This updates our February 10, 2010 posting.

According to media reports, New York Insurance Department (the “Department”) Superintendent James Wrynn announced at a membership meeting of the Association of Insurance & Reinsurance Run-Off Companies (AIRROC) that the Department’s tax working group is reviewing whether a revived New York Insurance Exchange (the “Exchange”) should request a lower federal corporate tax rate. The current federal corporate tax rate is approximately 35%. Superintendent Wrynn stated that the Exchange may seek a lower federal corporate tax rate in order to be competitive with London, Ireland and Bermuda, whose corporate tax rates are 28%, 12.5% and 0%, respectively.

In his comments, Superintendent Wrynn also noted, “As much as I'd like to see something come about as a result of all of our efforts, if in the end it turns out that there is no real need in the industry for this type of facility [the Exchange] at this time, we're ready to fold up our tent and move on.”