State of West Virginia - West Virginia Legislature

.BRIM BOARD MEETING MINUTESDecember 7, 2010 PAGE 7staff being very diligent in the preparation of the statements and the trial balances whichE & Y audit.E & Y had no disagreements with management, and a copy of the letter ofrepresentation which BRIM management signed is contained in Appendix C.Mr. Johnson then referred to page 7 of the communications document regardingindustry ratio analysis and stated that BRIM continues to compare very favorably in theloss and combined ratio areas. He noted that on pages 8 through 11, there was adiscussion of industry trends taken from a Standard & Poor’s article just to monitorwhat’s out there and compare it to BRIM. The net surplus at BRIM continues toimprove, and during the last half of 2009 and the first part of 2010, there continues tohave been favorable development which has helped to maintain the surplus.In summarizing the remaining parts of the communications document,Mr. Johnson particularly noted that the main driver for the increase in net assets for FY2010 was investment income, which was $25 million last year.Mr. Johnson concluded his presentation, at which time Chairman Lukensintroduced Scott Mountain, Relationship Manager with Standish Mellon AssetManagement, who thereafter gave an update on the trust and fixed income markets.Prior to his update, the presentation in written form had been distributed to the Boardmembers.Upon conclusion of Mr. Mountain’s presentation, Mr. Schumacher askedMr. Sauvageot of the West Virginia Investment Management Board if he had anycomments. In response, Mr. Sauvageot was brief and stated that their (WVIMB) outlookwas very similar to that of Mr. Mountain and the Standish group. However, being in