Swiss Reinsurance America Corporation and Safety Insurance Company 2002 Reinsurance Program Terms Letter

Summary

This letter outlines the 2002 reinsurance program between Swiss Reinsurance America Corporation and Safety Insurance Company. Swiss Re provides property catastrophe excess of loss, casualty excess of loss, and umbrella quota share reinsurance coverage for various insurance policies issued by Safety Insurance. The agreement specifies coverage limits, premiums, and commissions, and notes that the contracts are continuous unless canceled by either party. The terms are effective from January 1, 2002, to December 31, 2002, with formal contracts to follow based on this summary.

EX-10.43 9 a2081437zex-10_43.txt EXHIBIT 10.43 Exhibit 10.43 JEFFREY W. ISAACSON, CPCU, ARM, ARE Senior Account Executive Member of Senior Management Mr. Edward N. Patrick, Jr. Swiss Reinsurance America Corporation Vice President 175 King Street Safety Insurance Company Armonk, N.Y. 10504 20 Custom House Street Boston, MA 02110 Telephone ###-###-#### Fax ###-###-#### E-mail ***@*** April 26, 2002 SAFETY INSURANCE COMPANY 2002 REINSURANCE PROGRAM Dear Ed, Below is an outline of reinsurance provided by Swiss Re America Corporation to Safety Insurance Company effective January 1, 2002 for the year 2002. We are in the process of issuing property catastrophe excess of loss contracts. Both casualty contracts are continuous and have been renewed without change in terms. As continuous contracts they are valid unless notice of cancellation by one party has been sent (which has not been the case). The following renewal of coverage is effective January 1, 2002 to December 31, 2002. Rate Est Premium PROPERTY CATASTROPHE EXCESS OF LOSS Coverage: Property portion (Fire, Auto Physical Damage, Inland Marine, Homeowners Section 1, Commercial Multiperil Pollicies Section 1) of all policies issued by Safety Insurance Company. TP1262B 95% 5,000,000 excess $5,000,000 .750% $685,600 per occurrence TP1262C 95% 5,000,000 excess $10,000,000 .52% $475,280 per occurrence Terrorism is provided up to a $5,000,000 annual aggregate for EACH of these 2 contracts CASUALTY EXCESS OF LOSS PROGRAM Coverage: All casualty policies issued by Safety Insurance Company 2 TC599A $5,000,000 excess $1,000,000 .120% $422,000 per occurrence PERSONAL AND COMMERCIAL UMBRELLA QUOTA SHARE Covered: All umbrellas issued by Safety Insurance Company TC736A Umbrella Quota Share - 90% of $5,000,000 at 32.5% commission. We are pleased that this is the tenth consecutive year that we have provided reinsurance for Safety. Best regards, *Reinsurance contracts reflecting the binding terms discussed in this terms sheet will be prepared in the near future by our reinsurers in accordance with industry practice.