ENERGY ENERGY INSURANCE INSURANCE MUTUALMUTUAL

The Westin Innisbrook Golf ResortTarpon Springs, Florida

February 22-24, 2004

18th ANNUAL18th ANNUALRISK MANAGERSRISK MANAGERS

INFORMATION MEETINGINFORMATION MEETING

SURPLUS

2002 $386,055,000

2003 $461,167,000

Increase of $ 75,112,000

SURPLUS

380,000,000

400,000,000

420,000,000

440,000,000

460,000,000

480,000,000

500,000,000

1999 2000 2001 2002 2003

WRITTEN/EARNED PREMIUM

10,000,000

30,000,000

50,000,000

70,000,000

90,000,000

110,000,000

130,000,000

150,000,000

170,000,000

190,000,000

210,000,000

Written Earned

2004 A. M. BEST RATINGENERGY INSURANCE MUTUAL LIMITED

A

UNDERWRITING DEPARTMENTKaye Patrick, Jill Towell, Gary Gresham, Sandra Imbriani,

Jill Dominguez, Larry Baccari, Deana Edmonds, Scott Leiman

ADMINISTRATIONMartee Turner, Jane Murphy, Donna Dunlap, Sandi Schafstall

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

CLAIMS NOTICE CATEGORIES

Category 1 Highly Improbable That It Will Impact EIM; Requires Only Periodic Review To Insure It Is Not Adversely Developing

Category 2 Requires Continuous Monitoring And Specific Actions

Category 3 Meets The Accepted Requirements For Setting Specific Loss Reserves

CLAIMS1986 - 2003

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 CLAIMSDIRECTORS & OFFICERS LIABILITY

2001 3

2002 18

2003 1

2003 CATEGORY 2/3 OPEN CLAIMSGENERAL LIABILITY

1996 1998 2000 2001 2002 2003

Blackout - - - - - 1

Discrimination - - 1 - - -

Electric Contact - - - - - 1

Flooding 1 - - - - -

Gas Explosion - 2 - 2 1 -

Pollution - - - 1 - -

Product Liability - - 1 1 - -

POLICY YEAR

1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 20000

25,000,000

50,000,000

75,000,000

100,000,000

125,000,000

150,000,000

175,000,000

200,000,000

225,000,000

250,000,000

1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000

DIRECTORS AND OFFICERS LIABILITY CLAIMSPAID AND RESERVED BY POLICY YEAR

1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 20030

25,000,000

50,000,000

75,000,000

100,000,000

125,000,000

150,000,000

175,000,000

200,000,000

225,000,000

250,000,000

1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

DIRECTORS AND OFFICERS LIABILITY CLAIMSPAID AND RESERVED BY POLICY YEAR

GENERAL LIABILITY CLAIMSPAID AND RESERVED BY POLICY YEAR

1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 20030

25,000,000

50,000,000

75,000,000

100,000,000

125,000,000

150,000,000

175,000,000

200,000,000

225,000,000

250,000,000

1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

GENERAL LIABILITY ANDDIRECTORS AND OFFICERS LIABILITY

CLAIMS PAID AND RESERVED BY POLICY YEAR

025,000,00050,000,00075,000,000

100,000,000125,000,000150,000,000175,000,000200,000,000225,000,000250,000,000

1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

General Liability Directors and Officers Liability

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 Ratio 290%

REINSURANCE PROGRAM - 2004

Main Differences Over Expiring Program:

Dedicated D&O Limit

Greater retention by EIM

GENERAL LIABILITY

Maximum Capacity $100,000,000

2 - $50,000,000 Losses $ 43,000,000

Reinsurance Recovery

1 - $100,000,000 Loss $ 71,500,000

4 - $50,000,000 Losses $128,500,000

2 - $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 LimitedReinsures EIM for:

DIRECTORS AND OFFICERS LIABILITY

Maximum Capacity $50,000,000

Reinsurance Recovery

5 - $10,000,000 Losses $13,300,000

1 - $50,000,000 Loss $29,300,000

10 - $10,000,000 Losses $36,000,000

2 - $50,000,000 Losses $59,000,000

REINSURERS 2004Lloyd’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 ErosionFrom Any Cause Except

Distributions of Policyholders’ Surplus

SURPLUS PROTECTION COVER

Surplus at December 31, 2003 - $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

1999 + 10.56%

2000 -2.41%

2001 +1.98%

2002 -4.52%

2003 +19.46%

SURPLUS FLUCTUATIONS

-20

-15

-10

-5

0

5

10

15

20

1999 2000 2001 2002 2003

Fluctuation Percentage

EIB 2003

22 Members Have 20 Programs

Year End Assets Almost $890,000,000