TLIE Directors Declare $1,000,000 Distribution

As a reciprocal insurance exchange owned by its members, TLIE is allowed to make such distributions (after examining the financial impact on the company) in response to favorable operating results.

Over the past seven years, a total of $15,000,000 has been distributed to TLIE’s insureds.

The events of the past two years have taken their toll on the entire insurance industry, impacting virtually every line of insurance to some degree. Professional liability has been no exception.

Although a large number of insurers and reinsurers have been downgraded by A. M. Best and other rating services, we are pleased to report that TLIE’s Best Rating remains an "A" (Excellent).

With a stable trend in the frequency of claims and continued solidarity of TLIE's financial position, we are hopeful of favorable negotiations of reinsurance rates with appropriate and reliable sources in 2004.

TLIE continues to monitor the financial health of all present and past reinsurers participating on our program. When necessary, we have taken appropriate action to lessen the financial impact of any potential problems.

Your Board of Directors of TLIE and TLIE's management and staff want you to know that we do appreciate your continued loyalty.

We would like to take this opportunity to wish you peaceful, prosperous and healthy New Year in 2004.