We are pleased to announce a new underwriting alliance with Everest National Insurance Company, who will partner with us to provide primary admitted coverages for AEGIS members and non-member energy companies. The new AEGIS-Everest alliance is effective for business incepting January 1, 2016. It replaces our previous alliance with Liberty Mutual, and provides a more efficient and viable long-term structure. Liberty Mutual policies remain in effect per their terms; however, AEGIS will no longer be reinsuring Liberty Mutual policies incepting on and after January 31, 2016.
Everest National has a full admitted product offering including primary and excess workers' compensation, general liability and automobile coverage. Everest has full claims administration capabilities internally but, at an insured's request, they will accept third party administrators subject to their review process. Limits are available up to statutory for workers' compensation, up to $2 million for automobile and general liability, and up to $10 million for railroad protective liability. Everest National will also offer other services previously provided by Liberty Mutual, such as the certificate of insurance program.
Everest National is part of Everest Re Group, a world leader in property and casualty reinsurance and insurance, with an A.M. Best rating of A+ (Superior) with a stable outlook. AEGIS has a longstanding and substantial reinsurance relationship with Everest, and we know their management team well. We're confident that by partnering with Everest we will together be able to capably meet your primary admitted market insurance needs. This alliance will also benefit AEGIS, which will be a 55% quota share reinsurance participant on most risks and 100% on certain risks. In addition, these net premiums paid to AEGIS will be included in your premiums paid for purposes of calculating your excess liability continuity credit.
For more information, or to renew expiring alliance policies through the new AEGIS-Everest alliance, please contact George Keefe by e-mail or by phone at 201.508.2797, or contact your AEGIS underwriter.
We are pleased to report that, all in all, things have gone pretty well financially for AEGIS since we were last together for the Policyholders’ Conference. Happily, underwriting is performing better than planned in both the US and London, while investments are a drag on our bottom line. As of September 30, total surplus has grown to $1.238 billion, an increase of $16 million since year-end. This is largely due to our overall combined ratio being 87%, comprised of a US combined ratio of 92% and a London combined ratio of 82%. These positive ratios are in large part due to favorable runoff of prior years. Unfortunately, our investment total return is at -0.95%, which is 3.42% worse than planned. I think you’ll agree that these results certainly highlight the importance of getting our underwriting right in this difficult investment market. Since September 30, investments have picked up a bit, and we are still hopeful that with a little more help there we can achieve our financial plan for the year.
Please register now for our next regional member and broker meetings which will be held on Tuesday, November 17 in the Washington, D.C. area at the Crystal Gateway Marriott in Arlington, Virginia, and on Tuesday, December 8 in Atlanta at the Westin Peachtree Plaza.
Our regional member and broker meetings are one of the best ways we stay in touch with you, and they help us make sure you’re getting exactly what you need from AEGIS. If you’re not able to join us on November 17 or December 8, please save the date for these upcoming meetings:
San Francisco, CA
Tuesday, January 5
Wednesday, March 16
The regional meetings 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, general insurance market conditions, cyber risk, ERM 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. We look forward to seeing you!
Please save the date for the 2016 AEGIS Policyholders’ Conference, which will be held Monday, July 25 to Thursday, July 28, 2016 at The Westin Boston Waterfront, located in the revitalized waterfront district overlooking Boston Harbor. Our annual conference is an opportunity for us to share information about AEGIS and the insurance and energy industries – and for you to share your needs, concerns and suggestions with us. We look forward to seeing you, your family and guests in Boston!
Please register now for the next in the series of monthly webinars conducted by AEGIS Loss Control –Leak Survey Technology for Natural Gas Systems – which will be held on Wednesday, November 4, from 1:00 pm to 2:00 pm, Eastern Standard Time.
All operators of jurisdictional natural gas distribution systems must at various intervals conduct a gas leak survey of the system to ensure that the system is not leaking. The 49 CFR Part 192 Subpart M (Maintenance) regulation prescribes minimum requirements for maintenance of pipelines. Included in the subpart is §192.723, which requires each natural gas distribution system operator to conduct periodic surveys of its entire system for the purpose of locating and eliminating system leaks. Leakage surveys of business districts, typically areas where there is wall-to-wall pavement, must be conducted at intervals not exceeding 15 months, but at least once each calendar year. Remaining portions of the system must be surveyed at intervals not exceeding five years, except for unprotected distribution pipelines subject to §192.465(e), which must be surveyed at intervals not exceeding three years. The location, condition, pipe material and population densities are some of the factors that are considered in the determination of the survey frequency.
This webinar will review the current state-of-the-art natural gas leak detection technologies, including flame-ionization (FID), optical infrared and laser leak technologies. Leak classification and pin-pointing using state-of-the-art combustible gas detectors (CGIs) from catalytic combustion/thermal conductivity to optical infrared technologies will be discussed. Portable, mobile, aerial and fixed applications of the technologies and new technologies on the horizon will be covered as well.
The webinar will be conducted by Jim Rutherford, Vice President of the Products Business Unit at Heath Consultants Incorporated. Jim holds four related product patents, including three for plastic heaters and one patent pending on leak detection signal processing. Jim holds a Bachelor of Science degree in Electrical Engineering and a Master of Science in Management of Technology, both from the University of Minnesota.
On the morning of the webinar, you will receive a reminder and instructions for participating. If you have any questions in the meantime, please contact Michelle Battagliese by e-mail or by phone at 201.508.2855.
The AEGIS Loss Control webinar in December will focus on utility contractor pre-qualifications, and details will be posted on our website shortly.
If you have any questions about the monthly AEGIS Loss Control webinars, please contact Scot Macomber, Vice President – Loss Control Utility Operations, by e-mail or by phone at 201.508.2739.