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5th December 2007

New Williston landfill dispute could end years of planning

For nearly 20 years a new, regional landfill has been planned for the Town of Williston. Currently, opposition to the proposed site from two citizen groups is meeting head on with defenders of the landfill, namely the Chittenden Solid Waste District and the Town of Williston.

Residents who live in the vicinity of the proposed landfill are waging a legal and public relations battle against the proposed landfill. The town defends its position as a host town saying it has a contractual obligation to CSWD. For its part CSWD says the landfill is necessary if Chittenden County is to meet the future needs of its citizens as they pertain to a place to put the county’s waste.

At the heart of the problem is the issue of long-term planning, especially when it involves unforeseen changes in demographics that place suburban housing in areas near to necessary, but property devaluating, public services.

Chittenden Solid Waste Districts Argument for A New Land Fill

Tom Moreau is general manager of CSWD. His office on Redmond Road is a short walk from the site of the pro-posed landfill, which will be sited at the Hinesburg Sand & Gravel Company’s property. There is little to distinguish this site as one that is so contentious and there are no signs attesting to its future use.

After years of wrangling over the price CSWD would pay the gravel company for its property, the Vermont Supreme Court recently settled the issue. Redmond Road lies near the Winooski River and the Town of Essex. There have been landfills here for years. Two previous landfills are now capped, their white vent pipes dot the otherwise green, grass covered fill. The pipes vent methane gas that, for the most part, is burned off before it reaches the atmosphere.

The old site is also picturesque and could one day become parkland. There won’t be housing built here any time soon and ground water quality here is tested regularly.

Currently the area hosts an operating waste transfer station where construction materials, as well as local trash, are brought for disposal. A pile of wood pallets is stacked several stories high and would make an impressive bonfire if ignited. The proposed landfill will be built on over 60 acres of sand and scrub woods and will help Vermont’s biggest county meet its solid waste needs, according to the CSWD general manager.

Moreau, a thin, serious man, knows hislandfill science and explained how the proposed site would work to improve waste removal in the county. He said the impetus for the new landfill was the passage, in 1987, of Vermont Act 78. That act, he noted, makes it “very clear that municipalities are responsible for solid waste.”

This Vermont law followed federal law. Act 78 encouraged regional groups to look at issues of waste disposal. Out of the legislation the 18 towns in the county formed CSWD and delegated solid waste issues to its management.

According to Moreau, CSVVD “looks at the options and we say we can do it better than can be currently provided,”.

He said the two privately operated landfills in Moretown and Coventry which opponents of the Williston site say are sufficient for waste, “meet the state regulations.” His argument for the new site is that he doesn’t “think those regulations are good enough.”

The proposed Williston landfill would be state of the art. Moreau said it would have a more robust liner system, be an active biogas collection and treatment system and would actively re-act the waste (breakdown organic matter in waste) while the liners are new. It is a multi-million project expected to cost between $20 and $50 million. Bonds will be issued to pay for the project.

According to Moreau, Vermont’s minimum landfill standards meet EPA standards but are not as tough as New York State’s standards. He wants Vermont to have the same standards as the Empire State.

“If I can do something to a higher standard we will, but we will not force it on the rest of the state. This is a local standards issue,” he explained.

“Our desire is to invoke a higher standard for land filling,” said Moreau. He said the 18 towns in CSWD don’t object to this higher standard. For its part, the Town of Williston, he said, is being silent so far. However their board member “is committed to a higher standard.”

Technology for the new landfill

The proposed landfill will surpass the sites in Moretown and Coventry in terms of its liner. Those sites have two layers of HDPE plastic while Williston would have a double composite liner with plastic and a significant layer of clay and would provide extra leakage protection.

It would also have an active biogas system. As Moreau explained, in Moretown in the current operating five-year cell, landfill gas disperses into the atmosphere. He said the problem is that the methane in the biogas causes greenhouse gases more potent than carbon dioxide. “Methane is 21 times as strong as CO.” After five years in Moretown, methane gas is burned off.

At the Coventry landfill the gas is collected and is burned producing electricity, however, after the cell is closed after five years, that gas will also spew into the atmosphere.

Moreau said Williston would have an active gas collection system with vacuum pumps.

“We’ll capture the biogas and burn it, then with sufficient quantities turn it into heat and power.”

The leachate normally trucked to a waste treatment plant will be recirculated here through the trash and go back into the top of the landfill. It will raise the moisture level in the trash to enhance what he called “degradation” thus making more gas. The site will, according to Moreau, “get commercial utilization of the gas and make the trash in the landfill less toxic.”

“We are going to do a lot on the sciences in order to make it a better business proposition,” asserts Moreau.

Local Opposition To The Landfill

Two citizens groups are opposed to the landfill. One, based in the Ledgewood Drive subdivision, a small community of 34 homes closest to the proposed site, has filed a law-suit against CSWD. Thirty-seven plaintiffs living and owning lots on Ledgewood Drive are seeking to invalidate a 1992 agreement in which town officials promised the town would host a regional landfill. The group represents 20 households.

