1. Credit Crisis Impels New Impulse to Pool
EuroFinance – Amsterdam
March 17, 2009
Greg Zabikow
Aon Corporation

3. Credit Crisis
 Increased counter party risk
 Reduced credit available
 Increased cost of credit

4. Aon Corporation
 Headquartered in Chicago
 Largest global insurance broker
 In 120 countries
 Lines of business – Insurance Brokerage,
Reinsurance, and HR Consulting
 Growth through acquisitions

5. Revenue By Region 2008
US
35%
EMEA
28%
UK
16%
Americas
other than US
12%
APAC
9%

6. Issues to Address
 Decentralized management
 External debt
 Excess operating cash
 Cash balances
 Annual dividends
 Operating vs. fiduciary cash
 Support

7. Debt and Cash Position
 2002
 Debt in the US and UK increasing
 Cash outside the US
 Cash need in the US

8. Multi Currency Notional Pooling
 Cash visibility
 Self funding
 Excess cash management

9. Notional Cash Pool Requirements
 Cash in owners name
 Existing cash management structures
 Competitive interest rates
 Multi-currency
 No withholding tax
 Not viewed as a dividend

10. Notional Cash Pool
 Web-based system
 System rights
 Data entry
 Local approval
 Second approval from Amsterdam or Chicago
 Complete transparency balances and
interest
 Limited access to accounts
 Same day or next day availability

11. Notional Cash Pool
 Netherlands team manages the pool
 Tax reasons the US is not part of the pool
 Pledge account balances
 Aon Corporation guarantee

12. Notional Cash Pool
JPY 2,350 EUR 5 AUD 18EUR (10)GBP (24) USD 16CAD 15
Converted to Euro at 11:00am Rate
+€20 + €9 (€10) + €5 + €9 + €12(€25)
Notional Balance in Pool is ZERO Euro Equivalent
+ €20
Euro Facility
+ €20+ €20
+ €20
MMF

13. Debt
$2,513
$2,153
$2,117 $2,112
$2,284
$2,127 $2,008
$1,500
$1,700
$1,900
$2,100
$2,300
$2,500
$2,700
2002 2003 2004 2005 2006 2007 2008
($ in millions)

14. Debt to Capital Ratio
22%
24%
26%
28%
30%
32%
34%
36%
38%
40%
Dec-
05
Mar-
06
Jun-
06
Sep-
06
Dec-
06
Jan-
07
Feb-
07
Mar-
07
Apr-
07
May-
07
Jun-
07
Jul-07 Aug-
07
Sep-
07
Oct-
07
Nov-
07
Dec-
07
Jan-
08
Feb-
08
Mar-
08
Apr-
08
May-
08
Jun-
08
Jul-08
Debt to Capital Debt to Capital without Notional Pool

15. Counter Party Exposure
 Operating cash in notional pool
 Exposure to self
 Excess operating cash is managed at top
level
 Reducing bank relationships and accounts

16. Counter Party Exposure
 Fiduciary balance local limits
 Established limits at banks
 Aon’s equity
 Bank’s equity
 Rating
 Limits provided to local contacts
 Larger banks and money market funds

17. Notional Cash Pool – Results
 Cash visibility
 Self funding
 Debt management
 Excess cash management
 Counter party exposure
 Annual dividends

19. Greg Zabikow – MBA, CTP
Manager of International Treasury
Aon Corporation
+31 20 430 5402
greg_zabikow@aon.com
Questions