1. 2006 UNDERWRITING REVIEW JILL DOMINGUEZ VICE PRESIDENT-UNDERWRITING

2. 2005 IN REVIEW NEW MEMBERS 9 MEMBERS AS OF 12/31/2005 175 GROSS PREMIUM EARNED $ 208.8 M

3. Chugach Electric Association, Inc.01/01/2005 Titan Propane LLC 01/31/2005 British Columbia Transmission Corporation04/01/2005 Tennessee Valley Authority05/20/2005 Enterprise Products Partners, L. P.07/14/2005 South Mississippi Electric Power Association08/29/2005 Mountaineer Gas Company09/30/2005 RGC Resources, Inc.10/01/2005 Targa Resources Investment Inc.10/31/2005 NEW MEMBERS IN 2005

4. TOTAL MEMBERSHIP

5. RETENTION 200596% 200499% 200396% 200299% 200199%

6. EIM MEMBERSHIP MIX

7. 2005 COMPARED TO 2004 2005 2004 GROSS PREMIUM$208,811,000$213,843,000 CASUALTY$174,088,000$ 179,370,000 PROPERTY$34,723,000$ 34,473,000

8.  New computer system for all casualty business  New ability to e-mail indications, quotes, and binders  Effective January 1, 2006, updated all casualty forms. All have 01/01/06 edition dates.EPIC

9. CASUALTY POLICY FORMS  No changes to coverage provided  All forms worded to clarify EIM policy is following form unless EIM terms are more specific  Definition of application modified to include underlying applications EFFECTIVE JANUARY 1, 2006

10. EIM’S PRODUCTS SUCCESSFUL IN MAINTAINING LARGE AMOUNT OF CAPACITY GENERAL LIABILITY  Capacity $100M  Availability Depends on Risk D&O/GENERAL PARTNER  Capacity $50M  $10M to $50M Available Depending on Risk FIDUCIARY LIABILITY  $25M Available Depending on Risk PROPERTY  Primary and Excess Quota Share  Capacity $20M

11. UPDATE BY LINE OF BUSINESS EXCESS GENERAL LIABILITY

12. EXCESS GENERAL LIABILITY 2005 OVERVIEW  $89,533,000 Gross Premium Earned 2005  $90,301,000 Gross Premium Earned 2004  169 EGL Policyholders  $74M Average Limit  $39M Average Attachment Point

13. EXCESS GENERAL LIABILITY EXCESS FORM CAN ALSO INCLUDE:  Excess EPLI  Excess Workers’ Compensation  Excess Professional Liability* ($65M Maximum Sublimit)  Drop Down Over Specific Aggregates in Underlying Policy  Drop Down Joint Venture * Usually ISOs/RTOs

14. 2005 HURRICANE SEASON KATRINA Notice of Circumstance letters are due to spills/releases in area; no third party claims directly related to spills RITA Five Notices of Circumstance due to spills/releases NO FORMAL CLAIMS FIRST TIME EIM HAS GL NOTICES DUE TO HURRICANES

15. UPDATE BY LINE OF BUSINESS EXCESS DIRECTORS AND OFFICERS LIABILITY AND FIDUCIARY LIABILITY

16. EXCESS DIRECTORS AND OFFICERS 2005 OVERVIEW  99 EDO Policyholders  37M Average Limit  $46.5M Average Attachment Point  $89,069,000 Gross Premium Earned (2004)  $84,555,000 Gross Premium Earned (2005) D&O pricing lower in first half of year; saw stabilization of rates in last two quarters.

17. EXCESS FIDUCIARY LIABILITY 2005 OVERVIEW   Maximum Limit of Liability Offered to Members: $25M   Member Must Have at Least $35M in Underlying Limits   41 Members Purchase Excess Fiduciary Liability

18. EXCESS FIDUCIARY LIABILITY  $8,257,000 Gross Premium Earned  $23M Average Limit  $38M Average Attachment Point  $5.9M Claims Paid Through 2005 Fiduciary pricing showed increasing trend in market; EIM pricing up slightly.

19. UPDATE BY LINE OF BUSINESS PROPERTY

20. PARTICIPATION IN MEMBERS’ PROPERTY PROGRAMS

21. 2005 PROPERTY LOSSES Three Hurricane Losses: Katrina, Rita, Wilma $12,650,000 Gross Loss Reported MPL Loss on Machinery/Equipment Dam Failure

22. PROPERTY LOSS RATIO 2001Under 1% 200220% 200323% 200427% 2005239% 113% Excluding Hurricane Losses

23. TRIA AND TRIEA CASUALTY TRIA-certified is offered Noncertified not excluded, but cap GL to $25M per Member, $125M EIM-wide PROPERTY TRIA-certified is offered No individual cap Noncertified is offered only for United States and Puerto Rico

24. TERRORISM POSITION CASUALTY   No Changes PROPERTY   $60M Annual Member-Wide Cap on EIM’s Participation   EIM Maximum Net Capacity $20M   No Sublimits on Individual Policies

25. TRIA TASK FORCE James O. Hess, Jr. Director Liability, Financial Insurance Duke Energy John E. Luley Manager, Corporate Insurance Pepco Holdings William R. Powell Manager, Risk Management Salt River Project Robert J. Semet Insurance Director Exelon Corporation Michael G. Whelan Director, Risk and Insurance TXU Corp.

26. HOW ARE WE DOING? 2005 RISK MANAGER SURVEY EIM follows reasonable, prudent, and sound underwriting practices: 99% Agree/Strongly Agree 99% Agree/Strongly Agree

27. EIM provides added value in form of broad coverage, price stability, consistent limits, and financial strength: 96% Agree/Strongly Agree 96% Agree/Strongly Agree HOW ARE WE DOING? 2005 RISK MANAGER SURVEY

28. Overall, EIM meets my expectations in level of service: 99% Agree/Strongly Agree 99% Agree/Strongly Agree