JILL DOMINGUEZVICE PRESIDENT-UNDERWRITINGENERGY INSURANCE MUTUAL
MARCH 30, 2007HYATT REGENCY AUSTINAUSTIN, TEXAS
A PRESENTATION TO THE AMERICAN PUBLIC POWER ASSOCIATION
RISK MANAGEMENTAND
INSURANCE COMMITTEE
EIM’S PRODUCTSGENERAL LIABILITY
$100,000,000
D&O/GENERAL PARTNER LIABILITY$50,000,000
FIDUCIARY LIABILITY$25,000,00
ALL EXCESS OF AT LEAST$35,000,000
PROPERTY$35,000,000
MEMBERSHIP MIX
MEMBER RETENTION RATE
2006 97%2005 96%2004 99%2003 96%2002 99%
EIM PUBLIC POWER MEMBERS
City of AnaheimCity of Richmond, Dept. of
Public UtilitiesCity Utilities of Springfield, MODistrict of Columbia Water and
Sewer AuthorityGrand River Dam Authority Imperial Irrigation DistrictLos Angeles Department of
Water and PowerLong Island Power Authority
Massachusetts Water Resources Authority
Metropolitan Water District of Southern California
Modesto Irrigation District New York Power Authority Orlando Utilities Commission Public Utility District No. 2 of
Grant County Washington Sacramento Municipal Utility
District Salt River Project
CATASTROPHE EXCESS LIABILITY PROGRAM
$25,000,000 Per Occurrence
Total Shared Aggregate $25M Times the Number of Participants Less $25M
Currently Four Participants Which Equates to the Shared Aggregate Limit:$25M X 4 = $100M Less $25M or $75M
Credit: 15% Discount for Shared Limit
EPPIC MEMBERS IN EIM’SEXCESS LIABILITY PROGRAM
City of Anaheim Imperial Irrigation District Modesto Irrigation District Orlando Utilities Commission
GENERAL LIABILITY $84,425,249 Gross Written Premium
155 EGL Policyholders
$75.2M Average Limit
$38.6M Average Attachment Point
48% of GL Policies Written for Maximum $100M Limit
GENERAL LIABILITY ENHANCEMENTS EPLI
47.7%
Workers’ Compensation21.3%
Drop Down Joint Venture40.6%
Drop Down Over Specific Aggregates64.5%
GENERAL LIABILITY UNDERWRITING “HOT BUTTONS”
ELECTRICSystem Safety and Reliability
Vegetation Management
Process Safety – Attitude at the Top
Dams – FERC Inspection Reports, Significant and High Hazard
GASSystem Safety
Asset Repair/Replacement
Process Safety – Attitude at the Top
DOT Form 7100 – Type of Pipe, Miles, Class of Pipe Leakage Rate
2006 CATEGORY 2/3 OPEN CLAIMSGENERAL LIABILITY
GAS EXPLOSION 9FIRE 4POLLUTION 1ELECTRIC CONTACT 1FLOOD 2
TIMES CHANGE
1986 - The Utility Industry Had Never Suffered a GL or D&O Loss in Excess of $25,000,000.
1996 - EIM Had GL Losses Totaling $98,200,000 and D&O Losses Totaling $57,650,000.
2006 - EIM Had Incurred GL Losses Totaling $221,587,000 and Incurred D&O Losses Totaling $510,781,000.
0
50,000,000
100,000,000
150,000,000
200,000,000
250,000,000
300,000,000
350,000,000
General Liability Directors and Officers
CLAIMS PAID AND RESERVED
CLIMATE CHANGE CONCERNS
EIM POSITION:-Currently, no plans to exclude “climate change.”
-Currently no plans to roll out “climate change insurance.”
New Plants Being Built/Retrofit/Repowered
Risks of Greater Storm Activity
Liability Arising from Noncompliance with Regulations
D&O Suits- Mismanagement- Securities Class Actions
UNDERWRITING CONCERNS
EIM’S OTHER PRODUCTS
DIRECTORS AND OFFICERS LIABILITY
$63,150,328 Gross Premium Written
91 EDO Policyholders
$38M Average Limit
$44M Average Attachment Point
45% of D&O Policies Written for Maximum $50M Limit
FIDUCIARY LIABILITY
$6,349,807 Gross Written Premium
$22.6M Average Limit
$38M Average Attachment Point
PROPERTY UNDERWRITINGCRITERIA FOR MAXIMUM CAPACITY
Basic Capacity $35M Except Tier One Wind and Zone One CAT EQ. (Tier One Equals the East Coast Counties Around Florida and the Gulf Coast.)
Primary or Excess
Quota Share
2006 A. M. BEST’S RATING: AOUTLOOK: STABLE
“The rating reflects the Company’s excellent capitalization, historically strong operating returns, and conservative leverage position.”
ENERGY INSURANCE MUTUAL
For more information, please visit www.eimltd.com.
Email: [email protected]
Call: Jill Dominguez(813) 287-2117 ext. 110
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