315293--3/9/2006--AON

related topics

{loss, insurance, financial}

{condition, economic, financial}

{capital, credit, financial}

{debt, indebtedness, cash}

{regulation, government, change}

{financial, litigation, operation}

{regulation, change, law}

{operation, international, foreign}

{personnel, key, retain}

{cost, operation, labor}

{competitive, industry, competition}

{cost, contract, operation}

{loan, real, estate}

Our results may fluctuate due to many factors, including cyclical or permanent changes in the insurance and reinsurance industries. Our results may be adversely affected by changes in the mode of compensation in the insurance industry. We face significant competitive pressures in each of our businesses. We may not realize all of the expected benefits from our 2005 restructuring plan. A decline in the financial strength or claims-paying ability ratings of our insurance underwriting subsidiaries may increase policy cancellations and negatively impact new sales of insurance products. Changes in interest rates and investment prices could reduce the value of our investment portfolio and adversely affect our financial condition or results. Our net pension liabilities may continue to grow, which could adversely affect our stockholders' equity, net income, cash flow and liquidity and require us to make additional cash contributions to the pension plans. We are subject to a number of contingencies and legal proceedings which, if determined unfavorably to us, would adversely affect our financial results. Our success depends, in part, on our ability to attract and retain experienced and qualified personnel. We are subject to increasing costs arising from errors and omissions claims against us. Our businesses are subject to extensive governmental regulation which could reduce our profitability or limit our growth. Our significant global operations expose us to various international risks that could adversely affect our business. Our financial results could be adversely affected if assumptions used in establishing our underwriting reserves differ from actual experience. Each of our business lines may be adversely affected by an overall decline in economic activity. We have substantial debt outstanding that could adversely affect our financial flexibility. A decline in the credit ratings of our senior debt and commercial paper may adversely affect our borrowing costs and financial flexibility. Recent and proposed accounting rule changes could negatively affect our financial position and results. We are a holding company and, therefore, may not be able to receive dividends in needed amounts from our subsidiaries. The volume of premiums we write and our profitability are affected by the availability of reinsurance and the size and adequacy of our insurance company subsidiaries' capital base. We cannot guarantee that our reinsurers will pay in a timely fashion, if at all.

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315293--3/9/2006--AON_CORP