1 / 28

2006 UNDERWRITING REVIEW

2006 UNDERWRITING REVIEW. JILL DOMINGUEZ VICE PRESIDENT-UNDERWRITING. 2005 IN REVIEW. NEW MEMBERS 9 MEMBERS AS OF 12/31/2005 175 GROSS PREMIUM EARNED $ 208.8 M. NEW MEMBERS IN 2005. Chugach Electric Association, Inc. 01/01/2005 Titan Propane LLC 01/31/2005

dysis
Download Presentation

2006 UNDERWRITING REVIEW

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. 2006 UNDERWRITING REVIEW JILL DOMINGUEZ VICE PRESIDENT-UNDERWRITING

  2. 2005 IN REVIEW NEW MEMBERS 9 MEMBERS AS OF 12/31/2005 175 GROSS PREMIUM EARNED $ 208.8 M

  3. NEW MEMBERS IN 2005 Chugach Electric Association, Inc. 01/01/2005 Titan Propane LLC 01/31/2005 British Columbia Transmission Corporation 04/01/2005 Tennessee Valley Authority 05/20/2005 Enterprise Products Partners, L. P. 07/14/2005 South Mississippi Electric Power Association 08/29/2005 Mountaineer Gas Company 09/30/2005 RGC Resources, Inc. 10/01/2005 Targa Resources Investment Inc. 10/31/2005

  4. TOTAL MEMBERSHIP

  5. RETENTION 2005 96% 2004 99% 2003 96% 2002 99% 2001 99%

  6. EIM MEMBERSHIP MIX

  7. 2005 COMPARED TO 2004

  8. EPIC • New computer system for all casualty business • New ability to e-mail indications, quotes, and binders • Effective January 1, 2006, updated all casualty forms. All have 01/01/06 edition dates.

  9. CASUALTY POLICY FORMS • No changes to coverage provided • All forms worded to clarify EIM policy is following form unless EIM terms are more specific • Definition of application modified to include underlying applications EFFECTIVE JANUARY 1, 2006

  10. EIM’S PRODUCTS SUCCESSFUL INMAINTAINING LARGE AMOUNT OF CAPACITY GENERAL LIABILITY • Capacity $100M • Availability Depends on Risk D&O/GENERAL PARTNER • Capacity $50M • $10M to $50M Available Depending on Risk FIDUCIARY LIABILITY • $25M Available Depending on Risk PROPERTY • Primary and Excess Quota Share • Capacity $20M

  11. EXCESS GENERAL LIABILITY UPDATE BY LINE OF BUSINESS

  12. EXCESS GENERAL LIABILITY2005 OVERVIEW • $89,533,000 Gross Premium Earned 2005 • $90,301,000 Gross Premium Earned 2004 • 169 EGL Policyholders • $74M Average Limit • $39M Average Attachment Point

  13. EXCESS GENERAL LIABILITY EXCESS FORM CAN ALSO INCLUDE: • Excess EPLI • Excess Workers’ Compensation • Excess Professional Liability* ($65M Maximum Sublimit) • Drop Down Over Specific Aggregates in Underlying Policy • Drop Down Joint Venture * Usually ISOs/RTOs

  14. 2005 HURRICANE SEASON FIRST TIME EIM HAS GL NOTICES DUE TO HURRICANES KATRINA Notice of Circumstance letters are due to spills/releases in area; no third party claims directly related to spills RITA Five Notices of Circumstance due to spills/releases NO FORMAL CLAIMS

  15. UPDATE BY LINE OF BUSINESS EXCESS DIRECTORS AND OFFICERS LIABILITY AND FIDUCIARY LIABILITY

  16. EXCESS DIRECTORS AND OFFICERS2005 OVERVIEW • 99 EDO Policyholders • 37M Average Limit • $46.5M Average Attachment Point • $89,069,000 Gross Premium Earned (2004) • $84,555,000 Gross Premium Earned (2005) D&O pricing lower in first half of year; saw stabilization of rates in last two quarters.

  17. EXCESS FIDUCIARY LIABILITY2005 OVERVIEW • Maximum Limit of Liability Offered to Members: $25M • Member Must Have at Least $35M in Underlying Limits • 41 Members Purchase Excess Fiduciary Liability

  18. EXCESS FIDUCIARY LIABILITY • $8,257,000 Gross Premium Earned • $23M Average Limit • $38M Average Attachment Point • $5.9M Claims Paid Through 2005 Fiduciary pricing showed increasing trend in market; EIM pricing up slightly.

  19. UPDATE BY LINE OF BUSINESS PROPERTY

  20. PARTICIPATION IN MEMBERS’ PROPERTY PROGRAMS

  21. 2005 PROPERTY LOSSES Three Hurricane Losses: Katrina, Rita, Wilma $12,650,000 Gross Loss Reported MPL Loss on Machinery/Equipment Dam Failure

  22. PROPERTY LOSS RATIO 113% Excluding Hurricane Losses

  23. TRIA AND TRIEA PROPERTY • TRIA-certified is offered • No individual cap • Noncertified is offered only for United States and Puerto Rico CASUALTY • TRIA-certified is offered • Noncertified not excluded, but cap GL to $25M per Member, $125M EIM-wide

  24. TERRORISM POSITION CASUALTY • No Changes PROPERTY • $60M Annual Member-Wide Cap on EIM’s Participation • EIM Maximum Net Capacity $20M • No Sublimits on Individual Policies

  25. TRIA TASK FORCE

  26. HOW ARE WE DOING?2005 RISK MANAGER SURVEY EIM follows reasonable, prudent, and sound underwriting practices: 99% Agree/Strongly Agree

  27. HOW ARE WE DOING?2005 RISK MANAGER SURVEY EIM provides added value in form of broad coverage, price stability, consistent limits, and financial strength: 96% Agree/Strongly Agree

  28. HOW ARE WE DOING?2005 RISK MANAGER SURVEY Overall, EIM meets my expectations in level of service: 99% Agree/Strongly Agree

More Related