We are pleased to advise that AM Best has just reaffirmed our "A- (Excellent)" Stable outlook rating. In their current assessment of our results, they noted our "strong operating performance in 2009 and 2010" that contributed to increases in surplus as well as our "proven track record of developing long-lasting partnerships with members and brokers".
We believe AM Best understands the wisdom of the steps we've taken during the last two-and-a-half years to improve our capital strength, and recognizes the benefits of our enterprise risk management program. Their reaffirmation of our rating acknowledges our significant progress. With your support, we are confident we can maintain this momentum and serve your current and emerging risk financing needs well into the future.
We are also pleased to report that AM Best recently reaffirmed a rating of "A (Excellent)" for our Lloyd’s Syndicate 1225. The Syndicate also enjoyed a strong 2010 and continued to contribute to AEGIS’ recent surplus growth. The outlook for both ratings remains stable. The report cited the financial strength of the Lloyd's market as well as the benefits derived from the Syndicate's diversified writings and the support of AEGIS, the parent, as factors in the positive ratings.
As you know from our e-mails and the 2010 annual report we just published, your mutual has now enjoyed two years of solid recovery since the financial meltdown of 2008 and the unusually high level of loss activity that occurred around the same time which included the wildfires in California. Thanks to your steadfast support and the various steps we had taken to improve our results, three-fourths of the surplus lost in 2008 has been recovered.
We also continue to recognize what an important long-term benefit continuity credits are to you, and as we have said before, we wanted to restore them as soon as practicable. Based on the year’s positive financial results, your Board of Directors has agreed that it is now appropriate to reinstate a continuity credit for the excess liability line of business to accompany the credits for D&O, property and AEGIS London. The following summarizes the credit declarations approved by the Board for the 2011-2012 year:
A continuity credit of 2.5% of the applicable surplus for excess liability members has been declared, noting that this is enabled in part due to the membership’s willingness to support more adequate premium levels and better recent year loss experience.
The continuity credit for D&O members will be 4%, an increase from the 2.5% surplus declared last year. This reflects the ongoing favorable loss experience in this line.
A premium credit of $3.5 million will be available for members who use our domestic property capacity, which is the same as last year, and is consistent with the continuing relatively favorable loss experience.
A premium credit of $1.0 million has been declared for those members who have placements with AEGIS London. This allows them to participate in the overall positive results there.
These credit programs set AEGIS apart from the commercial insurance industry because they allow you to share in the positive financial results of the Company. We have, in fact, returned $477 million to eligible policyholders over just the last 10 years.
The specific details that describe the individual credit amounts and how they can be applied to future policy renewals will be mailed to eligible excess liability, D&O and AEGIS London policyholders within the next few weeks. Policyholders who are eligible for the property credit will receive a letter with this same information this summer.
Our preliminary agenda begins on Tuesday afternoon with an often requested session designed especially for new members and brokers that will focus on the unique benefits of membership and how the mutual model works to the advantage of policyholders, particularly in terms of coverage and the payment of claims.
On Wednesday and Thursday, the agenda includes a management report that will focus on the successes of 2011, some of the distinct differences of AEGIS versus the commercial market, new initiatives and reports from key areas of the Company. We are very pleased that Greg Case, President and CEO of Aon, will join us, welcome us to Chicago and discuss his perspective on the insurance industry. In addition, we have invited Bob Hartwig, President of The Insurance Information Institute, to present his perennially popular update on current economic and insurance market conditions.
We also hope to explore a number of other topics during the general sessions and breakout sessions, including sources of major claims, D&O developments with Dan Bailey, pipelines and aging infrastructure, cyber risk, and major strategic issues for the electric and gas industries.
Conference registration is complimentary and attendees are invited to bring guests. Brokers must be connected with a current AEGIS member policy written through AEGIS in New Jersey to attend. AEGIS will reimburse one representative from each member company with a current AEGIS policy written through AEGIS in East Rutherford for the cost of three nights' lodging at the Sheraton Chicago Hotel and Towers. If you have any questions about your eligibility, please contact Gil Gould by e-mail or by phone at 201.508.2790.
Registration for the conference, hotel accommodations, tours and golf will open before the end of May. For more information, please contact Carrie White by e-mail or by phone at 201.508.2840.
Please register now for the next AEGIS Claims Roundtable seminar – Professionalism and Ethical Consideration in Case Management – which will be held Thursday, May 26 in Chicago.
Utility companies are faced with claims and lawsuits arising from catastrophic injuries suffered by members of the public. These injuries can result from events such as electrical contacts and gas explosions. Such cases can be defended and damages mitigated if they are professionally and ethically investigated, prepared, negotiated and presented to a jury.
A distinguished panel of experienced industry in-house and outside counsel will discuss ethics and professional conduct during all stages of case development such as investigation, e-discovery, settlement negotiations, the decision to try the case and trial tactics. As always, you're welcome to attend AEGIS Claims Roundtables in person or by videoconference, and Continuing Legal Education (CLE) credits are offered. For more information about the AEGIS Claims Roundtable program, please contact Jeff Schupack by e-mail or by phone at 201.508.2658.
Also, please mark your calendars for the remaining 2011 AEGIS Claims Roundtable seminar on Directing the Discovery Process to Accurately Evaluate the Case, to be held on Thursday, October 13 in East Rutherford and Thursday, October 27 in Las Vegas.
The 2010 annual report has been mailed to members and brokers and is now posted on our website. We encourage you to read about the successful year your Company had in 2010 and how member companies benefited from our unique approach to providing coverage and managing claims. You may order additional printed copies from email@example.com.