EQECAT Initial Post-Landfall Estimates of Insured Onshore Losses from Hurricane Ike

September 13, 2008

Oakland, California

EQECAT, Inc., the leading authority on extreme-risk modeling, Saturday morning said, based on current storm information provided by the National Oceanic and Atmospheric Administration (NOAA), initial post-landfall estimated insured onshore losses from Hurricane Ike could range from $8 billion to $18 billion, primarily in the Texas counties of Brazoria, Harris, Galveston, Chambers and Jefferson.

This estimate is based upon initial observations of Hurricane Ike wind, wave and flood patterns. EQECAT's estimates may be updated as additional information about the storm becomes available. Hurricane Ike caused significant flooding in and around Galveston Bay.

Hurricane Ike traversed the Gulf of Mexico offshore energy production area with maximum winds at a strong category 2 hurricane level, much lower than the winds observed from Hurricanes Rita, Ivan and Katrina. But wave heights from Hurricane Ike were larger than typically expected from events of this size. Damage is likely for older platforms in shallow water. Deep water platforms are less likely to be severely damaged. Newer platforms, designed to more rigorous standards, in shallow water, as well as deep water, also are less likely to be severely damaged, EQECAT said.

"Onshore, flooded pumping stations and refineries are expected to impede immediate resumption of energy production," said Tom Larsen, Senior Vice President of EQECAT. "However, disruption isn't expected to be extensive."

Beyond wind damage to commercial, industrial and residential fixed structures, such as office buildings, factories, warehouses, and homes, EQECAT's insured loss estimates include business interruption, as a result of the destruction of property; and demand surge, which occurs when the demand for products and services to repair damage significantly exceeds the regional supply. Thus, these products and services may have to be brought to the region quickly from distant points, resulting in additional costs for transportation, packaging and manufacture.

Excluded from EQECAT's insured loss estimates are losses related to flooding, private and commercial automobiles and similar vehicles.

EQECAT, Inc. provides state-of-the-art products and services to the global property and casualty insurance, reinsurance and financial markets. EQECAT is the technical leader and innovator of catastrophe risk management models that quantify exposure to a range of natural and man-made catastrophic risks.

Through its modeling software platform, WORLDCATenterprise™, EQECAT enables clients to quantify and manage the potential financial impact of natural hazards. WORLDCATenterprise includes 181 natural hazard software models for 95 countries spanning six continents. These models are based upon innovative applications of the latest science, engineering expertise, claims and exposure data and advanced mathematics.

EQECAT, a subsidiary of ABSG Consulting Inc., was founded in 1994 and is headquartered in Oakland, California.

For more information, contact:

pr@eqecat.com

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