MONTE CARLO, 8 September 2013 – Aon Benfield, the global reinsurance intermediary and capital advisor of Aon plc (NYSE:AON), today releases its 2013 Insurance Risk Study, which provides a comprehensive review of insurers’ premium growth, profitability and loss ratios, as well as other key industry metrics.

The Study presents comprehensive profitability statistics by country for the top 50 property-casualty markets globally, as well as demographic, social and economic data crucial in setting a profitable growth strategy. It reveals that 32 of the top 50 markets have a five year average combined ratio under 100%, but only 10 markets are under 90%. Overall the EMEA region has the lowest five year combined ratio, at 98%, followed by the Americas at 100% and APAC at 103%.

The Study links pure profitability metrics to other factors, such as premium growth, economic growth and political risk, in order to rank the Insurance Opportunity by country. Highest opportunity countries include Singapore, Indonesia, Nigeria, Chile and Norway. It also includes an in-depth review of the insurance regulation, demographics and market opportunities in six countries, illustrating Aon Benfield’s unique approach to screening countries for appropriate fit within client growth geographies.

Now in its eighth edition, the Insurance Risk Study continues to provide detailed underwriting risk volatility benchmarks that are a valuable resource to chief risk officers, actuaries and other economic capital modeling professionals.

The parameters in the Study increase the transparency and accuracy of underwriting risk modelling. Transparent and dependable modelling is critical to attract a broad and competitive capital base. As a result of this increased transparency, the Study is bullish on the future potential for insurance-linked securities to expand into non-catastrophe lines of business.

Risk benchmarks are provided for 49 countries and key business lines, representing more than 90% of global insurance premium. The Study reports that over USD3.5 trillion of capital is dedicated to insurance globally, with USD1.2 trillion supporting property casualty lines, USD 1.8 trillion life & health and USD0.5 trillion reinsurance. Global capital increased 7 percent year on year.

The Study also reveals that within the USD1.5 trillion of global property casualty premium, motor accounts for 45 percent, and was also the fastest growing component, increasing 7.3 percent. Property accounted for 32 percent of premium and grew at nearly 6 percent, while liability dropped to 23 percent of the total premium with virtually no growth year on year.

The Study reveals that consistent out-performance in underwriting results is achievable – its data show that nearly two thirds of top quartile companies in terms of underwriting results remain at the top after one year, and that this out-performance generally persists over a much longer period.

Stephen Mildenhall, Global CEO of Analytics for Aon, said: “Our results show that underwriting excellence is possible and sustainable over the longer term, but that it requires the support of the best underwriting and pricing tools, used in a disciplined and effective manner. The Insurance Risk Study is based on many years of modeling innovation and actuarial research work from Aon Benfield’s 450-strong Analytics team, and we hope that this edition will again prove to be a valuable resource for our clients, and the insurance and reinsurance industries as a whole.”

Download the report here: http://bit.ly/1fD4DVI

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About Aon Benfield

Aon Benfield, a division of Aon plc, is the world’s leading reinsurance intermediary and full-service capital advisor. We empower our clients to better understand, manage and transfer risk through innovative solutions and personalized access to all forms of global reinsurance capital across treaty, facultative and capital markets. As a trusted advocate, we deliver local reach to the world’s markets, an unparalleled investment in innovative analytics, including catastrophe management, actuarial and rating agency advisory. Through our professionals’ expertise and experience, we advise clients in making optimal capital choices that will empower results and improve operational effectiveness for their business. With more than 80 offices in 50 countries, our worldwide client base has access to the broadest portfolio of integrated capital solutions and services. To learn how Aon Benfield helps empower results, please visit aonbenfield.com.

About Aon

Aon plc (NYSE:AON) is the leading global provider of risk management, insurance and reinsurance brokerage, and human resources solutions and outsourcing services. Through its more than 65,000 colleagues worldwide, Aon unites to empower results for clients in over 120 countries via innovative and effective risk and people solutions and through industry-leading global resources and technical expertise. Aon has been named repeatedly as the world’s best broker, best insurance intermediary, reinsurance intermediary, captives manager and best employee benefits consulting firm by multiple industry sources. Visit www.aon.com for more information on Aon and www.aon.com/manchesterunited to learn about Aon’s global partnership and shirt sponsorship with Manchester United.