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Employers Reinsurance Corporation
Ronald R. Pressman
Cincinnati Insurance Co. Management Team

By providing value-added services, ERC has strengthened long-term relationships with clients such as The Cincinnati Insurance Company. Pictured left to right are Timothy L. Timmel and Bob R. Kerns, Senior VPs of The Cincinnati Insurance Company, and ERC Account Manager Richard Brownfield.
Our performance did not meet expectations in 2000—a disappointing year. Results across most property and casualty product lines reflected the impact of 40% to 60% price declines during the past six years and a significant increase in claims from business written during 1997-2000. Our life and health business remains solid, benefiting from the full-year impact of the 1999 acquisition of the Phoenix Life Reinsurance portfolio.

Overall, 2000 became a turnaround year for Employers Reinsurance Corporation (ERC) and the entire commercial insurance and reinsurance industry. Late in 1999, we began realigning our customer relationships to underscore our commitment to delivering protection to our clients while earning appropriate returns for the risks we underwrite. This Global Customer Relationship Program has strengthened our commitment to our customers' success and built a clearer understanding of the risks and loss trends we share with our customers. Financially, these initiatives delivered $364 million in price, mix and volume improvement for ERC during 2000.

During the second half of 2000, we expanded our Global Customer Relationship Program beyond front-end underwriting to downstream customer service. We initiated programs with our clients to better manage and execute more than $6 billion in annual customer claims and to improve cash management to maximize the performance of our $21 billion investment portfolio.

Our clients have responded positively to our Six Sigma rigor and process digitization. Through personalized and customized Web sites like MyReinsurance.com, GEMedicalProtective.com, IRInsightSM and Reinsurance Online, we are making it easier for customers to work with us while maintaining appropriate risk controls. For example, MyReinsurance.com allows our casualty facultative clients to renew many contracts in just five minutes instead of five days.

Our clients—from multinational corporations and mutual insurance companies to your neighborhood physician—rely on the triple-A strength and security of ERC, especially during volatile market periods. At $8.2 billion in 2000 premiums, ERC remains the fourth-largest reinsurer in the world.

Our size, financial strength and global presence, coupled with our process focus and Six Sigma rigor, place us in a strong position for increased differentiation as we win and retain customers in the digitized world ahead.


www.ercgroup.com