Aon Client Treaty Renews with Record-Setting Support for 2025
Rhea-AI Summary
Aon plc has announced the successful renewal and expansion of its Aon Client Treaty (ACT) for 2025. The flagship London Market placement facility will increase its co-insurance capacity to 28.5%, up from 22.5% in 2024, marking its largest capacity increase since inception. The renewal includes three new market partners, with all existing partners renewing their participation and agreeing to a three-year letter of intent. QBE continues as the lead partner. Since 2016, over $3.5bn in gross written premium has been placed through ACT. A new ACT Client Dividend feature will be introduced in 2025, offering a 1.5% premium reduction on ACT-placed portions.
Positive
- Record-setting increase in co-insurance capacity to 28.5% for 2025
- Addition of three new market partners while retaining all existing ones
- Secured three-year commitment from market partners through letter of intent
- Introduction of 1.5% premium reduction through ACT Client Dividend
- $3.5bn in gross written premium placed through ACT since 2016
Negative
- None.
News Market Reaction
On the day this news was published, AON declined 0.98%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
- Flagship facility will grow to co-insure 28.5 percent of business placed by Aon's Global Broking Centre, a record increase as it enters its tenth year
- Renewal includes three-year letter of intent from market partners and introduction of "ACT Client Dividend" — two landmark client features
In 2025 – the treaty's tenth year offering innovative, sustainable capacity to clients – ACT will offer 28.5 percent co-insurance across core lines of business placed through Aon's Global Broking Centre in
ACT clients will benefit from increased capacity with three new market partners joining ACT in 2025; all existing market partners have also renewed their participation, with QBE continuing as the lead. Additionally, all participating market partners have agreed to a three-year letter of intent, indicating their long-term intent to support the program and demonstrating strong demand from London Market insurers.
Aligning benefits between clients and market partners is foundational to ACT's long-term success, and to further support this, Aon is introducing the ACT Client Dividend in 2025, which is a 1.5 percent reduction applied to the portion of the premium placed through ACT.
Joe Peiser, CEO of Commercial Risk for Aon, said: "The renewal and record expansion of Aon Client Treaty, now in its tenth year, reflects the value it delivers for both clients and participating market partners. As the complexity and size of the risk landscape increases, it is essential that our clients access the insurance capacity they need with speed and certainty."
Tracy-Lee Kus, CEO of Aon's Global Broking Centre, commented: "Innovation is essential to allow clients to access risk capital more efficiently and Aon's significant investment in managing data and information has been a key factor in the growth and sustainability of ACT. We will continue to invest and scale this revolutionary approach to securing risk capital on behalf of our clients.
"The support of market partners, now further strengthened through a three-year letter of intent, is essential to the success of ACT; we are pleased to welcome three new participants and will continue to work closely with our partners to ensure ACT remains a solution that meets the needs of our clients," Kus continued.
ACT is a demonstration of Aon's Risk Capital strategy, bringing together deep expertise and capabilities to provide innovative client solutions, including:
- A global network of client experts working hand-in-hand with Aon's Global Broking Centre to ensure the optimal placement strategy for clients.
- Delegated underwriting and exposure management services through Aon's MGA (Aon Underwriting Managers) to manage risk and volatility in line with market partner requirements.
- Actuarial and consulting through Aon's Strategy and Technology Group providing insights and projections.
Learn more about the Aon Client Treaty here.
About Aon
Aon plc (NYSE: AON) exists to shape decisions for the better — to protect and enrich the lives of people around the world. Through actionable analytic insight, globally integrated Risk Capital and Human Capital expertise, and locally relevant solutions, our colleagues provide clients in over 120 countries with the clarity and confidence to make better risk and people decisions that protect and grow their businesses.
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SOURCE Aon plc
FAQ
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