Aon Benfield credit risk report confirms superior stability of reinsurance industry

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Sep 10, 2012, 01:00 ET

MONTE CARLO, Sept. 10, 2012 /PRNewswire/ -- Aon Benfield, the global reinsurance intermediary and capital advisor of Aon plc (NYSE:AON), today launches a new report that assesses the creditworthiness of the global reinsurance industry through a series of comprehensive analytical techniques.

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Credit Risk of Property Catastrophe Reinsurers examines the credit quality of reinsurers since 2000. The report notes that in the past 12 years, only eight reinsurers have been declared insolvent despite paying claims of more than USD150 billion from events including the World Trade Center attacks, hurricanes Rita, Wilma and Katrina, the Great Tohoku earthquake, and the Thailand floods.

These insolvencies represented less than one percent of global reinsurer capital. Further, those declared insolvent still managed to settle 99 percent of their outstanding obligations.

Kelly Superczynski, Aon Benfield Head of Global Rating Agency Advisory, said: "In 2011 alone, the industry was impacted by USD105 billion of insured losses across 253 separate events, with a significant amount of this risk ceded to the reinsurance industry – more than in 2005. Despite this loss experience, reinsurance capital stood at USD455 billion at the end of 2011 – virtually unchanged from the end of 2010. This level of resilience highlights that reinsurance is one of the most secure and accretive forms of capital available in the global marketplace. As risk analysis tools and capital management techniques become ever more comprehensive, this level of security should continue to improve."

The study examines reinsurers' payment track record and explains the structural, rating agency, market disclosure, and management processes in place that ensure cedents can have a very high level of confidence that their future claims will be paid.

To view the full Credit Risk of Property Catastrophe Reinsurers report, please follow the link below:

http://thoughtleadership.aonbenfield.com/Documents/20120910_ab_analytics_credit_risk_of_property_cat_reinsurers.pdf

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 61,000 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.

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