Amber Cert Reduces D&O, E&O Premiums; Aon, Willis, Brit Comment

March 1, 2006

In a recent press bulletin Amber Partners Ltd., an independent specialist in hedge fund operational risk, indicated that “leading U.K. and U.S. insurers to the hedge fund industry determined that Amber Certified funds will be eligible for premium discounts on Directors & Officers, Errors & Omissions and Crime Coverage insurance.”

Amber Partners produces comprehensive due diligence reports on individual funds, giving investors independent information on fund structure and controls. “We are very pleased that insurers will consider Amber Certifications when underwriting policies for hedge funds and their managers,” stated Reiko Nahum, Amber’s Founder and CEO. “The discount to premiums offered as a result of Amber Certifications has been significant.”

Richard Ellis, Associate Director of Aon Limited, was quoted as stating: “We are delighted that, as a result of our collaboration with Amber Partners, Aon has obtained materially reduced premiums from the Lloyd’s insurance market in recognition of the direct correlation between superior operational risk management and improved insurance risk.”

Andrew S. Fielding, Managing Director of ASF Financial noted: “We believe that Amber Partners’ certification process is beneficial to insurers when evaluating the operational risk exposures of hedge funds and fund managers. In turn, this should help the ASF/Willis joint venture achieve competitive Executive Risk insurance premiums for our clients in this sector.”

Steven Moss of Brit Insurance Limited explained: “The specialist accreditation services combined with the knowledge and experience of Amber Partners provides an invaluable indication of the levels of risk management employed in hedge funds and the fund management sector. As a committed lead insurer in this niche area, Brit is increasingly using the information and risk identification services undertaken by Amber Partners as a fundamental rating factor in determining the extent and cost of coverage offered through Investment Management insurance products.”

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