RMS(R) Hurricane Model Re-Certified by Florida Commission

May 18 2006

Risk Management Solutions (RMS) announced today that the Florida Commission on Hurricane Loss Projection Methodology (FCHLPM) re-certified the RMS Hurricane model for use in establishing residential insurance rates in the state of Florida. This year's review included upgrades to the RMS model that reflect new research on vulnerability of residential line dwellings, allowing for better differentiation of this class of risk based on year built. RMS is the world's leading provider of products and services for the management of catastrophe risks, and its U.S. Hurricane model is used by primary insurers, reinsurers, intermediaries, and other financial institutions to develop strategies for pricing, portfolio management, and risk transfer.

"The 2006 Florida Hurricane model represents advances in the assessment of residential lines vulnerability, particularly in differentiating regional vulnerability across the state of Florida and the increased importance of year in construction for classifying these risks," said Mitch Sattler, vice president of public policy at RMS. "The resolution and detail of 2004 claims and exposure data for residential lines properties have demonstrated notable differences in damage based upon various eras of construction, providing substantial evidence to update this aspect of our vulnerability model."

To be certified by the Commission, RMS submits extensive documentation supporting the model's accuracy, and is then audited by an independent panel of experts. The RMS model passed all standards set forth by the Commission in its most recent Report of Activities, covering meteorology, vulnerability, actuarial, statistics, computing and other general standards that apply to models used for developing residential insurance loss costs in Florida.

About RMS

Risk Management Solutions is the world's leading provider of products and services for catastrophe risk management. More than 400 leading insurers, reinsurers, trading companies, and other financial institutions rely on RMS models to quantify, manage, and transfer risk. Founded at Stanford University in 1988, RMS serves clients today from offices in the U.S., Europe, and Japan. For more information, visit our website at http://www.rms.com .

RMS is a registered trademark, and the RMS logo is a trademark of Risk Management Solutions, Inc. All other trademarks are property of their respective owners.

Editorial Contacts:

Mark Prindle

TorranceCo, New York

1-212-691-5860

mprindle@torranceco.com

Shannon McKay

RMS, California

1-510-505-3257

shannon.mckay@rms.com