EQECAT Launches Offshore Energy Model

Oakland, CA

May 30, 2007

EQECAT, Inc., a wholly owned subsidiary of ABSG Consulting Inc., and the leading authority on extreme-risk modeling, announced today the launch of its state-of-the-art Offshore Energy Model for the Gulf of Mexico region.

"EQECAT's model, now available to clients, will help insurers and energy producers quantify their offshore risks, which can lead to better pricing and use of capital," said Rick Clinton, president of EQECAT.

In developing the Offshore Energy Model, EQECAT combined its extreme-risk modeling expertise with the offshore experience and the risk management expertise of ABS Consulting, which does extensive work with energy companies and the United States Government.

"EQECAT is the only modeler with the ability to combine these in-house disciplines and thus be able to develop the most advanced offshore energy model available in the marketplace," Mr. Clinton said.

Quantifying risks for the offshore energy market is significantly different and more complicated than modeling for onshore property risks. Most damage onshore is attributed to wind. Losses to the offshore energy market are primarily due to severe waves and currents generated by a storm, as well as undersea landslides. In addition, while some of the risks to offshore energy include property exposures to platforms, wellheads and pipelines, an important component of the risk in the offshore energy market is centered on continuity of production issues. The offshore energy insurance market also has some special policy conditions that have to be taken into consideration when modeling this risk.

"We believe our model takes these issues into consideration and establishes a new industry standard for offshore risk quantification," Mr. Clinton said.

EQECAT's Offshore Energy Model covers a range of risk in the Gulf of Mexico region for oil and gas platforms, pipelines and other offshore energy industry infrastructure. It also takes into account the removal of debris caused by a specific event, business interruption and contingent business interruption.

"EQECAT is dedicated to assisting the marketplace in obtaining the best available tools, and bases its models on generally accepted science, engineering expertise, claims data and advanced mathematics. As a result, the models are consistent with the historical experience," Mr. Clinton said.

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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