NU Online News Service, Jan. 13, 11:24 a.m. EST

Aon says it plans to move its corporate headquarters to London to be closer to the Lloyd's market, but the move will not result in loss of any jobs in the Chicago area.

In a statement released today, the insurance broker says the move “provides greater access to emerging markets and takes better advantage of the strategic proximity to Lloyd's and the London market as one of the key international hubs of insurance and risk brokerage.”

The broker says the move will also have “several near- and long-term financial benefits, including increased financial flexibility and improved capital allocation.”

The move, which is subject to shareholder approval, is expected to be completed during the second quarter of this year.

Aon will change its corporate domicile from Delaware to England, which requires shareholder approval. The new company is expected to be listed on the New York Stock Exchange as AonUK.

According to filings with the Securities and Exchange Commission, Greg Case, chief executive officer; Christa Davies, chief financial officer; Stephen P. McGill, chairman and CEO of Aon Risk Solutions; and Michael J. O'Connor, chief operating officer of Aon Risk Solutions, will be reassigned to London and compensated for the move along with receiving foreign service, housing, cost of living and relocation allowances.

As part of its plans, Chicago will continue to be headquarters of the Americas for Aon.

The company plans to move 750 jobs into the Aon Centerin downtown Chicago where it signed a letter-of-intent on a 15 year lease.

Case calls Chicago “the foundation” for one of Aon's 'most important markets” and will continue to be central to the success of the firm.

Aon adds that it expects to add another 1,000 positions across itsUnited Statesoperations this year “based on continued growth and investment opportunities.”

“The decisions we make today will help drive our global strategy and strengthen our growth opportunities in the years to come,” says Case. “The continued investment in our international operations and emerging markets is important to the growth of our firm.”

In another SEC filing, Aon says the move toLondon will give it access to approximately $300 million of excess capital held internationally on its balance sheets. It will also benefit from “reduction in our global tax-rate over the long term” from “changes in geographical distribution of income.”

In another corporate move, Aon says it made two new appointments at Aon Benfield, its reinsurance brokerage arm, in its Asia Pacific division.

Henry To was named non-executive chairman, greater China. He has been with the firm for 30 years, most recently serving as CEO of Aon Benfield, greater China.

Stephen Warwick was named CEO, greaterChinaand will report to Malcolm Steingold, CEO of Aon Benfield Asia Pacific.Warwickhas 32 years experience within the reinsurance brokerage divisions of Aon Group.

Special Reports /

Aon Plans to Move Headquarters to London

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