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Swiss Re Acquires
Big “I” Agency E&O Book

In a transaction announced today, General Electric CEO Jeffrey Immelt delivered on the long promised divestiture of their insurance operations known as GE Insurance Solutions (GEIS). The Big "I" Professional Liability Committee enthusiastically welcomed the news on a conference call with representatives of Westport Insurance Company (a GEIS insurer).

Formally announced in the early hours Friday, Nov. 18, 2006, the deal was widely reported in the Wall Street Journal, New York Times as well as insurance trade press like Business Insurance. In a cash-and-stock deal valued at nearly $7 billion, Swiss Re gets not only enough reinsurance business to vault it past rival reinsurer Munich Re but it also obtains an important product endorsement by the Independent Insurance & Brokers of America and its 51 member state associations.

The Big "I" Professional Liability Program, known for leading the insurance agency/broker professional liability industry in providing innovative coverages, has consistently been one of the top association insurance programs in the United States. Nearly two-thirds of Big "I" member agencies obtain their professional liability coverage through the program. Member agencies access the program through the trusted counsel of their state Big "I" associations, and watching over the program at the national level is a committee of member, state association and national staff the Big "I" president appoints annually.

"The acquisition portends great things for the national E&O program," GEIS National Accounts Manager Mark Male said on the call with the Big "I" Professional Liability Committee. "Swiss Re is a highly respected and very financially secure company that matches perfectly with this industry leading program and the top insurance agency trade association."

Male noted that in the materials covered with analysts, "Swiss Re CEO John Coomber points out the intention is to grow commercial professional liability lines like agency E&O." Male said the same materials show that of $6.2 billion in net earned premiums acquired, Swiss Re is getting $1.2 billion in primary business, of which the Big "I" program is a substantial part. "Agency E&O is our biggest CI professional line of business," Male said.

**Source: Swiss Re Web site , slide 28.

"Swiss Re is a well-known and world class risk taker in professional liability," said Matt Berry, Big "I" Professional Liability Committee chairman and agency principal from Austin, Texas. "We are thrilled to have our program become part of the Swiss Re operations, and they should be thrilled to have our program, as we have a great franchise."

Berry noted the Big "I" program has 18 expert agency E&O underwriters at GEIS as well as industry-respected loss adjusting capability with a network of specialized agency professional liability claims attorneys. "Our program and its infrastructure would be a welcomed addition to any insurer that is interested in non-medical professional liability."

Paul Buse, president of Big "I" Advantage, the membership products and services subsidiary of the Big "I," said this is an extremely positive development for agents and the national E&O program. "With the endorsement of the national association, in combination with the grassroots capabilities at our 51 state associations, we look forward to growing our relationship with a like-minded and prestigious insurer like Swiss Re," he said. "It will be wonderful to again have our program be a part of an organization where everyone from the CEO to the newest employee all eat, sleep and breathe the insurance business."