LONDON, 20 March 2008 – The least flexible P&I (protection & indemnity) insurance renewal in memory saw shipowners’ rates increase by 15.55% and led to Clubs obtaining a record 96% of the originally advertised requirement of US$389 million, according to the Aon PLF P&I Post-Renewal Report 2008/9. Against a backdrop of spiralling pool claims and an ‘absurdly’ late reinsurance tariff announcement, the world’s leading insurance broker Aon is calling for full transparency in how individual owners’ premiums are allocated.

P&I Clubs were looking to generate an additional US$389 million to the expiring premium of US$2.4 billion through a cross-market increase of 16.15%. They achieved a 13.58% rise or 84% of the requirement. In comparative terms, this marks an increase of achieved cash against original requirement of 54% and 67% for 2006 and 2007, respectively. Many shipowners opted for a higher deductible in return for a discounted renewal and factoring in the value of such term changes, the achieved result climbs to 15.55% and narrows the gap between advertised and achieved to 96%.

Stephen Hawke, executive director of Aon's marine team and chairman of Aon PLF, said: “If there was a Henry Moore style stoniness to the negotiations this was nothing as to the Edvard Munch like scream of the membership as shipowners gasped at the premium demands being made on even the most aesthetically pleasing of records.

“The US$560 million of pool claims for 2006 gave a much greater justification to the rate increases and the current high pool claims environment is set to continue. As this will put further pressure on the premium base for next renewal, it may well be time for the International Group to address whether the current pooling system is sufficiently robust to cater for the modern trend of very high value claims and the demands of the future.

“This apparent imbalance in Clubs’ contributions to the pool in relation to claims history is having a distorting effect on the individual owner. So much of the premium that an owner now pays is actually earmarked, not for the owner’s own record or even for his Club’s own retention claims, but rather to pay for the costs of the pool and reinsurance.”

The 2008 renewal was further hampered, and will be characterised, by late renewal proposals by many clubs, compounded by the absurdly late release of the reinsurance tariffs. Announced at an overall increase of 10%, the reinsurance tariffs continue to penalise the passenger sector disproportionately when allocated among the vessel types. Since 1999, there has been is a 167% increase for dirty tankers, a 178% increase for clean tankers, a 208% increase for dry cargo and an extraordinary 543% for passenger vessels.

Stephen added: “Announcing this essential component of the premium less than a month from renewal is just arrogant. The quoting of renewals “subject to any changes in reinsurance costs” may be usual practice but that does not make it right. No other commercial sector would treat its buyers in this way: the member has an insurance budget and thus signing off renewal can only be done when all the premiums are known and internal authorisation gained.”

The renewal was also marked by an above average number of shipowners moving clubs, particularly amongst the high profile companies. The Britannia and Shipowners clubs appear to have taken the brunt of the defections, reflecting their highly disciplined renewal approach, while the North of England, Gard and Standard made impressive gains. Most clubs, however, preferred a broadly neutral tonnage position provided that the required increases were obtained on renewing tonnage.

Ends

For more information contact:

Alexandra Lewis

0207 882 0541

Alexandra.lewis@aon.co.uk

About Aon

Aon Corporation (NYSE:AOC) is the leading global provider of risk management services, insurance and reinsurance brokerage, human capital and management consulting. Through its 43,000 professionals worldwide, Aon readily delivers distinctive client value via innovative and effective risk management and workforce productivity solutions. Our industry-leading global resources, technical expertise and industry knowledge are delivered locally through more than 500 offices in more than 120 countries. Aon was ranked by A.M. Best as the number one global insurance brokerage in 2007 based on brokerage revenues, and voted best insurance intermediary, best reinsurance intermediary, and best employee benefits consulting firm in 2007 by the readers of Business Insurance. For more information on Aon, log onto www.aon.com.

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 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 successfully close the sales of our Combined Insurance and Sterling Life Insurance businesses, the impact of current, pending and future regulatory and legislative actions that affect our ability to market and sell, and be reimbursed at current levels for, our Sterling subsidiary's Medicare Advantage health plans, 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, other uncertainties surrounding a new compensation model, the impact of investigations brought by U.S. state attorneys general, U.S. state insurance regulators, U.S. federal prosecutors, U.S. federal regulators, and regulatory authorities in the U.K. and other countries, the impact of class actions and individual lawsuits including client class actions, securities class actions, derivative actions, ERISA class actions, the impact of the analysis of practices relating to stock options, 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 in respect of insurance mediation activities only.