ENERGY INSURANCE MUTUAL The Westin Innisbrook Golf Resort Tarpon Springs, Florida February 22-24, th ANNUAL RISK MANAGERS INFORMATION MEETING

SURPLUS 2002$386,055, $461,167,000 Increase of$ 75,112,000

SURPLUS

WRITTEN/EARNED PREMIUM

2004 A. M. BEST RATING ENERGY INSURANCE MUTUAL LIMITED A

UNDERWRITING DEPARTMENT Kaye Patrick, Jill Towell, Gary Gresham, Sandra Imbriani, Jill Dominguez, Larry Baccari, Deana Edmonds, Scott Leiman

ADMINISTRATION Martee Turner, Jane Murphy, Donna Dunlap, Sandi Schafstall

ACCOUNTING DEPARTMENT Joan Bryant, Sam Garvin, India Diaz, Cindy Prosser

CLAIMS NOTICE CATEGORIES Category 1Highly Improbable That It Will Impact EIM; Requires Only Periodic Review To Insure It Is Not Adversely Developing Category 2Requires Continuous Monitoring And Specific Actions Category 3Meets The Accepted Requirements For Setting Specific Loss Reserves

CLAIMS 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 CLAIMS DIRECTORS & OFFICERS LIABILITY

2003 CATEGORY 2/3 OPEN CLAIMS GENERAL LIABILITY Blackout Discrimination Electric Contact Flooding Gas Explosion Pollution Product Liability POLICY YEAR

DIRECTORS AND OFFICERS LIABILITY CLAIMS PAID AND RESERVED BY POLICY YEAR

GENERAL LIABILITY CLAIMS PAID AND RESERVED BY POLICY YEAR

GENERAL LIABILITY AND DIRECTORS AND OFFICERS LIABILITY CLAIMS PAID AND RESERVED BY POLICY YEAR

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 Ratio290%

REINSURANCE PROGRAM Main Differences Over Expiring Program:  Dedicated D&O Limit  Greater retention by EIM

GENERAL LIABILITY Maximum Capacity $100,000, $50,000,000 Losses $ 43,000,000 Reinsurance Recovery 1 - $100,000,000 Loss $ 71,500, $50,000,000 Losses $128,500, $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 Limited Reinsures EIM for:

DIRECTORS AND OFFICERS LIABILITY Maximum Capacity $50,000,000 Reinsurance Recovery 5 - $10,000,000 Losses $13,300, $50,000,000 Loss$29,300, $10,000,000 Losses $36,000, $50,000,000 Losses $59,000,000

REINSURERS 2004 Lloyd’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 Erosion From Any Cause Except Distributions of Policyholders’ Surplus

SURPLUS PROTECTION COVER Surplus at December 31, $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 % % % % %

SURPLUS FLUCTUATIONS

EIB 2003  22 Members Have 20 Programs  Year End Assets Almost $890,000,000