Aon has announced a key change in its insurance-linked securities (ILS) and investment banking business leadership, as Richard Pennay has been named the new CEO of Aon Securities and Paul Schultz moves to become Global Vice Chair of Reinsurance at the company.
Paul Schultz has led the Aon Securities operation for 20 years, in which time the company has developed a significant footprint in the catastrophe bond and broader ILS marketplace, as a key broker-dealer, structurer, arranger, and bookrunner of deals.
In his new position at Aon, Schultz will work with Andy Marcell, CEO of Risk Capital and Reinsurance Solutions on strategies that aim to “further augment capacity available to clients including the further development of Aon’s Marilla facility and the growth of third party capital sources,” the company said.
Richard Pennay, currently the CEO of Insurance-Linked Securities (ILS) for Aon Securities, is set to become CEO of Aon Securities, also reporting to Marcell.
Pennay and Schultz will continue to collaborate on increasing and delivering capital to Aon clients, helping them to optimise their risk transfer programs.
Marcell commented, “Under Paul’s extensive and dedicated leadership, Aon Securities has become a true pioneer in its marketplace.
“The team has not only helped to develop the ILS market, but has been a significant force in expanding ILS capital from several billion dollars at its inception, to the well over $100 billion we see in the marketplace today.”
In his tenure leading Aon Securities, Schultz has been a driving-force in growing the ILS market and has built the largest global ILS broker-dealer team, with more than 30 members serving Aon clients across the U.S., UK, Ireland, Australia and Japan.
Under his leadership, Aon Securities has placed 250 catastrophe bonds representing more than $65 billion of issuance volume.
The Aon Securities team has also been a key driver for cat bond and ILS market innovation, including through new perils, structural innovation and deal features that benefit both cedents and investors.
At this time, Aon Securities remains at the top of Artemis’ cat bond bank and broker leaderboard, having worked on a significant almost $22.5 billion of the current outstanding market.
