S&P: Aon unaffected

Standard & Poor's said it will take no rating action in response to Aon Corp.'s (BBB+/stable/A-2) announcement that it has signed separate definitive agreements to sell Combined Insurance Co. of America and Sterling Life Insurance Co. in two transactions expected to net $2.6 billion in net after-tax proceeds.

These proceeds will be devoted to a $2.6 billion increase in Aon's previously authorized share repurchase program, with the purchase of shares dependent on prevailing market conditions, alternative uses of capital and other factors, the agency said.

Aon recorded strong performance in its remaining Risk and Insurance Brokerage and Consulting segments through the first nine months of 2007, with pretax operating performance improving to $885 million, compared with $716 million in the prior-year period, S&P noted.

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