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EQECAT Hurricane Model Recertified By Florida Commission On Hurricane Loss Projection Methodology

May 9, 2007

Oakland, California

EQECAT, Inc., the authority on extreme-risk modeling, announced today that the Florida Commission on Hurricane Loss Projection Methodology (FCHLPM) has recertified EQECAT’s Hurricane model for use in Florida.

The EQECAT model, based upon generally accepted science, engineering expertise, claims data, and advanced mathematics, was certified for the tenth consecutive time.

The EQECAT North Atlantic Hurricane model, a probabilistic model designed to estimate potential damage and insured losses due to hurricanes in the mainland United States, the islands of the Caribbean, the Bahamas, and Bermuda, met all the requirements established by the FCHLPM, including those concerning vulnerability, validation, computing, statistics, and the actuarial use of modeled loss costs.

The model was released commercially in late 1995 and is usedby primary insurers and reinsurers, as well as financial institutions and intermediaries for portfolio management, pricing, and risk transfer planning.

“The recertification success of EQECAT’s model is attributable largely to our ongoing dedication to making enhancements to meet the specific needs of the insurance and reinsurance community,” said Rick Clinton, president of EQECAT.

“When we enhance our model, we focus specifically upon the consistent representation of risk across the North Atlantic basin; the appropriate per-occurrence loss exceedance curve based on climatologically reasonable hurricane tracks and parameter histories; and the appropriate spatial correlation of loss,” Mr. Clinton said.

Supplemental “Near-Term” View Also Offered To Clients

In addition to its long-term hurricane model, provided to the FCHLPM and clients, EQECAT offers to clients a supplemental “near-term” hurricane loss estimation view which provides the prospective hurricane risk presuming higher hurricane activity than the historical average. EQECAT’s “near-term” view is based upon a stratified set of historical data consistent with a “warm” Atlantic Multi-Decadal Oscillation cycle. The “near-term” view was not part of the certification process.

“EQECAT’s platform and supplemental loss estimation view enables insurers to account for both “long-term” and “near-term” risk,” said Mr. Clinton. “We believe both perspectives should be consideredby insurance companies, policyholders, rating agencies, investors, and regulators, among others.”

“As the industry discusses climate change, we emphasize to our clients and the general marketplace the importance of combining long-term historical climatology data with EQECAT’s scientifically based assessment and continual review of persistent weather conditions in the Atlantic Ocean, Gulf of Mexico and Caribbean Sea, to obtain an effective quantification of prospective risk,” he said.

EQECAT Serves Global Clients Through Extensive WORLDCATenterprise™

Through its user-friendly, extreme-risk modeling software, WORLDCATenterprise™, EQECAT enables clients to assess and manage potential damage and loss from wind, earthquakes, flood, wildfire, and terrorism, among other perils. WORLDCATenterprise™ includes 177 natural hazard software models for 89 countries spanning six continents.

EQECAT and its parent ABSG Consulting Inc. (“ABS Consulting”) serve the global property and casualty insurance industry, major multinational corporations and financial institutions. EQECAT is known as the technical leader and innovator in the development of analysis tools and methodologies to quantify insurers’ and major corporations’ exposure to natural and man-made catastrophic risk.

EQECAT was founded in 1994 and is headquartered in Oakland, California. For additional information, please log on to www.absconsulting.com and www.EQECAT.com.

For more information, contact:

Thomas Larsen
EQECAT, Inc.
1-510-817-3100 | tlarsen@absconsulting.com

Eric R. Samansky
The Samansky Group
1-516-319-0858 | eric@samanskygroup.com