BestWeek: Three Companies Find Divergent Goals in Aon Sales Agreements.

OLDWICK, N.J. -- The sale at auction of Aon Corp.'s life/health operations is the culmination of three companies coming together to pursue very different ideas about how to manage future growth, according to a story in BestWeek U.S./Canada.

Aon (NYSE: AOC) is zeroing in on a more focused, less capital intensive goal of growing its risk management functions in brokerage and consulting. The purchase of Illinois based Combined Insurance Co. by Ace Ltd. (NYSE: ACE) in a $2.4 billion deal approximately doubles its long-held presence in the accident and health business and gives it an immediate, broad U.S. presence. And Munich Re, in buying Sterling Life Insurance Co. for $352 million, is both tapping into the aging U.S. baby boomer market via Sterling's Medicare supplemental programs and continuing its planned expansion into health care globally, but also continuing its program of diversification from reinsurance.

"The real benefit for us, other than the (revenue), is the focus that this gives us," said Christa Davies, Aon's executive vice president for global finance. "We're focusing on insurance brokering and consulting, both of which are about risk management."

Aon officials said the sale "simplifies" their business operations. Noted Davies, "Both of these, while very good businesses, are very capital intensive."

Bermuda based Ace's Chief Executive Officer Evan Greenberg said Combined's "powerful" distribution channels through 7,000 full time career agents will complement Ace's direct marketing and brokerage operations while expanding its operations in the United States and globally.

Munich Re's purchase of Sterling, which the company expects to close in the first quarter of 2008, "gives us an important platform with an excellent reputation to gain access to the fast-growing senior markets in the U.S., and to leverage our existing business," said Peter Choueiri, a member of Munich Re's International Health Board during the company's conference call to discuss the sale. "Sterling fits perfectly and is another step in the disciplined execution of our U.S. strategy."

Also, in BestWeek Europe:

An independent review of the United Kingdom's summer floods drew some praise from the insurance industry, hedged with warnings that more needs to be done.

Also, in BestWeek U.S./Canada:

A federal appeals court decision holding that states have the power to regulate life settlements will likely have broad implications across the United States.

And in both editions of BestWeek:

The Best's Global Insurance Composite Index finished the week of December 20 down 1.08% from a year ago. The composite index reflects the performance of 172 insurance stocks. The week's top stocks were PMA Capital, First Mercury Financial, DBV-Winterthur Holding AG, Kansas City Life Insurance Co, and American Safety Insurance Holdings.

The bottom five stocks were Kingsway Financial Services, Atlantic American Corp., Fuji Fire & Marine, Specialty Underwriters' Alliance, and China Insurance International Holdings.

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