According to A.M. Best Company, group self-insurers
are much more financially efficient than insurance companies.

A.M. Best Company, the financial rating authority for the insurance industry, recently completed a ten year study comparing the financial efficiency of group self-insurance with traditional insurance, Exhibit A. From 1999 through 2003, the losses reported by group self-insurers averaged 60.6% of premium, 20.2% less than the losses reported by insurance companies. Group self-insurers also reported total expenses that were 4.4 points less than those reported by insurance companies. The total loss and expense differential was 24.6 points lower for group self-insurers.