Weathering The Storm

By: Dorothy Taylor
Date: 10/1/2008

MELVILLE, NEW YORK (September 21, 2008):

World Wide Specialty Programs, Inc., the leading program administrator of insurance coverages for the staffing industry, wishes to thank its brokers and clients for their understanding and patience during this past tumultuous week. The recent events that unraveled have tested the strength of all involved. World Wide Specialty Programs understands your concerns regarding these unprecedented changes in the financial sectors and would like to take this opportunity to allay any concerns.

On Tuesday, September 16, 2008 The Federal Reserve and Treasury Department released a statement announcing a two-year, $85 billion revolving credit package designed to assist American International Group (AIG) in meeting its liquidity needs. In return for the backstop, the federal government will receive a 79.9 percent equity interest in the company.

This is an issue affecting not just AIG, but the U.S. financial industry as a whole. As an aside, the Treasury Department announced over the weekend its plan to provide a $700 million bailout of the financial industry.

State insurance regulators continue to reiterate the fundamental solvency of AIG's insurance operations. To date no regulatory body or rating agency has any concerns regarding AIG or its subsidiaries and their ability to pay claims. AIG's property & casualty subsidiaries still carry an A.M. Best rating of "A XV" (Excellent). Due to stringent insurance regulations regarding parent company and subsidiary relationships AIG's parent company liquidity issues do not affect its subsidiaries. Because the subsidiaries are highly regulated at the state level, the issues affecting the parent company does not put at risk any aspect of the business operations or liquidity of AIG subsidiaries. The member companies of AIG's insurance division maintain a statutory surplus of $26.7 billion. AIG continues to be a viable source of insurance and as a company still pays $73 million in claims each day. To date, since this has developed, AIG has paid claims in excess of $17million for Hurricane Ike.

World Wide Specialty Programs understands the concerns of you, our customer. We value you and your business, and we want to assure you we are here for you, as we have been for more than 40 years. We will continue to monitor AIG and the insurance marketplace and bring you updates as necessary. Should you have any questions or concerns, we encourage you to contact us.

Dorothy Taylor is the President and CEO of World Wide Specialty Programs.

World Wide has been the premiere industry source for staffing insurance. From their flagship product - the E & O Policy, forty years ago - to a comprehensive range of customized products and services, World Wide has brought personalized solutions to the staffing industry. 800-245-9653 or dtaylor@wwspi.com