Staff at Aon Re UK have been warned they could face redundancies under a wide-ranging review of the division's business model.

The unit, which employs between 400-500 staff, is Aon's reinsurance broking division.

Aon said the review was needed to address changing market con-ditions, including consolidation of insurers and developments in business process.

A spokesman said: "We need to take a good look at the model to ensure we have the right structure going forward."

The spokesman admitted the review "could lead to redundancies" but added it was too early to say how many, if any, would occur. A collective consulatation was underway.

He added: "There is no set timescale for the completion of the review."

It has also emerged that pay review dates for senior staff at Aon Re UK had been deferred until later in the year. The Aon spokesman would not comment on the reason for this move. He denied that the move was a pay freeze and said bonuses would still be paid.

Charlie Cantlay assumed the role of chairman of Aon Re-UK last month, following a company restructure

Separately, Aon is to restate its financial results for the years 2003, 2004, 2005 and the first three quarters of 2006, after the company's management said the results could not be relied upon.

The restatement will affect financial statements for other prior fiscal periods. The company will reflect those adjustments as part of the opening balances in the financial statements for the restatement period.

The decision to restate the financial statements was based on the results of a comprehensive review of Aon's option date grant practices.