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Non-Tech : HMN -- A poor man's GEICO? -- Ignore unavailable to you. Want to Upgrade?

To: Duker who wrote (26)	5/5/1999 9:24:00 AM
From: Duker	Read Replies (1) \| Respond to of 72

Aon sees more insurance consolidation Some interesting comments about non-traditional insurance consolidation. Flows well with some comments that I will post when I translate my notes from the conference call/conversation. --Duker Wednesday May 5, 5:55 am Eastern Time STOCKHOLM, May 5 (Reuters) - U.S. insurance company Aon Corp Chief Operating Officer Michael O'Halleran said on Wednesday he expected continued consolidation in the insurance industry. He also said the company, which now is a key player in Britain's insurance broking sector, may be interested in opportunities in buying brokers and consultants, especially niche brokers. ''Consolidation will continue unabated into the next century to obtain capital efficiency and to enable organisations to compete globally and offer a broader product and service mix,'' he told Reuters on the fringes of a seminar in Stockholm of the International Underwriting Association (IUA). Asked if Aon was interested in buying other brokers, he said: ''We'll always keep our minds open to looking at opportunities for both brokers and consultants. Our focus will be primarily on niche brokers, and that applies globally, not just in London.'' In a speech to the seminar he said in the retail business there may be some surprising acquisitions ahead, such as foreign insurers buying major U.S. companies as they try to build a global platform. ''I think it will make them more powerful and I also think it's time that they did this,'' he said. He expected a major bank, investment bank or a combination of these coming together to buy insurance companies. He said Goldman Sachs Group Inc (GS - news), may use the capital they earned from their listing on Tuesday to move into insurance. ''They are going to do something with that money. I believe they will make a bold move into the insurance industry,'' he said in the speech. O'Halleran also said the wholesaling business was at a redefining moment. "If wholesalers are to survive as we traditionally know them, they are going to have to become more specialised...I believe they will become retail producers of business. We're seeing this already, but it will continue. He said insurance and reinsurance providers would have to expand their service horizon. This may mean niche players would have to allign themselves with other players, he said. O'Halleran said the London international insurance market needs to cut costs. ''The improvement for the market is for the ability for the marketplace to lower its costs of business and to find a more cohesive way to bring capacity together,'' he told Reuters.