Aon Corporation announced that its global reinsurance intermediary, Aon Re Worldwide, has completed a major excess of loss reinsurance program for the State Compensation Insurance Fund of California. The transaction reinsures all losses incurred from 1980 through 1998 up to a $1.450 billion limit.
Aon Re, who has served as the State Compensation Insurance Fund of California’s reinsurance advisor for many years, structured and placed the transaction, which was underwritten by XL Financial Solutions Ltd. on behalf of XL Re Ltd. with significant support from ACE Bermuda Insurance Ltd. and its subsidiary, ACE Financial Solutions International, Ltd.
David Kelley, vice chairman of Aon Re Inc. noted, “State Compensation Insurance Fund of California’s efforts to maintain stability in the California workers’ compensation marketplace created a very exciting and challenging opportunity for Aon Re. This unique transaction was made possible for our client by our entrepreneurial approach and the leverage of Aon’s vast resources.”
Kenneth Bollier, president & CEO of State Compensation Insurance Fund of California added, “We are very pleased with the completion of this transaction which enables State Compensation Insurance Fund to continue to successfully serve the employers of California during this transitional time in the California workers’ compensation marketplace.”