Liberty Mutual appoints Brownyard Programs National WC Administrator

East Islip, NY - September 5, 2008 – Brownyard Programs, Ltd. today announced that it has been appointed the National Program Administrator for Liberty Mutual’s Workers Compensation Program for Security Guard Companies effective August 1, 2008.

"We’re extremely excited about our new relationship with Liberty Mutual as National Program Administrators for the Private Security Industry. Our BestGuard Workers Compensation Program is designed for high-quality, low-risk security guard companies, private investigative agencies and electronic security companies anywhere in the U.S. Because we specialize in this market segment, we are able to evaluate risks on an individual case-by-case basis. That means we can make sure the best security companies are charged the lower premiums they deserve," said Bruce Brownyard, President of Brownyard Programs, Ltd.

Liberty Mutual Insurance was just named, "Best Workers Compensation Insurer of the Year for 2008" by Business Insurance. Most insurance professionals agree that Liberty Mutual has the best claims and loss control services in the business, which combined with their competitive pricing translates into significantly lower WC costs for their insureds. Please visit our website www.BrownyardPrograms.com to find out more about our new Liberty Mutual Workers Compensation Program – The BestGuard Plan.

AIG Commercial Insurance Is Not Affected by the Problems of the AIG Holding Company

AIG Commercial Insurance Group

As many of you are aware, we at Brownyard Programs, Ltd. decided to consolidate all our General/Professional Liability and our Excess/Umbrella Liability Insurance about two years ago with the Lexington Insurance Company, which is a part of AIG. We made this move to the Lexington for a number of reasons most notably because of their financial size and strength, because of their risk appetite and because of the breadth of their coverage.

We remain convinced that we made the right decision in spite of recent events that have cast some doubts on the financial viability of the AIG Holding Company. The reason for our confidence is based on the fact that the AIG Insurance Companies are totally separate from the holding company and consequently unaffected by their financial difficulties.

Commercial Insurance in the U.S. is supervised by the individual states. Their assets are separate and sacrosanct from any non-insurance holding company. Any transfer of assets from the insurance company to the holding company cannot be accomplished without the approval of the respective state insurance regulators. Their primary responsibility is to protect the insurance company assets and policyholders. Lexington is domiciled in Delaware and therefore it is under the direct supervision of the Delaware Insurance Department and its Insurance Commissioner who will continue to protect its assets & policyholders.

The following information comes from the AIG Commercial Insurance Group and provides additional background on the financial viability and stability of all of the AIG Insurance Companies including Lexington.

AIG Commercial Insurance (AIGCI) Is Alive & Well Now and in the Future
The financial difficulties and recent liquidity crisis surrounding the parent company are unrelated to the operations of AIGCI. AIG Insurance remains by far the largest insurance group in the US.

• AIGCI continues to be a financially strong, well-capitalized and well-funded business able to underwrite policies and pay policyholder claims.
• AIG executives announced that domestic commercial insurance and foreign general insurance are core assets. There are no plans to sell AIG’s domestic or international commercial property/casualty businesses.
• AIGCI operations will not be regulated by the Federal government as a result of the transaction with the Federal Reserve Bank of New York.. The state insurance departments are the primary regulators of the insurance company subsidiaries.
• Although the New York and Pennsylvania insurance departments were prepared to allow AIG to exchange certain liquid investment holdings of the insurance companies for high-valued, less liquid holdings of the parent company, this transaction was never executed.
• Our risk appetite, disciplined underwriting approach and solution-focused business model remain unchanged.

AIGCI Financial Strength
The financial strength of AIGCI is not affected by the current financial position of the parent company. It is important to distinguish between the financial condition of the parent company and the status of the individually capitalized insurance company subsidiaries of AIGCI.

• 16 individual insurance companies, all independent legal entities, make up AIGCI, including familiar names such as Lexington Insurance Company, National Union and American Home.
• AIGCI maintains separate and independent capital from its parent.
• AIGCI’s capital is protected by state insurance regulators, who monitor insurance companies to protect the interests of policyholders. There are state laws and regulations in place that govern and protect AIGCI’s surplus to ensure policyholder interests are paramount.
• As of June 30, 2008, AIGCI holds a statutory surplus of $26.7 billion. This surplus is unparalleled by any of our peers and exceeds the total shareholders’ equity of any domestic commercial insurance holding company.
• AIGCI’s Net Written Premium to Surplus Ratio, a key indicator of the amount of leverage of a property/casualty organization, is less than 1:1. (Total Net Written Premium of $12.7 billion compared to policy holder surplus of $26.7 billion)
• Despite the challenges and losses AIG has faced in 2008, the subsidiaries of AIGCI continue their sustained record of profitability, reporting $1.9 billion net income after the period ending June 30, 2008.
• AIGCI’s invested assets exceed $70 billion and are in a conservative portfolio of municipal bonds and other low-risk, relatively liquid investments.
• No regulatory body or rating agency has raised concerns about the claims-paying abilities of the AIGCI companies, because the financial situation of the parent company AIG does not affect the ability of our insurance companies to pay policyholders claims.

U.S. Managed Security Services Market To Grow By Billions

The U.S. managed security services market was valued at approximately $1.3 billion in 2007, an increase of 19.6 percent over 2006. This figure is expected to increase to $2.8 billion by 2012, representing a compound annual growth rate of 17.2 percent, a new forecast from IDC reveals. Positive incremental growth is anticipated during the forecast period due to increased end-user demand.

"Among the many dynamics shaping the U.S. managed security services market today, growing security complexity, the evolving pace of today's technology and stringent compliance mandates are driving demand and spending for managed security services," says Irida Xheneti, IDC research analyst, Security Services.

Get the rest of the story

Security Guard Fired for Falling Asleep and Allowing Inmate to Escape

A private security guard, who fell asleep on duty allowing an inmate to slip out of Shreveport's LSU Hospital, has been fired according to the police department.  The prisoner, who was held on burglary charges when he escaped, was captured just over seven hours later at his aunt's house. The security guard was assigned to monitor two prisoners in a room at the medical center. Sean Sibley, wearing a hospital gown and attached to a heart monitor slipped out of the room about 3:30 a.m. when the guard fell asleep according to police.  Sibley, 29, was arrested without resistance later in the morning while hiding in the back of a vehicle. Officers had gotten a tip to go to the relative's house on Dalisa Street in south Shreveport. Sibley had been taken to LSU and admitted after complaining of chest pains two days after being arrested on suspicion of vehicle burglary.  The guard, whose name was not released, has been fired by Northwest Louisiana Security.  Police are now reviewing their contract with the company, which is paid to guard non-violent prisoners at the hospital so that commissioned officers can do regular police duties. Sibley has been charged with simple escape and felony theft of the heart monitor.

Source: KTBS Shreveport, La

National Cyber Security Awareness Month

October 2008 will be the fifth year of National Cyber Security Awareness Month.

The goal of National Cyber Security Awareness Month is to increase awareness about cyber security issues and engage users in implementing additional security measures to protect their computers.

Top 8 Cyber Security Practices

1. Protect your personal information.
2. Know who you're dealing with online.
3. Use anti-virus software, a firewall, and anti-spyware software to help keep your computer safe and secure.
4. Be sure to set up your operating system and Web browser software properly, and update them regularly.
5. Use strong passwords or strong authentication technology to help protect your personal information.
6. Back up important files.
7. Learn what to do if something goes wrong.
8. Protect your children online.

Detailed information on each of these cyber security practices can be found at www.staysafeonline.org