Aon Settles Reinsurance Mess

The Wall Street Journal reported on Tuesday, 1/11/00. that Aon Corp, one of the world's largest insurance brokerages, would post a $125 million charge for the fourth quarter to help settle the Unicover reinsurance debacle. Aon's participation in the reinsurance issue involved payments make for bringing insurance companies business on the original premiums. As we know, problems arose when the insurers discovered they bore an inordinate share of the claims risk in relation to the amount of premium received. It was estimated that this mess would cost the industry over $2 billion in claims costs,...