Story 1: Aon’s top executives, including CEO Patrick Ryan and COO Michael O’Halleran, personally arranged to steer client business to certain insurers in return for their agreement to use Aon’s separate reinsurance brokerage services, according to a complaint filed today by New York Attorney General Eliot Spitzer. The complaint, which was filed and then immediately settled as part of a $190 million agreement between Aon and the states of New York, Illinois, and Connecticut, outlined in detail numerous examples of Aon compromising client interests by placing business with favored insurers.
Story 2: Aon agreed Friday to pay $190 million to end Spitzer's investigation into conflicts of interest and alleged fraud at the world's second-largest insurance broker. The pact also includes the New York and Illinois state insurance departments as well as attorneys general in Connecticut and Illinois, according to the Chicago-based company. Aon will pay the $190 million over 30 months to policyholders deemed to have been damaged by the company's actions. The company also agreed to adopting reforms designed to avoid conflicts of interest.
The stock went up 28 cents (1.16%) in today's trading, and there's been no movement in after-hours trading.
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