Insurance

Our terrorism position will continue as heretofore. It is our intention to avoid another WTC type loss. That is, a single terrorist loss greater than $20 million. Our Corporate retrocession continues not to cover this exposure going forward and we cannot risk our balance sheet to a large net loss.

This must be achieved through the use of exclusionary language or the underwriting of the risk. Ideally we would like to see exclusion on all business, however, we realize that there is business with little to no exposure from this type of loss and we do not wish to lose good business. The main exposures will come from a "large risk" loss due to terrorism (defined as any one risk or accumulation of risks to us that exceed our net retention of $20 million from a terrorist act). Given our line sizes, this will come from the following classes of business:

Property Facultative

Property Catastrophe

Property Per Risk

Proportional

Casualty Per Risk

Casualty Catastrophe / Clash

Casualty Facultative General Liability

Direct Property & Casualty

TREATY

We seek to exclude terrorism on all treaty contracts perceived to have an exposure to a market loss occurrence from this type of a peril. Therefore All National Account & Specialty writers