AOC Aon Corp.

CHICAGO, Aug. 29 /PRNewswire-FirstCall/ -- Aon Corporation (NYSE:AOC) today announced the successful private placement of $300 million of principal at-risk variable rate notes. The placement provides FM Global with fully collateralized catastrophe protection for Pacific Northwest earthquake exposures. Aon Capital Markets, Aon's investment banking unit, was sole Initial Purchaser for the Rule144A transaction. (Logo: http://www.newscom.com/cgi-bin/prnh/20041215/CGW049LOGO ) "We are delighted to have placed this transaction on behalf of FM Global," said Paul Schultz, president of Aon Capital Markets. "The deal was well received by investors and reflects the demand for diversifying perils. We have already seen record issuance of catastrophe bonds in 2006 and we expect further, significant demand throughout the remainder of 2006 and into 2007." The notes were issued by Cascadia II Limited, a Cayman Islands exempted company established for this transaction. The notes priced at LIBOR plus 4.00% with a maturity of three years. The notes were rated BB+ by Standard & Poor's and BB+ by Fitch Ratings. Coverage provided by the notes is based on a parametric trigger. EQECAT provided the risk modeling and analysis for this transaction. About Aon Aon Corporation ( http://www.aon.com/ ) is a leading provider of risk management services, insurance and reinsurance brokerage, human capital and management consulting, and specialty insurance underwriting. There are 46,000 employees working in Aon's 500 offices in more than 120 countries. Backed by broad resources, industry knowledge and technical expertise, Aon professionals help a wide range of clients develop effective risk management and workforce productivity solutions. For more information, contact: Rahsaan Johnson, Aon Corporation/Aon Re Global 312.381.2684 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 execute the stock repurchase program, 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, and ERISA class actions, 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. http://www.newscom.com/cgi-bin/prnh/20041215/CGW049LOGO http://photoarchive.ap.org/ DATASOURCE: Aon Corporation CONTACT: Rahsaan Johnson of Aon Corporation-Aon Re Global, +1-312-381-2684, Web site: http://www.aon.com/

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