A number of you have asked about the impact of Hurricanes Katrina and Rita on AEGIS members and on AEGIS itself. As you know, a number of our member companies sustained significant losses to offshore platforms in the Gulf of Mexico, T&D systems and other utility plant and equipment. Although it is still too early to calculate these losses and their affect on AEGIS with reliable accuracy, overall, we believe the Company will sustain significant but manageable hurricane-related losses.
As most of you know, our property facility in New Jersey focuses primarily on electric generation and gas utility facilities and does not normally insure offshore operations or T&D. AEGIS London participates on placements for a number of offshore facilities in the Gulf of Mexico in addition to the property programs for AEGIS’s utility members. We have run RMS modeling on our Katrina and Rita exposures and we have been in direct contact with members known to have been affected. At this time, our preliminary estimate for our total net property losses from our consolidated operations is approximately $75 million for the two hurricanes. Losses of this magnitude fall within the possibilities we’ve envisioned for severe natural disasters and are contained by our per risk and catastrophe reinsurance programs. On the excess liability side, we believe the losses will be minor.
We’re pleased to report that yesterday Fitch Ratings reaffirmed our “A+” rating with a “stable” rating outlook. In reaffirming the rating, Fitch stated, “The strong rating of AEGIS reflects the company’s leading market position, favorable capitalization profile, and high member retention rate. … Fitch believes that AEGIS has a strong capital position as evidenced by its low operating leverage and favorable level of surplus.”
AEGIS has been in its current location since 1995. Since then the Company has grown considerably and the Jersey City area has become tremendously built up and congested. We’re pleased to announce that we are planning to move our offices to a more convenient and cost-effective space in East Rutherford, NJ. We hope to be in our new location, the Metropolitan Center near Giants Stadium, by late spring of 2006. The Metropolitan Center will be more easily reached by car and will still be accessible to public transportation.
With the additional space, we will provide better facilities for members and their brokers when they meet with AEGIS personnel on underwriting, loss control and claims issues. We also plan to create a more dynamic open work space for our employees to facilitate our internal collaboration and our continuing goal of improving member service. We look forward to welcoming you to our new home next year.
Based on your continued support of the AEGIS domestic property program, the results for the most recent three-year period (ending December 31, 2004) were very good. As a result, we are pleased to increase the overall member property credit from $6.3 million to $7 million. Qualifying members will soon receive details in the mail regarding their share of this credit and how it can be applied to their property premium upon renewal.
To date, more than 200 members have chosen to include AEGIS’s capacity as a major part of their property programs based on our favorable terms and conditions, our collaborative approach to claims management, our expanded property engineering services, and our commitment to share good results among participating members.
To qualify for the property credit, a member must have AEGIS participation of 20% of a quoted layer or $150 million of AEGIS capacity on risk. For more information about the AEGIS property program, please contact Gary Ladman by e-mail or by phone at 201.521.4831.
We’re pleased to announce the schedule of Claims Roundtables for 2006. Now in its eighteenth year, this one-of-a-kind program helps prepare utility and related energy industry attorneys, claims and loss control professionals, and risk managers for the claims management and litigation issues they face. The 2006 Claims Roundtable schedule includes Transferring Risk to Third Parties, Odorization Issues, and Environmental Issues In and Around the Workplace.
Registration details will be posted shortly. For more information about the AEGIS Roundtable program, please contact Jeff Schupack by e-mail or by phone at 201.521.4627. As always, you're welcome to attend AEGIS Claims Roundtables in person or by videoconference, and Continuing Legal Education (CLE) credits are offered.