Released on: December 3, 2007, 4:08 am

Press Release Author: Iain Martin

Industry:

Press Release Summary: Despite recent stock market volatility, many companies\'
annual accounts are expected to benefit from substantial falls in pension fund
deficits in the twelve months to 31 March 2007, according to research by Aon
Consulting, a leading pension, benefits and HR consulting firm.

Press Release Body: Despite recent stock market volatility, many companies\' annual
accounts are expected to benefit from substantial falls in pension fund deficits in
the twelve months to 31 March 2007, according to research by Aon Consulting, a
leading pension, benefits and HR consulting firm.

With one week to go before around one quarter of UK companies reach their accounting
year end, many shareholders can expect a substantial improvement in the balance
sheet item arising from pension scheme deficits.

The deficit for the top 200 largest pension funds has improved by £19bn over the
year, having fallen from £48bn at 31 March 2006 to £29bn at close of business on
Friday 23 March 2007. The equivalent figures for FTSE100 companies show an
improvement of £16bn from £37bn at 31 March 2006 to £21bn at 23 March 2007.

The £19bn improvement in balance sheet deficits is largely driven by increases in
bond yields, the benchmark measure of pension scheme deficits for accounting
purposes, although strong investment performance has also served to improve the
deficits.

Commenting on these improvements Marcus Hurd, senior consultant & actuary at Aon
Consulting, said: \"While individual pension schemes will have performed differently
over the year according to there specific circumstances, the general message is a
welcome one with improvements of around 4% (£19bn) in reported FRS17 funding levels.

\"However, this projection comes with a health warning for many companies as UK
pension funds continue to experience a very unstable period, which has been caused
by a combination of jittery stock markets and volatile bond yields. The last week
alone saw UK pension fund deficits improve by £14bn. Although pension schemes
should not be unduly concerned by short term volatility, such volatility in the
weeks preceding financial year ends is of particular concern.\"entertainment
and media liability insurance

Final year-end figures won\'t be known until March 31.

About Aon Consulting

Aon Consulting is a leading human capital consultancy, helping organisations of
every size to attract and keep the employees they need. We advise on all aspects of
employment, including health-related insurance and risk; employee compensation and
pensions; human resource strategy planning; job design and change management; and
staff assessment and legal issues. Aon Consulting is a division of Aon, one of the
UK's largest insurance brokers and providers of risk management services and a major
force in reinsurance and the UK human capital consulting market. Aon Consulting
Limited is authorised and regulated by the Financial Services Authority.

Aon UK is ranked by A.M. Best as the number one global insurance brokerage based on
brokerage revenues and voted best insurance intermediary, offering classic car
insurance, high
value home contents insurance, entertainment and media insurance and
construction site insurance.


Web Site: http://www.privateclients.aon.co.uk/privateclients/microsites/household/

Contact Details: directory@vandelay.co.uk