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ADMINISTAFF AND AON ENTERPRISE INSURANCE SERVICES
TO FORM STRATEGIC ALLIANCE
HOUSTON January 19, 2000
Administaff, Inc. (NYSE: ASF), a leading Professional Employer Organization
(PEO), and Aon Enterprise Insurance Services, Inc., a leading provider
of insurance services to small businesses, today announced the signing
of a letter of intent for the formation of a strategic alliance,
under which Aon will offer an array of property and casualty insurance
products to Administaff clients through a co-branded web site and
its new state-of-the-art Client Service Center. Aon Enterprise is
part of Aon Corporation (NYSE: AOC), a Fortune 500 holding company
that comprises a family of insurance brokerage, consulting, and
insurance underwriting subsidiaries.
Through Aon Enterprise, Administaff clients
will have access to Aons expedited underwriting and economies
not usually available to small business owners. Aon will offer insurance
products that include property and casualty, directors and officers,
general liability, automobile, professional liability, and umbrella
liability coverage to qualified Administaff clients. Administaff
anticipates receiving revenues stemming from the alliance through
Administaff Enterprises, Inc., its licensed insurance agency.
"We are extremely pleased to add Aon Enterprise
to our growing network of best-of-class service providers,"
said Paul J. Sarvadi, Administaff president and chief executive
officer. "Our relationship will enable Aon to offer Administaff
clients excellent business insurance coverages quickly, easily and
affordably through our eCommerce portal."
Michael Garner, president and chief executive
officer of Aon Enterprise, commented, "Aon Enterprise has pioneered
a new, more efficient approach to meeting the insurance needs of
the small business community. We are proud to have this opportunity
to work with Administaff and are confident its clients will appreciate
the economy and simplicity of this new service model and what it
can mean to their business success."
Administaff Background
Administaff provides small and medium-sized
businesses with a comprehensive Personnel Management System that
includes benefits and payroll administration, medical and workers
compensation insurance programs, personnel records management, employer
liability management, employee recruiting and selection, performance
management, and training and development services. With 1998 revenues
of $1.7 billion, Administaff ranks number 765 on the Fortune 1000
list. The company also was named in 1999 to Fortune magazines
list of "Americas Most Admired Companies," the Forbes
Platinum 400 list of the best-performing big companies in the U.S.,
and the InformationWeek 500 list as one of the top users of information
technology. The company currently has 25 offices in 15 major markets
and serves clients and worksite employees throughout the United
States. For additional information, visit the companys web
site at www.administaff.com.
Aon Enterprise Background
Aon Enterprise is a dynamic facility specifically
created for the small commercial business segment. Aon Enterprise
has partnered with premier insurance companies to provide comprehensive
and competitive product lines.
Aon Enterprise is supported by service from
a cutting-edge Client Service Center that has been designed to reduce
costs, improve response time, and streamline service by:
- Replacing traditional processing techniques
with state-of-the-art technology.
- Reducing duplicate handling between broker
and insurer by having the Aon Enterprise
- staff underwrite and process many transactions.
- Reducing expenses by leveraging relationships
with selected insurers.
- Consolidating back-room services into one
central location.
Aon Enterprise was created in response to three
major insurance market developments:
- The expanding availability of technology
and its ability to enhance the customer's service experience.
- The changing insurance marketplace; consolidations
and deregulation, in particular, allow new entrants into the fold.
- The expanding service requirements and expectations
of commercial insurance buyers in an increasingly demanding Internet-driven
marketplace.
For more information on Aon Enterprise Insurance
Services, Inc. and the family of Aon companies, visit the companys
web site at www.aon.com.
(Note: The statements contained in this
press release that are not historical facts are forward-looking
statements that involve a number of risks and uncertainties. Therefore,
the actual results of future events described in such forward-looking
statements could differ materially from those stated in such forward-looking
statements. Among the factors that could cause actual results to
differ materially are: (i) regulatory and tax developments; (ii)
changes in Administaffs direct costs and operating expenses;
(iii) the effectiveness of Administaffs sales and marketing
efforts, including its marketing agreement with American Express,
American Express ability to set qualified appointments and
Administaffs ability to convert those appointments into sales;
(iv) the estimated costs and effectiveness of capital projects and
investments in technology and infrastructure; (v) Administaffs
ability to effectively implement its eBusiness strategy, including
identifying and reaching agreements with strategic alliance partners,
timely rollout of and attraction of clients and worksite employees
to its eCommerce portal, effective generation of revenues from eBusiness
initiatives and unanticipated development costs of eBusiness initiatives;
(vi) changes in the competitive environments in the PEO industry;
and (vii) the effectiveness and estimated costs of Administaffs
Year 2000 conversion and contingency plans. These factors are described
in further detail in Administaffs filings with the Securities
and Exchange Commission.)
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