redundancies as a result of restructuring that began with the merger with Alexander & Alexander (A&A).

The new structure of the Bermuda Aon affiliate is beginning to take shape, nearly five months after its parent, Aon Corp., spent a projected $1.23 billion acquiring A&A in January.

Gone already is Aon Bermuda's most recognisable name, Robin Spencer-Arscott, who was said to have opted for an early retirement package. He has long been a key local figure for Aon, and an important representative for the Bermuda market as a whole.

But there were indications that some jobs held by current employees may no longer exist after restructuring is complete.

Aon Group (Bermuda) Ltd., a new holding company, has been formed to oversee all local operations, including former companies of Aon Group, A&A and Alexander Howden.

F. Paul Chilton has been named chairman and Gregory W. Springer is president and CEO of Aon Group (Bermuda) Ltd.

When asked about the number of possible redundancies as a result of the restructuring, Mr. Springer said yesterday, "We are not even there yet. We have not identified that number yet. We will be in fairly short order.

"We've told staff that the operating subsidiary heads are putting their business plans together and will be presenting them to me soon. Part of that business plan will obviously involve their staffing needs.

"At that point, we will sit down with our own staff and talk to them about where things are going. If there are any redundancies, they will be identified at that point.'' Meanwhile, in a prepared statement, Dennis L. Mahoney, deputy chairman and CEO of Aon Group Ltd. said, "Our new reorganisation, which reflects the recent expansion of the Aon Group Ltd., will integrate and strengthen our very important Bermuda operations. We are very excited about the opportunities that this presents, for Aon and for our clients.'' Aon is an insurance holding company publicly listed on key stock exchanges that include New York and London, and which operates commercial insurance brokerage and consulting arms, together with captive management facilities.

Apart from A&A, Aon two months ago also said it would buy the London-based Minet Group from St. Paul Cos. Minet specialises in arranging insurance coverage for professionals and has a unit that lines up brokers with specialised insurance.

Analysts said that in an age of dwindling insurance profit margins, Aon's acquisition of the unprofitable Minet will give Aon excess to key customers and allow for some cost cutting. Minet, with annual revenue of some $300 million, lost $13 million in 1995.

Aon's annual revenue is now up to $3.5 billion. It bought the UK-based Bain Hogg Group for $251 million in October.

Aon `committed' to Bermuda Three principal operating companies under the Bermuda Aon umbrella are now Aon Insurance Managers with president and CEO, Alan Cossar; Aon Intermediaries (Bermuda) Ltd., the insurance broking operations under president and CEO, Joe Rego; and Aon Re, the reinsurance and capital markets broking operation, run by president and CEO, Paul Markey.

Mr. Springer said, "Including the Minet folks there will be about 110 people in total here. The idea will be to move offices so that all the captive management people will be in one office and all the broking folks in another place.'' This February, Aon chairman, Patrick Ryan, estimated that his company was responsible for bringing a half a billion dollars worth of business to Bermuda annually. And said that figure will grow substantially.

Mr. Springer said yesterday he was uncertain, at present, how that figure would change with the acquisition of Minet. It has been estimated that Minet will bring an additional $250 million to Aon's total revenues.

But he said, "Our commitment to Bermuda goes deeper than the acquisitions.

The reason I came here was because we recognised some time ago that what we will be developing here in the future is something very powerful. We believe strongly in Bermuda's future and want to be a big participant in it.

"One of the things you will see evolving on the broking side is the entire convergence of the capital markets and the insurance world. We feel that Bermuda will take its place, right up there with New York and London and other major financial centres of the world, as being one of the homes for the development of these products, going forward.'' Aon manages about 180 captives out of Bermuda, as a result of the merger with A&A.

Mr. Springer said, "In a macro sense, there will be more changes. The entire insurance broking and distribution system, and for that matter, the risk taking side of the business whether it be XL, ACE or one of the reinsurers, are undergoing and considering lots of consolidation right now. I don't think we've seen the end of it. There will be more.''