We are also pleased to report that the AEGIS Board of Directors approved the issuance of continuity credits and other premium credits at the same levels as last year to eligible members who participated in our general liability, directors and officers, property and AEGIS London programs.
Based on the positive 2011 financial results, and recognizing that the credit programs provide long-term benefits to our members, the Board declared the following for the 2012-2013 year:
A continuity credit of 2.5% of the applicable surplus for excess liability members, noting that this is enabled in part by the membership’s continued willingness to support adequate premium levels and the line’s somewhat better loss experience in recent years.
A continuity credit of 4% for D&O members, which reflects the ongoing favorable loss experience in the line.
A premium credit of $3.5 million which will be available for members who use our domestic property capacity, which is consistent with the line’s relatively favorable loss experience over the long term.
A premium credit of $1.0 million which will be available for members who have placements with AEGIS London, which allows them to participate in the overall positive results there.
These credit programs set AEGIS apart from the commercial market because they allow you to share in the positive financial results of the company. We have, in fact, declared more than $1.05 billion in continuity and premium credits to eligible policyholders since the inception of these programs, and they have helped our policyholders enjoy the lowest cost of risk over the long term.
The specific details that describe the individual credit amounts and how they can be applied to future policy renewals will be mailed to 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 later this summer.