Attached files
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8-K - 8-K - Aon plc | a10-18397_38k.htm |
Exhibit 99.1
News From Aon |
Investor Contact: |
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Media Contact: |
Scott Malchow |
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David Prosperi |
Vice President, Investor Relations |
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Vice President, Global Public Relations |
312-381-3983 |
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312-381-2485 |
For immediate release
Aon Completes Merger with Hewitt Associates
Aon Hewitt Ready to Serve Clients on Day One
CHICAGO, October 1, 2010 Aon Corporation (NYSE:AON) today announced that it has completed its merger of Hewitt Associates, Inc. with a subsidiary of Aon, creating Aon Hewitt, the worlds premier human capital solutions firm.
The completion of this merger marks yet another important milestone in the history of Aon and is an industry-changing event that will create new standards in the human capital space, said Greg Case, president and chief executive officer of Aon. Through Aon Hewitt, we will provide our clients with a broader portfolio of innovative products and services focused on what we believe are two of the most important topics facing todays global economy risk and people.
Russ Fradin, chairman and chief executive officer of Aon Hewitt, added, As Aon Hewitt, we are a stronger, more global industry leader, bringing innovative solutions and insights to organizations wherever they do business. Our focus remains constantto serve clients exceptionally well every day. Clients can be confident Aon Hewitt has the expertise and experience to serve as a true partner, helping them with their most pressing business challenges.
Aon believes Aon Hewitt creates a global leader in human capital solutions and services, benefiting clients, colleagues and stockholders in several ways, including:
Aon Hewitt revenues of $4.3 billion and 29,000 colleagues globally. Combined revenues for fiscal year 2009 consist of 49% from consulting services, 40% from benefits administration and 11% from HR business process outsourcing, creating more resources for colleagues and more opportunities to distinctively serve clients with capabilities in greater than 120 countries around the world;
Leading global brand and client service recognition worldwide. Premier Hewitt brand will be leveraged along with Aons client recognition to be leading employee benefits consulting firm;
Complementary product and service portfolio across consulting, benefits administration and HR business process outsourcing. Product portfolio will provide for significant cross-sell opportunities including the marketing of Hewitts benefits administration and HR business process outsourcing services to Aons clients, as well as the marketing of Aons industry-leading risk services product portfolio to Hewitts clients;
Diversified presence across large corporate and middle market. The combined client base will provide significant cross-sell opportunities to leverage Hewitts predominantly large corporate client base with Aons predominantly middle market client base;
Cost savings and operational efficiencies. The transaction is expected to generate approximately $355 million in annual cost savings across Aon Hewitt in 2013, primarily from reduction in back-office areas, public company costs, management overlap and leverage of technology platforms;
Expect to achieve a long-term operating margin in Aon Hewitt of 20%. Primarily through anticipated synergies and greater economies of scale, Aon Hewitt expects to deliver improved operational performance and a long-term operating margin of 20%;
Expect to create $1.5 billion of stockholder value. Strong cash flow generation of Hewitt, combined with expected synergies from the combination, are expected to deliver $1.5 billion of value creation for stockholders on a discounted cash flow basis, after subtracting the purchase price of the transaction.
About
Aon
Aon Corporation (NYSE: AON) is the leading global provider of risk management
services, insurance and reinsurance brokerage, and human capital
consulting. Through its more than 59,000
colleagues worldwide, Aon readily delivers distinctive client value via
innovative and effective risk management and workforce productivity
solutions. Aons industry-leading global
resources and technical expertise are delivered locally through more than 500
offices in more than 120 countries. Named the worlds best broker by Euromoney
magazines 2008 and 2009 Insurance Survey, Aon also ranked highest on Business
Insurances listing of the worlds largest insurance brokers based on
commercial retail, wholesale, reinsurance and personal lines brokerage revenues
in 2008 and 2009. A.M. Best deemed Aon the number one insurance broker based on
brokerage revenues in 2007, 2008, and 2009, and Aon was voted best insurance
intermediary, best reinsurance intermediary and best employee benefits
consulting firm in 2007, 2008 and 2009 by the readers of Business Insurance. For more information on Aon, log onto
www.aon.com.
Safe
Harbor Statement
This communication 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: the
possibility that the expected efficiencies and cost savings from the proposed
transaction will not be realized, or will not be realized within the expected
time period; the risk that the Aon and Hewitt businesses will not be integrated
successfully; disruption from the proposed transaction making it more difficult
to maintain business and operational relationships; general economic conditions
in different countries in which Aon and Hewitt 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 Aons
ability to borrow funds; funding of Aons various pension plans; changes in the
competitive environment; changes in commercial property and casualty markets
and commercial premium rates that could impact revenues; the outcome of
inquiries from regulators and investigations related to compliance with the
U.S. Foreign Corrupt Practices Act and non-U.S. anti-corruption laws; the
impact of investigations brought by U.S. state attorneys general, U.S. state
insurance regulators, U.S. federal prosecutors, U.S. federal regulators, and
regulatory authorities in the U.K. and other countries; 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, including
potential liabilities arising from error and omissions claims against Aon or
Hewitt; the extent to which Aon and Hewitt retain existing clients and attract
new businesses; the extent to which Aon and Hewitt manage certain risks created
in connection with the various services, including fiduciary and advisory
services, among others, that Aon and Hewitt currently provide, or will provide
in the future, to clients; the impact of, and potential challenges in complying
with, legislation and regulation in the jurisdictions in which Aon and Hewitt
operate, particularly given the global scope of Aons and Hewitts businesses
and the possibility of conflicting regulatory requirements across jurisdictions
in which Aon and Hewitt do business; and the ability to realize the anticipated
benefits to Aon of the Benfield merger.
Further information concerning Aon, Hewitt, and their business,
including factors that potentially could materially affect Aons and Hewitts
financial results, is contained in Aons and Hewitts filings with the
Securities and Exchange Commission (the SEC).
See Aons and Hewitts Annual Reports on Form 10-K and Annual Reports to
Stockholders for the fiscal years ended December 31, 2009 and September 30,
2009, respectively, and other public filings with the SEC for a further
discussion of these and other risks and uncertainties applicable to our
businesses. Neither Aon nor Hewitt undertakes, and each of them expressly
disclaims, any duty to update any forward-looking statement whether as a result
of new information, future events or changes in their respective expectations,
except as required by law.
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