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Previous: ALTERMAN INVESTMENT FUND INC, NSAR-B, 1997-06-27 |
Next: UNIQUE MOBILITY INC, 10-KT, 1997-06-27 |
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
__X__ Annual Report Pursuant to Section 15(d) of the Securities
Exchange Act of 1934
For the fiscal year ended December 31, 1996
OR
_____ Transition Report Pursuant to Section 15(d) of the
Securities Exchange Act of 1934
A. Full title of the plan and the address of the plan,
if different from the issuer named below:
Aon Savings Plan
B. Name of the issuer of the securities held pursuant
to the plan and the address of its principal
executive office:
Aon Corporation
123 N. Wacker Drive
Chicago, Illinois 60606
<PAGE>
S I G N A T U R E S
Pursuant to the requirements of the Securities Exchange Act of 1934, the Plan,
by the Plan Administrator, the Committee, has caused this annual report to be
signed on its behalf by the undersigned, thereunto duly authorized, in the
County of Cook and the State of Illinois on the 23rd day of June, 1997.
AON SAVINGS PLAN
BY THE COMMITTEE
/s/ THOMAS STACHURA /s/ JOHN A. RESCHKE
- ---------------------------- -----------------------------
Thomas Stachura John A. Reschke
/s/ VIRGINIA G. SCHOOLEY /s/ ROBERT HURWITZ
- ---------------------------- -----------------------------
Virginia G. Schooley Robert Hurwitz
/s/ E.J. FINNERAN
- ----------------------------
E. J. Finneran
- 2 -
<PAGE>
AUDITED FINANCIAL STATEMENTS AND SCHEDULES
AON SAVINGS PLAN
1996
WITH
REPORT OF INDEPENDENT AUDITORS
<PAGE>
AON SAVINGS PLAN
INDEX TO AUDITED FINANCIAL STATEMENTS AND SCHEDULES
---------------------------------------------------
Page
----
Report of Independent Auditors 1
Financial Statements:
Statements of Net Assets Available
for Plan Benefits at
December 31, 1996 and 1995 2
Statements of Changes in Net Assets Available
for Plan Benefits for the years ended
December 31, 1996 and 1995 3
Notes to Financial Statements 4
Financial Statement Schedules:
Schedule I
Assets Held for Investment as of
December 31, 1996 10
Schedule II
Net Assets Available for Plan Benefits
by Investment Program at December 31, 1996
and 1995 23
Schedule III
Changes in Net Assets Available for Plan
Benefits by Investment Program for the years
ended December 31, 1996 and 1995 25
Schedule IV
Transactions or Series of Transactions in
Excess of 5% of the Current Value of Plan
Assets for the year ended December 31, 1996 27
<PAGE>
<TABLE>
<CAPTION>
AON SAVINGS PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR PLAN BENEFITS
December 31
-------------------------------
(thousands)
1996 1995
---- ----
<S> <C> <C>
ASSETS
- ------
Investments, at Fair Value (Notes 1,2, and 3):
United States Government and Government Agency Issues $ 82,043 $ 48,036
Corporate Bonds and Notes 6,312 5,708
Other Bonds 1,028 1,053
Common Stocks:
Aon Corporation 292,189 242,680
Other 44,202 42,316
Preferred Stocks 1,616 1,645
Investments held in the Aon Funds:
Aon Money Market Fund 25,754 -
Aon Government Securities Fund 12,526 -
Aon Asset Allocation Fund 51,743 -
Aon S&P 500 Index Fund 70,708 -
Aon REIT Index Fund 5,591 -
Aon International Equity Fund 11,866 -
Investments held in the Life of Virginia Series Funds, Inc.:
Money Market Portfolio - 21,729
Government Securities Portfolio - 11,692
Total Return Portfolio - 43,613
Common Stock Index Portfolio - 40,527
Real Estate Securities Portfolio - 1,052
International Equity Portfolio - 2,761
Other Long-Term Investments 16 18
Short-Term Investments 11,100 37,400
--------- ---------
616,694 500,230
Unallocated Guaranteed Insurance Contracts, at Contract Value 79,198 101,938
--------- ---------
Total Investments 695,892 602,168
Receivables:
Contribution Receivable from Aon Corporation 13,396 14,697
Contributions Receivable from Participants 289 845
Loans Receivable 206 398
Accrued Dividends and Interest 824
763
Due from Broker 2,977 20,350
---------- ---------
Total Receivables 17,692 37,053
---------- ---------
Total Assets 713,584 639,221
---------- ---------
LIABILITIES
- -----------
Accounts Payable and Accrued Expenses - -
---------- ---------
Total Liabilities - -
---------- ---------
Net Assets Available for Plan Benefits $ 713,584 $ 639,221
========== ==========
<FN>
See notes to financial statements.
</FN>
</TABLE>
- 2 -
<PAGE>
<TABLE>
<CAPTION>
AON SAVINGS PLAN
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS
Year Ended December 31
-------------------------------
(thousands)
1996 1995
---- ----
<S> <C> <C>
ADDITIONS:
----------
Investment Income:
Interest and Income from Unallocated
Guaranteed Insurance Contracts $ 10,947 $ 12,754
Aon Corporation Dividends 6,909 6,561
Other Dividends 1,679 7,164
---------- ---------
19,535 26,479
Contributions:
Aon Corporation 14,056 14,697
ESOP Diversification 87 72
Participants 31,740 30,975
---------- ---------
45,883 45,744
---------- ---------
65,418 72,223
DEDUCTIONS:
-----------
Benefits Paid to Participants 76,929 41,574
Administrative Expenses 832 980
Investment Expenses 201 261
---------- ---------
77,962 42,815
---------- ---------
(12,544) 29,408
Net Realized and Unrealized Appreciation
in Fair Value of Investments (Note 3) 86,907 119,552
---------- ---------
Net Increases 74,363 148,960
Net Assets Available for Plan Benefits
at Beginning of Year 639,221 486,768
Plan Mergers - 3,493
---------- ---------
Net Assets Available for Plan
Benefits at End of Year $ 713,584 $ 639,221
========== ==========
<FN>
See notes to financial statements.
</FN>
</TABLE>
- 3 -
<PAGE>
AON SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
1996 and 1995
1. DESCRIPTION OF PLAN
-------------------
A. General
The Aon Savings Plan (the "Plan") was authorized by the Board of
Directors of Aon Corporation (the "Company"). The Plan has been
designed as a salary reduction plan under Section 401(k) of the
Internal Revenue Code of 1986, as amended (the "Code").
The Plan is subject to and is designed to comply with the provisions of
the Employee Retirement Income Security Act of 1974 ("ERISA")
applicable to defined contribution profit sharing plans, specifically
"Title I - Protection of Employee Benefits Rights," which includes
regulatory provisions regarding reporting and disclosure, participation
and vesting, funding, fiduciary responsibility, administration and
enforcement. The minimum funding standards of Title I do not, however,
apply to the Plan.
Certain of the Plan's investments are held by the Aon Funds, an
affiliated, open-end management investment company.
B. PLAN CHANGES
On July 1, 1995, the Plan introduced two new investment options, the
Real Estate Securities Fund and the International Equity Fund. On
December 31, 1995, the RGH Common Stock Fund, a closed fund, was
liquidated.
C. PLAN MERGERS AND TRANSFER OF ASSETS
Effective October 1, 1995, the J. H. Blades & Co., Employees' 401(k)
Plan (the "Blades Plan") and Energy Insurance International, Inc.
Savings and Investment Plan (the "E. I. I. Plan") were merged into the
Aon Savings Plan. All assets and liabilities of the Blades Plan and
the E. I. I. Plan were transferred to the Aon Savings Plan as of
October 1, 1995. Participants of the Blades Plan and the E. I. I. Plan
immediately became Participants in the Aon Savings Plan.
D. ELIGIBILITY AND PARTICIPATION
Participation in the Plan is limited to employees who have completed
one year of service and attained the age of 21 or employees who were
eligible under another Plan that was merged into the Aon Savings Plan.
An employee must be employed in the United States on a permanent basis
in order to participate.
E. CONTRIBUTIONS
Participant - Participant contributions are made by means of regular
-----------
payroll deductions. Non-highly compensated Participants, as defined by
the Code, may elect to make contributions of between 2% and 10% of
their compensation, as defined by the Plan. Highly compensated
participants, as defined by the Code, may elect to make contributions
of between 2% and 6% of their compensation, as defined by the Plan.
