Aon's Ryan To Retire

Patrick G. Ryan, founder and executive chairman of Chicago-based Aon Corp., will retire Aug. 1, the company said today.

In a statement Mr. Ryan commented, "The transition to a new management team under the sound leadership of Greg Case is complete. Aon is extremely well positioned for continued growth and success. After 41 years as CEO and three years as executive chairman, it is time to retire from active involvement. I will, of course, continue to be a dedicated and interested shareholder."

Aon has its roots in a small insurance agency that Mr. Ryan, 70, started in 1964. The agency evolved into Ryan Insurance, a firm focused on a strategy of providing advice, consulting services and distribution of insurance products to the automotive industry.

In 1978, Ryan Insurance purchased the insurance brokerage subsidiaries of Esmark Corp., expanding into risk management solutions for commercial and industrial clients.

Following a merger with Combined Insurance Company of America in 1982, the company acquired Rollins Burdick Hunter, then the seventh largest insurance broker in the world. The expansion continued through organic growth and acquisition. In 1987 the company was rechristened Aon Corporation.

Aon sold Combined Insurance and most of its underwriting operations last year. Combined and Sterling Life Insurance Company were sold to ACE and Munich Re, respectively, in a deal announced late last year.

Today, Aon said it operates with more than 500 offices in 120 countries generating revenues in excess of $7 billion.

Mr. Case, president and CEO of Aon, said: "Pat Ryan is one of the great visionaries and leaders in the insurance industry. His vision of creating a truly global company in the fields of risk management and human capital consulting became a reality that serves thousands of clients around the world every day.

"He has been enormously helpful to me and the senior leadership team over the past three years, and I thank him for his support and guidance."

In 2005, Mr. Case took over from Mr. Ryan at a time when the company agreed to give up its contingent commissions instead of fighting a lawsuit by then New York Attorney General Eliot Spitzer. Mr. Spitzer accused several insurance brokers, including Aon, of receiving the commissions as kickbacks in exchange for steering business to insurers involved in a bid-rigging scheme.

As part of the settlement, Mr. Ryan issued an apology regretting the firm suffered a conflict of interest, but there was no admission of wrongdoing on the part of the firm.

Since then, the firm's earnings have rebounded while some of the major brokers are still struggling to recover profitability with the loss of contingent commissions.

Aon said Mr. Ryan will continue as chairman of the board of trustees of Northwestern University, and as chairman and CEO of Chicago 2016, the effort to bring the 2016 Olympic and Paralympic games to Chicago.

As far as a succession plan to the chairmanship, a company spokesman said, "A decision on a new chairman will be made by our board at the appropriate time."