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Aon Re Global Acquires U.S. and U.K. Reinsurance Brokerage Business From Gallagher Re
PRNewswire-FirstCall
CHICAGO
(NYSE:AOC)

CHICAGO, Feb. 22 /PRNewswire-FirstCall/ -- Aon Corporation (NYSE: AOC), the leading provider of global risk management services, today announced that it has signed definitive agreements to acquire substantially all of Gallagher Re's U.S. and U.K. reinsurance brokerage business. In addition, a team of industry professionals from Gallagher Re, based in the U.S. and U.K., will join Aon Re Global, the world's leading reinsurance intermediary.

(Logo: http://www.newscom.com/cgi-bin/prnh/20041215/CGW049LOGO)

"We are incredibly excited to have a group of talented reinsurance professionals with distinctive knowledge join the Aon Re Global team. As a result of this transaction, we now will have a significantly larger presence in the U.S. accident, health and life markets, along with enhanced capabilities in the U.K. specialty, casualty and financial institutions business," said Michael D. O'Halleran, executive chairman of Aon Re Global. "Additionally, Gallagher Re has invested significantly in index-based capital markets solutions, which align well with our integrated capital solutions strategy and which will add to our industry-leading Aon Capital Markets team. We will be able to utilize our scale in accounts, analytics, and services to drive innovation and significantly improve margins over a larger base, delivering immediate impact to our clients."

"This acquisition further enhances Aon Re Global's position as the number one reinsurance intermediary and as a premier destination of choice for top talent," said Andrew Appel, chief executive officer of Aon Re Global. "The additional expertise, in the form of highly valued and respected colleagues, strengthens our ability to provide clients with distinctive value through our integrated capital solutions and services."

The definitive agreement includes an initial payment of approximately $30 million in cash and an additional payment for revenues generated in the 12 months following the close of the transaction. The UK portion of the transaction will be finalized when all regulatory requirements are met.

Aon Capital Markets acted as an advisor on the transactions.

About Aon Re Global

Aon Re Global, the world's leading and most preferred reinsurance intermediary, provides clients with integrated capital solutions and services through a world-class network of experts in more than 35 countries. Clients are better able to differentiate and meet their business objectives with Aon Re Global's best-in-class treaty and facultative reinsurance placement services, capital markets expertise, and relevant analytics and technical expertise, including catastrophe management, actuarial, and rating agency counsel. Aon Re Global was named best reinsurance broker in 2007 and 2006 by readers of Business Insurance, in 2007 by readers of US Insurer and in 2006 by readers of Reinsurance.

About Aon

Aon Corporation (NYSE: AOC) is the leading global provider of risk management services, insurance and reinsurance brokerage, human capital and management consulting, and specialty insurance underwriting. 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 http://www.aon.com/.

Safe Harbor Statement

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 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 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, 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.

Investor Contact:                   Media Contact:
   Scott Malchow                       David Prosperi
   Vice President,                     Vice President,
   Investor Relations                  Global Public Relations
   312-381-3983                        312-381-2485

Photo: http://www.newscom.com/cgi-bin/prnh/20041215/CGW049LOGO
AP Archive: http://photoarchive.ap.org/
PRN Photo Desk, photodesk@prnewswire.com

SOURCE: Aon Corporation

CONTACT: Investors, Scott Malchow, Vice President, Investor Relations,
+1-312-381-3983, or Media, David Prosperi, Vice President, Global Public
Relations, +1-312-381-2485, both of Aon Corporation

Web site: http://www.aon.com/

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