Aon Anticipates Losses In 4Q
NU Online News Service, Jan. 16, 12:14 p.m. EST?Chicago-based insurance broker Aon said today it expects to report significant losses in its fourth quarter report due to reduced valuations.
In a statement, Aon said the company expects to report "approximately $70 million" loss for the fourth quarter of 2001 compared to a $6 million loss in 2000.
The firm said the loss was attributable "mostly to reduced valuations in the limited partnership investments through year-end 2001."
The firm also announced it has established $450 million in securities in limited partnership investments and associated limited partnership commitments. The securities were previously held by its underwriting subsidiaries, Combined Insurance Company of America and Virginia Surety Company, Inc.
Aon plans to spin off Combined as a stand-alone company in the spring.
The firm said the securities have received stand-alone credit rating from Standard and Poor's.
Patrick G. Ryan, Aon's chairman and chief executive officer said the securities would provide "a less variable investment income stream and increased liquidity."
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