We’ve finalized our financial results for 2004 and I'm pleased to report that AEGIS has had another good year. Our revenues increased slightly to $1.04 billion as many of you expanded your support of our London Syndicate and our domestic property program. Even after declaring our 17th consecutive continuity credit of $42 million and our second consecutive member property credit of $6 million, we were able to strengthen our surplus to a new high of $971 million. In April we'll publish our annual report and give you all the details.
We’re pleased to inform you that, based on AEGIS Energy Syndicate 1225’s results for 2002, AEGIS and AEGIS International have declared a $1.5 million credit under the AES 1225 Premium Credit Program, announced at the Policyholders’ Conference last July. This credit will be shared among our members who purchased insurance from AES 1225 during 2002 and who also purchase insurance from AES 1225 during 2005. We’ll notify eligible members of their individual credits by letter shortly.
Similar to the Member Property Credit Program, the AES 1225 Premium Credit Program rewards members who consistently use the capacity offered by AEGIS in London. All members, of course, benefit from the Syndicate’s profitability through its contribution to the company’s surplus which is a factor in determining the company’s overall continuity credits. This is true of any AEGIS product line or facility. The AES 1225 Premium Credit Program and the Member Property Credit Program are additional ways for those members who support these facilities to share in their good results. The individual member’s credit under these independent programs is based on the member’s individual positive contribution and the overall profitability of the facilities.
A more detailed description of the AES 1225 Premium Credit Program definitions and rules, including how credits are calculated, earned, paid and a potential returned obligation, is in the underwriting products section on the password-protected side of the site. The AES 1225 Premium Credit Program is not available to AEGIS members located in Kentucky, Illinois or the U.S. Virgin Islands. For more information, please contact Frank Tierney via e-mail or phone at 201.521.4673.
As most of you know, The Terrorism Risk Insurance Act of 2002 (TRIA) expires December 31, 2005. While legislation to extend TRIA beyond 2005 is currently pending before Congress, we can’t predict the outcome, and it’s possible that the act may not be renewed. AEGIS is examining the potential impact of the loss of Federal protection and our ability to continue terrorism coverage beyond the expiration of TRIA if the government decides not to renew the Act. Our goal, as always, is to provide the broadest possible coverage for members, but the possibility exists that we may not be able to continue this particular coverage in its current form without the benefit of TRIA. We'll complete our examination well in advance of the expiration date and will advise you accordingly.
The Risk and Insurance Management Society Annual Conference will be held at The Pennsylvania Convention Center in Philadelphia from April 17 to 21. We’ve noticed that more of our members attend RIMS each year. Over the last few years we’ve set up a small booth on the exhibit floor and maintained a hospitality suite at the main conference hotel where members and brokers can meet with the AEGIS staff who'll be available during the conference. Please let us know if you're planning to attend RIMS this year by contacting Gil Gould via email and we'll contact you with all the details. I'll be at RIMS for several days and look forward to seeing you there.
Please mark your calendars now for the 2005 AEGIS Policyholders’ Conference which is scheduled for Monday, July 25 through Thursday, July 28 at the Westin Bayshore Resort & Marina in Vancouver, B.C., Canada.
Our annual conference is an important opportunity for us to update you on developments and for you to share your needs, concerns and suggestions with us. More information will be posted to the web site as it becomes available and complete conference registration materials will be sent in May.
Conference registration is complimentary and attendees are invited to bring guests. AEGIS will reimburse one representative from each member company with a current AEGIS policy written through Jersey City for the cost of three nights lodging at the Westin Bayshore in Vancouver. Brokers must be connected with a current AEGIS member policy written through Jersey City in order to attend. If you have any questions, please contact Carrie White via e-mail or phone 201.521.4524.
The 2005 AEGIS Roundtable program has begun and will cover three topics: Major Gas and Electric Incidents; Managing Mass Tort Litigation; and Alternatives to Litigation/ADR. The first seminar – which will focus on handling major gas and electric incidents – will be presented again on March 24 in Milwaukee.
As always, you're welcome to attend in person or by videoconference, and Continuing Legal Education (CLE) credits are offered. For more information or to register online, please refer to the 2005 Roundtable brochure. For more information about the AEGIS Roundtable program, please contact Jeff Schupack via e-mail or phone at 201.521.4627.
Our series of regional meetings with members and brokers was well received last year and we’re planning four meetings for 2005. The first two meetings will be:
Minneapolis – Tuesday, June 7
Denver – Thursday, June 9
As those of you who've attended one of our regional meetings already know, the main purpose is to give you an opportunity to tell us what you need and how we’re doing. Most attendees also found these forums to be a great opportunity for comparing notes on risk management issues with other risk managers and brokers. We’ll also spend some time telling you about our latest initiatives.
The meeting is a one-day event so most of you will be able to drive or fly between home and the meeting on the same day. However, if you’d like to stay overnight, AEGIS will reimburse one person from each member company for one night’s stay in the meeting hotel.
We’re finalizing the meeting details now and we’ll provide specific information for the meeting in your area when we get closer to the actual dates. We look forward to seeing you!
We’re pleased to announce that Stuart Davies has joined us as Managing Director of AEGIS Managing Agency Limited, the managing agent for our Lloyd’s syndicate. Stuart is responsible for the overall operation of the syndicate and the London office, working closely with the London management team, especially Philip Thorpe-Apps who continues to lead the underwriting operations of the syndicate. Stuart has extensive insurance industry experience, including his most recent position as Operations Director at Highway Insurance Holdings PLC. Stuart has already begun to make a significant contribution.