departmental public body and quasi-judicial body that regulates the financial services industry in the United Kingdom. Its main office is based in Canary Wharf, London, with another office in Edinburgh. in respect of insurance mediation activities only. About Xchanging Founded in 2000, Xchanging aims to be the pre-eminent global business processing services company for the entire range of back-office functions. We ensure cultural and operational reinvention of our customers' non-core functions and activities. Our unique combination of competencies -- Xcellence -- drives value through standardisation and repeatability across back-office functions and by moving best practice between industries. With over 200 customers worldwide who are leaders in insurance, financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. , manufacturing and retail, and over 4,000 employees, Xchanging operates in 14 countries and 50 regulatory regimes. Our achievements include the processing of Euro 90bn of insurance business for the London Insurance Market annually; the management of 450,000 insurance claims a year totalling Euro15bn; the processing of two million securities transactions a day with a value of Euro 2.5bn for Deutsche Bank Deutsche Bank AG (IPA: /'dɔɪ.tʃə/[1]) (ISIN: DE0005140008, NYSE: DB) (English: German Bank , Sal. Oppenheim Sal. Oppenheim jr. & Cie. KGaA is one of the largest privately owned banks in Europe, headquartered in Cologne, Germany with assets in the hundreds of billions of euros. History The bank was founded in 1789 in the city of Bonn by seventeen-year-old Salomon Oppenheim, Jr. , Citibank and Sparda-Banken; the provision of human resources services to 1.25 million staff and their dependants; and supply contracts for Euro5.5bn of spend for BAE Systems, United Biscuits, Honeywell, Boots, Carlson Wagonlit and others. www.xchanging.com Reference in the Release to Xchanging's Enterprise Partnership model(a) The model has five levers of value: Service Standardisation -- to streamline and standardise the services involved, eliminating unnecessary duplication, complexities and inconsistencies in delivery; Process optimisation -- ensuring lean internal processes and electronically-enabled Straight Through Processing In financial technology, the ability to process a stock transaction by computer from beginning to end without manual intervention at any of the stages. (STP STP or standard temperature and pressure, standard conditions for measurement of the properties of matter. The standard temperature is the freezing point of pure water, 0°C; or 273.15°K;. ) through the value chain; Aggregation -- through a consolidated, high-performance processing centre; Arbitrage -- involving off-shoring, with the focus on delivering improved efficiencies and the avoidance and/or minimisation of downsizing (1) Converting mainframe and mini-based systems to client/server LANs. (2) To reduce equipment and associated costs by switching to a less-expensive system. (jargon) downsizing ; and White Space -- in this case, the creation and leveraging of a utility, available to all brokers operating in the London Market, with the opportunity to create even greater economies of scale via a second partner on the platform. Xchanging is backed by General Atlantic LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , a leading global private equity firm, providing capital for growth companies driven by information technology or intellectual property. Founded in 1980, General Atlantic manages approximately US$ 10 billion, investing between US$ 800 million and US$ 1 billion per year in growth, recapitalisation and buy-out opportunities worldwide. GA combines its global approach and long-term investment horizon to partner actively with management in building outstanding companies. www.generalatlantic.com About Cambridge Solutions Ltd. Cambridge Solutions Ltd. (HQ: Bangalore, India; USHQ: Greenwich, Conn.) is a strategic global outsourcing firm with deep expertise in: Information Technology and Business Process Outsourcing Business process outsourcing (BPO) is the contracting of a specific business task, such as payroll, to a third-party service provider. Usually, BPO is implemented as a cost-saving measure for tasks that a company requires but does not depend upon to maintain its position in for Insurance, Banking, Financial Services and Manufacturing sectors. The Company employs over 3,600 professionals, serving customers on four continents through over 80 locations worldwide. With offices in the USA, U.K., India, Singapore and Australia, Cambridge serves Fortune 500 firms, insurance and financial services companies, and public entities around the world. The company's BPO BPO Business Process Outsourcing BPO Benevolent & Protective Order (of Elks of the USA) BPO Benzoyl Peroxide BPO Business Process Optimization BPO Broker Price Opinions BPO Buffalo Philharmonic Orchestra subsidiary was named one of the top three performing BPO companies by Global Services media and neoIT in 2006, and was recently ranked as the 28th leading outsourcing company in the world in the International Association of Outsourcing Professionals (IAOP IAOP International Association of Outsourcing Professionals )'s "2006 Global Outsourcing 100" list, that appeared in a special advertising section in Fortune Magazine. The Company is listed on the major stock exchanges of India (BSE See Bombay Stock Exchange. BSE See Boston Stock Exchange (BSE). , NSE NSE - Network Software Environment: a proprietary CASE framework from Sun Microsystems. , MSE MSE Mouse (computer) MSE Materials Science & Engineering MSE Mean Squared Error MSE Mean Square Error MSE Master of Science in Engineering MSE Manufacturing Systems Engineering MSE Mechanically Stabilized Earth & ASE (Adaptive Server Enterprise) A relational DBMS from Sybase that runs on Windows NT/2000, Linux and a variety of Unix platforms. ASE is a comprehensive and robust data management product with a long history dating back to the late 1980s. ) under the ticker "CAMBRIDGE". For more information, visit: www.cambridgeworldwide.com. |
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