Aon Re Global Introduces Prime/Cap(SM), a Comprehensive Suite of Capital Optimization and Allocation Tools
04 Avril 2006 - 6:03PM
PR Newswire (US)
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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