Full Description

Aon Corporation (Aon), incorporated in 1979, through its subsidiaries, serves its clients through two operating segments: Risk and Insurance Brokerage Services, which acts as an advisor and insurance broker, helping clients manage their risks, as well as negotiating and placing insurance risk with insurance carriers through its global distribution network, and Consulting provides advice and services to clients related to health and benefits, retirement, compensation, strategic human capital, and human resource outsourcing. The Company’s clients include corporations and businesses, insurance companies, professional organizations, independent agents and brokers, governments, and other entities. It also serves individuals through personal lines, affinity groups, and certain specialty operations.

In January 2009, the Company completed the sale of AIS Management, LLC, which is the parent company of Auto Insurance Specialists, LLC to Mercury General Corporation. In December 2008, the Company announced that it created a new global specialty business unit, Aon Specialty. In November 2008, Aon completed its merger with Benfield Group Limited (Benfield), an independent reinsurance intermediary. In April 2008, it completed the sale of its Combined Insurance Company of America (CICA) and Sterling Insurance Company (Sterling) subsidiaries.

Risk and Insurance Brokerage Services

The Risk and Insurance Brokerage Services segment generated approximately 82% of the Company’s total operating segment revenues, during the year ended December 31, 2008. Risk and Insurance Brokerage and related services are provided by certain indirect subsidiaries, including Aon Risk Services Companies, Inc., Aon Holdings International bv, Aon Re Global, Inc., and Aon Limited (U.K.). Risk and Insurance Brokerage Services also includes its premium finance business, Cananwill, Inc. In February 2009, the United States operations of Cananwill were sold.

Risk Management and Insurance Brokerage encompasses the Company’s retail brokerage services, affinity products, managing general underwriting, placement, and captive management services and premium finance services for small, mid-sized, and large companies, including Fortune 500 corporations, and individuals. The Americas' operations provide products and services to clients in North, Central and South America, the Caribbean, and Bermuda. Its United Kingdom, Europe, Middle East & Africa, and Asia Pacific operations offer similar products and services to clients throughout the rest of the world. Risk management services also include risk identification and assessment, safety engineering, claims and loss cost management, and program administration.

The Company’s managing general underwriting (MGUs) units, in concert with insurers, underwrite and market a line of specialty products, including fidelity, directors and officers, general liability, property, commercial auto, fine arts and marine. The MGUs also serve the special needs of particular customer segments, such as mortgage banks, sports, leisure and entertainment, and not-for-profit. Reinsurance Brokerage and Related Services offers advisory services in program design and claim recoveries that enhance the risk/return characteristics of insurance policy portfolios, improve capital utilization, evaluate and mitigate catastrophic loss exposures worldwide, along with investment banking products and services.

Consulting

During 2008, the Consulting segment generated approximately 18% of the Company’s total operating segment revenues. Through its Aon Consulting Worldwide, Inc. subsidiary (Aon Consulting), the Company provides a range of consulting services. Health and Benefits advises clients about structuring, funding, and administering employee benefit programs, which attract, retain, and motivate employees. Benefits consulting includes health and welfare, executive benefits, workforce strategies and productivity, absence management, benefits administration, data-driven health, compliance, employee commitment, investment advisory, and elective benefits services. Retirement professionals specialize in global actuarial services, defined contribution consulting, investment consulting, tax and ERISA consulting, and pension administration.

Compensation focuses on compensation advisory/counsel, including compensation planning design, executive reward strategies, salary survey and benchmarking, market share studies and sales force effectiveness, with special expertise in the financial services and technology industries. Strategic Human Capital delivers advice to global organizations on talent, change and organizational effectiveness issues, including talent strategy and acquisition, executive on-boarding, performance management, leadership assessment and development, communication strategy, workforce training and change management. Human Resource Outsourcing offers employment processing, performance improvement, benefits administration, and other employment-related services.