Media room

Press releases—January 2016

Aon Declares Quarterly Dividend (19 January 2016)
Aon Hewitt Adds Meredith Jones to its Team of Leading Investment Consultants (14 January 2016)
Global Medical Cost Increases in 2016 expected to be 2.5 Times Higher Than General Inflation (14 January 2016)
Aon Announces Fourth Quarter and Full Year 2015 Earnings Release and Conference Call (8 January 2016)
Employers to Add More Financial Well-Being Programs in 2016 (7 January 2016)
Aon advises Alcatel-Lucent Pension Scheme on £300 million pensioner buy-in with Aviva (5 January 2016)


Aon Declares Quarterly Dividend

LONDON, January 19, 2016 /PRNewswire/ -- Aon plc (NYSE:AON), the leading global provider of risk management and human resource consulting and outsourcing, announced today that the Board of Directors has declared a quarterly cash dividend of $0.30 per share on outstanding Class A Ordinary Shares. The dividend is payable February 16, 2016 to shareholders of record on February 1, 2016.

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Aon Hewitt Adds Meredith Jones to its Team of Leading Investment Consultants

Jones to be partner and head of Emerging Manager Research on the Global Asset Engine Team

LINCOLNSHIRE, Ill. January 14, 2016 – Aon Hewitt, the global talent, retirement and health solutions business of Aon plc (NYSE:AON), today announced that Meredith Jones has joined the firm as a partner and head of Emerging Manager Research; to further strengthen the capabilities of its Global Asset Engine (GAE). Aon Hewitt Investment Consulting, Inc.’s GAE drives innovation, manager research and implementation of key investment ideas for clients.

In her new role, Meredith is responsible for providing strategic guidance on emerging managers, hedge funds, private equity and real estate to the firm’s largest clients including foundation, endowment and public sector clients.

“As a well-known leader in the investment industry, Meredith brings a depth of experience from research to investment consulting, to marketing, that will bring our clients a unique perspective,” said Kemp Ross, U.S. head of Investment Solutions at Aon Hewitt Investment Consulting, Inc. “Her research on emerging managers, including small and young funds as well as women and minority-run funds, has been an industry standard since 2006. We are pleased to welcome Meredith as we continue to invest in our business and our talent in order to provide our clients with the best thinking in the industry.”

Most recently, Meredith served as director of the Rothstein Kass Institute where she was responsible for developing research on hedge funds, women in alternative investments, private equity, venture capital and a number of other topics. Meredith has been published in both trade and national media outlets, including The Economist, The New York Times and The Wall Street Journal. She is a highly sought after speaker and thought leader at industry events around the world.

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Global Medical Cost Increases in 2016 expected to be 2.5 Times Higher Than General Inflation

New Aon Analysis Projects Average Cost Increases to Top 9% Globally

LINCOLNSHIRE, Ill., Jan. 14, 2016 /PRNewswire/ -- A new report from Aon Hewitt, the global talent, retirement and health solutions business of Aon plc, estimates that the average cost increases for employer-sponsored medical plans globally will be 9.1 percent in 2016. This is 5.5 percentage points higher than the global average projected inflation rate of 3.6 percent.

Aon Hewitt's report reflects the medical trend expectations of employer-sponsored medical plans in 90 countries based on reported data from Aon professionals, clients and carriers represented in the portfolio of Aon medical plan business in each country. 

According to Aon, projected trend rates are expected to vary significantly by region. Both Latin America and the Middle East are expected to see double-digit average medical trend rates in 2016, while Europe and North America will experience trend rates just below 6 percent. Still, average trend rates for all regions are expected to exceed average regional inflation levels by at least 4 percentage points.

"We expect medical costs to continue to escalate around the world due to global population aging, overall declining health, poor lifestyle habits particularly in emerging countries, continued cost shifting from social programs and an increase in  utilization of employer-sponsored health plans," said Wil Gaitan, senior vice president and global consulting actuary at Aon Hewitt. "Regardless of the underlying medical insurance system, employers around the world are continuing to experience added organizational cost and lost workforce productivity as a result of these factors."

Average Medical Trend Rates by Region

 

2015

2016

 

Medical trend rate

Annual general inflation rate

Medical trend rate

Annual general inflation rate

Asia Pacific

10.4%

4.2%

9.4%

3.2%

Europe

5.7%

1.6%

5.9%

1.6%

Latin America and Caribbean

16.7%

6.9%

20.0%

11.0%

Middle East and Africa

13.3%

6.6%

11.6%

6.3%

North America

5.3%

1.6%

5.8%

1.5%

Global

8.7%

3.2%

9.1%

3.6%

Global Factors Impacting Medical Trend Rates

Aon Hewitt's report found that cardiovascular issues, cancer and gastrointestinal issues were the most prevalent health conditions driving health care claims around the world.  The global risk factors expected to drive future claims—and contribute to the adverse experience driving high medical cost increases—were primarily non-communicable diseases: high blood pressure, obesity and high cholesterol, followed by physical inactivity.

