CHICAGO, May 15 /PRNewswire-FirstCall/ -- Aon Corporation (NYSE: AOC) today announced that Aon Re Global's investment banking group, Aon Capital Markets, successfully completed the private placement of $300 million of principal at-risk variable rate notes for Muteki Ltd. The placement provides Munich Re with fully collateralized catastrophe protection for Japanese earthquake risk.

Zenkyoren, the National Mutual Insurance Federation of Agricultural Cooperatives, is the ultimate beneficiary of the securitization through an underlying reinsurance contract with Munich Re. The transaction was structured with a parametric index trigger, providing recoveries based on the location and peak ground acceleration of earthquakes as reported by strong motion seismographs at approximately 1,000 K-NET stations.

Aon Capital Markets was the sole book runner and co-lead placement agent with Munich Re Capital Markets for the Rule 144A transaction.

"We are pleased to complete our second Japanese earthquake securitization since the fourth quarter of 2007. The capital markets continue to offer our clients cost effective capacity that complements traditional reinsurance and large buyers of catastrophe reinsurance worldwide are utilizing this source of capital," said Paul Schultz, president of Aon Capital Markets.

The notes were issued by Muteki Ltd., an exempted company in the Cayman Islands established for this transaction. AIR Worldwide Corporation provided the risk modeling and analysis for this transaction. The notes were priced at LIBOR plus 4.40 percent with a maturity of three years and rated Ba2 by Moody's Investors Service, Inc.

About Aon

Aon Capital Markets is Aon Re Global's boutique investment bank, providing clients with strategic advice and access to all forms of capital. Aon Capital Markets was one of the primary innovators of insurance-linked securities and recently completed the largest insurance-linked securitization in history. Since bringing the first ILS deal to the market in 1994, Aon Capital Markets has brought more than 50 deals to market.

Aon Re Global, the world's leading and most preferred reinsurance intermediary, provides clients with integrated capital solutions and services through a world-class network of experts in more than 35 countries. Clients are better able to differentiate and meet their business objectives with Aon Re Global's best-in-class treaty and facultative reinsurance placement services, capital markets expertise, and relevant analytics and technical expertise, including catastrophe management, actuarial and rating agency counsel. Aon Re Global was named best reinsurance broker in 2007 and 2006 by readers of Business Insurance, in 2007 by readers of US Insurer and in 2006 by readers of Reinsurance.

Aon Corporation (NYSE: AOC) is the leading global provider of risk management services, insurance and reinsurance brokerage, human capital and management consulting. Through its 36,000 colleagues worldwide, Aon readily delivers distinctive client value via innovative and effective risk management and workforce productivity solutions. Our industry-leading global resources, technical expertise and industry knowledge are delivered locally through more than 500 offices in more than 120 countries. Aon was named the world's "best broker" by Euromoney magazine's 2008 Insurance Survey. Aon also was ranked by A.M. Best as the number one global insurance brokerage in 2007 based on brokerage revenues, and voted best insurance intermediary, best reinsurance intermediary, and best employee benefits consulting firm in 2007 by the readers of Business Insurance. For more information on Aon, log onto http://www.aon.com/

SOURCE
Aon Corporation

CONTACT:
Rahsaan Johnson of Aon Corporation, +1-312-381-2684, Rahsaan_Johnson@aon.com