NU Online News Service, Jan. 16, 12:00 p.m. EST

Moody's Investors Service says insurance broker Aon's decision to move its headquarters from Chicago to London will have no effect on the company's ratings.

Moody's, which issued Aon a senior unsecured debt rating of Baa2—stable, says the move to the United Kingdom “highlights the company's international focus and its growth prospects in emerging markets.”

In making its decision, announced Friday, Moody's says that Aon generates “a majority of its revenues outside of the United States. The revenue mix in 2010 was approximately 40 percent U.S.; 24 percent Europe, Middle East and Africa; 16 percent United Kingdom; 11 percent Americas other than the United States, and 9 percent Asia Pacific.

Moody's notes Asia and Latin America offer “significant growth potential, based on relatively high rates of growth in their economies and their use of insurance.”

Aon says a benefit of its move is that it will “enhance it financial flexibility and its ability to allocate capital, observes Moody's.

“Such benefits stem largely from the U.K.'s relatively favorable rules on the repatriation of earnings,” says Moody's.

The move does pose a public-relations challenge for Aon, Moody's points out, because of its leadership role in the Chicago business community.

Aon says it will keep its Americas headquarters in Chicago and the move will result in no job losses. It also plans to move about 750 jobs into the Aon Center in Chicago and will add 1,000 jobs across the United States.

Moody's says that the firm's international growth “heightens the demands on its general managers, risk managers and information systems.”

The move is subject to shareholder approval and is expected to be completed during the 2012 second quarter.

In a Securities and Exchange Commission filing, Aon says the move will involve 20 or more of its senior leadership in the United States relocating to London.

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Moody&rsquo;s Says No Rating Change for Aon&rsquo;s Move to London

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