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A PRESENTATION TO THE
AMERICAN PUBLIC POWER ASSOCIATION
RISK MANAGEMENT
AND
INSURANCE COMMITTEE
JILL DOMINGUEZ
VICE PRESIDENT-UNDERWRITING
ENERGY INSURANCE MUTUAL
MARCH 30, 2007
HYATT REGENCY AUSTIN
AUSTIN, TEXAS
EIM’S PRODUCTS
GENERAL 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
2005
2004
2003
2002
97%
96%
99%
96%
99%
EIM PUBLIC POWER
MEMBERS
City of Anaheim
City of Richmond, Dept. of
Public Utilities
City Utilities of Springfield, MO
District of Columbia Water and
Sewer Authority
Grand River Dam Authority
Imperial Irrigation District
Los Angeles Department of
Water and Power
Long 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’S
EXCESS 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’ Compensation
21.3%
 Drop Down Joint Venture
40.6%
 Drop Down Over Specific Aggregates
64.5%
GENERAL LIABILITY
UNDERWRITING “HOT BUTTONS”
ELECTRIC
System Safety and Reliability
GAS
System Safety
Vegetation Management
Asset Repair/Replacement
Process Safety – Attitude at the Top Process Safety – Attitude at the Top
Dams – FERC Inspection Reports,
Significant and High Hazard
DOT Form 7100 – Type of Pipe,
Miles, Class of Pipe Leakage Rate
2006 CATEGORY 2/3 OPEN CLAIMS
GENERAL LIABILITY
GAS EXPLOSION
FIRE
POLLUTION
ELECTRIC CONTACT
FLOOD
9
4
1
1
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.
CLAIMS PAID AND RESERVED
350,000,000
300,000,000
250,000,000
200,000,000
150,000,000
100,000,000
50,000,000
0
86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06
19 19 19 19 19 19 19 19 19 19 19 19 19 19 20 20 20 20 20 20 20
General Liability
Directors and Officers
CLIMATE CHANGE CONCERNS
EIM POSITION:
-Currently, no plans to exclude
“climate change.”
-Currently no plans to roll out
“climate change insurance.”
UNDERWRITING CONCERNS
 New Plants Being Built/Retrofit/Repowered
 Risks of Greater Storm Activity
 Liability Arising from Noncompliance with
Regulations
 D&O Suits
- Mismanagement
- Securities Class Actions
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 UNDERWRITING
CRITERIA 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
ENERGY INSURANCE MUTUAL
2006 A. M. BEST’S RATING: A
OUTLOOK: STABLE
“The rating reflects the Company’s excellent
capitalization, historically strong operating
returns, and conservative leverage position.”
For more information, please visit
www.eimltd.com.
Email:
[email protected]
Call:
Jill Dominguez
(813) 287-2117 ext. 110