CHICAGO — Aon Corporation yesterday announced that its investment banking group, Aon Capital Markets, successfully completed the private placement of $190 million of principal at-risk variable rate notes for Munich Re. The placement provides Munich Re with fully collateralised catastrophe protection for California earthquake property exposures ceded by Zurich American Insurance Company and its affiliates. Aon Capital Markets was the Initial Purchaser for the Rule144A transaction.

“The deal was well received by investors,” said Paul Schultz, president of Aon Capital Markets. “The embedded industry loss warranty gave comfort to investors that have not chosen to actively participate in indemnity-based structures.”

The notes were issued by Lakeside Re Ltd., an exempted company licensed as a restricted Class B insurer in the Cayman Islands established for this transaction. Risk Management Solutions, Inc. provided the risk modelling and analysis for this transaction. The notes priced at LIBOR plus 6.50 percent with a maturity of three years and rated BB+ by Standard & Poor’s.

With the successful placement of these notes, Aon Capital Markets has raised more than $1 billion of capital for insurers and reinsurers in the second half of 2006.

“We are extremely proud of this accomplishment and believe Aon Re Global is uniquely positioned to offer our clients unbiased integrated capital solutions by providing access to traditional markets through Aon Re and capital markets through Aon Capital Markets,” Schultz said.