Aon To Provide Group Captive Solutions To U.S. Middle Market Companies.
CHICAGO--(BUSINESS WIRE)--March 11, 2004
Aon Corporation (NYSE:AOC), the world leader in captive management services, has formed Aon Alternative Risk Underwriting (ARU), a managing general underwriter that provides group captive solutions for middle market U.S. companies.
Working through independent agents and brokers, ARU group captive solutions are aimed principally at private companies or closely held public companies that have a better-than-average loss experience, solid financial condition, and pay multi-line premium between $200,000 and $2 million. The captives are all member-owned group captives, not single-parent or so-called rent-a-captive programs.
ARU President Christopher R. Payne said, "As components of an insurance program, group captives offer control and financial stability as well as the possibility of shared underwriting profits and investment income. For mid-market companies, group captives can provide credible risk management alternatives that historically have been exclusive to the largest corporations."
ARU coverages can include primary casualty lines of business, workers compensation, general and product liability, and commercial auto. Commercial property and business interruption, D&O and other coverages can also be considered, typically after casualty coverages are established.
Group captive formation requirements include six to 12 qualified insureds with good historical loss and exposure information, who generate $5 million or more in premium, Payne said. He noted that a captive solution has potential application in a variety of business segments, including transportation, manufacturing & distribution, agribusiness and food wholesalers, equipment dealers, and construction, among others.
ARU, a unit of Aon Underwriting Managers, offers captive formation services, underwriting management, administrative services, accounting and shareholder services, fronting and reinsurance placement as well as umbrella coverage above the captive, according to Payne.
Aon Underwriting Managers (AUM) is a group of managing general agents and underwriters specializing in niche insurance solutions in North America, Europe and Australia/New Zealand.
Aon Corporation (www.aon.com) is one of the world's leading providers of risk management, insurance and reinsurance brokerage, human capital and management consulting, and specialty insurance underwriting. The company has more than 600 offices and 54,000 professionals in 125 countries and sovereignties. Aon's global network, broad resources, industry knowledge and technical expertise helps leaders of businesses, associations, and public entities develop effective solutions to risks, issues and challenges, creating opportunities that generate efficiencies, improve profitability and build value.
Aon is among the industry leaders in a number of key areas including retail, reinsurance, wholesale and specialty insurance brokerage; captive management; human capital consulting; claims and loss cost management; and premium financing.
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, 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, 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, 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.
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|Date:||Mar 11, 2004|
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