"Many of the factors driving global cost increases are directly linked to modern lifestyles and their incidence can be significantly reduced if individuals modify their behaviors," said Francois Choquette, global benefits practice leader at Aon Hewitt. "Employers in every country need to accelerate their efforts at helping employees both understand their own health risks and motivate them to take steps to improve .

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Aon Announces Fourth Quarter and Full Year 2015 Earnings Release and Conference Call

LONDON, January 8, 2016 /PRNewswire/ -- Aon plc (NYSE:AON), the leading global provider of risk management and human resource consulting and outsourcing, plans to announce fourth quarter and full year 2015 results on Friday, February 5th, 2016 in a news release to be issued before the market opens. Greg Case, president and CEO, will host a conference call at 7:30 am Central Time on Friday, February 5th, 2016. The conference call will be broadcast live through Aon's website at www.aon.com. Adobe Flash is required to listen to this webcast. A replay will be available shortly after the live webcast. The earnings release and supplemental slide presentation will be available on Aon's web site at www.aon.com.

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Employers to Add More Financial Well-Being Programs in 2016

Aon survey finds employers are offering financial well-being benefits for altruistic reasons

LINCOLNSHIRE, Ill., January 7, 2016 – A new report from Aon Hewitt, the talent, retirement and health solutions business of Aon plc (NYSE: AON) reveals that large employers plan to expand the depth and breadth of financial well-being programs in the year ahead.

According to Aon Hewitt’s Hot Topics in Retirement and Financial Well-Being survey of more than 250 U.S. employers, representing nearly 7 million workers:

  • 55 percent of employers currently offer help to workers in at least one category of financial well-being such as budgeting, debt management and the financial aspects of health care
  • 38 percent provide help in at least three categories
  • By the end of 2016, 77 percent of employers will have at least one financial well-being program and 52 percent will have at least three

“Workers have a wide variety of financial needs and challenges,” explained Rob Austin, director of Retirement Research at Aon Hewitt. “Employers are realizing that they need to provide a range of financial well-being tools and resources to help this diverse workforce and to truly make an impact on workers’ long and short-term savings goals.”

Aon Hewitt also found that most employers (85 percent) say they are creating and adding financial well-being programs because it is “the right thing to do.” Another 80 percent of employers report that their programs are designed to improve employee engagement.

”Workers say they want their employer to provide them with the resources to help them obtain a more secure financial future, and it seems that employers are stepping up to this request,” added Austin. “In 2016, financial well-being programs will cement themselves as part of most employers’ total benefits package.”

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Aon advises Alcatel-Lucent Pension Scheme on £300 million pensioner buy-in with Aviva

LONDON, January 5, 2016 - Aon Hewitt, the global talent, retirement and health solutions business of Aon plc (NYSE:AON), has announced that it advised the trustees of the Alcatel-Lucent Pension Scheme on a £300 million pensioner buy-in with Aviva plc. Alcatel-Lucent, the global telecommunications equipment group, has UK pension scheme defined benefit liabilities of around £1 billion. Aon Hewitt acts as actuary, consultant and investment adviser to the scheme. This transaction, which is a key part of a longer-term de-risking objective, involved a buy-in of £300 million of pensioner liabilities. Aon Hewitt had previously secured a smaller group scheme in a full buyout in 2014.

Martin Couzens, Chairman of Alcatel-Lucent Pension Trustees Limited, said:
“We were very satisfied with this increase in security for our scheme and its members. We have obtained full insurance backing for most of our pensioners and even made a saving against our funding reserve. Overall this takes us substantially closer towards our goal of full buyout.

“Aon has smoothly managed all aspects of the transaction as well as keeping us informed and ready to act very quickly to seize the opportunity.”

Nick Johnson, Managing Director of Bulk Purchase Annuities at Aviva, said:
“I was pleased that we were able to help the trustees capture an attractive opportunity using our experience from deals we have previously been involved in. Working collaboratively with all parties was vital to this agreement and we have achieved a successful outcome for everyone involved.”

Dominic Grimley, principal consultant and risk settlement specialist at Aon Hewitt, said:
“This is a good outcome which has come about after a strongly contested auction. Aviva has shown great flexibility to accommodate the scheme’s needs and the trustees have acted extremely efficiently throughout to secure an ideal result for all parties in a short space of time.”

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