Welcome to the sixth issue of The Demotech Difference.  This issue of The Demotech Difference was delayed longer than expected.  However, we have much to show for this time away and want to share these activities with you.  We are extremely excited about our recent strides and efforts; many of which you will find of interest.

A Small Milestone for The Demotech Difference

It was just seven months ago that we promised to use The Demotech Difference to provide information and analysis that you would not see anywhere else.  This issue marks the sixth release of our newsletter and our continuing efforts to reach out to you.  In that time, we have introduced useful resources made available on our web site, such as Market Share reports and Demotech’s Financial Stability Ratings^®.  We have provided market analysis and research perspective, as well as announcements from professional organizations, such as AICPCU and many of the fine companies that we work with.  All the while, we have striven to provide pertinent perspective on the market within which we work, including discussions on industry loss and loss adjustment expense reserves, the implementation of Sarbanes-Oxley and other regulatory endeavors that will influence the way our industry reports financial information to interested parties.

Our Latest Issue

This issue of The Demotech Difference remains true to our principles, providing information that is meaningful to you.  Over the past months, Demotech has been laying the foundation for many exciting and valuable resources for industry professionals.

Here are some of the highlights…

• Interested in financial information on title underwriters?  We have it.  The sixteenth edition of CDS Performance of Title Insurance Companies, now Demotech Performance of Title Insurance Companies is hot off the presses.  The publication contains balance sheet, income statement, cash flow statement, loss ratio, and other information on 87 title underwriters.  These underwriters represent approximately 98% of the 2003 title insurance premiums written countrywide.  More information on this new publication is available in the detailed product overview.  For those familiar with past editions of the publication, this year marks the introduction of industry information supported with electronic Quarterly Updates and customizable inquiries and extracts. You can read more about this publication in our article, 'Six Reasons to take a Closer Look at Demotech Performance of Title Insurance Companies'.
• Demotech has continued to strengthen its relationship with the Insurance Journal magazine to offer a periodic feature spotlighting regional insurance companies, the markets they serve, and the important niche that they fill in our industry.  Demotech is committed to serving the needs of regional P&C insurance companies and their agents.  We are excited that the Insurance Journal shares our commitment to the hundreds of regional insurance companies countrywide.  You can read more about this collaboration in our article, 'Insurance Journal's Regional Focus'.
• On a practical note, we have assisted hundreds of regional insurance companies earn the acceptance of Green Tree Lending Corporation.  If you are a regional insurance company, the largest mortgage lender of manufactured homes will now accept your insurance policy.
• We continue to expand the personal umbrella market as well as insurance agent Errors and Omissions insurance market for financially sound regional insurance companies.  These efforts are beginning to succeed and show progress, with RLI Insurance Company’s willingness to write umbrellas for regional insurance companies.
• Several employees of Demotech attended the New York Insurance Association (NYIA) annual meeting in Saratoga, NY.  This year's conference included several nationally known speakers presenting insightful sessions.  Demotech discusses some of the highlights of this conference in our article, 'NYIA's 2004 Annual Convention'.
• We have promulgated hundreds of Preliminary Financial Stability Ratings^®.  Preliminary ratings have been distributed and will be finalized shortly.  If your company has not received your Preliminary Financial Stability Rating^®, contact Barry J. Koestler II, CFA, Senior Consultant and Chief Ratings Officer.
• If you are concerned about rate filings and speed to market, read my perspective on speed to top line, 'It's Not Too Little.  It's Too Late'.
• Finally, we have re-launched an updated www.demotech.com again.  This redesign is yet another step in our effort to provide you with the information you need in multiple formats, including through the web.  Future design enhancements will automate and refine the information available to you through the convenience of the internet.

As you can see, there is much to show for our efforts this spring.  As our clients and friends, each of you is at the forefront of our purpose and endeavors.  We are always open to receiving your feedback.

On a final note, I would like to make a personal request that if you find this newsletter or an article in this issue useful or of interest to someone you know, share it with a colleague by forwarding the newsletter to a friend.  As we promised seven months ago, and state in our Privacy Policy, this newsletter is intended to be a resource with your needs in mind; The Demotech Difference does not buy email lists or sell our email list.  Word of mouth or passing an issue onto colleagues is the only means by which we can provide access to information and reports to an increasingly larger audience.

As always, feel free to excerpt our information or analysis and reproduce it – with attribution to Demotech, Inc.

We thank you for your time and attention.  We hope that the first six months of 2004 have treated you well and that the last six months of 2004 will treat you even better.