Exhibit 10.1
ADDENDUM NO. 1
to the
WHOLE ACCOUNT NET QUOTA SHARE
REINSURANCE CONTRACT
EFFECTIVE: APRIL 1, 2003
issued to
Philadelphia Insurance Company
Bala Cynwyd, Pennsylvania
Philadelphia Indemnity Insurance Company
Bala Cynwyd, Pennsylvania
Mobile USA Insurance Company
Pinellas Park, Florida
Liberty American Insurance Company
Pinellas Park, Florida
and
any and all other companies which are now
or may hereafter become member companies of
Philadelphia Consolidated Holding Corporation
and are approved by the Reinsurer
IT IS HEREBY AGREED, effective January 1, 2004, with respect to business issued
or renewed on or after that date, that this Contract shall be amended as
follows:
1. Mobile USA Insurance Company, Pinellas Park, Florida, and Liberty American
Insurance Company, Pinellas Park, Florida, shall be deleted as named
reinsureds under this Contract, and the term "Company," wherever it
appears in this Contract, shall refer collectively to "Philadelphia
Insurance Company, Philadelphia Indemnity Insurance Company, both of Bala
Cynwyd, Pennsylvania, and any and all other companies which are now or may
hereafter become member companies of Philadelphia Consolidated Holding
Corporation and are approved by the Reinsurer."
2. Paragraphs A and C of Article V - Retention and Limit - shall be deleted
and the following substituted therefor:
"A. Except as provided below, as respects business subject to this
Contract, the Company shall retain and be liable for 90.0% of its
net liability. The Company shall cede to the Reinsurer and the
Reinsurer agrees to accept 10.0% of the Company's net liability.
On July 1, 2004, the Company shall have the option of increasing the
percentage of its net liability ceded hereunder to a maximum of
20.0% or decreasing the percentage of its net liability ceded
hereunder to a minimum of 5.0% for the business issued or renewed on
or after that date."
"C. Provided the Reinsurer's ratio of losses to premiums earned is
greater than 63.0%, the Reinsurer's ratio of losses incurred to
premiums earned (as defined in Article XI) for any one contract year
shall not exceed any of the following, or so deemed:
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1. 95.0% for Errors and Omissions Liability, Directors and
Officers Liability, Leasing or GAPP business, and Umbrella
Liability business combined; however, the losses incurred for
such business shall not exceed $180,000,000 in total;
2. 95.0% for all other business subject to this Contract.
The loss ratio applied to the business ceded for the entire current
contract year shall be the actual loss ratio result for the total
Business Reinsured for the entire contract year, without adjustment
for different percentages of net liability ceded for different
portions of the current contract year.
The Company will retain and be liable for any loss in excess of
these amounts."
3. Article XIII - Reinsurer's Expense Allowance - shall be deleted and the
following substituted therefor:
"A. The Reinsurer's expense allowance shall be determined based upon the
amount of ceded net written premium collected during each contract
year. Specifically, the Reinsurer's expense allowance shall be equal
to the sum of the following:
1. 3.80% of the first $100,000,000 or less of ceded net written
premium collected hereunder during the contract year; and
2. 3.60% of the ceded net written premium collected hereunder
greater than $100,000,000 during the contract year.
B. If this Contract is not commuted within 13 months after the end of
any contract year, the Reinsurer's expense allowance percentage for
that contract year shall increase to 7.5%, and the Company shall pay
the Reinsurer the additional amount due on January 31 of the year of
the calculation for the applicable contract year, plus 4.0% interest
from the original payment due dates.
C. If this Contract is not commuted within 25 months after the end of
any contract year, the Reinsurer's expense allowance percentage for
that contract year shall increase to 11.5%, and the Company shall
pay the Reinsurer the additional amount due on January 31 of the
year of the calculation for the applicable contract year, plus 4.0%
interest from the original payment due dates."
The provisions of this Contract shall remain otherwise unchanged.
IN WITNESS WHEREOF, the Company by its duly authorized representative has
executed this Addendum as of the date undermentioned at:
Bala Cynwyd, Pennsylvania, this __21st__ day of __June__________ in the year
__2004__.
Christopher J. Maguire, Executive Vice President & Chief Underwriting
Officer
Philadelphia Insurance Company
Philadelphia Indemnity Insurance Company
Mobile USA Insurance Company
Liberty American Insurance Company
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ADDENDUM NO. 1
to the
INTERESTS AND LIABILITIES AGREEMENT
of
Federal Insurance Company
Warren, New Jersey
through
Chubb Re, Inc.
Bernardsville, New Jersey
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
WHOLE ACCOUNT NET QUOTA SHARE
REINSURANCE CONTRACT
EFFECTIVE: APRIL 1, 2003
issued to
Philadelphia Insurance Company
Bala Cynwyd, Pennsylvania
Philadelphia Indemnity Insurance Company
Bala Cynwyd, Pennsylvania
Mobile USA Insurance Company
Pinellas Park, Florida
Liberty American Insurance Company
Pinellas Park, Florida
and
any and all other companies which are now
or may hereafter become member companies of
Philadelphia Consolidated Holding Corporation
and are approved by the Reinsurer
The Subscribing Reinsurer hereby accepts Addendum No. 1, as duly executed by the
Company, as part of the Contract, effective January 1, 2004.
IN WITNESS WHEREOF, the Subscribing Reinsurer by its duly authorized
representative has executed this Addendum as of the date undermentioned at:
Bernardsville, New Jersey, this ___15th__ day of _____June___________ in the
year __2004__.
Brian Hegarty, Managing Director_____
Chubb Re, Inc. (for and on behalf of Federal Insurance Company)
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ADDENDUM NO. 1
to the
INTERESTS AND LIABILITIES AGREEMENT
of
Swiss Reinsurance America Corporation
Armonk, New York
through
Swiss Re Underwriters Agency, Inc.
Calabasas, California
(hereinafter referred to as the "Subscribing Reinsurer")
with respect to the
WHOLE ACCOUNT NET QUOTA SHARE
REINSURANCE CONTRACT
EFFECTIVE: APRIL 1, 2003
issued to
Philadelphia Insurance Company
Bala Cynwyd, Pennsylvania
Philadelphia Indemnity Insurance Company
Bala Cynwyd, Pennsylvania
Mobile USA Insurance Company
Pinellas Park, Florida
Liberty American Insurance Company
Pinellas Park, Florida
and
any and all other companies which are now
or may hereafter become member companies of
Philadelphia Consolidated Holding Corporation
and are approved by the Reinsurer
The Subscribing Reinsurer hereby accepts Addendum No. 1, as duly executed by the
Company, as part of the Contract, effective January 1, 2004.
IN WITNESS WHEREOF, the Subscribing Reinsurer by its duly authorized
representative has executed this Addendum as of the date undermentioned at:
Calabasas, California, this __18th_ day of ____June_____________ in the year
_2004___.
Jim Ehman, Senior Vice President__
Swiss Re Underwriters Agency, Inc.
(for Swiss Reinsurance America Corporation)
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