Aon said the office will enable it to take advantage of increasing risk exposures coming out of the Asia Pacific region, particularly China, as well as to increase the choice of captive operations for its existing clients.

Mr. Cross said in a statement that captives, while not a new concept, “are relatively new to Asia. Aon sees a large number of emerging companies from this region that would fit the typical captive profile.”

He said that in particular, mainland China “is witnessing phenomenal levels of direct foreign investment, which in many cases take the form of a joint venture structure. This will further enhance opportunity for Hong Kong-based captives.”

The Hong Kong office will be overseen by Clive James, the newly appointed group managing director of Aon Insurance Managers (AIM) Global.

AIM, said Aon, is witnessing a rapidly growing demand for captives from the Asia Pacific marketplace, seeing growth in Australia and Japan, where clients have historically used Singapore as a domicile.

In addition, alternative risk transfer opportunities will increase as the Chinese economy continues to grow, with Hong Kong well placed to capitalize, Aon said.

Mr. James said, “As the recognized leader in the captive market, ACSG will always establish locations aligned to future client demand. Hong Kong is our 29th office in a captive jurisdiction and our second in Asia, alongside Singapore.”

He added that “with more than 1,350 clients worldwide, we continue to strive to broaden the options for our clients and will look toward further expansion into 2007.”