Participant contributions are limited to amounts allowed under the Tax
Reform Act of 1986. Accordingly, the maximum Participant contribution
was $9,500 and $9,240 in 1996
- 4 -
<PAGE>
and 1995, respectively.
Company - The Company will contribute an amount equal to 100% of a
Participant's contributions, on the first 3% of compensation
contributed for the year. The Plan requires that a Participant be
actively employed and contributing to the Plan as of the last day of
the Plan year in order to receive a Company contribution.
F. Investment Provisions
Contributions to the Plan may be invested in one or more of the
following investment funds:
Money Market Fund - Invested principally in shares of the Aon
-----------------
Money Market Fund of the Aon Funds. The portfolio invests in
various types of high-quality, short-term money market
instruments, including certificates of deposit, commercial
paper, U.S. Treasury and Agency securities and other similar
instruments.
Aon Common Stock Fund - Invested principally in common stock
---------------------
of the Company that is purchased on the open market or in
private transactions.
Investment Contract Fund - Invested principally in unallocated
------------------------
guaranteed insurance contracts, U.S. Treasury bills and
short-term investment funds. In 1995, members of the Company's
Investment Department became managers of this Fund. The
Investment Manager is a fiduciary within the meaning of ERISA
Section 3(21). Certain restrictions and penalties may apply
with regard to the termination of unallocated guaranteed
insurance contracts prior to the scheduled maturity date.
Government Securities Fund - Invested principally in shares of
--------------------------
the Aon Government Securities Fund of the Aon Funds. The
portfolio invests in intermediate and long-term debt
securities issued or guaranteed by the U.S. Government, its
agencies or instrumentalities. Total Return Fund - Invested
principally in shares of the Aon Asset Allocation Fund of the
Aon Funds. The portfolio invests in equity securities,
long-term debt securities and money market instruments.
Common Stock Index Fund - Invested principally in shares of
------------------------
the Aon S&P 500 Index Fund of the Aon Funds. The portfolio
invests in common stocks traded on the New York Stock Exchange
and the American Stock Exchange and, to a limited extent, in
the over-the-counter markets.
Real Estate Securities Fund - Invested principally in shares
---------------------------
of the Aon REIT Index Fund of the Aon Funds. The portfolio
invests primarily in the securities of REITs comprising the
Morgan Stanley REIT Index, which are principally engaged in
or related to the real estate industry, including ownership
of significant real estate assets. This portfolio does not
invest directly in real estate.
International Equity Fund - Invested principally in shares
--------------------------
of the Aon International Equity Fund of the Aon Funds. The
portfolio invests primarily in equity and equity-related
securities of companies that are organized outside the
United States or whose securities are principally traded
outside the United States.
The Plan's net assets available for plan benefits by investment program
and changes in net assets available for plan benefits by investment
program are set forth on Schedules II and III, respectively, and are
incorporated herein by reference.
- 5 -
<PAGE>
G. ACCOUNT BALANCES
Each Participant's account is credited with the Participant's
contribution and an allocation of a) the Company's contribution, b)
Plan earnings, and c) Forfeitures of terminated Participants'
non-vested accounts.
Participants are fully vested in their contributions plus actual
earnings thereon. Participants become 100% vested in the remainder of
their account balance after five years of Plan Service, according to a
graded schedule. Forfeitures of non-vested accounts are allocated to
the remaining Participants. The amount of forfeitures allocated to
Participants was $825,000 and $510,000 for 1996 and 1995, respectively.
On termination of service, a participant may elect to receive either a
lump sum amount equal to the value of his or her account and/or monthly
installments over a period not to exceed ten years.
H. PLAN TERMINATION
Although it has not expressed any intent to do so, the Company has the
right under the Plan to discontinue its contributions at any time and
to terminate the Plan subject to the provisions of ERISA. In the event
of plan termination, participants will become 100% vested in their
account balances.
I. LOAN ADMINISTRATION
Under the Aon Savings Plan, Participants do not have the ability to
borrow from their accounts. Prior to certain plan mergers, the
predecessor plans permitted Participants to borrow from the vested
portion of their account. At the date of merger, Participants under the
former plans could no longer borrow from the vested portion of their
account. However, the Plan will continue to administer those loans that
existed prior to the mergers.
J. SUMMARY PLAN DESCRIPTION
Participants of the Plan should refer to the Summary Plan Description
for a more complete description of the Plan.
2. Summary of Significant Accounting Policies
------------------------------------------
A. INVESTMENTS
Investments, except for unallocated guaranteed insurance contracts, are
carried at fair value, which for marketable securities is based on
quotations obtained from national securities exchanges and various
other sources. Investments in unallocated guaranteed insurance
contracts are valued at contract value, which represents contributions
made under the contract, plus interest at the contract rate, less any
administrative charges. The Plan believes contract value approximates
fair value.
Interest income is recorded as earned. Dividend income is recorded on
the ex-dividend date. Realized gains or losses on investments are the
difference between the proceeds received and the cost of investments
sold as determined on a first-in, first-out basis. The change in the
difference between fair value and the cost of investments is reported
as unrealized appreciation or depreciation of investments.
- 6 -
<PAGE>
B. OPERATING EXPENSES
Administrative expenses of the Plan, including expenses of the
Trustees, are paid from the Plan assets, except to the extent that the
Company at its discretion, may decide to pay such expenses.
Administrative expenses include $830,000 and $980,000 in 1996 and 1995,
respectively, paid to subsidiaries of the Company.
C. USE OF ESTIMATES
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the amounts reported in the financial
statements and accompanying notes. Actual results could differ from
those estimates.
3. Investments
-----------
The Northern Trust Company is the custodian of the Plan assets and
Trustee for the Aon Stock Fund. The remaining Trustees for the Plan are
members of the Company's Investment Department and they have been given
the discretion and authority to manage the investments. The Trustees
are named fiduciaries under ERISA.
The net realized and unrealized appreciation (depreciation) in fair
value of Plan investments is as follows:
1996 1995
--------- ---------
(thousands)
United States Government and
Government Agency Issues $ (1,305) $ 2,582
Corporate Bonds and Notes (308) 1,000
Other Bonds (24) 200
Common Stock:
Aon Corporation 58,485 87,369
Other 10,012 15,200
Preferred Stocks 502 24
Investment held in the Aon Funds:
Aon Money Market Fund 0 -
Aon Government Securities Fund (148) -
Aon Asset Allocation Fund 982 -
Aon S&P 500 Index Fund (649) -
Aon REIT Index Fund 498 -
Aon International Equity Fund 177 -
Investment held in the Series Funds:
Money Market Portfolio 1,249 355
Government Securities Portfolio 155 607
Total Return Portfolio 4,028 4,639
Common Stock Index Portfolio 12,324 7,476
Real Estate Securities Portfolio 697 29
International Equity Portfolio 230 70
Unallocated Guaranteed
Insurance Contracts 2 1
--------- ---------
86,907 119,552
========= =========
The aggregate cost of investments was $508,809,000 and $443,187,000 at
December 31, 1996 and 1995, respectively.
- 7 -
<PAGE>
The following investments exceed 5% of the Plan's net assets available
for plan benefits:
December 31
------------------
(thousands) 1996 1995
---- ----
Aon Corporation, Common Stock $ 292,189 $ 242,680
Short-Term Investment Fund,
Collective Trust Funds of
The Northern Trust Company - 37,400
Investments held in the Aon Funds:
Aon Asset Allocation Fund 51,743 -
Aon S&P 500 Index Fund 70,708 -
Investments held in the Series Funds:
Total Return Portfolio - 43,613
Common Stock Index Portfolio - 40,527
U.S. Treasury Bills due 1-2-97 44,000 -
The Plan has unallocated guaranteed insurance contracts with a contract
value of $16,528,000 that are issued by an insurance subsidiary and a
former insurance subsidiary of the Company.
On August 12, 1994, the Canadian and United States insurance regulators
assumed control of Confederation Life Insurance Company to protect
policyholders and other creditors. The investment contract with
Confederation Life Insurance Company is accounted for at contract value
as of August 12, 1994, less repayments, in the amount of $8,871,000.
Interest on the contract is no longer being accrued. The benefit
responsiveness of the contract has been limited to normal retirement,
death, disability and hardship. Other withdrawals for employee
terminations, loans and transfers will not be permitted. In April 1997,
the Plan received a partial distribution of approximately $7.7 million
on this contract.
