AOC » Topics » Insurance Underwriting

These excerpts taken from the AOC 10-K filed Mar 2, 2009.

Insurance Underwriting

        Our former insurance underwriting business had operations in the U.S., Canada, Europe, and Asia Pacific. In April 2008, we completed the sale of our CICA and Sterling subsidiaries, which represented the majority of the operations of our former Insurance Underwriting segment. In January 2009, we signed a definitive agreement to sell our remaining property and casualty operations that were in run-off. These operations have been reclassified to discontinued operations for all periods presented.

        See "Key Recent Events" in Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations and Note 7, "Disposal of Operations," of the Notes to Consolidated Financial Statements in Part II, Item 8 of this report for further details.

Insurance Underwriting



        Our former insurance underwriting business had operations in the U.S., Canada, Europe, and Asia Pacific. In April 2008, we completed
the sale of our CICA and Sterling subsidiaries, which represented the majority of the operations of our former Insurance Underwriting segment. In January 2009, we signed a definitive agreement to sell
our remaining property and casualty operations that were in run-off. These operations have been reclassified to discontinued operations for all periods presented.



        See
"Key Recent Events" in Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations and Note 7, "Disposal of Operations," of the Notes
to Consolidated Financial Statements in Part II, Item 8 of this report for further details.



These excerpts taken from the AOC 10-K filed Feb 28, 2008.

Insurance Underwriting

        Our insurance underwriting operations, with approximately 6,700 employees worldwide, have operations in the U.S., Canada, Europe, and Asia Pacific. In December 2007, we signed separate definitive agreements to sell our CICA and Sterling subsidiaries, which represented the majority of the operations of our former Insurance Underwriting segment. The remainder of our insurance underwriting operations consists of property and casualty insurance, which we have ceased writing and have placed in runoff. See "Key Recent Events" in Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations, for further details.

Accident & Health and Life

        Our CICA subsidiaries provide accident, health, and life insurance. CICA is a leading underwriter and distributor of specialty individual accident, disability, health, and life insurance products that are targeted to middle-income consumers in the U.S., Europe, Canada, and Asia Pacific. CICA also provides coverage in the U.S. senior market through its Sterling subsidiary. Sterling provides coverage in the Medicare Advantage market. Distribution is to individuals through an exclusive agency sales force.

        A worldwide sales force of approximately 7,000 exclusive career agents, of which approximately 3,000 are employees and 4,000 are international career agents who are considered independent contractors and are not our employees, service clients regularly to initiate and renew coverage and to sell additional coverage. CICA offers a wide range of accident and sickness insurance products, including short-term disability, critical conditions and cancer aid, Medicare products, hospital confinement/recovery, and long-term care coverage. Most of these products are primarily fixed-indemnity obligations and are not subject to escalating medical cost inflation.

        CICA's Worksite Solutions program complements existing benefits packages offered by employers with no additional cost to a company. Individual employees choose among insurance product options and pay for them through payroll deductions.

Insurance Underwriting



        Our insurance underwriting operations, with approximately 6,700 employees worldwide, have operations in the U.S., Canada, Europe, and Asia Pacific. In December
2007, we signed separate definitive agreements to sell our CICA and Sterling subsidiaries, which represented the majority of the operations of our former Insurance Underwriting segment. The remainder
of our insurance underwriting operations consists of property and casualty insurance, which we have ceased writing and have placed in runoff. See "Key Recent Events" in Item 7, Management's
Discussion and Analysis of Financial Condition and Results of Operations, for further details.




Accident & Health and Life



        Our CICA subsidiaries provide accident, health, and life insurance. CICA is a leading underwriter and distributor of specialty individual accident, disability,
health, and life insurance products that are targeted to middle-income consumers in the U.S., Europe, Canada, and Asia Pacific. CICA also provides coverage in the U.S. senior market through its
Sterling subsidiary. Sterling provides coverage in the Medicare Advantage market. Distribution is to individuals through an exclusive agency sales force.



        A
worldwide sales force of approximately 7,000 exclusive career agents, of which approximately 3,000 are employees and 4,000 are international career agents who are considered
independent contractors and are not our employees, service clients regularly to initiate and renew coverage and to sell additional coverage. CICA offers a wide range of accident and sickness insurance
products, including short-term disability, critical conditions and cancer aid, Medicare products, hospital confinement/recovery, and long-term care coverage. Most of these
products are primarily fixed-indemnity obligations and are not subject to escalating medical cost inflation.



        CICA's
Worksite Solutions program complements existing benefits packages offered by employers with no additional cost to a company. Individual employees choose among insurance product
options and pay for them through payroll deductions.



This excerpt taken from the AOC 10-Q filed Nov 8, 2007.

Insurance Underwriting

 

The Insurance Underwriting segment:

 

                  provides accident, health and life insurance coverage mostly through direct distribution networks, primarily through more than 7,000 career insurance agents working for our subsidiaries. Our revenues are affected by our success in attracting and retaining these career agents.

                  previously offered select commercial property and casualty business on a limited basis through managing general underwriters. We have ceased writing property and casualty business and have placed all programs in runoff.

                  has operations in the United States, Canada, Europe and Asia Pacific.

                  generated 26% and 25% of Aon’s total operating segment revenue for the third quarter and nine months 2007, respectively.

                  Refer to the Key Recent Events section for a discussion on Aon’s examination of strategic options for the remaining operations of this segment.

 

This excerpt taken from the AOC 10-Q filed Aug 9, 2007.

Insurance Underwriting

The Insurance Underwriting segment:

·                  provides accident, health and life insurance coverage mostly through direct distribution networks, primarily through more than 7,000 career insurance agents working for our subsidiaries.  Our revenues are affected by our success in attracting and retaining these career agents.

·                  previously offered select commercial property and casualty business on a limited basis through managing general underwriters.  We have ceased writing property and casualty business and have placed all programs in runoff.

·                  has operations in the United States, Canada, Europe and Asia Pacific

·                  generated 25% of Aon’s total operating segment revenue for both the second quarter and six months 2007.

36




 

·                  Refer to the Key Recent Events section for a discussion on Aon’s examination of strategic options for the remaining operations of this segment.

This excerpt taken from the AOC 10-Q filed May 10, 2007.

Insurance Underwriting

The Insurance Underwriting segment:

·                  provides accident, health and life insurance coverage mostly through direct distribution networks, primarily through more than 7,000 career insurance agents working for our subsidiaries.  Our revenues are affected by our success in attracting and retaining these career agents.

·                  previously offered select commercial property and casualty business on a limited basis through managing general underwriters.  We have ceased writing property and casualty business and have placed all programs in runoff.

·                  has operations in the United States, Canada, Europe and Asia Pacific

·                  generated 24% of Aon’s total operating segment revenue for the first quarter 2007.

This excerpt taken from the AOC DEF 14A filed Apr 11, 2007.

Insurance Underwriting

        The Insurance Underwriting segment:

    provides accident, health, and life insurance coverage mostly through direct distribution networks, primarily through more than 7,000 career insurance agents working for our subsidiaries. Our revenues are affected by our success in attracting and retaining these career agents.

    previously offered select commercial property and casualty business on a limited basis through managing general underwriters. We have ceased writing property and casualty business and have placed all programs in runoff.

    has operations in the U.S., Canada, Europe, and Asia Pacific.

    generated approximately 23% of Aon's total operating segment revenues in 2006.

A-32
                                       
Aon Corporation 2006


This excerpt taken from the AOC 10-K filed Mar 1, 2007.

Insurance Underwriting

        The Insurance Underwriting segment:

    provides accident, health, and life insurance coverage mostly through direct distribution networks, primarily through more than 7,000 career insurance agents working for our subsidiaries. Our revenues are affected by our success in attracting and retaining these career agents.

    previously offered select commercial property and casualty business on a limited basis through managing general underwriters. We have ceased writing property and casualty business and have placed all programs in runoff.

    has operations in the U.S., Canada, Europe, and Asia Pacific.

    generated approximately 23% of Aon's total operating segment revenues in 2006.
This excerpt taken from the AOC 10-Q filed Nov 9, 2006.

Insurance Underwriting

The Insurance Underwriting segment:

·                  provides supplemental accident, health and life insurance coverage mostly through direct distribution networks, primarily through more than 7,000 career insurance agents working for our subsidiaries.  Our revenues are affected by our success in attracting and retaining these career agents;

·      has operations in the United States, Canada, Europe and Asia/Pacific; and

·                  generated 24% and 23% of Aon’s total operating segment revenue for the third quarter and nine months of 2006, respectively.

