PRICING PREDICTIONS

October 9, 2006

Pricing for D&O coverage is soft, according to panelists Lance Dalzell-Piper of Marsh FINPRO, David Bradford of Advisen Ltd., and Patrick Kelly of Wilson Elser, who summed up the Plus D&O West Symposium discussing “D&O Litigation Trends and Predictions of Things to Come.”

According to Bradford, the number of securities class action lawsuits filed has been trending downward, which correlates to the number of financial restatements. He noted that shareholders are getting “less and less benefit” from securities class action lawsuits while lawyers are reaping the rewards, which would encourage the trend to continue.

“This is important because securities class action settlements defined the D&O marketplace,” Dalzell-Piper said, noting that it affects pricing.

Bradford noted the D&O market is soft now, and added that as long as surplus capacity exists, that will continue. Furthermore, if this year’s hurricane season passes without a major event, there will be even more surplus that could lead to further price reductions, he said.

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