NYSE:AON
Aug 11, 2015

LONDON, 11 August 2015 - Aon Hewitt, the global talent, retirement and health solutions business of Aon plc (NYSE:AON), has commented on the merger, announced this morning, of Just Retirement and Partnership, and on its potential effect on the bulk annuity market.

John Baines, principal consultant in the Risk Settlement Group at Aon Hewitt, said:
"The medically underwritten bulk annuity market has become mainstream with close to £1 billion of business written in the past 18 months. With one of the main reasons for the proposed merger between Just Retirement and Partnership being a focus on growing in the defined benefit pension market, we don't expect that this growth trend is likely to change.

"As with any merger, there is a risk of reduced competition driving up prices. However, in this case, that risk is likely to be mitigated by the new entrants that are poised to enter the market imminently, by the increased interest of traditional insurers in using medical data to sharpen their pricing, and also by the need to retain a competitive pricing basis relative to traditional insurers."

John Baines continued:
"The view we have given when advising clients, is that there would be a reasonable chance that one or both of Just Retirement and Partnership might not remain as stand-alone insurers, given their size and the specialist nature of the marketplace. While the timing was not necessarily expected, the focus of the combined group on enhancing the covenant ought to be good news for both existing and future policyholders.

ENDS


Notes to Editors
About Aon
Aon plc (NYSE:AON) is a leading global provider of risk management, insurance brokerage and
reinsurance brokerage, and human resources solutions and outsourcing services. Through its more
than 69,000 colleagues worldwide, Aon unites to empower results for clients in over 120 countries via
innovative risk and people solutions. For further information on our capabilities and to learn how we
empower results for clients, please visit: http://aon.mediaroom.com/

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Media Contact
For further information please contact:
Colin Mayes Marina Jane Sanchez
Aon Hewitt CNC
01372 733689 020 3219 8811
colin.mayes@aonhewitt.com marina.jane-sanchez@cnc-communications.com

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