In June 2006, we reached an agreement to sell our warranty and credit operations.  This business administers extended warranty services on automobiles, electronic goods, personal computers and appliances.  It also offers extended warranty and credit insurance products that are sold through retailers, automotive dealers, insurance agents and brokers, and real estate brokers.  In October 2006, we signed a letter of intent to sell a portion of our specialty property and casualty businesses, CPG.  These operations have been reclassed to discontinued

40




operations for all periods presented and are not included in the following discussion.  Both sales are expected to close by the end of 2006.

We review our revenue results using the following sub-segments:

·                  Accident & Health and Life (AH&L), through which we provide an array of accident, sickness, short-term disability and other supplemental insurance products. Most of these products are primarily fixed-indemnity obligations and are not subject to escalating medical cost inflation;

·                  Property and Casualty, through which we provide select commercial property and casualty insurance on a limited basis.  We are exiting the Property and Casualty business and have placed the remaining lines of business into run-off.  We are divesting one product line (CPG) and we continue to explore alternative disposition opportunities for other lines.  See Key Recent Events.

This excerpt taken from the AOC 10-Q filed Aug 9, 2006.

Insurance Underwriting

The Insurance Underwriting segment:

·                  provides supplemental accident, health and life insurance coverage mostly through direct distribution networks, primarily through more than 7,000 career insurance agents working for our subsidiaries. Our revenues are affected by our success in attracting and retaining these career agents;

·                  offers select commercial property and casualty business on a limited basis through managing general underwriters, primarily Aon-owned companies;

·                  has operations in the United States, Canada, Europe and Asia/Pacific and South America; and

·                  generated 24% of Aon’s total operating segment revenue for both the second quarter and six months of 2006.

In June 2006, we reached agreement to sell our Warranty business. This business administers extended warranty services on automobiles, electronic goods, personal computers and appliances. It also offers extended warranty and credit insurance products that are sold through retailers, automotive dealers, insurance agents and brokers, and real estate brokers. These operations have been reclassed to discontinued operations for all periods presented and are not included in the following discussion. The sale is expected to close by the end of 2006.

We review our revenue results using the following sub-segments:

·                  Accident & Health and Life (AH&L), through which we provide an array of accident, sickness, short-term disability and other supplemental insurance products. Most of these products are primarily fixed-indemnity obligations and are not subject to escalating medical cost inflation;

·                  Property and Casualty, through which we provide select commercial property and casualty insurance on a limited basis.

This excerpt taken from the AOC 10-Q filed May 10, 2006.

Insurance Underwriting

The Insurance Underwriting segment:

·                  provides supplemental accident, health and life insurance coverage mostly through direct distribution networks, primarily through more than 7,000 career insurance agents working for our subsidiaries. Our revenues are affected by our success in attracting and retaining these career agents;

·                  offers extended warranty and credit insurance products that are sold through retailers, automotive dealers, insurance agents and brokers, and real estate brokers. Our revenues are affected by new and continuing relationships with these retailers, dealers, agents and brokers;

·                  offers select commercial property and casualty business on a limited basis through managing general underwriters, primarily Aon-owned companies;

·                  administers certain extended warranty services on automobiles, electronic goods, personal computers and appliances;

·                  has operations in the United States, Canada, Europe and Asia/Pacific and South America; and

·                  generated 33% of Aon’s total operating segment revenue for the first quarter of 2006.

We review our revenue results using the following sub-segments:

·                  Accident & Health and Life (AH&L), through which we provide an array of accident, sickness, short-term disability and other supplemental insurance products. Most of these products are primarily fixed-indemnity obligations and are not subject to escalating medical cost inflation;

·                  Warranty and Credit, through which we provide warranties on automobiles and a variety of consumer goods, including electronics and appliances. In addition, we provide non-structural home warranties and other warranty products, such as credit card enhancements and affinity warranty programs; and Property & Casualty, through which we provide select commercial property and casualty business on a limited basis.

This excerpt taken from the AOC DEF 14A filed Apr 12, 2006.

