Ryan "Bullish" On Aon's Next 20 Years

The founder of Aon, Patrick G. Ryan, said he is "bullish" about the future of the world's second-largest insurance brokerage as it marks its 20th anniversary, predicting far more growth to come.

Mr. Ryan, now Aon's executive chairman, was also president and chief executive officer until 2005, when Gregory Case was named to those posts. He made his observations on the state of his brokerage today during a teleconference call to discuss the firm's anniversary.

Mr. Ryan said that when looking at the growing markets in developing nations, the need for the advisory role the Chicago-based insurance brokerage firm plays will be even more acute.

He said the role of the "broker and advisor is more important than ever" throughout the world as the "identification of risk become more complex."

"We believe that this is a business that is all about the client," said Mr. Ryan, "and we will conduct ourselves with integrity that is centered around the client. I think that would be a great legacy, and I think we have done that."

It was 20 years ago, he explained, that a company of many diverse names was put under one umbrella named Aon. The intent of choosing the name--a Gaelic word meaning "oneness"--was in its meaning, and also something that would be easily remember in the business world. It now stands for one of the world's largest insurance brokerage and reinsurance brokerage firms in the world, he added proudly.

He said the firm has reached the vision he had for it 20 years ago of becoming a global brokerage firm. The turning point, said Mr. Ryan, was the acquisition of Hudig-Langeveldt in the early 1990's, which was a Dutch brokerage firm that eventually became the platform from which Aon would grow overseas.

He noted that at the time, many thought the brokerage business was in decline due to the rise of direct writers and technology. But the complexity of risk has only reinforced the need for the insurance broker, he said, adding, "The conventional wisdom was wrong at that time."

Overall, he said, there were few regrets for the company, with the exception of some acquisitions and execution of plans, but all of those events proved to be learning experiences in the firm's growth.

Mr. Ryan said that despite the activity of some private equity firms to take insurance brokerage firms private, he believes Aon will always remain a public company. He called the private equity firms' activities a validation of the brokerage model he envisioned 20 years ago.

"It is a great statement in the belief in the role of the broker that people are investing and taking some of these brokers private, because they believe that the best days for the industry are ahead," Mr. Ryan observed.