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 for the 18th consecutive year. This year’s credit is at a level of 5% of our total policyholder surplus or $48.5 million.
In 2004, our overall surplus grew to a record $971.1 million, thanks in part to a relatively good 5.5% investment return. While our D&O and fiduciary loss ratios were higher than we all might have wished, your company ended the year in a solid financial position, and the Board’s decision to maintain the continuity credit at the 5% level reflects their confidence in our overall financial stability.
Since 1987, we’ve returned $733.9 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.