In insurance underwriting

        Our underwriting segment has demonstrated good organic revenue growth. Combined Insurance Company had another great year with terrific sales performance for its supplemental health product. In November, we announced that we would explore strategic alternatives for our warranty, credit insurance and property & casualty businesses to determine if the potential of these businesses can be more fully realized under different ownership.

This excerpt taken from the AOC 10-K filed Mar 9, 2006.

Insurance Underwriting

        Our insurance underwriting segment, with approximately 9,000 employees worldwide, has operations in the U.S., Canada, Latin America, Europe and Asia/Pacific. This segment generated approximately 32% of Aon's total operating segment revenues in 2005.

This excerpt taken from the AOC 10-Q filed Nov 8, 2005.

Insurance Underwriting

 

The Insurance Underwriting segment:

 

                  provides supplemental accident, health and life insurance coverage mostly through direct distribution networks, primarily through more than 7,000 career insurance agents working for our subsidiaries.  Our revenues are affected by our success in attracting and retaining these career agents;

                  provides Medicare Supplement and Medicare Advantage policies in the U.S. through a dedicated sales force;

                  offers extended warranty and credit insurance products that are sold through retailers, automotive dealers, insurance agents and brokers, and real estate brokers.  Our revenues are affected by the addition and retention of these retailers, dealers, agents and brokers;

                  offers select commercial property and casualty business on a limited basis through managing general underwriters, primarily Aon-owned companies;

                  administers certain extended warranty services on automobiles, electronic goods, personal computers and appliances;

                  has operations in the United States, Canada, Europe and Asia/Pacific; and

                  generated 35% and 33% of Aon’s total operating segment revenue for the third quarter and nine months 2005, respectively.

 

We review our revenue results using the following sub-segments:

 

                  Accident & Health and Life (AH&L), through which we provide an array of accident, sickness, short-term disability and other supplemental insurance products.  Most of these products are primarily fixed-indemnity obligations and are not subject to escalating medical cost inflation;

 

41



 

                  Warranty and Credit, through which we provide warranties on automobiles and a variety of consumer goods, including electronics and appliances.  In addition, we provide non-structural home warranties and other warranty products, such as credit card enhancements and affinity warranty programs; and Property & Casualty, through which we provide select commercial property and casualty business on a limited basis.

 

This excerpt taken from the AOC 10-Q filed Aug 5, 2005.

Insurance Underwriting

 

The Insurance Underwriting segment:

 

                  provides supplemental accident, health and life insurance coverage mostly through direct distribution networks, primarily through more than 7,100 career insurance agents working for our subsidiaries.  Our revenues are affected by our success in attracting and retaining these career agents;

                  provides Medicare supplement and Medicare Advantage policies in the U.S. through a dedicated sales force;

                  offers extended warranty and credit insurance products that are sold through retailers, automotive dealers, insurance agents and brokers, and real estate brokers.  Our revenues are affected by the addition and retention of these retailers, dealers, agents and brokers;

                  offers select commercial property and casualty business on a limited basis through managing general underwriters, primarily Aon-owned companies;

                  administers certain extended warranty services on automobiles, electronic goods, personal computers and appliances;

                  has operations in the United States, Canada, Europe and Asia/Pacific; and

                  generated 32% of Aon’s total operating segment revenue for both second quarter and six months 2005.

 

We review our revenue results using the following sub-segments:

 

                  Accident & Health and Life (AH&L), through which we provide an array of accident, sickness, short-term disability and other supplemental insurance products.  Most of these products are primarily fixed-indemnity obligations and are not subject to escalating medical cost inflation;

                  Warranty and Credit, through which we provide warranties on automobiles and a variety of consumer goods, including electronics and appliances.  In addition, we provide non-structural home warranties and other warranty products, such as credit card enhancements and affinity warranty programs; and Property & Casualty, through which we provide select commercial property and casualty business on a limited basis.

