17 September 2018Accounting & tax analysis

Aon to offer capital optimisation for captives

Aon Risk Solutions has launched a capital advisory unit designed to assist re/insurers, Lloyd's syndicates and captive insurance companies with their capital optimisation.

Announced during the Monte Carlo Rendez-Vous, the unit aims to help clients achieve capital efficiency by accessing alternative or traditional capital, or by identifying opportunities that make better use of existing capital - all while taking into account cost and returns.

It will also tap the resources of Aon Inpoint, the ILS and capital markets unit of Aon Securities, and Aon’s Investment Solutions for Insurers.

The unit has been launched in London. Nick Frankland, UK CEO of Reinsurance Solutions, said at a press briefing that it could help with some of the issues Lloyd’s is facing.

“The new unit will focus on assisting clients with better managing capital through risk transfer solutions, offering them a broad capital service, to include structured reinsurance and alternative risk solutions, capital provision, business intelligence, financial modelling, and rating agency expertise,” Frankland explained.

Eric Paire, the head of Capital Advisory at Aon Benfield will lead this advisory unit, and said that the goal is to expand the offering into Europe, EMEA, Asia, and also the US. Paire joined Aon in March 2018 from Guy Carpenter.