Aon Impact Forecasting Team Releases Report on Atlantic Storms

February 6, 2006

It was a year with more storms in the Atlantic than any other on record, and it was also the costliest hurricane season ever.

Impact Forecasting, a wholly owned subsidiary of Aon Corporation, studies some of the possible reasons for the activity — including shifts in the frequency of storms and the impact of El Nino — behind a year that produced more Category 5 hurricanes in the Atlantic Basin than any other. The report, “Atlantic Ocean Basin Hurricane Frequency Shift,” was released Monday and is available at .

In Aon’s report, a complete study of possible causes of weather pattern changes shows evidence of more frequent storms as part of an ongoing cycle of worldwide weather patterns.

Bryon Ehrhart, chief executive officer of Aon Re Services, commented: “It is clear that the increased frequency and severity of hurricanes consumes more economic capital than previously considered prudent. Quantifying the change in insurer capital and reinsurance exposed to these increased loss and volatility expectations will help insurers sustain their capital position through this heightened risk period.”

The insurance industry also dealt with other natural catastrophes across the world, including typhoons, widespread flooding, and devastating earthquakes. Aon has also released a complete report on all global catastrophes from 2005. The company’s “2005 Global Climate and Catastrophe” report is also available on the company’s Web site.

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