Aon Signs Definitive Agreements to Sell Combined Insurance Co. and Sterling Life Insurance
17 Dicembre 2007 - 8:00AM
PR Newswire (US)
ACE Limited to Acquire Combined Insurance Co. for $2.4 billion and
Munich Re Group to Purchase Sterling Life Insurance for $352
million CHICAGO, Dec. 17 /PRNewswire-FirstCall/ -- Aon Corporation
(NYSE:AOC) today announced that it has signed separate definitive
agreements to sell its Combined Insurance Company of America (CICA)
and Sterling Life Insurance Company (Sterling). The Sterling
transaction is expected to be completed by the end of the first
quarter 2008 and CICA is expected to be completed by the end of the
second quarter 2008. Aon also announced that it will devote the
proceeds of these transactions to an increase in its previously
authorized share repurchase program. The program will increase by
$2.6 billion, bringing the total amount currently available for
repurchase to approximately $2.78 billion. "Through these
divestitures, we have further simplified our global organization
and successfully executed our strategy to exit the lower margin and
more capital intensive insurance underwriting business," said Greg
Case, president and chief executive officer, Aon Corporation. "Our
core assets will now be more strategically aligned as we expand our
capabilities to better serve our risk brokerage and consulting
clients. At the same time, the increased share repurchase program
reflects our ongoing belief in the underlying positive momentum of
the business and is an effective use of capital to maximize
long-term shareholder value." Aon signed separate definitive
agreements to sell its CICA business to ACE Limited for cash
consideration of $2.4 billion and its Sterling business to Munich
Re Group for cash consideration of $352 million, in each case
subject to closing adjustments. Additionally, the Company expects
to extract a one-time cash dividend of $325 million from CICA prior
to the close of the transaction. Total after-tax cash proceeds and
dividends are expected to be approximately $2.6 billion and are
subject to final transaction costs. Results of both CICA and
Sterling will be placed into discontinued operations in the fourth
quarter of 2007. The purchase of shares will be dependent on
prevailing market conditions, alternative uses of capital and other
factors. Through the close of trading on December 17, 2007, the
Company had repurchased 48.1 million shares for $1.82 billion under
the previously existing $2.0 billion share repurchase program
authorized in November 2005 and increased in November 2006. Aon
Capital Markets, Credit Suisse Securities (USA) LLC and Merrill
Lynch & Co. acted as advisors on the separate transactions.
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: Scott Malchow Vice President, Investor Relations
312-381-3983 Media Contact: David Prosperi Vice President, Global
Public Relations 312-381-2485 DATASOURCE: 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/
Copyright
Grafico Azioni AON (NYSE:AOC)
Storico
Da Lug 2024 a Ago 2024
Grafico Azioni AON (NYSE:AOC)
Storico
Da Ago 2023 a Ago 2024