I was pleased to see so many of you in San Diego at our annual policyholders’ conference. You set a new record with 1,082 attendees and guests in attendance. We were gratified by the many favorable comments on the material we presented, the networking opportunities, and the family-friendly activities. We are also grateful for your constructive criticisms which we will consider carefully. Thank you. During the general sessions, we made three important announcements:
- D&O Side A Only coverage has been redesigned and, combined with the benefits of AEGIS claims management, is now a more attractive foundation for your Side A placements.
- Fiduciary limits can be restored to $35 million for member companies in good financial condition who’ve taken certain loss control measures.
- A new AEGIS Energy Syndicate credit program will begin in 2005. Similar to the member property credit program, the program will reward members who consistently use the capacity offered by AEGIS in London.
We’ve redesigned our Side A Only coverage to make it competitive with the most popular commercial form offered. As indicated by the interactive benchmarking session conducted at the conference, many more of you than we had previously thought are buying this coverage to give added protection to your directors and officers. By using our $15 million capacity as the foundation of your Side A placement you can:
- Benefit from the more collaborative AEGIS claims process, should a claim arise.
- Leverage the D&O expertise that we honed during the past four years while we successfully covered the utility industry’s most volatile D&O losses.
- Participate in the continuity credit program to lower your long-term cost of risk.
- Help further strengthen your mutual.
We encourage you to take a fresh look at this improved offering.
AEGIS can now restore the Fiduciary Liability limits to $35 million for member companies in good financial condition who have adopted state-of-the-art loss control measures such as excluding inside directors and officers from serving as fiduciaries and encouraging employees to diversify assets in 401(k) accounts. For companies that have not implemented these kinds of practices we must continue to restrict the fiduciary limits to $25 million or less—depending on underwriting criteria—to prudently manage the risk to AEGIS from “tag along” claims. Please contact your underwriter for more information.
Our new credit program, similar to the member property credit program, will soon be available for those members who consistently use the capacity offered by AEGIS in London. The amount of the premium credit pool will vary from year to year depending on the syndicate’s overall performance. Where permitted, each member will participate proportionally, based on their individual contribution. Early next year we will determine the amount of each participating member’s credit when the syndicate’s books for 2002 are closed. Members will be able to apply this credit to their syndicate purchases in 2005. Additional details will be provided shortly.