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Enron Mail |
---------------------- Forwarded by David W Delainey/HOU/ECT on 01/26/2001
05:15 PM --------------------------- James L Bouillion 01/25/2001 11:43 AM To: David W Delainey/HOU/ECT@ECT, Tod A Lindholm/NA/Enron@Enron, Rod Hayslett/FGT/Enron@ENRON, John Keiser/FGT/Enron@ENRON, Susan Ralph/Houston/Eott@Eott, Kerry Roper/GPGFIN/Enron@ENRON, Elaine Concklin/ET&S/Enron@ENRON, Michael Moran/ET&S/Enron@ENRON, Darrell Orban/EWC/Enron@ENRON, Wade Stubblefield/HOU/EES@EES, Billie Akhave/EPSC/HOU/ECT@ECT, Peter Hutchinson/Stockton/TS/ECT@ECT, James Derrick/Corp/Enron@ENRON, Richard Causey/Corp/Enron@ENRON, Bob Butts/GPGFIN/Enron@ENRON, Stephanie Harris/Corp/Enron@ENRON, John Sherriff/LON/ECT@ECT, Jeffrey A Shankman/HOU/ECT@ECT, Mike McConnell/HOU/ECT@ECT, Rino T Manzano/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Roberto Figueroa/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Wilma Mendiola/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Jaime Sanabria/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Stanley Horton/Corp/Enron@Enron, Russell L Appelget/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT cc: Jere C Overdyke/HOU/ECT@ECT, Paul Clayton/HOU/ECT@ECT, Earline Kendall/HOU/ECT@ECT, David Marshall/HOU/ECT@ECT, Mary Grisaffi/HOU/ECT@ECT, James P Studdert/HOU/ECT@ECT, Rob Cole/HOU/ECT@ECT, Ken Mathis/HOU/ECT@ECT, Paul E Parrish/NA/Enron@Enron, Richard Vincent/NA/Enron@Enron, Terry Yamada/Corp/Enron@Enron Subject: Property Insurance Renewal 3/1/2001 Due to adverse loss experience the insurance market is "hardening" resulting in higher rates and more restrictive terms and conditions. Property insurance rates are generally rising for everyone and particularly those with poor loss experience. Unfortunately, Enron falls in the latter category. In the past, not withstanding our loss experience, Enron has enjoyed very competitive rates and a deductible of $500,000 for both property damage and business interruption (traditionally, property insurance policies contain a monetary deductible for property damage plus a day waiting period for business interruption (normally 30 to 90 days)). For the period 1993 through 2000 Enron paid premiums of approximately $114,100,000 and collected losses of approximately $ 212,200.000. This trend is continuing under the current policy which is expiring on 3/1/2001. Current renewal terms being offered require an estimated premium of $17,000,000 and a deductible of $5,000,000 per loss for property damage and business interruption. This is the lowest deductible achievable unless we are willing to accept a waiting period for business interruption. Realising the potential costs and budgetary and contractual implications associated with such a change, we are continuing negotiations and seeking alternatives to the current renewal terms. However, we should all be prepared for an increase in premiums and the level of loss which we retain through deductibles. I will keep you advised as these negotiations progress. Please forward this notice to all concerned parties within your group. If there are any questions, please give me a call at ext. 36263.
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