Aon recognizes $197M legal expense related to Vesttoo

Aon has recognized a legal settlement expense reserve amounting to $197 million related to Vesttoo.

“In the fourth quarter of 2023, Aon recognized actual or anticipated legal settlement expenses in connection with transactions for which capital was arranged by a third party, Vesttoo Ltd., primarily in the form of letters of credit from third party banks that are alleged to have been fraudulent,” the company stated. “Certain actual or anticipated legal settlement expenses totaling $197 million have been recognized in the current period, where certain potentially meaningful amounts may be recoverable in future periods. Additionally, a $58 million charge was recognized in the second quarter of 2022 with certain other legal settlements reached in matters unrelated to Vesttoo.”

Last month, Aon and Porch Group announced an agreement that would result in payments to Porch of $30 million made by Aon. As part of the agreement, the parties signed a release of claims arising from the Vesttoo fraud.