Many of our members with large concentrations of employees in a single facility, such as a corporate headquarters building or generating station, have told us that they need significantly more workers’ compensation capacity. In some states these higher limits have been mandated by state workers compensation bureaus that have also insisted on admitted paper and statutory limits. The risk of terrorist attack on these high density locations often motivates the need for this additional coverage.
We are pleased to announce that we have recently arranged an additional $65 million in workers’ compensation capacity to be offered through our alliance partner, Liberty Mutual. The additional layer must be placed in excess of our AEGIS $35 million excess workers’ compensation limit. Liberty can provide this coverage on a statutory basis to selected accounts.
If you are interested in pursuing this additional limit, please contact Ron Bertrand by e-mail or at 201.508.2776.
We were pleased to see so many of you in Henderson, Nevada at our biennial Claims Seminar. More than 200 attendees gathered to hear leading litigators and energy industry experts present significant gas and electric case studies and to discuss topics of current interest to AEGIS member companies. We were also gratified by your overwhelmingly positive comments on the seminar presentations and we have posted them on the password-protected side of our website. The Claims Seminar will be held once again in 2008 and, in the meantime, we hope you will join us at the AEGIS Claims Roundtable seminars scheduled throughout the country during 2007.
In addition, we were pleased to see a number of you at the recent regional member and broker meetings in Calgary and Los Angeles, which were attended by 37 and 24 people respectively. These small meetings give you the opportunity to meet directly with AEGIS senior management to tell us what’s on your mind, what you need, and how we are doing. We are currently planning another series of regional meetings for 2007 and will announce those dates and locations shortly.
Many of you who attended our Policyholders’ Conference learned about our new Side-A facility through Ariel Re, an independent, Bermuda-based company that will offer Side-A DIC coverage on a stand-alone basis. Ariel Re will independently underwrite, price and administer the claims, and is able to offer significant capacity, up to $30 million.
We developed the Side-A capability with Ariel Re for those who believe that Side-A is better purchased from a different carrier than the basic D&O carrier. We are pleased to be able to accommodate that preference and we hope it will be useful to the increasing number of you who purchase Side-A to round out your D&O programs.
If you are interested in Aerial’s Side-A capacity, please contact your Bermuda-based broker. If you have any other D&O questions, please contact Karen Larson by e-mail or at 201.508.2804.
Based on your continued support of the AEGIS domestic property program, and despite the effects of the Hurricanes Katrina and Rita, the property underwriting results for the most recent three-year period (ending December 31, 2005) were positive. As a result, we were pleased to declare an overall member property credit of $6.5 million. Qualifying members recently received details in the mail regarding their share of this credit and how it can be applied to their property premium upon renewal.
This is the fourth consecutive year that AEGIS has declared a domestic property credit. 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. Together, these considerations continue to set the AEGIS property program apart from the commercial market.
To qualify for the property credit, a member must have AEGIS participation of 20% of a quoted layer or $150 million of domestic AEGIS capacity on risk. For more information about the AEGIS property program, please contact Gary Ladman by e-mail or by phone at 201.508.2802.