Global economic upturn makes emerging markets attractive, but investors should beware

LONDON/NEW YORK, 28^TH JANUARY 2004. As the world economy picks up, investors must make sure they are aware of the political and economic risks of investing in emerging markets, according to the 2004 Political and Economic Risk map published by Aon, the leading insurance broker, risk management and human capital consulting firm.

In Latin America, Brazil has become more politically stable after the election of President Inacio Lula da Silva (Lula) in 2002, and many Middle Eastern states have seen their political stability downgraded owing to continued uncertainty in Iraq, the possibility of further coalition activity elsewhere in the region, and terrorism. Economically, however, these countries remain strong.

Risk perceptions in Africa continue to stabilise thanks to the developed world's need to increase oil and gas sources outside the Middle East, with exploration and prospecting in the Gulf of Guinea being a particular area of focus.

Martin Stone, Director of Aon's Counter Terrorism and Political Risk team, commented: "Investors must make sure that they have the best intelligence available before making decisions, and undertake thorough assessment of the risks associated with their investments. Whilst the attractions of investing in these highly profitable markets are clear, mistakes can be costly. Investors should be properly equipped with the right information, appropriate insurance cover and an ongoing risk management strategy."

Justin Priestley, Director of Aon's Counter-Terrorism team, added: "With terrorist organisations demonstrating global reach, it is vital for companies to be aware of the threats their property and employees face. Companies must act, both to protect their assets against threat, and to prepare for the impact of political uncertainty or terrorist attack."

Note to Editors

Aon is the UK's largest insurance broker and provider of risk management services, a major force in reinsurance and number four in the UK human capital consulting market. With more than 10,000 staff spread across 90 UK offices, Aon combines an in-depth knowledge of the UK market with an unmatched global reach and perspective. Aon's structure cuts across boundaries and unites specialists from around the world in global business units. Around the world, Aon posted 2002 revenues of $8.8 billion dollars, and has more than 55,000 employees in 600 offices across 125 countries, servicing clients requirements at a global level whilst responding to clients specialist needs in individual markets.


For further information please contact:

James Wood
(Aon Corporate Affairs)
Tel: 020 7216 3205
Email: james.wood@aon.co.uk

Emily Watson
Financial Dynamics)
Tel: 020 7269 7231
Email: emily.watson@fd.com