Aon sells Endurance stake; clarifies views on broker compensation

Broker Aon has sold much of its stake in Bermuda-based Endurance Specialty Holdings Ltd.In a press release, Aon says it has sold basically all of its equity investment in Endurance for US$320.5 million. This included the sale of 9.8 million shares at a net realized price of US$32.70 each. Aon does retain 4.1 million stock purchase warrants in the company.”We are very proud to have participated in the founding of Endurance in December 2001, at a time when the insurance industry needed additional capacity,” says Aon CEO Patrick Ryan. “The additional capacity created by the establishment of Endurance and other insurers during that period has contributed to the present easing of property/casualty insurance premium pricing.”Ryan was also in the hot seat Monday, responding to media reports which suggested he was “not fazed” by the investigation into broker compensation being undertaken by New York Attorney General Eliot Spitzer. Ryan says that while he does “believe the vast majority of our employees adhere to the longstanding principles embodied in our code of conduct and Aon values”, the company is undertaking its own internal investigation which has already revealed some improper conduct on the part of employees. “We have found indications that some employees have not always followed these principles,” he said in an Aon press release.Aon has already stated that it will no longer accept contingent commissions as a result of the Spitzer investigation.