Dear Colleagues:

We appreciate your interest in BPIC and we anticipate that market conditions afford an opportunity for BPIC to reaffirm its value as a stabilizing force for diocesan CFOs. For an overview of our origins and growth leading up to our 10th anniversary celebrated in 2013, we encourage you to check out the video and “Call to Legacy” monograph developed for that occasion.

There is one overarching goal that BPIC’s leadership advances through its Board of Directors, Committees and service providers – that of growth – of net income, of new members and of valued services.

BPIC lives out its flexibility by being a reinsurance captive where no two members have the same level of self-insured retention or coverage placements. This unique feature allows each member to work with its producer each policy year in identifying the best way that the reinsurance captive’s structure can be designed to meet the member’s overall risk financing needs. Members may add a line or change a layer of coverage one year and adjust it up or down in subsequent policy years, depending on market forces and the total cost of risk picture. It is important that we recognize the different aptitudes for self-insurance by our members (which ranges, on a given line of coverage, from $50,000 to $2 million per occurrence).

In addition, BPIC seeks to develop companion programs for its members, such as the Companion Property Program which allows members to benefit from advantageous pricing based on aggreged exposures while assuming no underwriting risk.

At the formation of BPIC there was a steering committee represented by dioceses throughout the United States guiding the decisions made. One of the critical decisions was to capitalize the captive with cash at a 1:1 ratio (premium to capital). The primary motivation here was one of being in the position to provide the company with a sound financial footing and to collateralize growth. The Board acted on this opportunity early on with a vote to increase its share of the reinsurance layer from 20% to 30%, and most recently from 30% to 40% for the January 1, 2017 lineslip.

Beginning our 15th year of operation, the Board of Directors continues to encourage dioceses to join this national movement and strategy for risk financing. To that end, interested dioceses may seek an accommodation in financing the member capital contribution. This is yet another indication of the strong surplus position of this company.

We look forward to hearing from you and being available, should you have any questions or want us to further elaborate on the facts and experiences of BPIC over these 15 years of proven success. We are also available to discuss the Company’s strategic goals as the Board looks out over the next five years and hope you can celebrate our 20th anniversary with us . . . as a member!

 

Patrick Kelly
President, BPIC Board of Directors
Chief Financial Officer, Diocese of Youngstown