| LONDON, April 10
LONDON, April 10 The head of insurance broker
Aon has mounted a defence of a deal signed last year with Warren
Buffett's Berkshire Hathaway that some fear could weaken the
Lloyd's insurance market, arguing it is good for London.
In a speech on Thursday in London's Lloyd's building, Aon
Chief Executive Greg Case said the agreement, whereby the broker
allocates 7.5 percent of the business it places in the market to
Berkshire Hathaway in return for passing on some of the risk,
benefited the centuries-old market.
Critics had feared it would sideline underwriters operating
in the Lloyd's market, putting pressure on their businesses, but
Case argued it was helping bring more money into the market,
fuelling overall business volumes.
The volume of premiums placed by Aon clients in the market
increased last year, he said.
"The premium volume placed by Aon clients in Lloyd's
increased 3 percent in 2013, which is actually 5 percent if you
factor out the reduction in certain lines because of trade
sanction issues," he said.
"Innovation... is good for clients, is in turn good for
London, is in turn good for Lloyd's," he said.
Aon recently opted to relocate its headquarters to London
from Chicago and is set to move into a new skyscraper, still
under construction, that looms over the modernist building that
houses the Lloyd's market.
In 2013 it signed an eight year sponsorship deal with
football team Manchester United, which Case said had
boosted brand awareness around the world for the firm in a way
that had left him "stunned".
(Reporting by Chris Vellacott; Editing by Toby Chopra)