Updated:
AON Securities
Aon Securities structures catastrophe bonds and ILS, operating as the capital markets arm of Aon plc.
AON Securities
Aon Securities operates as the dedicated capital markets and insurance-linked securities (ILS) arm of Aon plc, the global professional services firm. The unit structures catastrophe bonds, sidecars, and other alternative risk transfer instruments that connect institutional investors with insurance risk. Its business model blends reinsurance intermediary DNA with structured finance execution, placing it at the intersection of Wall Street capital markets and catastrophe risk underwriting. The group executes across the full spectrum of ILS structures. Its primary activity involves catastrophe bond issuance, where it designs and places bonds that transfer peak natural peril risk — U.S. hurricane, Japanese earthquake, European windstorm — from corporate and sovereign sponsors to the capital markets. It also structures collateralized reinsurance sidecars for specialist reinsurers and advises on insurance-linked note programs. Its track record spans decades of ILS market development: Aon was a foundational intermediary when the modern cat bond market emerged in the mid-1990s following Hurricane Andrew, and its annual ILS reports serve as a market index for the asset class. The firm covers North America, Bermuda, London, and key Asian markets. Aon Securities sits within Aon Reinsurance Solutions, itself a segment of the publicly traded Aon plc (NYSE: AON). This parentage gives the unit a balance sheet, client roster, and data infrastructure unavailable to standalone ILS boutiques. While the parent does not break out Aon Securities' deployment as a line item, the broader Reinsurance Solutions segment placed nearly $150 billion in premium annually. The unit maintains a presence in Chicago, New York, London, and Bermuda. Aon also operates a dedicated asset management vehicle, Aon Investments USA, which manages portfolios for institutional clients including insurance companies. Its structural differentiator is the data and advisory network of a global brokerage attached to a securities placement engine. Aon's proprietary catastrophe models, client-side risk analytics, and reinsurance treaty data flow directly into its ILS structuring work. This is not a disintermediated capital-to-risk model; it is an intermediated one where the broker shapes the risk before it ever reaches an investor. The model contrasts with pure-play ILS fund managers who source risk externally and with reinsurers who hold it on balance sheet — Aon Securities earns placement and advisory fees while operating on the deal-arrangement layer.
General information
Firm type
Asset Manager
Year founded
—
AUM
Undisclosed
Location
Region
North America
Country
United States
City
Chicago
Corporate office
Chicago, IL, United States
Sector focus
Frequently asked questions
What does Aon Securities do?
Aon Securities structures and places insurance-linked securities and alternative risk transfer instruments, primarily catastrophe bonds, collateralized reinsurance sidecars, and insurance-linked notes. It acts as an intermediary between sponsors seeking to transfer peak natural catastrophe risk and institutional investors seeking uncorrelated returns. The unit functions as a blend of reinsurance brokerage and structured finance execution, earning placement and advisory fees rather than managing a balance sheet.
How is Aon Securities related to Aon plc?
Aon Securities is a wholly owned subsidiary and operating unit of Aon plc, the London-headquartered global professional services firm traded on the New York Stock Exchange as AON. It sits within Aon Reinsurance Solutions, which provides treaty and facultative reinsurance brokerage. This parentage supplies the ILS unit with proprietary catastrophe analytics, a broad sponsor client base, and the placing infrastructure of the world's second-largest insurance broker.
What types of investors participate in Aon Securities placements?
Institutional investors including dedicated ILS funds, pension plans, sovereign wealth funds, and multi-strategy asset managers participate in its catastrophe bond and sidecar placements. The investor base is global, with concentration in U.S. and European institutional markets. Aon Securities does not manage pooled funds as an investment manager; it arranges deals that investors access through their own allocations.
What catastrophe bond transactions has Aon Securities structured?
Aon Securities has structured catastrophe bonds for corporate and sovereign sponsors across U.S. hurricane, European windstorm, Japanese earthquake, and Australian cyclone perils. Its historical transactions span the entire modern cat bond era dating to the 1990s. The unit publishes an annual ILS market report that tracks issuance volumes and market trends, functioning as a widely cited record of market activity (per Aon Securities, public record).
Does Aon Securities manage an ILS fund?
No. Aon Securities does not operate an ILS fund or directly manage investor capital. It earns placement, structuring, and advisory fees by arranging transactions between risk sponsors and capital markets investors. This separates it from ILS fund managers and gives it a structurally different incentive set as an intermediary rather than an asset gatherer.
Where does Aon Securities operate geographically?
The unit operates from offices in Chicago, New York, London, and Bermuda, with deal coverage extending to key reinsurance markets including Europe, Japan, and Australia. Its geographic footprint mirrors the catastrophe risk corridors where ILS demand is most concentrated.
How does Aon Securities source risk for its ILS transactions?
Risk flows from Aon Reinsurance Solutions' global brokerage client base of insurers, reinsurers, and sovereign entities. The unit's sourcing advantage derives from Aon plc's position as one of the world's largest reinsurance intermediaries; treaty clients and analytics are already within the parent organization, allowing Aon Securities to structure capital markets solutions without an external origination effort.
Profile maintained by Altss using OSINT (open-source intelligence), regulatory filings, licensed data partners, and verified direct submissions. Read the methodology. Last updated: . Continuous refresh with full update cycles at least every 30 days.
Need institutional-grade insight on registered investment advisers?
Altss delivers:
Prefer a guided tour?
We’ll walk you through: