Earlier this week, Iberdrola, one of the leading electric utilities worldwide and the largest renewable energy generator in the world, announced its successful merger with Energy East. Energy East will continue to run as an independent entity despite the change in ownership. As most of you know, Wes von Schack serves as the Chairman, President and CEO at Energy East as well as the Chairman of AEGIS, and we are delighted that Wes will continue in both of these roles.
Iberdrola is the second largest source of wind power in the U.S., with 2,000 MW in capacity, and the company plans to expand that capacity to 6,900 MW by 2012. The newly merged entity now ranks as the fourth largest generator of electricity worldwide. We congratulate Wes on the merger and look forward to his ongoing leadership and guidance at AEGIS.
After all the reports in the media this week about Lehman Brothers, Merrill Lynch, AIG, Washington Mutual and the financial sector in general, you will be pleased to know that the AEGIS investment portfolio has only minimal exposure to these particular entities and to the sector as a whole.
Prior to the recent events, AEGIS holdings in Lehman, AIG, Merrill and WaMu totaled less than $5.0 million. The current value of these holdings has fallen to $2.5 million, which represents less than 0.1% of our total invested assets. Furthermore, our portfolio's exposure to the entire financial sector is also limited, as our estimated exposure to the sector before the turmoil was less than $100 million.
It's during times such as these that we see the value of a balanced, diversified investment portfolio most clearly. We are grateful to the AEGIS Board of Directors, the Board's Investment Committee, our Investment Division, and our external investment advisors for their prudent advice and careful guidance.
A number of members have contacted AEGIS in recent days to express concern about the security of their AIG programs and to seek additional coverages from AEGIS. As always, we are prepared to respond to the needs of our membership in any way possible.
Several members and brokers have inquired about the impact of Hurricane Ike on AEGIS members and on AEGIS itself. Some of our member companies have indeed sustained property losses and, based on early reports, we expect the losses to fall within expected hurricane loss scenarios for the year.
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 several offshore facilities in the Gulf of Mexico on a limited, subscription basis in addition to the property programs for AEGIS's utility members. After Hurricane Katrina, we modified our underwriting guidelines, modeling practices and catastrophic reinsurance program to ensure we provided adequate coverage without creating any undue exposure for the overall membership. We believe this approach will serve all members fairly during this and future hurricane seasons.
We hope you will join us for the 2008 AEGIS Claims Seminar, which will be held from October 27 to October 29 at the Hyatt Regency Huntington Beach, in Huntington Beach, California.
We'll cover gas and electric case studies, as well as other issues, such as electronic discovery, witness preparation, and the value of testing in defending liability cases. The agenda is posted on our website. AEGIS will request Continuing Legal Education (CLE) accreditation from all states with mandatory continuing legal education requirements.
You may register online for the seminar anytime between now and September 29. Registration for the seminar is complimentary.
You may reserve your hotel room online as well or you may call the Hyatt Regency Huntington Beach directly at 714.698.1234 or 800.233.1234. Please mention AEGIS to receive the negotiated rate of $239 plus taxes. The hotel reservation deadline is September 29.
If you have questions regarding the agenda, please contact Brian Ekdahl by e-mail or at 201.508.2643. For questions about the hotel or other logistics, please contact Carrie White by e-mail or at 201.508.2840.
Our next regional member and broker meeting will be held on Thursday, October 30 at the Hyatt Regency Huntington Beach, following the conclusion of the 2008 AEGIS Claims Seminar.
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 and answer any questions you may have. Please come prepared to discuss risk management issues, the current insurance market, enterprise risk management and other topics.
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. The hotel reservation deadline is September 29.
If you have questions about the meeting, please contact Molly Lenz by e-mail or at 201.508.2805. For questions about the hotel or other logistics, please contact Carrie White by e-mail or at 201.508.2840.
Please register now online. We look forward to seeing you!