2002 Houston Marine Insurance Seminar

Gil GouldSenior Vice President, Underwriting

September 24, 2002

The Mission of AEGIS is to assure utility and related energy industry Members consistently superior insurance and risk management products and services through a secure and stable market enabling Members to achieve the lowest overall long-term cost of risk.

AEGIS Mission Statement

Current Membership

5%

7%

9%

17%

17%

38%

3% 4% Water Utility

Telecommunications

Energy Contractors

Other

Gas and Electric

Exploration and Production

Gas

Electric

AEGIS Program

New Related Energy Members

Year New Members

2000 47

2001 43

2002 (Through July) 20

Related Energy Members

Primary Program with Liberty Mutual

Accounts

Starting September 2000 12

2001 54

As of September 1, 2002 75

AEGIS Related Energy Focus

• Exploration and Production Operations (Oil and Gas)

– Lease Operations

– Owner Operators

• Oil and Gas Servicing Contractors

– Contractors whose primary business is services Rigs (Not Part-Time Contractors).

– Contractors whose primary business is Land Based Rigs.

Director’s and Officer’s Liability

Underwriting Considerations

• Company Operations– Electric/Gas– Nuclear Electric– Related Energy– Merchant Power– Trading Operations– Telecom

Director’s and Officer’s Liability

Underwriting Considerations

• Business Strategy– Conservative (Traditional Utility)– Moderate (Related Energy)– Aggressive (Energy Trading, Unregulated)

• Financial Condition

• Merger Activity

• Stock Market Fundamentals

• Off Balance Sheet Financing

Director’s and Officer’s Liability

Underwriting Considerations

• Board of Directors– Inside vs. Outside Directors– Committee Composition– Conflict of Interest

Financial Products

• Contingent Financing– Provides post loss financing for risks– Combined with risk transfer

• Captive Options– Fronting, stop loss, risk funding– AEGIS Solutions ( SAC )

• Deductible Options– Evidence of Insurance to meet loan provisions, DIC– Risk transfer or funding

Committees and Task Forces

• Risk Management Advisory Committee

• International Risk Management Advisory Committee

• Claims Services Task Force

• Loss Control Task Force