The average yield on all other guaranteed investment contracts is equal
to the stated interest rate of the particular contract.
4. FEDERAL INCOME TAXES
--------------------
On September 14, 1994, the Company requested a determination letter
with respect to the Plan and all amendments through December 16, 1994.
The Plan has received a favorable determination letter on April 10,
1995. The Plan is required to operate in conformity with the Code to
maintain its qualification. The Plan Administrative Committee believes
the Plan is a qualified salary reduction plan under Section 401(k) of
the Code. The Plan's Administrative Committee is not aware of any
course of action or series of events that have occurred that might
adversely affect the Plan's qualified status.
5. SALE OF SUBSIDIARIES
--------------------
On June 30, 1996, Aon sold its interest in certain operations of Ryan
Insurance Group, Inc. (Ryan Dealer Group) to Resource Financial
Corporation. Total Assets in the Plan for affected employees were
$14,288,000 at April 30, 1996. Employees have the option to transfer
their account balances to a new plan established by Resource Financial
Corporation or to maintain their account in the Plan.
- 8 -
<PAGE>
On April 1, 1996, Aon sold its direct response life and health
subsidiary, Union Fidelity Life Insurance Company, headquartered in
Trevose, Pennsylvania, and its capital accumulation life insurance
subsidiary, The Life Insurance Company of Virginia, headquartered in
Richmond, Virginia, to General Electric Capital Corporation.
Total assets in the plan for employees of those subsidiaries were
$17,481,000 at December 31, 1996, or about 2.5% of total assets for
the Plan. Employees at those subsidiaries have the option to receive a
lump sum distribution of their total account balances until December
31, 1998 or to maintain their account balance in the Plan.
6. SUBSEQUENT EVENTS
-----------------
The impact of the January 1997 acquisition of Alexander and Alexander
is currently unknown for the Aon Savings Plan. A revised benefits
program is anticipated for January 1, 1998.
- 9 -
<PAGE>
Schedule I
AON SAVINGS PLAN
ASSETS HELD FOR INVESTMENT
December 31, 1996
Schedule I represents the investments of the Aon Savings Plan. The investments
are allocated to the various investment funds in which the Plan's Participants
may elect to invest their funds. Schedule II, following on page 21, represents
the composition of these investment funds for the Aon Savings Plan.
<TABLE>
<CAPTION>
Number of Shares Cost Fair Value
Issue Principal Amount (thousands) (thousands)
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
MONEY MARKET FUND
- -----------------
MUTUAL FUND
Investments held in the Aon Funds
Money Market Fund 25,753,656 $ 25,754 $ 25,754
SHORT-TERM INVESTMENTS
Short-Term Investment Fund,
Collective Trust Funds of
The Northern Trust Company $ 106,148 106 106
---------------- ----------------
TOTAL MONEY MARKET FUND $ 25,860 $ 25,860
================ ================
BALANCED FUND
- -------------
COMMON STOCK
ADC Telecommunications Inc.
Common Stock, No par 6,000 $ 111 $ 187
Abbott Laboratories
Common Stock, No par 7,000 266 355
Agouron Pharmaceuticals Inc.
Common Stock 2,000 86 136
American Home Products
Common Stock 8,000 405 469
American International Group, Inc.
Common Stock, $2.50 par 8,000 201 866
American Telecasting Inc.
Common Stock 20,000 253 115
Amli Residential Properties
Common Stock, $0.01 par 25,000 512 584
Amoco Corporation
Common Stock, no par 11,100 613 895
Apac Teleservices
Common Stock 2,500 109 96
10
<PAGE>
Number of Shares Cost Fair Value
Issue Principal Amount (thousands) (thousands)
- ------------------------------------------------------------------------------------------------------------------
Archer-Daniels-Midland Company
Common Stock, No par 37,000 $ 198 $ 814
Avery Dennison Corporation
Common Stock, $1.00 par 30,000 419 1,061
Becton, Dickinson and Co.
Common Stock, $1.00 par 20,800 337 902
Bell & Howell Company
Common Stock 5,600 104 133
Bolder Technologies Corp.
Common Stock 15,000 158 247
Burlington Northern Santa Fe Corp.
Common Stock 4,000 310 345
CKE Restaurants Inc.
Common Stock 3,000 86 108
Cali Realty Corp.
Common Stock 4,000 106 123
Canwest Global Comm. Corp.
Common Stock 9,000 87 92
Centerpoint Properties Corporation
Common Stock 5,800 117 190
Central Garden & Pet Company
Common Stock 5,000 90 105
Cisco Systems
Common Stock 2,000 117 127
Clear Channel Communications
Common Stock 10,000 391 361
Clearnet Communications
Common Stock, Class A 10,000 190 110
Coach USA Inc
Common Stock 5,000 125 145
Coca Cola Co.
Common Stock 5,000 254 263
Collagenex Pharmaceuticals
Common Stock 10,000 100 81
Colonial Properties Trust
Common Stock, $.01 par 21,500 498 653
Columbia Banking System Inc.
Common Stock 7,000 109 114
11
<PAGE>
Number of Shares Cost Fair Value
Issue Principal Amount (thousands) (thousands)
- ------------------------------------------------------------------------------------------------------------------
Compaq Computer Corporation
Common Stock 1,500 $ 103 $ 112
Consolidated Stores Corp.
Common Stock 6,250 195 202
Cox Radio Inc.
Common Stock 3,000 56 53
CSX Corporation
Common Stock, $1.00 par 7,000 305 296
CUC International
Common Stock 5,000 120 121
Deere & Co.
Common Stock 6,000 256 243
Dell Computer Corp.
Common Stock 12,000 278 638
Delta Financial Corp.
Common Stock 9,500 172 171
Walt Disney Productions
Common Stock, $.025 par 3,000 140 209
Dominick's Supermarkets
Common Stock 7,000 144 152
Du Pont, E.I. DeNemours & Co.
Common Stock, $5.00 par 10,000 268 941
Evergreen Media Corporation
Class A Common Stock 8,000 210 200
FBL Financial Group Inc.
Class A Common Stock 5,000 87 124
Factory Card Outlet
Common Stock 10,000 90 90
Federal Realty Investment Trust
Share of Beneficial Interest, No par 28,000 728 760
Financial Federal Corp
Common Stock 12,000 200 201
First Data Corporation
Common Stock 18,000 312 657
First Industrial Realty Trust Inc.
Common Stock 19,000 443 577
First National NBD Corp.
Common Stock 10,000 179 538
12
<PAGE>
Number of Shares Cost Fair Value
Issue Principal Amount (thousands) (thousands)
- ------------------------------------------------------------------------------------------------------------------
First Washington Realty Trust
Common Stock 5,000 $ 109 $ 118
Getty Communications
Common Stock 6,000 60 90
Glenayre Technologies
Common Stock 5,000 107 108
HNC Software
Common Stock 10,000 308 313
Harcourt General Inc.
Common Stock 5,000 247 231
Healthcare Realty Trust Inc.
Common Stock 20,000 427 530
Health Care REIT, Incorporated
Common Stock, $1.00 par 30,000 732 735
Healthcor Holdings Inc.
Common Stock 16,000 160 144
Heartland Express Inc.
Common Stock 4,000 73 97
Hercules Incorporated
Common Stock 4,000 182 173
Hewlett-Packard Cmpany
Common Stock, $1.00 par 5,000 182 251
Household International Inc.
Common Stock, $1.00 par 1,000 64 92
Hub Group Inc.
Class A Common Stock 6,000 84 160
IA Corporation
Common Stock 10,000 60 59
Ikon Office Solution Inc.
Common Stock, No par 5,000 65 258
Illinois Tool Works, Incorporated
Common Stock, $3.33 1/3 par 10,200 380 815
Innovasive Devices
Common Stock 8,000 71 62
JDN Realty Corp.
Common Stock 10,000 213 276
Johnson & Johnson
Common Stock, $1.00 par 10,000 262 497
13
<PAGE>
Number of Shares Cost Fair Value
Issue Principal Amount (thousands) (thousands)
- ------------------------------------------------------------------------------------------------------------------
Kerr McGee Corp.
Common Stock 4,000 $ 247 $ 288
Knight Transportation Inc.
Common Stock 10,000 179 190
Landstar System Inc.
Common Stock 8,000 206 186
Libbey Inc.
