On March 16, 2007, Aon Corporation (NYSE: AOC) announced the official completion of its acquisition of Valley Oak Systems of San Ramon, California.

Valley Oak Systems (VOS), the leader in claims management software, services, and support for the insurance industry, will operate under the Aon eSolutions Group as an independent subsidiary.

Valley Oak's flagship product, iVOS®, the "one-system" claims management solution, will now integrate seamlessly with RiskConsole, Aon’s risk management information system (RMIS), in order to share information and provide a big-picture analysis of claims, policy, and exposure data.

In addition, since RiskConsole and iVOS are both browser-based, they'll be able to seamlessly integrate and share data. In terms of system features, there is nominal overlap; instead complementary capabilities create a ’best in class’ product suite. Both products will continue to support all existing functions and modules, providing clients with a broader range of claims and risk management options.

Q:  What is the significance of this acquisition?
A:  For Aon eSolutions:  The addition of Valley Oak Systems marks a tremendous new addition to the Aon suite of risk management solutions, allowing Aon to offer its clients a broader range of claims management tools and capabilities. The integrated businesses are now positioned to be the premier provider of global risk and insurance technology solutions. In addition, there's a strategic fit between the companies' market-leading solutions.

For Valley Oak Systems: Since its inception, Valley Oak Systems has experienced phenomenal growth in all aspects of its business. To continue this growth and provide better products and services, VOS agreed to be acquired and become part of Aon's e-Solutions group. The acquisition will enable VOS to expand its capabilities to better meet the needs of clients, by offering Aon’s risk management expertise and systems. In addition, VOS will leverage Aon’s premier distribution network and existing relationships with insurance carriers and TPAs to accelerate growth, potentially globalize the iVOS solution, and explore ongoing synergies between the two organizations.

For the industry:  Independently, RiskConsole and iVOS will continue to operate as dominant solutions in their respective markets. RiskConsole is targeted towards risk management reporting and consolidation of exposure, policy and claims information from various sources including iVOS; while iVOS is targeted toward comprehensive claims management capabilities for multiple lines of insurance. Together they'll provide the only end-to-end browser-based risk and claims management offering in the global market. Until now, the need for this type of integrated, comprehensive solution has been overlooked and unaddressed.

Q:  What were the terms of the acquisition?
A:  The terms of the transaction were undisclosed.

Q:  What changes do you anticipate in Aon or Valley Oak's workforce?
A:  We anticipate both Aon and VOS to maintain the current workforce, so clients can expect the same high level of service and support from our teams. In fact since our companies have plans for aggressive growth and expansion, we anticipate needing additional employees to meet our future goals.

Q:  How will this affect our current service and support from VOS?
A:  VOS will maintain its current support group and will actually expand it.  They will soon offer additional services such as Email Support and Web Services Support as well.  These support processes are currently being implemented, and we will keep our clients abreast of the deployment time, and the benefits they can expect from these new services.

Q:  Do you anticipate any changes in offices and worksites?
A:  All existing Aon and VOS offices will remain in operation.

Q:  What vertical markets will be affected by this acquisition?
A:  These products impact the property and casualty, as well as liability, insurance sectors, which require leading-edge claims and risk management solutions.

Q: How are Aon and VOS a strategic fit?
A:  Both companies have a similar business philosophy driven by customer satisfaction, industry-leading technology, and highly tailored solutions that deliver demonstrable savings, benefits, and business value. This mutual focus will enable a synchronized effort toward building a comprehensive RMIS that offers a 360-degree view of risk and cost-containment at the individual claims level.

Q:  How will RiskConsole and iVOS work together?
A:  Utilizing Web services, Valley Oak's product, iVOS, the "one-system" claims management solution, will now integrate seamlessly with RiskConsole, Aon’s risk management information system (RMIS), in order to share information and provide a big-picture analysis of claims, policy, and exposure data.

Q:  What are the key benefits of an integrated RiskConsole-iVOS platform?
A:  The integrated RiskConsole-iVOS platform is the only end-to-end claims and risk management solution, which allows clients to achieve the following benefits:

1. Seamless integration for an all-in-one data platform
2. Enterprise-wide view of risks and exposures
3. Improve claims handling efficiency
4. Reduce high-cost, high-frequency claims
5. Monitor loss-control performance measures and benchmarks
6. Drive down total cost of risk (TCOR)
7. Create enterprise-wide accountability to claims and risk management

Q:  What does the acquisition mean for existing RiskConsole clients?
A: The acquisition allows Aon to offer its clients a broader range of claims management tools and capabilities. For instance, clients requiring more sophisticated, proactive claims management capabilities may want to evaluate the iVOS "one-system" claims management solution as a means to meet their business needs.

Aon clients can expect the same high level of service and support from our teams.

Q:  What does the acquisition mean for existing VOS clients?
A: The acquisition allows VOS to become a part of an international corporation. This means VOS will have access to additional resources and expertise, which allows it to better meet client needs. If a client's needs demand more sophisticated risk management reporting and analysis, they may want to consider using RiskConsole in conjunction with the iVOS system.

VOS clients can expect the same high level of service and support from our teams.

Q:  How will clients know when to use the respective products?
A: If a company needs a comprehensive risk management information system (RMIS) to provide a 360-degree view or risks and exposures, they should consider RiskConsole. This leading RMIS system is targeted towards risk management reporting and consolidation of exposure, policy, and claims information from various sources, including iVOS.

If an organization needs a comprehensive claims management system that integrates core insurance processes, various system features, and other critical functions, they should consider iVOS, the "one-system" browser-based solution that encompasses claims management, medical bill review, policy administration, case management, billing, events management, and related insurance functions for multiple lines of insurance.

Independently, RiskConsole and iVOS will continue to operate as dominant solutions in their respective markets, but together they provide the only end-to-end browser-based risk and claims management offering in the global market. If a company needs a comprehensive risk AND claims management solution, they should consider the integrated RiskConsole-iVOS "one-solution."

Q:  Will iVOS be customized for the global market?
A: iVOS already has international clients, and with the acquisition, VOS will leverage Aon’s premier distribution network and existing relationships with insurance carriers and TPAs to accelerate growth and globalize the iVOS solution for appropriate international clients. The globalization of iVOS will be a gradual process, starting in areas in which iVOS has pre-existing system strengths. For example, we can begin immediate in English-speaking countries that have similar workers' compensation, liability, or property insurance sectors.

Q:  Will we have to purchase iVOS if we're already using RiskConsole (and vice versa)?
A: Clients will purchase tools only according to their own business needs. Both iVOS and RiskConsole will continue to support all existing functions and modules. As such, clients will have a broader range of claims and risk management capabilities and options to choose from and to tailor in order to meet their specific business needs.

If a company does have a need for a comprehensive risk AND claims management solution, they may want to consider the integrated RiskConsole-iVOS "one-solution." Independently, RiskConsole and iVOS will continue to operate as dominant solutions in their respective markets, but together they provide the only end-to-end browser-based risk and claims management offering in the global market.

Sensitive Issues:

Q: With the acquisition, will VOS or Aon have access to our data?
A: Both VOS and Aon conscientiously protect the security and privacy of client information. We do not use data for purposes other than the specific, pre-determined business process for which they were intended. In addition, our companies both offer leading-edge information security systems to secure this information.