We’re pleased to report that the AEGIS Board of Directors has approved the issuance of continuity credits to our general liability and directors and officers liability members totaling $45.9 million. This amounts to 5% of the surplus allocated for these coverages.
Our favorable investment returns in 2003 were sufficient to overcome our overall 108.8% combined ratio and to grow our surplus to $928.8 million – restoring it to $8 million above the 2000 level. Although investment returns are not expected to be as strong in 2004, the Board’s decision to continue the continuity credit at the 5% level reflects their confidence in our overall financial condition and long-term prospects.
This is the 17th consecutive year we’ve returned a continuity credit to AEGIS member companies. Since 1987 we’ve returned $685.4 million to our members in general liability and directors and officers liability continuity credits. The continuity credit is one of the ways we help you achieve the lowest overall cost of risk and it highlights the fact that you are indeed a member and owner of AEGIS, not merely a customer.
The details regarding your company’s specific credits will be sent to you via U.S. mail in the next few days along with materials that describe how they can be applied to your future premiums. Please contact your AEGIS underwriter if you have any questions or comments.