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Brian Pozzi

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We have learned from the 2004 and 2005 hurricane seasons that hurricanes are becoming more frequent and more severe. There's widespread agreement among scientists that we've entered into a cycle of more active hurricanes.

We feel we have to manage our exposure here. All we have done is stop writing new business.

The question of a hurricane hitting New York is not a question of if, but when.

We have all seen the devastation caused by the last two hurricane seasons. We have become aware of the predictions of future storm activity both in frequency and severity. It became clear that we had to take appropriate, measured steps to manage our high concentration of market share in the impacted counties.

We are, and we will take steps to remain, a financially strong insurer. We also intend to remain one of the top insurers serving the New York marketplace.

Hurricanes have hit downstate New York, and hurricanes will hit downstate New York again. Our very high market share numbers therefore compelled us to take appropriate, measured actions that balance the best interests of customers, shareholders, agency owners, employees and the community at large.

The last two hurricane seasons have been wakeup calls. Clearly, the world is changing and we must respond.

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