 

This excerpt taken from the AOC 10-Q filed May 9, 2005.
Insurance Underwriting

 

The Insurance Underwriting segment:

 

                  provides supplemental accident, health and life insurance coverage mostly through direct distribution networks, primarily through approximately 7,000 career insurance agents working for our subsidiaries.  Our revenues are affected by our success in attracting and retaining these career agents;

                  provides Medicare supplement and Medicare Advantage policies in the U.S. through a dedicated sales force;

                  offers extended warranty and credit insurance products that are sold through retailers, automotive dealers, insurance agents and brokers, and real estate brokers.  Our revenues are affected by the addition and retention of these retailers, dealers, agents and brokers;

                  offers select commercial property and casualty business on a limited basis through managing general underwriters, primarily Aon-owned companies;

                  administers certain extended warranty services on automobiles, electronic goods, personal computers and appliances;

                  has operations in the United States, Canada, Europe and Asia/Pacific; and

                  generated 32% of Aon’s total operating segment revenue for first quarter 2005.

 

We review our revenue results using the following sub-segments:

 

                  Accident & Health and Life (AH&L), through which we provide an array of accident, sickness, short-term disability and other supplemental insurance products.  Most of these products are primarily fixed-indemnity obligations and are not subject to escalating medical cost inflation;

 

                  Warranty and Credit, through which we provide warranties on automobiles and a variety of consumer goods, including electronics and appliances.  In addition, we provide non-structural home warranties and other warranty products, such as credit card enhancements and affinity warranty programs; and Property & Casualty, through which we provide select commercial property and casualty business on a limited basis.

 

This excerpt taken from the AOC DEF 14A filed Apr 14, 2005.

Insurance Underwriting

        The Insurance Underwriting segment:

    provides supplemental accident, health and life insurance coverage mostly through direct distribution networks, primarily through more than 6,800 career insurance agents working for our subsidiaries. Our revenues are affected by our success in attracting and retaining these career agents;

    provides Medicare supplement and Medicare Advantage policies in the U.S. through a dedicated sales force;

    offers extended warranty and credit insurance products that are sold through retailers, automotive dealers, insurance agents and brokers, and real estate brokers. Our revenues are affected by the addition and retention of these retailers, dealers, agents and brokers;

    offers select commercial property and casualty business on a limited basis through managing general underwriters, primarily Aon-owned companies;

B-31
                                       
Aon Corporation 2004


    administers certain extended warranty services on automobiles, electronic goods, personal computers and appliances;

    has operations in the United States, Canada, Europe and Asia/Pacific; and

    generated approximately 31% of Aon's total operating segment revenues in 2004.

        We have:

    expanded product distribution to include affinity groups and worksite marketing, which has created access to new markets and potential new policyholders;

    implemented a "back-to-basics" strategy in 2003 which focused on products and regions with predictable cash flows and the best return on investment;

    announced plans in February 2003 to place in run-off our accident and health insurance underwriting operations in Latin America. We stopped operations in Argentina, and during 2003, transitioned into run-off status in Brazil and Mexico;

    decided to run off certain non-core special risk accident and health business in the U.S. and the U.K.
This excerpt taken from the AOC 10-K filed Mar 16, 2005.

Insurance Underwriting

        The Insurance Underwriting segment:

    provides supplemental accident, health and life insurance coverage mostly through direct distribution networks, primarily through more than 6,800 career insurance agents working for our subsidiaries. Our revenues are affected by our success in attracting and retaining these career agents;

    provides Medicare supplement and Medicare Advantage policies in the U.S. through a dedicated sales force;

    offers extended warranty and credit insurance products that are sold through retailers, automotive dealers, insurance agents and brokers, and real estate brokers. Our revenues are affected by the addition and retention of these retailers, dealers, agents and brokers;

    offers select commercial property and casualty business on a limited basis through managing general underwriters, primarily Aon-owned companies;

    administers certain extended warranty services on automobiles, electronic goods, personal computers and appliances;

    has operations in the United States, Canada, Europe and Asia/Pacific; and

    generated approximately 31% of Aon's total operating segment revenues in 2004.

        We have:

    expanded product distribution to include affinity groups and worksite marketing, which has created access to new markets and potential new policyholders;

    implemented a "back-to-basics" strategy in 2003 which focused on products and regions with predictable cash flows and the best return on investment;

    announced plans in February 2003 to place in run-off our accident and health insurance underwriting operations in Latin America. We stopped operations in Argentina, and during 2003, transitioned into run-off status in Brazil and Mexico;

    decided to run off certain non-core special risk accident and health business in the U.S. and the U.K.

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