Common Stock 10,000 200 279
Littelfuse, Incorporated
Common Stock 1,000 28 48
Litton Industries, Incorporated
Common Stock, $1.00 par 8,000 127 381
Lucent
Common Stock 4,722 224 218
Macerich Company
Common Stock 5,000 95 131
McAfee Associates Incorporated
Common Stock 1,125 17 49
Medical Alliance Inc.
Common Stock 4,000 44 46
Merck & Co.
Common Stock 3,000 177 239
Mesa Laboratories Inc.
Common Stock 12,000 81 64
Mobil Oil Corporation
Common Stock 8,500 569 1,039
Moneygram Payment Systems
Common Stock 8,500 106 113
Motorola, Incorporated
Common Stock, $3.00 par 8,000 364 490
Norfolk Southern Corp.
Common Stock 6,000 506 528
North Face Inc.
Common Stock 3,000 70 58
Omega Healthcare Investor, Inc.
Common Stock 40,000 971 1,330
Outdoor Systems, Inc.
Common Stock 7,000 168 197
14
<PAGE>
Number of Shares Cost Fair Value
Issue Principal Amount (thousands) (thousands)
- ------------------------------------------------------------------------------------------------------------------
PMT Services
Common Stock 5,000 $ 100 $ 87
Paging Network, Inc.
Common Stock 11,000 285 168
Perceptron Inc.
Common Stock 4,000 90 137
Petroleum Geo-Services
Common Stock 3,000 83 117
Pfizer, Inc.
Common Stock 5,000 329 415
Philip Environmental Inc.
Common Stock 11,400 87 165
Powerwave Technologies Inc.
Common Stock 13,000 150 190
Prime Retail
Common Stock 28,000 438 350
Proctor & Gamble Company
Common Stock, No par 3,500 193 377
Pure Atria Corp.
Common Stock 5,000 156 124
Royal Dutch Petroleum Company
5 Guilders par 7,500 599 1,281
Saville System Ireland
Common Stock 5,000 130 203
Schering-Plough Corporation
Common Stock, $1.00 par 15,000 463 971
Sherwin-Williams Company
Common Stock, $6.25 par 15,000 241 840
Simulation Science Inc.
Common Stock 4,000 36 59
Sitel Corp.
Common Stock 2,000 47 29
Sipex Corporation
Common Stock 8,000 143 258
Smallworldwide PLC-ADR
Common Stock 10,000 110 119
Snyder Communications Inc.
Common Stock 1,000 17 27
15
<PAGE>
Number of Shares Cost Fair Value
Issue Principal Amount (thousands) (thousands)
- ------------------------------------------------------------------------------------------------------------------
Spieker Properties, Inc.
Common Stock 3,000 $ 76 $ 108
Staples Inc.
Common Stock 4,000 76 72
Sterling Commerce
Common Stock 5,000 132 176
Styling Technology
Common Stock 5,000 50 52
Summit Properties Incorporated
Common Stock 25,000 473 553
Sun International Hotels Ltd.
Class A Common Stock 7,000 273 256
Sun Microsystems, Incorporated
Common Stock, $0.00067 par 4,000 63 103
TMP Worldwide Inc.
Common Stock 6,000 84 76
Teletech Holdings Inc.
Common Stock 3,000 94 78
Texas Regional Banchares-A
Common Stock 15,000 334 510
Time Warner, Incorporated
Common Stock, $1.00 par 20,000 733 750
Tribune Company
Common Stock, No par 5,000 325 394
Triumph Group Inc.
Common Stock 5,000 95 119
US Robotics Corporation
Common Stock, $.01 par 24,000 191 1,728
Unilever NV ADRS
Common Stock 7,000 680 1,227
Union Pacific Corporation
Common Stock, $5.00 par 2,600 116 156
Union Pacific Resources Group
Common Stock 2,202 55 64
Unisource Worldwide Inc.
Common Stock 2,500 48 51
United Dental Care Inc.
Common Stock 5,000 150 152
16
<PAGE>
Number of Shares Cost Fair Value
Issue Principal Amount (thousands) (thousands)
- ------------------------------------------------------------------------------------------------------------------
Universal Outdoor Holdings
Common Stock 5,000 $ 185 $ 117
Vanguard Cellular Systems
Common Stock 6,700 142 106
Vencor Inc.
Common Stock 5,000 144 158
Viacom Incorporated
Class A Common Stock 6,000 348 207
Walgreen Company
Common Stock, $.1.25 par 35,000 794 1,409
Watsco, Incorporated
Class A Common Stock 27,000 266 780
Wilmar Industries Inc.
Common Stock 5,000 101 139
Wireless Telecom Group Inc.
Common Stock 31,200 240 320
Xerox Corporation
Common Stock, $1.00 par 30,000 575 1,579
---------------- ----------------
Total Common Stock 29,343 44,202
---------------- ----------------
PREFERRED STOCK
Felcor Suite Hotels Inc.
Series A
Convertible Preferred Stock 10,000 250 280
Microsoft Corp.
Convertible Preferred Stock 1,000 80 80
Prime Retail Inc.
Series B
Convertible Preferred Stock 3,184 79 69
Security Capital Pacific Trust
Convertible Preferred Stock 36,000 900 1,103
Sunamerica Inc.
Convertible Preferred Stock 2,000 75 84
---------------- ----------------
Total Preferred Stock 1,384 1,616
---------------- ----------------
U.S. GOVERNMENT AND GOVERNMENT
AGENCY ISSUES
Federal Home Loan Mortgage
6.783% Due 8/18/2005 $ 1,800,000 1,906 1,813
17
<PAGE>
Number of Shares Cost Fair Value
Issue Principal Amount (thousands) (thousands)
- ------------------------------------------------------------------------------------------------------------------
Federal National Mortgage Association
Series SM-2002-J
7.3% Debenture due 10/28/2002
Registered $ 4,500,000 $ 4,500 $ 4,504
U.S. Treasury
6.875% Note due 4/30/1997 3,550,000 3,552 3,564
U.S. Treasury, Series D-2001
7.5% Note due 11/15/2001 2,000,000 2,015 2,106
U.S. Treasury, Series F-1999
7% Note due 4/15/1999 3,550,000 3,510 3,629
U.S. Treasury, Series N-1997
6.375% Note due 6/30/1997 750,000 763 753
U.S. Treasury, Series A-2001
7.75% Note due 2/15/2001 3,500,000 3,450 3,699
U.S. Treasury, Series C-2001
7.875% Note due 8/15/2001 3,000,000 3,000 3,198
U.S. Treasury
7.25% Note due 5/15/2016 2,000,000 2,050 2,112
U.S. Treasury
5.75% Note due 8/15/2003 2,900,000 2,922 2,814
U.S. Treasury
5.125% Note due 11/30/1998 4,000,000 3,984 3,944
U.S. Treasury
7.875% Note due 11/15/2004 925,000 1,007 1,009
U.S. Treasury
6.5% Note due 8/15/2005 1,000,000 999 1,007
U.S. Treasury
6.25% Note due 8/31/2000 2,800,000 2,893 2,811
U.S. Treasury, Series D-2000
8.5% Note due 11/15/2000 1,000,000 1,029 1,080
---------------- ----------------
Total U.S. Government and
Government Agency Issues 37,580 38,043
---------------- ----------------
CORPORATE BONDS AND NOTES
Associates Corp of North America
7.77% Note due 3/9/1999 1,000,000 1,000 1,032
Central Garden & Pet Co.
6% Convertible Subordinated Note
due 11/15/2003 100,000 100 98
18
<PAGE>
Number of Shares Cost Fair Value
Issue Principal Amount (thousands) (thousands)
- ------------------------------------------------------------------------------------------------------------------
Cityscape Financial Corp
6% Subordinated Debenture, Convertible
due 5/1/2006 220,000 $ 220 $ 225
Complete Management Inc.
8% Note due 12/15/2003 200,000 200 201
Cray Research Inc.
6.125% Convertible Subordinated
Note due 2/1/2011 250,000 200 198
Dow Chemical Company
9.35% Note due 3/15/2002,
Registered 1,000,000 998 1,081
First Financial Management Corp.
5% Note due 12/15/1999
Registered 500,000 893 859
LTC Properties
8.25% Convertible Subordinated
Debenture due 7/1/2001 250,000 261 266
Monsanto Defined Contribution & Employee
Stock Ownership Trust
8.13% Debenture due 12/15/2006 1,000,000 1,000 1,073
Norfolk Southern Railway Equipment Trust
Series B
8% Certificate due 3/1/2006 1,000,000 949 1,081
Tribune Co.
