HUNTERS completes second annual study of D&O Insurance Limits for the TSX/S&P 300

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TORONTO, Nov. 14, 2006 – HUNTERS International Insurance announced today the completion of its second annual study of the Directors & Officers Liability (D&O) Insurance Limits disclosed by the TSX/S&P 300 members included in the recently released Report on Business (ROB) 2006 Governance Ranking published by The Globe and Mail.

HUNTERS collects the information about D&O Insurance, arranged for Directors, Officers and Trustees, from the management information circulars of a wide range of TSX traded companies – in order to enhance limit selection perspective for their Canadian corporate board Clients.

Of the 270 corporations and trusts ranked, 176 disclosed D&O Insurance Limits in their most recent management information circular. Only 47% of internally-managed income trusts, separately ranked within the ROB Governance Report, disclosed this item and 13% of the externally-managed income trusts elected to disclose their D&O Insurance.

Brooke Hunter, President of HUNTERS says “Bear in mind that disclosure of this form of insurance is not mandatory. That said, of the top 50 ranked corporations, 100% of them disclosed.”

Whilst HUNTERS also tracks disclosed premiums and other factors, the non-uniformity of reporting makes benchmarking of limits the only factor of practical use.

The highest limit reported overall was $333 million, and the lowest was $4.5 million. The average was just under $71 million. All of these figures are lower than last year. The range in limits can be attributed to a number of factors, the most significant being the range in size of companies forming the TSX/S&P 300.

Ms. Hunter highlights, “General risk and uncertainty in corporate Canada were put in marked relief with unexpected changes in income trust tax legislation announced Oct 31st. We have only seen the first action under Bill 198 secondary market disclosure legislation relatively recently. Only the fullness of time will illuminate the impact of legislated risk on Canadian directors, officers and trustees.”

Canadian directors face a set of legislated statutory liabilities beyond their American counter-parts – which further highlights the need for a distinctly Canadian perspective of risk.

Hunter concludes with, “Beyond personal risk management – as the call for better and standardized disclosure intensifies – today’s director should ensure that they have a good grasp of their D&O insurance as well as the assumptions behind its purchase.”

About HUNTERS International Insurance

HUNTERS International Insurance is headquartered in Toronto, Ontario and specializes in limiting the liabilities of today’s business leaders through insurance brokerage and consulting. For more information about HUNTERS’ services for corporations, boards and individuals – visit