Aon acquires risk assessment modeling firm ERN, terms not disclosed

Aon announced the expansion of the its catastrophe modeling and consultancy capabilities in Latin America with the acquisition of ERN, a Mexico-based leader in risk assessment modeling. The acquisition aims to bring additional value to Aon‘s insurer clients, which face three key issues in navigating natural catastrophe and climate volatility: the increasing cost of secondary perils, the ability to understand an evolving climate, and the need to create a custom view of risk to make better business decisions. Aon is working with clients to develop their own view of risk – an important component in achieving the differentiation necessary for successful renewals outcomes in the tightening reinsurance market. The transaction sees ERN joining Aon’s Reinsurance Solutions business, where it will collaborate with the Impact Forecasting team, whose modeling suite enables firms to analyze the financial impacts of catastrophic events with a view to developing effective reinsurance, underwriting and exposure management strategies. Founded in 1996, ERN has developed modeling capabilities that are specific to Latin America and backed by strong expertise and research. Lawler will serve as CEO of this business and ERN founders Eduardo Reinoso and Dr. Mario Ordaz will join Aon as senior scientific advisors. Terms of the transaction, which has closed, were not disclosed.