Released on: November 27, 2007, 11:14 pm

Press Release Author: Alexandra Lewis

Industry:

Press Release Summary: This week's wildfires in California are expected to produce
insured losses between $1.2 billion and $1.6 billion, according to Impact
Forecasting LLC, a unit of Aon Corporation (NYSE: AOC). More than 80 percent of the
losses are expected to occur from the Witch Creek fire that merged with the Guejito
and Poomacha fires.

Press Release Body: This week's wildfires in California are expected to produce
insured losses between $1.2 billion and $1.6 billion, according to Impact
Forecasting LLC, a unit of Aon Corporation (NYSE: AOC). More than 80 percent of the
losses are expected to occur from the Witch Creek fire that merged with the Guejito
and Poomacha fires.

"Our analysis of housing trends in California have shown that growth in the more
fire-prone wildland-urban areas is greater than in traditional urban regions," says
Steven Jakubowski, chief operating officer of Impact Forecasting. "Unfortunately, we
are likely to see more catastrophic events in the future as a result of the
increased housing growth."

More than two dozen fires have burned from Santa Barbara County to San Diego County,
the largest of which is the Witch Creek fire in San Diego County that forced the
evacuation of hundreds of thousands of people from their homes.

The Witch Creek fire was unusual in that it burned beyond historical bounds seen in
previous events and into densely populated areas, including Rancho Bernardo, Poway
and Rancho Santa Fe, after crossing a likely firebreak at the I-15 interstate
freeway.

The magnitude of the Witch Creek Fire demonstrates that commercial properties face
greater exposure than had been previously seen.

"California was set for a difficult year because of an extended drought that brought
moisture conditions in vegetation to troublingly low levels," Jakubowski said.
"Indeed, California has already seen difficult fires in Griffith Park, Catalina
Island, and Lake Tahoe this year. The drought combined with high temperatures, very
low humidity, and extreme wind gusts which at times reached hurricane strengths
combined to form a disastrous scenario."

This week's catastrophe follows other California losses including outbreaks in 2003,
1993, and 1991. The fire siege in 2003 produced the Cedar and Old Fires, resulting
in losses in excess of $2 billion.

While these catastrophic losses are closely tied to extreme weather conditions and
recurring droughts throughout California, the explosion in the growth of housing
greatly affects likely future losses, as well.

Aon Re Global works with insurance and reinsurance company clients to manage and
mitigate risks of catastrophic events such as these.

Notes to Editors

Impact Forecasting is a center of excellence within Aon Re Global, the world's
leading and most preferred reinsurance intermediary. Impact Forecasting produces
catastrophe analysis and modeling services. Models include hurricane wind and
surge, earthquake, tornado and hail, wildfire, and terrorism perils.

Aon UK is ranked by A.M. Best as the number one global insurance brokerage based on
brokerage revenues and voted best insurance intermediary, offering classic
sports car insurance, high value home insurance, entertainment and media
insurance and construction site insurance.


Web Site:
http://www.privateclients.aon.co.uk/privateclients/microsites/cars/classic.aspx

Contact Details: directory@vandelay.co.uk