Happy New Year! We are pleased to report that our office has been functioning as usual since power was restored on November 2, and while a number of our employees experienced storm damage to their homes, we are grateful no one was seriously injured and there was only minor damage to our office building.
Superstorm Sandy had a widespread effect on AEGIS members and we are in the process of working with those who were in the path of the storm. As you would imagine, a number of members sustained significant property losses to T&D systems, plants and other equipment. While it is still too early to calculate the full extent of insured losses related to Sandy with any degree of certainty, we have had substantial dialogues with our affected members and have formed some preliminary estimates of our New Jersey and London Syndicate's property exposures. Our reinsurance programs offer significant per risk and catastrophe protections that help limit our net losses and, at this time, we expect that our reinsurance programs will contain our total net property losses to approximately $40 to $50 million on a pre-tax basis.
Although we have received a number of notices of liability claims from our insureds, here and in London, it is too early to make an estimate of our liability for this line of business. Again, we have casualty reinsurance designed to ameliorate the potential impact of these losses.
We will, of course, update you in due course, as better information allows better estimates. In addition, we are in the midst of our year-end actuarial review of all of our current and prior year loss experience which will allow us to assess the financial impact of Sandy in that overall context.
All parties benefit from the face-to-face renewal meetings that take place here in East Rutherford, in Manhattan or in the offices of our members. We always come away with a better understanding of your risks when we can discuss them with you in real time. And we sense that you gain a better appreciation of the benefits of AEGIS when we can take time to discuss the state of the mutual, highlight its strength and its flexibility, and introduce you to some of the professionals who work behind the scenes.
In recent times, a number of you have brought your CEOs, CFOs and other senior executives along for high-level discussions with me and other members of my senior staff. We think these expanded meetings are particularly productive. We’re told the exposure helps you because your senior folks can see firsthand that there is a black-and-white difference between AEGIS and the commercial carriers that participate above or alongside us on your programs. And these meetings are a great benefit to us because we learn more about your company and the industry on a broad strategic level.
We are always pleased when we can hold these meetings here in East Rutherford or Manhattan. We know your senior people often come to New York for industry meetings and to meet with security analysts and investment bankers. With some careful coordination, we could arrange more of our renewal meetings to coincide with their plans. Alternatively, Wes von Schack and I could travel to meet your senior people in your offices on selected occasions if that would make things easier. We hope you’ll keep this in mind as you schedule your renewal discussions with us.
Please register now for one of these upcoming regional member and broker meetings:
Phoenix on Tuesday, February 12
Houston on Wednesday, February 13
Our regional meetings give you an opportunity to tell us about the issues on your mind, what you need from AEGIS, and how we’re doing. They are also an ideal way to further involve your risk management and finance colleagues with your company’s insurance program, discuss current energy and insurance issues, and learn more about your mutual. At these meetings, small groups of members and brokers meet with AEGIS senior management to discuss these topics as well as any new initiatives at AEGIS. We’ll also answer any questions you may have. Most attendees find that these small meetings are conducive to comparing notes and networking with other risk managers and brokers. Please come prepared to discuss risk management issues, insurance market conditions, enterprise risk management and other current topics.
Each meeting is a one-day event and you should be able to drive or fly between home and the meeting on the same day. However, if you need to stay overnight, AEGIS will reimburse one person from each member company for one night’s stay in the meeting hotel.
The regional meeting in Chicago on Wednesday, January 23, is now fully booked and we are pleased so many of you will join us. If you were not able to register for the Chicago meeting, please consider joining us in either Phoenix or Houston.
Please save the date for PHC 2013, which will be held Monday, July 29 to Thursday, August 1, at the Baltimore Marriott Waterfront in Baltimore, Maryland.
The hotel is situated directly on Baltimore's Inner Harbor, a beautiful and vibrant waterfront district, which has been dramatically revitalized over the past 20 years. Most of the city's best attractions are a quick walk or water taxi ride away, including Fort McHenry, where a battle during the War of 1812 inspired "The Star-Spangled Banner," Camden Yards, home to the Baltimore Orioles, and the National Aquarium, one of the most sophisticated and technologically advanced aquariums in the world. We're planning another informative and entertaining conference and we look forward to seeing you, your families and guests next summer at PHC 2013 in Baltimore.
The 2013 AEGIS Electric Utility Machinery Seminar – Electric Generation: Issues, Trends and Practical Solutions – will be held in Pittsburgh at the Omni William Penn on Tuesday and Wednesday, April 16 and 17. Sponsored by AEGIS Loss Control, the two-day seminar includes presentations by industry experts, consultants, and AEGIS members on a variety of topics that affect power plant equipment. Issues regarding critical machinery apparatus, such as transformers, steam turbines, generators, high energy piping systems and related components, will be addressed.
AEGIS member company personnel from risk management, operations, maintenance, engineering and claims, as well as AEGIS brokers, are encouraged to attend.
Registration and hotel reservations will open later this month. The seminar registration fee is $495 per person, which covers all sessions and meals. In the meantime, please do not contact the hotel directly. We have reserved a block of rooms for the seminar and they will be available when reservations open. Dress for the seminar is business casual.
If you have any questions about the program, please contact David Miller, Manager – Loss Control Property Operations, by e-mail or by phone at 201.508.2740. For questions regarding the hotel or other logistics, please contact Leah Convery by e-mail or by phone at 201.508.2872.
Twenty-five (25) member company employees from 15 member companies attended a fire protection system training course in October in Warren, NJ, sponsored by AEGIS Loss Control. The two-day training course provided classroom as well as real-life, hands-on instruction on the various types of fire protection equipment and systems associated with electric generating stations. The course covered water supplies, fire pumps/controllers, wet pipe sprinklers, dry pipe sprinklers, deluge/preaction sprinklers, water mist systems, detection & actuation systems, and alarm systems. More than 79% of the attendees rated the course as "outstanding" or "exceeds expectations" and comments were very positive as well, including this one from a member company employee: "This was very interesting training. The agenda was completely applicable to our plant regarding the testing, operation and maintenance of the fire system equipment. The methodology of the course was appropriate because it combined theory with practice, and we could see firsthand the operation of different equipment."
This was the second consecutive year that AEGIS Loss Control offered the course, and based on the positive response from member companies, we plan to offer it again in 2013. In the meantime, for more information, please contact David Miller, Manager – Loss Control Property Operations, by e-mail or by phone at 201.508.2740.