"Aggregate" means the build up of property exposures over an annual period and in a specific geographic location.

A Company that writes property coverage in Florida should monitor their wind or hurricane exposures continually to avoid over exposure to a catastrophe event. At JHA, we do the monitoring for our carriers and at any moment in time, we can tell them exactly how much they are exposed to (for instance) a hurricane in Dade (or any other) County. They will allocate a certain amount to each area and it's our job to keep them within that limit throughout the year. For instance, they can say "ok" we will write windstorm in (X) County but we can only take $80 Million as a maximum for that particular county. Over the past 6 or 7 years all Wholesalers have been restricted in the amount of wind they can write, especially in the South Eastern counties. Following a four-storm year in 2004 companies suddenly realized (duh!) that Hurricanes don't have to be in Dade County and there could be more than one in any year. The inevitable results are that several carriers were dealt a severe blow in 2004. They were hurt because they didn't really know what they were doing, they didn't monitor their "aggregates" and their products (in the case of Citizens Property for instance) was drastically under-priced.

Ok, lesson over, but what has this meant to JHA? Well for the first time in several years we are not short of aggregate as Underwriters have rewarded us for our exceptional performance in the 2004 wind season. They have increased our "aggregate" allowance for 2005 so that we can write more profitable business. We won't be going crazy but we will be able to expand our writings. On one program they are even prepared to write wind on risks located in the Wind Pool! Never thought we would see that again!

So that's how "aggregate" can be good and bad, and one of the reasons you should stay close to JHA! Contrary to all others, we are looking to expand our wind writings in Dade, Broward and Palm Beach Counties. Try us and see.