6.875% Note due 11/1/2006 200,000 199 198
---------------- ----------------
Total Corporate Bonds and Notes 6,020 6,312
---------------- ----------------
Other
Hydro Quebec Electric Tranche
7.74% Note due 2/26/1999 1,000,000 999 1,028
Short-Term Investments
Short-Term Investment Fund,
Collective Trust Funds of
The Northern Trust Company 4,183,041 4,183 4,183
---------------- ----------------
Total Balanced Fund $ 79,509 $ 95,384
================ ================
Aon Stock Fund
Common Stock
Aon Corporation
Common Stock, $1.00 par 4,703,243 $ 122,077 $ 292,189
19
<PAGE>
Number of Shares Cost Fair Value
Issue Principal Amount (thousands) (thousands)
- ------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS
Short-Term Investment Fund,
Collective Trust Funds of
The Northern Trust Company $ 475,439 $ 475 $ 475
---------------- ----------------
Total Aon Stock Fund $ 122,552 $ 292,664
================ ================
INVESTMENT CONTRACT FUND
UNALLOCATED INSURANCE CONTRACTS
Canada Life Assurance Company
Contract #P45672
6.05% due 10/16/1997 $ 2,024,612 $ 2,025 $ 2,025
Combined Insurance Co. of America
Contract #CG1000
7.12% due 9/30/96, 6/30/99 4,739,292 4,739 4,739
Commonwealth Life Insurance Co.
Contract #ADA00551FR
5.35% due 6/30/98 2,909,348 2,909 2,909
Confederation Life Insurance Co.
Contract #62718
6.96% due 3/31/1998 8,870,632 8,871 8,871
The Life Insurance Company of Georgia
Contract #GA 289
6.7% due 6/30/1997 13,354,297 13,354 13,354
The Life Insurance Company of Virginia
Contract #GS2753
5.67% due 9/30/98 11,788,577 11,789 11,789
Metropolitan Life Insurance Co.
Contract #13272
6.53% due 12/31/1997 13,248,173 13,248 13,248
Protective Life Insurance Company
Contract # GR-9039
7.36% due 3/31/99 4,689,787 4,690 4,690
Provident Life & Accident Insurance Co.
Contract #627-05641
5.79% due 12/31/98 4,967,231 4,967 4,967
Prudential
Contract #6458
5.20% due 6/30/98 5,817,222 5,817 5,817
Sun Life Insurance Co.
Contract #GICFA-484
6.02% due 12/31/98 5,013,925 5,014 5,014
20
<PAGE>
Number of Shares Cost Fair Value
Issue Principal Amount (thousands) (thousands)
- ------------------------------------------------------------------------------------------------------------------
Travelers Insurance Co.
Contract #GR-9039
4%, Reset annually 1,774,608 $ 1,775 $ 1,775
---------------- ----------------
Total Unallocated Guaranteed Insurance Contracts 79,198 79,198
---------------- ----------------
U.S. GOVERNMENT AND GOVERNMENT
AGENCY ISSUES
U.S. Treasury Bill
due 1/2/1997 $ 44,000,000 43,630 44,000
---------------- ----------------
43,630 44,000
---------------- ----------------
OTHER
Wachovia Real Estate Fund 34 26 16
---------------- ----------------
26 16
---------------- ----------------
SHORT-TERM INVESTMENTS
Short-Term Investment Fund,
Collective Trust Funds of
The Northern Trust Company 5,015,257 5,015 5,015
---------------- ----------------
Total Short-Term Investments 5,015 5,015
---------------- ----------------
Total Investment Contract Fund $ 127,869 $ 128,229
================ ================
GOVERNMENT SECURITIES FUND
- --------------------------
MUTUAL FUND
Investments held in the Aon Funds
Government Securities Fund 1,231,684 $ 12,673 $ 12,526
SHORT-TERM INVESTMENTS
Short-Term Investment Fund,
Collective Trust Funds of
The Northern Trust Company $ 176,263 176 176
---------------- ----------------
Total Government Securities Fund $ 12,849 $ 12,702
================ ================
TOTAL RETURN FUND
- -----------------
MUTUAL FUND
Investments held in the Aon Funds
Asset Allocation Fund 3,931,873 $ 50,882 $ 51,743
SHORT-TERM INVESTMENTS
Short-Term Investment Fund,
Collective Trust Funds of
The Northern Trust Company $ 422,361 422 422
---------------- ----------------
21
<PAGE>
Number of Shares Cost Fair Value
Issue Principal Amount (thousands) (thousands)
- ------------------------------------------------------------------------------------------------------------------
---------------- ----------------
Total Total Return Fund $ 51,304 $ 52,165
================ ================
COMMON STOCK INDEX FUND
- -----------------------
MUTUAL FUND
Investments held in the Aon Funds
S&P 500 Index Fund 6,240,733 $ 71,356 $ 70,708
Short-Term Investments
Short-Term Investment Fund,
Collective Trust Funds of
The Northern Trust Company $ 456,028 456 456
---------------- ----------------
Total Common Stock Index Fund $ 71,812 $ 71,164
================ ================
REAL ESTATE SECURITIES FUND
- ---------------------------
MUTUAL FUND
Investments held in the Aon Funds
REIT Index Fund 464,773 $ 5,099 $ 5,591
Short-Term Investments
Short-Term Investment Fund,
Collective Trust Funds of
The Northern Trust Company $ 48,181 48 48
---------------- ----------------
Total Real Estate Securities Fund $ 5,147 $ 5,639
================ ================
INTERNATIONAL EQUITY FUND
- -------------------------
MUTUAL FUND
Investments held in the Aon Funds
International Equity Fund 1,114,149 $ 11,688 $ 11,866
Short-Term Investments
Short-Term Investment Fund,
Collective Trust Funds of
The Northern Trust Company $ 218,617 219 219
---------------- ----------------
Total International Equity Fund $ 11,907 $ 12,085
================ ================
Total Investments $ 508,809 $ 695,892
================ ================
</TABLE>
22
<PAGE>
<TABLE>
<CAPTION>
AON SAVINGS PLAN Schedule II
NET ASSETS AVAILABLE FOR PLAN BENEFITS BY INVESTMENT PROGRAM
DECEMBER 31, 1996
(thousands)
Money Aon Investment
Market Balanced Stock Contracts
ASSETS Fund Fund Fund Fund
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
Investments, at Fair Value:
United States Government and
Government Agency Securities $ 38,043 $ 44,000
Corporate Bonds and Notes 6,312
Other Bonds 1,028
Common Stocks:
Aon Corporation - $ 292,189
Other 44,202 -
Preferred Stocks 1,616 -
Investments held in the Aon Funds:
Aon Money Market Fund $ 25,754 - -
Aon Government Securities Fund - - -
Aon Asset Allocation Fund - - -
Aon S&P 500 Index Fund - - -
Aon REIT Index Fund - - -
Aon International Equity Fund - - -
Other Long-Term Investments - - - 16
Short-Term Investments 106 4,183 475 5,015
-------------- -------------- -------------- --------------
25,860 95,384 292,664 49,031
Unallocated Guaranteed Insurance Contracts,
at Contract Value - - - 79,198
-------------- -------------- -------------- --------------
Total Investments 25,860 95,384 292,664 128,229
Receivables:
Contribution Receivable from Aon Corporation 776 - 4,712 1,880
Contributions Receivable from Participants 18 (38) 60 49
Loans Receivable - - - -
Accrued Dividends and Income 1 791 2 26
Due from Broker - (398) 2,750 -
Fund Transfers (386) (85) 60 56
-------------- -------------- -------------- --------------
Total Receivables 409 270 7,584 2,011
-------------- -------------- -------------- --------------
Net Assets Available for Plan Benefits $ 26,269 $ 95,654 $ 300,248 $ 130,240
============== ============== ============== ==============
</TABLE>
<TABLE>
<CAPTION>
AON SAVINGS PLAN Schedule II
NET ASSETS AVAILABLE FOR PLAN BENEFITS BY INVESTMENT PROGRAM
DECEMBER 31, 1996
(Continued)
(thousands)
Government Total Common Real Estate
Securities Return Stock Index Securities
ASSETS Fund Fund Fund Fund
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
Investments, at Fair Value:
United States Government and
Government Agency Securities
Corporate Bonds and Notes
Other Bonds
Common Stocks:
Aon Corporation
Other
Preferred Stocks
Investments held in the Aon Funds:
Aon Money Market Fund
Aon Government Securities Fund 12,526 $
Aon Asset Allocation Fund - $ 51,743
