Insurance Bureau of Canada to Redefine Canadian CRESTA Zone Boundaries Used to Manage Earthquake Loss Exposure

Oakland, CA

September 12, 2003

EQECAT, Inc., an ABS Consulting company, has been selected by the Insurance Bureau of Canada (IBC) to participate in a major industry study that will revise and redraw the Canadian CRESTA zone seismic boundaries. EQECAT's WORLDCATenterprise™ will redefine the Canadian CRESTA zones, which are used by Insurers and Reinsurers around the world to manage and report accumulated catastrophe loss exposure and to set rates. The current CRESTA zone boundaries for Canada were developed years ago prior to the latest seismic, geologic, and soil investigations, and are no longer viewed as most accurately representing areas of common seismic exposure. The revised zones will enable Insurers and Reinsurers to manage their exposure to earthquake losses based on the latest science.

The IBC, acting in partnership with the Institute for Catastrophic Loss Reduction and the Reinsurance Research Council, is managing the project, which is scheduled to be completed later this year.

"We researched the available suppliers thoroughly and the EQECAT proposal was superior. EQECAT has a proven track record of successful experience performing similar industry-level projects in other countries, said Paul Kovacs, IBC Senior Vice President.

"We are very pleased to have been selected for this important Canadian project, because it confirms both the excellence of our modeling technology and our capability to successfully manage high profile projects," said Richard Clinton, President of EQECAT. "We have had similar recognition in many other regions, having been selected as the model of choice for the Taiwan earthquake pool, the TCIP insurance pool in Turkey, the California Earthquake Authority and the majority of CAT bonds currently in force," said Clinton.

WORLDCATenterprise is a highly refined model that enables insurers to manage global catastrophe exposure, optimize use of capacity and underwrite individual risks more effectively.

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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