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 19th consecutive year. This year’s credit is at a level of 5% of our total policyholder surplus or $47.4 million. Since 1987, we’ve returned $781.2 million to our members in general liability and directors and officers liability continuity credits – $257.5 million has been returned in just the last five years.
The Company’s growth and diversification continue to enable us to write somewhat higher loss ratios in excess liability and D&O than would be common in the commercial sectors. The financial strength gained from this strategy also helped the Company absorb the significant hurricane losses of 2005 and maintain our strong policyholders’ surplus position. The Board’s decision to keep the continuity credit at the 5% level is an expression of their confidence in our business plans and robust condition.
The details regarding your company’s specific general liability or D&O credits will be sent to you via U.S. mail in the next few weeks along with materials that describe how they can be applied to your future premiums. In addition, the Board approved $2.0 million in premium credits for members who renew coverages placed through our Lloyd’s syndicate. Now in its second year, the London premium credit program allows eligible members to share in the positive underwriting results of our London operation. We will advise each participating member of their 2006 London credit, and provide a detailed description of the program definitions and guidelines, via letter within the coming weeks.
Please contact your AEGIS underwriter if you have any questions or comments.