Aon S&P 500 Index Fund - - $ 70,708
Aon REIT Index Fund - - - 5,591
Aon International Equity Fund - - - -
Other Long-Term Investments - - - -
Short-Term Investments 176 422 456 48
-------------- -------------- ---------------------------------
12,702 52,165 71,164 5,639
Unallocated Guaranteed Insurance Contracts,
at Contract Value - - -
-------------- -------------- -------------- --------------
Total Investments 12,702 52,165 71,164 5,639
Receivables:
Contribution Receivable from Aon Corporation 955 1,569 2,925 155
Contributions Receivable from Participants 1 52 125 5
Loans Receivable - - - -
Accrued Dividends and Income 1 1 1 -
Due from Broker 75 550 - -
Fund Transfers 41 73 167 34
-------------- -------------- -------------- --------------
Total Receivables 1,073 2,245 3,218 194
-------------- -------------- -------------- --------------
Net Assets Available for Plan Benefits $ 13,775 $ 54,410 $ 74,382 $ 5,833
============== ============== ============== ==============
</TABLE>
<TABLE>
<CAPTION>
AON SAVINGS PLAN Schedule II
NET ASSETS AVAILABLE FOR PLAN BENEFITS BY INVESTMENT PROGRAM
DECEMBER 31, 1996
(Continued)
(thousands)
International
Equity Loan
ASSETS Fund Account Total
-------------- -------------- --------------
<S> <C> <C> <C>
Investments, at Fair Value:
United States Government and
Government Agency Securities $ 82,043
Corporate Bonds and Notes 6,312
Other Bonds 1,028
Common Stocks:
Aon Corporation 292,189
Other 44,202
Preferred Stocks 1,616
Investments held in the Aon Funds:
Aon Money Market Fund 25,754
Aon Government Securities Fund 12,526
Aon Asset Allocation Fund 51,743
Aon S&P 500 Index Fund 70,708
Aon REIT Index Fund 5,591
Aon International Equity Fund 11,866 11,866
Other Long-Term Investments - 16
Short-Term Investments 219 11,100
--------------- -------------- --------------
12,085 616,694
Unallocated Guaranteed Insurance Contracts,
at Contract Value 79,198
-------------- -------------- --------------
Total Investments 12,085 695,892
Receivables:
Contribution Receivable from Aon Corporation 424 13,396
Contributions Receivable from Participants 17 289
Loans Receivable - $ 206 206
Accrued Dividends and Income 1 - 824
Due from Broker - - 2,977
Fund Transfers 40 - -
-------------- -------------- --------------
Total Receivables 482 206 17,692
-------------- -------------- --------------
Net Assets Available for Plan Benefits $ 12,567 $ 206 $ 713,584
============== ============== ==============
</TABLE>
- 23 -
<PAGE>
<TABLE>
<CAPTION>
Schedule II
AON SAVINGS PLAN
NET ASSETS AVAILABLE FOR PLAN BENEFITS BY INVESTMENT PROGRAM
DECEMBER 31, 1995
(thousands)
Money Aon Investment
Market Balanced Stock Contracts
ASSETS Fund Fund Fund Fund
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
Investments, at Fair Value:
United States Government and
Government Agency Securities $ 25,301 $ 22,735
Corporate Bonds and Notes 5,708
Other Bonds 1,053
Common Stocks:
Aon Corporation - $ 242,680
Other 42,316 -
Preferred Stocks 1,645 -
Investments held in the Life of Virginia Series Funds, Inc.:
Money Market Portfolio $ 21,729 - -
Government Securities Portfolio - - -
Total Return Portfolio - - -
Common Stock Index Portfolio - - -
Real Estate Equity Portfolio - - -
International Equity Portfolio - - -
Other Long-Term Investments - - - 18
Short-Term Investments 21 26,437 3,579 7,244
-------------- -------------- -------------- --------------
21,750 102,460 246,259 29,997
Unallocated Guaranteed Insurance Contracts,
at Contract Value - - - 101,938
-------------- -------------- -------------- --------------
Total Investments 21,750 102,460 246,259 131,935
Receivables:
Contribution Receivable from Aon Corporation 940 - 5,068 2,675
Contributions Receivable from Participants 21 (2) 298 153
Loans Receivable - - - -
Accrued Dividends and Income 14 717 7 21
Due from Broker - 2,394 - 17,956
Fund Transfers 2,386 (29) (2,914) 196
-------------- -------------- -------------- --------------
Total Receivables 3,361 3,080 2,459 21,001
-------------- -------------- -------------- --------------
Net Assets Available for Plan Benefits $ 25,111 $ 105,540 $ 248,718 $ 152,936
============== ============== ============== ==============
</TABLE>
<TABLE>
<CAPTION>
Schedule II
AON SAVINGS PLAN
NET ASSETS AVAILABLE FOR PLAN BENEFITS BY INVESTMENT PROGRAM
DECEMBER 31, 1995
(Continued)
(thousands)
Government Total Common Real Estate
Securities Return Stock Index Securities
ASSETS Fund Fund Fund Fund
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
Investments, at Fair Value:
United States Government and
Government Agency Securities
Corporate Bonds and Notes
Other Bonds
Common Stocks:
Aon Corporation
Other
Preferred Stocks
Investments held in the Life of Virginia Series Funds, Inc.:
Money Market Portfolio
Government Securities Portfolio 11,692 $
Total Return Portfolio - $ 43,613
Common Stock Index Portfolio - - $ 40,527
Real Estate Equity Portfolio - - - 1,052
International Equity Portfolio - - - -
Other Long-Term Investments - - - -
Short-Term Investments 30 33 31 15
-------------- -------------- ---------------------------------
11,722 43,646 40,558 1,067
Unallocated Guaranteed Insurance Contracts,
at Contract Value - - -
-------------- -------------- -------------- --------------
Total Investments 11,722 43,646 40,558 1,067
Receivables:
Contribution Receivable from Aon Corporation 1,298 1,683 2,835 57
Contributions Receivable from Participants 76 106 179 4
Loans Receivable - - - -
Accrued Dividends and Income 1 1 2 -
Due from Broker - - - -
Fund Transfers 62 58 187 24
-------------- -------------- -------------- --------------
Total Receivables 1,437 1,848 3,203 85
-------------- -------------- -------------- --------------
Net Assets Available for Plan Benefits $ 13,159 $ 45,494 $ 43,761 $ 1,152
============== ============== ============== ==============
</TABLE>
<TABLE>
<CAPTION>
Schedule II
AON SAVINGS PLAN
NET ASSETS AVAILABLE FOR PLAN BENEFITS BY INVESTMENT PROGRAM
DECEMBER 31, 1995
(Continued)
(thousands) International
Equity Loan
Fund Account Total
-------------- -------------- --------------
<S> <C> <C> <C>
ASSETS
Investments, at Fair Value:
United States Government and
Government Agency Securities $ 48,036
Corporate Bonds and Notes 5,708
Other Bonds 1,053
Common Stocks:
Aon Corporation 242,680
Other 42,316
Preferred Stocks 1,645
Investments held in the Life of Virginia Series Funds, Inc.:
Money Market Portfolio 21,729
Government Securities Portfolio 11,692
Total Return Portfolio 43,613
Common Stock Index Portfolio 40,527
Real Estate Equity Portfolio 1,052
International Equity Portfolio 2,761 2,761
Other Long-Term Investments - 18
Short-Term Investments 10 37,400
-------------- -------------- --------------
2,771 500,230
Unallocated Guaranteed Insurance Contracts,
at Contract Value 101,938
-------------- -------------- --------------
Total Investments 2,771 602,168
Receivables:
Contribution Receivable from Aon Corporation 141 14,697
Contributions Receivable from Participants 10 845
Loans Receivable - $ 398 398
Accrued Dividends and Income - - 763
Due from Broker - - 20,350
Fund Transfers 30 - 0
-------------- -------------- --------------
Total Receivables 181 398 37,053
-------------- -------------- --------------
Net Assets Available for Plan Benefits $ 2,952 $ 398 $ 639,221
============== ============== ==============
</TABLE>
- 24 -
<PAGE>
<TABLE>
<CAPTION>
Schedule III
AON SAVINGS PLAN
CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS BY INVESTMENT PROGRAM
YEAR ENDED DECEMBER 31, 1996
(thousands)
Money Aon Investment
Market Balanced Stock Contracts
