BURLINGTON, Vt., May 25 /PRNewswire-FirstCall/ -- United Insurance Company, a Cayman based reinsurance company announces the formation of its sponsored captive insurance company subsidiary, United Insurance Company, USA, Ltd. in Burlington, Vermont as part of its global expansion. (Logo: http://www.newscom.com/cgi-bin/prnh/20041215/CGW049LOGO ) United USA will provide US corporations with many insurance/reinsurance solutions. United USA can assist with unusual or one-off transactions, provide access to all reinsurance markets including United Insurance Company, assist corporations bridge the growing gap between reinsurance and higher property and casualty deductibles and self insured retentions, and provide access to controlled third party risks via United's risk sharing pool Nexus Re. The Vermont sponsored captive model provides these risk financing solutions without the investment in capital and management time required for stand alone captives which could be attractive to the middle market segment. Nancy Gray, Executive Director for North America, of Aon Global Insurance Managers commented: "United chose to form its cell captive subsidiary in Vermont because Vermont has the most experience in the cell captive option in the United States. The knowledge and flexibility of the Vermont captive regulators, Len Crouse and Derrick White, for cells enables us the opportunity to provide our clients with a quick, simple, effective and cost beneficial method of entering the captive market." "We are pleased that United Insurance Company has selected Vermont as their captive domicile which we believe demonstrates Vermont's leadership and commitment to the alternative insurance marketplace," says Len Crouse, Deputy Commissioner of Captive Insurance. "United is exactly the type of high quality company we were hoping to attract when we crafted our cell legislation." United Insurance Company is a Cayman based re-insurance company owned by the captive insurance companies of 18 US, Canadian, and European multinational corporations and Aon Corporation. United provides exclusive reinsurance solutions to captive and cell clients of Aon Global Insurance Managers worldwide. Aon Global Insurance Managers is the world's largest captive insurance manager, managing approximately 1,400 captive insurance arrangements from offices located in over 30 countries. Aon Insurance Managers (USA) Inc. located in Burlington, Vermont will manage United Insurance Company, USA, Ltd. Aon Insurance Managers (Cayman) Ltd. Located in Grand Cayman Island manages the parent company, United Insurance Company. About Aon Aon Corporation (http://www.aon.com/) is a leading provider of risk management services, insurance and reinsurance brokerage, human capital and management consulting, and specialty insurance underwriting. There are 43,000 employees working in Aon's 500 offices in more than 120 countries. Backed by broad resources, industry knowledge and technical expertise, Aon professionals help a wide range of clients develop effective risk management and workforce productivity solutions. For more information Al Orendorff 312-381-3153 http://www.aon.com/newsroom Safe Harbor Statement 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, potential regulatory or legislative changes that would affect our ability to sell, and be reimbursed at current levels for, our Sterling subsidiary's Medicare health product, 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, ERISA class actions, the impact of the analysis of practices relating to stock options, 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 CONTACT: Al Orendorff of Aon Corporation, +1-312-381-3153, Web site: http://www.aon.com/

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