energy insurance mutual the westin innisbrook golf resort tarpon springs, florida february 22-24,...
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ENERGY ENERGY INSURANCE INSURANCE MUTUALMUTUAL
The Westin Innisbrook Golf ResortTarpon Springs, Florida
February 22-24, 2004
18th ANNUAL18th ANNUALRISK MANAGERSRISK MANAGERS
INFORMATION MEETINGINFORMATION MEETING
SURPLUS
2002 $386,055,000
2003 $461,167,000
Increase of $ 75,112,000
SURPLUS
380,000,000
400,000,000
420,000,000
440,000,000
460,000,000
480,000,000
500,000,000
1999 2000 2001 2002 2003
WRITTEN/EARNED PREMIUM
10,000,000
30,000,000
50,000,000
70,000,000
90,000,000
110,000,000
130,000,000
150,000,000
170,000,000
190,000,000
210,000,000
Written Earned
2004 A. M. BEST RATINGENERGY INSURANCE MUTUAL LIMITED
A
UNDERWRITING DEPARTMENTKaye Patrick, Jill Towell, Gary Gresham, Sandra Imbriani,
Jill Dominguez, Larry Baccari, Deana Edmonds, Scott Leiman
ADMINISTRATIONMartee Turner, Jane Murphy, Donna Dunlap, Sandi Schafstall
ACCOUNTING DEPARTMENT Joan Bryant, Sam Garvin, India Diaz, Cindy Prosser
CLAIMS NOTICE CATEGORIES
Category 1 Highly Improbable That It Will Impact EIM; Requires Only Periodic Review To Insure It Is Not Adversely Developing
Category 2 Requires Continuous Monitoring And Specific Actions
Category 3 Meets The Accepted Requirements For Setting Specific Loss Reserves
CLAIMS1986 - 2003
GENERAL LIABILITY
Paid: $180,434,000
Reserved: $ 5,800,000
DIRECTORS & OFFICERS
Paid: $127,250,000
Reserved: $244,050,000
2003 CATEGORY 2/3 OPEN CLAIMSDIRECTORS & OFFICERS LIABILITY
2001 3
2002 18
2003 1
2003 CATEGORY 2/3 OPEN CLAIMSGENERAL LIABILITY
1996 1998 2000 2001 2002 2003
Blackout - - - - - 1
Discrimination - - 1 - - -
Electric Contact - - - - - 1
Flooding 1 - - - - -
Gas Explosion - 2 - 2 1 -
Pollution - - - 1 - -
Product Liability - - 1 1 - -
POLICY YEAR
1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 20000
25,000,000
50,000,000
75,000,000
100,000,000
125,000,000
150,000,000
175,000,000
200,000,000
225,000,000
250,000,000
1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
DIRECTORS AND OFFICERS LIABILITY CLAIMSPAID AND RESERVED BY POLICY YEAR
1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 20030
25,000,000
50,000,000
75,000,000
100,000,000
125,000,000
150,000,000
175,000,000
200,000,000
225,000,000
250,000,000
1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
DIRECTORS AND OFFICERS LIABILITY CLAIMSPAID AND RESERVED BY POLICY YEAR
GENERAL LIABILITY CLAIMSPAID AND RESERVED BY POLICY YEAR
1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 20030
25,000,000
50,000,000
75,000,000
100,000,000
125,000,000
150,000,000
175,000,000
200,000,000
225,000,000
250,000,000
1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
GENERAL LIABILITY ANDDIRECTORS AND OFFICERS LIABILITY
CLAIMS PAID AND RESERVED BY POLICY YEAR
025,000,00050,000,00075,000,000
100,000,000125,000,000150,000,000175,000,000200,000,000225,000,000250,000,000
1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
General Liability Directors and Officers Liability
REINSURANCE 1999–2003
Reinsurance Premiums Paid
$ 74,169,000
Incurred Losses (Paid and Reserved)
$339,900,000
Recoverable From Reinsurers
$215,000,000
Reinsurers Loss Ratio 290%
REINSURANCE PROGRAM - 2004
Main Differences Over Expiring Program:
Dedicated D&O Limit
Greater retention by EIM
GENERAL LIABILITY
Maximum Capacity $100,000,000
2 - $50,000,000 Losses $ 43,000,000
Reinsurance Recovery
1 - $100,000,000 Loss $ 71,500,000
4 - $50,000,000 Losses $128,500,000
2 - $100,000,000 Losses $143,500,000
DIRECTORS AND OFFICERS LIABILITY
Maximum Limit Issued by EIM - $50,000,000
80% of $20,000,000 Each Loss
Excess of
$30,000,000 Each Loss
Nuclear Electric Insurance LimitedReinsures EIM for:
DIRECTORS AND OFFICERS LIABILITY
Maximum Capacity $50,000,000
Reinsurance Recovery
5 - $10,000,000 Losses $13,300,000
1 - $50,000,000 Loss $29,300,000
10 - $10,000,000 Losses $36,000,000
2 - $50,000,000 Losses $59,000,000
REINSURERS 2004Lloyd’s 55%
NEIL 15%
Platinum Re 13%
Odyssey Re 5%
Endurance Specialty 5%
Transatlantic Re 5%
Liberty Mutual 2%
100%
SURPLUS PROTECTION COVER
Protects Against Surplus ErosionFrom Any Cause Except
Distributions of Policyholders’ Surplus
SURPLUS PROTECTION COVER
Surplus at December 31, 2003 - $461,167,000
Cover will provide for 20% excess of 15%.
If Surplus dropped to $299,758,550 (65%), program would infuse up to $92,233,400 (20%) to bring
Surplus up to $391,991,950 (85%).
SURPLUS FLUCTUATIONS
1999 + 10.56%
2000 -2.41%
2001 +1.98%
2002 -4.52%
2003 +19.46%
SURPLUS FLUCTUATIONS
-20
-15
-10
-5
0
5
10
15
20
1999 2000 2001 2002 2003
Fluctuation Percentage
EIB 2003
22 Members Have 20 Programs
Year End Assets Almost $890,000,000