ADDITIONS Fund Fund Fund Fund
- --------- -------------- ------------ ------------ -------------
<S> <C> <C> <C> <C>
Investment Income:
Interest and Income from
Unallocated Guaranteed
Insurance Contracts $ 10 $ 3,364 $ 66 $ 7,443
Interest on Loan Repayments 1 - 5 3
Aon Corporation Dividends - - 6,909 -
Other Dividends 124 1,196 - -
-------------- ------------ ------------ -------------
135 4,560 6,980 7,446
Contributions:
Aon Corporation 813 - 4,967 1,987
ESOP Diversification 1 - 20 32
Participants 1,778 - 11,247 4,415
-------------- ------------ ------------ -------------
2,592 0 16,234 6,434
-------------- ------------ ------------ -------------
2,727 4,560 23,214 13,880
DEDUCTIONS
- ----------
Benefits Paid to Participants 8,038 10,146 24,818 21,275
Administrative Expenses 33 127 328 180
Investment Expenses 9 38 43 68
-------------- ------------ ------------ -------------
8,080 10,311 25,189 21,523
-------------- ------------ ------------ -------------
(5,353) (5,751) (1,975) (7,643)
Net Realized and Unrealized
Appreciation
in Fair Value of Investments 1,250 8,705 58,485 174
-------------- ------------ ------------ -------------
Net Increases (Decreases) (4,103) 2,954 56,510 (7,469)
Net Assets Available for Plan
Benefits at Beginning of Year 25,111 105,540 248,718 152,936
Plan Mergers - - - -
Fund Transfers 5,261 (12,840) (4,980) (15,227)
-------------- ------------ ------------ -------------
Net Assets Available for
Plan Benefits
at End of Year $ 26,269 $ 95,654 $ 300,248 $ 130,240
============== ============ ============ =============
</TABLE>
<TABLE>
<CAPTION>
Schedule III
AON SAVINGS PLAN
CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS BY INVESTMENT PROGRAM
YEAR ENDED DECEMBER 31, 1996
(Continued)
(thousands)
Government Total Common Real Estate
Securities Return Stock Index Securities
ADDITIONS Fund Fund Fund Fund
- --------- -------------- ------------ ------------ -------------
<S> <C> <C> <C> <C>
Investment Income:
Interest and Income from
Unallocated Guaranteed
Insurance Contracts $ 6 $ 13 $ 19 $ 2
Interest on Loan Repayments 2 3 5 -
Aon Corporation Dividends - - - -
Other Dividends 51 120 104 68
-------------- ------------ ------------ -------------
59 136 128 70
Contributions:
Aon Corporation 996 1,645 3,049 162
ESOP Diversification 2 10 10 3
Participants 2,169 4,068 6,886 302
-------------- ------------ ------------ -------------
3,167 5,723 9,945 467
-------------- ------------ ------------ -------------
3,226 5,859 10,073 537
DEDUCTIONS
- ----------
Benefits Paid to Participants 1,641 4,464 5,443 372
Administrative Expenses 16 64 71 4
Investment Expenses 9 9 9 8
-------------- ------------ ------------ -------------
1,666 4,537 5,523 384
-------------- ------------ ------------ -------------
1,560 1,322 4,550 153
Net Realized and Unrealized
Appreciation
in Fair Value of Investments 7 5,009 11,675 1,195
-------------- ------------ ------------ -------------
Net Increases (Decreases) 1,567 6,331 16,225 1,348
Net Assets Available for Plan
Benefits at Beginning of Year 13,159 45,494 43,761 1,152
Plan Mergers - - - -
Fund Transfers (951) 2,585 14,396 3,333
-------------- ------------ ------------ -------------
Net Assets Available for
Plan Benefits
at End of Year $ 13,775 $ 54,410 $ 74,382 $ 5,833
============== ============ ============ =============
</TABLE>
<TABLE>
<CAPTION>
Schedule III
AON SAVINGS PLAN
CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS BY INVESTMENT PROGRAM
YEAR ENDED DECEMBER 31, 1996
(Continued)
(thousands)
International
Equity Loan
ADDITIONS Fund Account Total
- --------- -------------- ------------ ------------
<S> <C> <C> <C>
Investment Income:
Interest and Income from
Unallocated Guaranteed
Insurance Contracts $ 5 $ 10,928
Interest on Loan Repayments - 19
Aon Corporation Dividends - 6,909
Other Dividends 16 1,679
-------------- ------------ ------------
21 19,535
Contributions:
Aon Corporation 437 14,056
ESOP Diversification 9 87
Participants 875 31,740
-------------- ------------ ------------
1,321 45,883
-------------- ------------ ------------
1,342 65,418
DEDUCTIONS
- ----------
Benefits Paid to Participants 725 $ 7 76,929
Administrative Expenses 9 - 832
Investment Expenses 8 - 201
-------------- ------------ ------------
742 7 77,962
-------------- ------------ ------------
600 (7) (12,544)
Net Realized and Unrealized
Appreciation
in Fair Value of Investments 407 - 86,907
-------------- ------------ ------------
Net Increases (Decreases) 1,007 (7) 74,363
Net Assets Available for Plan
Benefits at Beginning of Year 2,952 398 639,221
Plan Mergers - - -
Fund Transfers 8,608 (185) -
-------------- ------------ ------------
Net Assets Available for
Plan Benefits
at End of Year $ 12,567 $ 206 $ 713,584
============== ============ ============
</TABLE>
- 25 -
<PAGE>
<TABLE>
<CAPTION>
Schedule III
AON SAVINGS PLAN
CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS BY INVESTMENT PROGRAM
YEAR ENDED DECEMBER 31, 1995
(thousands)
Money Aon Investment
Market Balanced Stock Contracts
ADDITIONS Fund Fund Fund Fund
- --------- -------------- ------------ ------------ -------------
<S> <C> <C> <C> <C>
Investment Income:
Interest and Income from
Unallocated Guaranteed
Insurance Contracts $ 12 $ 3,394 $ 65 $ 9,158
Interest on Loan Repayments 2 - 10 9
Aon Corporation Dividends - - 6,561 -
Other Dividends 827 1,521 - -
-------------- ------------ ------------ -------------
841 4,915 6,636 9,167
Contributions:
Aon Corporation 940 - 5,068 2,675
ESOP Diversification 6 - 16 25
Participants 1,827 - 10,336 5,772
-------------- ------------ ------------ -------------
2,773 0 15,420 8,472
-------------- ------------ ------------ -------------
3,614 4,915 22,056 17,639
DEDUCTIONS
- ----------
Benefits Paid to Participants 3,623 8,258 13,493 12,149
Administrative Expenses 38 198 341 277
Investment Expenses (6) 39 56 131
-------------- ------------ ------------ -------------
3,655 8,495 13,890 12,557
-------------- ------------ ------------ -------------
(41) (3,580) 8,166 5,082
Net Realized and Unrealized
Appreciation
in Fair Value of Investments 355 17,274 87,369 198
-------------- ------------ ------------ -------------
Net Increases (Decreases) 314 13,694 95,535 5,280
Net Assets Available for Plan
Benefits at Beginning of Year 19,518 107,468 161,077 149,159
Plan Mergers 508 - 391 536
Fund Transfers 4,771 (15,622) (8,285) (2,039)
-------------- ------------ ------------ -------------
Net Assets Available for
Plan Benefits
at End of Year $ 25,111 $ 105,540 $ 248,718 $ 152,936
============== ============ ============ =============
</TABLE>
<TABLE>
<CAPTION>
Schedule III
AON SAVINGS PLAN
CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS BY INVESTMENT PROGRAM
YEAR ENDED DECEMBER 31, 1995
(Continued)
(thousands)
RGH Government Total Common
Common Stock Securities Return Stock Index
ADDITIONS Fund Fund Fund Fund
- --------- -------------- ------------ ------------ -------------
<S> <C> <C> <C> <C>
Investment Income:
Interest and Income from
Unallocated Guaranteed
Insurance Contracts $ 32 $ 11 $ 17 $ 22
Interest on Loan Repayments - 5 5 9
Aon Corporation Dividends - - - -
Other Dividends 147 683 3,101 776
-------------- ------------ ------------ -------------
179 699 3,123 807
Contributions:
Aon Corporation - 1,298 1,683 2,835
ESOP Diversification - 7 8 10
Participants - 2,780 3,748 6,303
-------------- ------------ ------------ -------------
- 4,085 5,439 9,148
-------------- ------------ ------------ -------------
179 4,784 8,562 9,955
DEDUCTIONS
- ----------
Benefits Paid to Participants 611 898 1,175 1,314
