CHICAGO, April 4 /PRNewswire-FirstCall/ -- Aon Re Inc. introduces Prime/Cap(SM), a comprehensive suite of capital optimization and allocation tools for property-casualty insurers and reinsurers. Prime/Cap(SM) is fully integrated within Aon Re's dominant Prime/Cap(SM) risk analysis and reinsurance optimization dynamic financial analysis platform. (Logo: http://www.newscom.com/cgi-bin/prnh/20041215/CGW049LOGO ) Underwriting capital now can be accessed from several different sources and each source has unique and potentially useful characteristics. The range of underwriting capital extends from common and preferred equity, hybrid capital, sidecar capital, contingent capital, traditional reinsurance, alternative reinsurance to capital markets alternatives such as catastrophe bonds and collateralized hedge fund transactions. Prime/Cap(SM) provides an evaluation framework that fits this range of potential sources of underwriting capital to the optimal points in the distribution of each insurer's or reinsurer's range of potential expected and contingent liabilities. Prime/Cap(SM) also provides insurers and reinsurers with a mature set of capital allocation functions that build upon the collective insights of leading industry professionals and academics and applies them against the authentic underwriting experience that is generated by the core Prime/Cap(SM) DFA platform. External constraints, such as the updated A.M. Best's BCAR, S&P's CAR and the NAIC's risk based capital, have also been incorporated into Prime/Cap(SM). This combination of 18 fully integrated and automated economic and external constituent's views on capital is unprecedented and allows management to quickly consider many different methods of allocating capital to specific lines of business and products. Stephen Mildenhall, Aon Re Services executive vice president said, "As the '97 to '01 underwriting cycle, the events of September 11th, 2001 and the '04 and '05 hurricane seasons have demonstrated, capital can be repeatedly consumed by pricing errors and moderate to extreme catastrophes. It is clear that more realistic and durable methods of allocating capital need to be considered. Multiple method capital allocation processes will become standard in the insurance corporate finance world and Prime/Cap(SM) expedites the computation and evaluation process that will be required to maintain these disciplines." Michael Bungert, chief executive officer of Aon Re commented, "The current focus of key rating agencies on enterprise risk management processes, as well as insurer's and reinsurer's management demands for a more durable capital selection and allocation framework, really explain the value of Prime/Cap(SM) to our clients and prospects. We are pleased to extend our thought leadership on these issues as these important aspects of our industry are reconsidered in the wake of recent events." Contact: Al Orendorff 312-381-3153 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 Re Inc. CONTACT: Al Orendorff of Aon Re Inc., +1-312-381-3153 Web site: http://www.aon.com/

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