Administrative Expenses 7 14 55 48
Investment Expenses 9 7 8 9
-------------- ------------ ------------ -------------
627 919 1,238 1,371
-------------- ------------ ------------ -------------
(448) 3,865 7,324 8,584
Net Realized and Unrealized
Appreciation
in Fair Value of Investments 1,535 607 4,639 7,476
-------------- ------------ ------------ -------------
Net Increases (Decreases) 1,087 4,472 11,963 16,060
Net Assets Available for Plan
Benefits at Beginning of Year 4,060 5,685 21,368 17,631
Plan Mergers - 307 965 671
Fund Transfers (5,147) 2,695 11,198 9,399
-------------- ------------ ------------ -------------
Net Assets Available for
Plan Benefits
at End of Year $ - $ 13,159 $ 45,494 $ 43,761
============== ============ ============ =============
</TABLE>
<TABLE>
<CAPTION>
Schedule III
AON SAVINGS PLAN
CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS BY INVESTMENT PROGRAM
YEAR ENDED DECEMBER 31, 1995
(Continued)
(thousands)
International
Equity Loan
ADDITIONS Fund Account Total
- --------- -------------- ------------ ------------
<S> <C> <C> <C>
Investment Income:
Interest and Income from
Unallocated Guaranteed
Insurance Contracts $ 2 $ 12,714
Interest on Loan Repayments - 40
Aon Corporation Dividends - 6,561
Other Dividends 52 7,164
-------------- ------------ ------------
54 26,479
Contributions:
Aon Corporation 141 14,697
ESOP Diversification - 72
Participants 153 30,975
-------------- ------------ ------------
294 45,744
-------------- ------------ ------------
348 72,223
DEDUCTIONS
- ----------
Benefits Paid to Participants 11 $ 42 41,574
Administrative Expenses 1 - 980
Investment Expenses 4 - 261
-------------- ------------ ------------
16 42 42,815
-------------- ------------ ------------
332 (42) 29,408
Net Realized and Unrealized
Appreciation
in Fair Value of Investments 70 - 119,552
-------------- ------------ ------------
Net Increases (Decreases) 402 (42) 148,960
Net Assets Available for Plan
Benefits at Beginning of Year - 802 486,768
Plan Mergers 112 - 3,493
Fund Transfers 2,438 (362) -
-------------- ------------ ------------
Net Assets Available for
Plan Benefits
at End of Year $ 2,952 $ 398 $ 639,221
============== ============ ============
</TABLE>
- 26 -
<PAGE>
Schedule IV
AON SAVINGS PLAN
TRANSACTIONS OR SERIES OF TRANSACTIONS IN EXCESS OF 5%
OF THE CURRENT VALUE OF PLAN ASSETS
For the Year Ended December 31, 1996
The following schedule represents the 5% reportable transactions for the year
ended December 31, 1996 of the Aon Savings Plan. This summary is intended to
satisfy the disclosure requirements set forth in Sections 2520.103-6 of the
Department of Labor Rules and Regulations for Reporting and Disclosure under the
Employee Retirement Income Security Act of 1974.
- 27 -
<PAGE>
<TABLE>
<CAPTION>
Schedule IV
AON SAVINGS PLAN
SCHEDULE OF TRANSACTIONS OR SERIES OF TRANSACTIONS IN
EXCESS OF 5% OF THE CURRENT VALUE OF PLAN ASSETS
For the Year Ended December 31, 1996
Current Value
Cost of of Asset at Net
(thousands) Asset Transaction Date Gain
----------------- ------------------ ---------------
<S> <C> <C> <C>
Short-Term Investment Fund, Collective
Trust Funds of The Northern Trust Company
$128,459 increases on 739 days $ 128,459 $ 128,459 -
$152,613 decreases on 392 days 152,613 152,613 -
$116,881 increases on 219 days 116,881 116,881 -
$119,025 decreases on 100 days 119,025 119,025 -
------------------ ---------------
$ 516,978 -
================== ===============
S&P 500 Index Fund of the Aon Funds
$71,356 purchased in 4 transactions $ 71,356 $ 71,356 -
Asset Allocation Fund of the Aon Funds
$51,423 purchased in 3 transactions $ 51,423 $ 51,423 -
$550 sold in 1 transaction 550 550 -
================== ===============
$ 51,973 -
================== ===============
U.S. Treasury Bill due 5-9-96
$20,868 purchased in 2 transactions $ 20,868 $ 20,868 -
$20,868 sold in 1 transaction 20,868 20,868 -
================== ===============
$ 41,736 -
================== ===============
U.S. Treasury Bills due 1-2-97
$43,631 purchased in 5 transactions $ 43,631 $ 43,631
Common Stock Index Portfolio
of the Life of Virginia Series Funds, Inc.
$18,775 purchased in 14 transactions $ 18,775 $ 18,775 -
$51,665 sold in 7 transactions 51,665 71,627 $ 19,962
================== ===============
$ 90,402 $ 19,962
================== ===============
Total Return Portfolio
of the Life of Virginia Series Funds, Inc.
$8,200 purchased in 9 transactions $ 8,200 $ 8,200 -
$47,280 sold in 13 transactions 47,280 55,840 $ 8,560
================== ===============
$ 64,040 $ 8,560
================== ===============
Money Market Portfolio
of the Life of Virginia Series Funds, Inc.
$6,700 purchased in 9 transactions $ 6,700 $ 6,700 -
$28,217 sold in 12 transactions 28,217 29,678 $ 1,461
================== ===============
$ 36,378 $ 1,461
================== ===============
</TABLE>
- 28 -
<PAGE>
REPORT OF INDEPENDENT AUDITORS
The Participant and Administrative Committee
Aon Savings Plan
We have audited the accompanying statements of net assets available for plan
benefits of Aon Savings Plan as of December 31, 1996 and 1995, and the related
statements of changes in net assets available for plan benefits for the years
then ended. These financial statements are the responsibility of the Plan's
management. Our responsibility is to express an opinion on these financial
statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for plan benefits of the Plan at
December 31, 1996 and 1995, and the changes in its net assets available for plan
benefits for the years then ended, in conformity with generally accepted
accounting principles.
Our audits were for the purpose of forming an opinion on the financial
statements taken as a whole. The accompanying supplemental schedules of assets
held for investment as of December 31, 1996 (Schedule I) and transactions or
series of transactions in excess of 5% of the current value of plan assets
(Schedule IV) for the year then ended, are presented for purposes of complying
with the Department of Labor's Rules and Regulations for Reporting and
Disclosure under the Employee Retirement Income Security Act of 1974, and are
not a required part of the financial statements. The supplemental schedules have
been subjected to the auditing procedures applied in our audits of the financial
statements and, in our opinion, are fairly stated in all material respects in
relation to the financial statements taken as a whole.
May 30, 1997
<PAGE>
Exhibit 23(a)
CONSENT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
We consent to the incorporation by reference in the Registration Statement (Form
S-8, No. 33-27894) pertaining to the Aon Savings Plan of Aon Corporation of our
report dated May 30, 1997, with respect to the financial statements and
schedules of the Aon Savings Plan included in this Annual Report (Form 11-K) for
the year ended December 31, 1996.
ERNST & YOUNG LLP
Chicago, Illinois
June 20, 1997
<PAGE>
June 26, 1997
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549
Re: Report on Form 11-K for the Aon Savings Plan
Registrant: Aon Corporation
Commission File No.: 1-7933
Gentlemen and Ladies:
Enclosed with this EDGAR transmission is the above referenced Form 11-K
for the Aon Savings Plan.
Pursuant to Securities Act Release No. 33-7331, no filing fee
is being paid herewith as it was eliminated effective October 7, 1996.
Please contact the undersigned at 312/701-3835 if you have any
questions.
Very truly yours,
/s/ JEROME S. HANNER
Jerome S. Hanner
Senior Counsel
JSH/adc
Enclosures
<PAGE>
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