The other, Vermont Organized Communities Against Landfills (VOCAL), is a local citizens’ group, which Brennan Woods subdivision resident Steve Casale heads. VOCAL is against the landfill for a variety of reasons.

Craig Abrahams lives in Ledgewood Drive and is leading the opposition to the landfill for his group.

His home is three years old in a development whose oldest homes are just seven years old. He said property values are not the issue in his opposition.

“The home values are less than 1 per-cent of this fight,” he contends.

According to Abrahams, his opposition stems from the fact that “the landfill is not necessary from a capacity standpoint.” His next argument is “with the town for non-disclosure.”

According to Abrahams, “We would be against any new landfills in the state of Vermont. There is no need for any landfill for capacity reasons.”

He bases this argument on the fact that the Coventry site has recently tripled its capacity from 170,000 to 420,000 tons per year, adding 250,000 tons of extra capacity. He said the entire CSWD waste stream annually is 144,000 tons.

“The new permitted capacity at Coventry more than offsets the CSWD waste stream. That is good for 20-25 years,” he argues.

According to Abrahams, Casella Waste Management owns or controls 965 additional acres at the Coventry site.

“When the 25 years of current capacity is used up they will go for permitting on additional acres,” he said.

Similarly, according to Abrahams, MG Insurance owns the Moretown site, and he said, “They have an additional 200 acres of adjoining land.”

The issue of noise from truck traffic to a Williston site is not a big one for the opponents.

“It’s far down on our list,” said Abrahams. “The trucks come here anyway for the transfer station. There won’t be an increase in truck traffic. There will be an increase in trucks leaving the site with sand and glacial till from the proposed landfill.”

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5th December 2007

The Portfolio Analysis - Motor Vehicle Insurance is a Comprehensive Evaluation of the UK Market for 2007

The Portfolio Analysis - Motor Vehicle Insurance is a comprehensive evaluation of the UK market. The revised and updated 2007 edition analyses the financial performance of the companies important to the success of your business. Using the most up to date information available, the analysis is ideal both as a tool to benchmark your own company’s results and to study the market in more depth.

Aimed at the busy manager, the Portfolio Analysis is both quick and easy to use thanks to the unique visual layout. The Analysis lays bare the performance of each company highlighting their strengths and weaknesses.

* Do you know which companies are best to do business with?

* Do you know which companies are selling at a loss and whose profit margins are plummeting?

Find out the answers to all these questions and more with the newly published Portfolio Analysis.

The report is divided into two colour-coded sections for your ease of use, Sector Analysis and Individual Company Analysis.

Sector Analysis

Sales growth, market share and profitability are all analysed over a 10 year period giving you the fullest picture possible of the health of the market. Companies are ranked on these categories so you can see which companies are outshining the rest. Use the industry average tables to benchmark your own company’s performance - how do you compare to the rest of the industry?

Industry Analysis

Each company receives a full page of analysis, evaluating their financial performance over the last five years so you get a full picture of the long term prospects of each company. Each company page of analysis is also packed with the following information: Full business name and address, Names and ages of directors, contact details and website address, seven unique charts showing at a glance the performance of each company, averages for the industry are also shown indicating the bare minimum each company should be looking to achieve, and five years of the latest accounts available.

New! Written summary on each company highlighting their key strengths and weaknesses.

Companies mentioned:

- A G P Ltd Churchill Insurance Co Ltd
- Able Brokers Ltd Claims Adjusters(International & European)
Limited
- Adia Reinsurance Co (UK) Ltd Clarke Dove (Insurance Brokers)
Ltd
- Admiral Group Plc Commercial Vehicle Direct Insurance
Services Ltd
- Allchurches Trust Ltd Crusader Uninsured Loss Recovery
Service Ltd
- Alliance & Leicester Plc D A S Legal Expenses Insurance Co
Ltd
- Allianz Cornhill Insurance Plc D Fraser Insurance Services
Ltd
- Aon Motor Accident Management Ltd Daimlerchrysler UK Holding
Plc
- Aston Barclay Holdings Ltd Daimlerchrysler UK Ltd
- Aston Barclay Plc Das UK Holdings Ltd
- Audatex (UK) Ltd Direct Motorline Ltd
- Autohome Insurance Ltd Drake Insurance Plc
- Automobile Association Developments Ltd Drive Assist UK Ltd
- Axa Insurance Plc Eagle Star Insurance Co Ltd
- Axa Services Ltd Ecclesiastical Insurance Group Plc
- Balanus Ltd Edn (Insurance Services) Ltd
- Bfsl Ltd Elite Incident Management Ltd
- Binomial Group Ltd Equity Insurance Group Ltd
- Boyd & Co Ltd Eui Ltd
- Brit Insurance Holdings Plc Financial & Legal Group Ltd
- Bromwich Insurance Bureau Ltd Ford Automotive Holdings
- Bromwich Insurance Consultants Ltd Fortis Insurance Ltd
- Budget Group Ltd Fortis (UK) Ltd
- Budget Insurance Co Ltd G D Anderson & Co Ltd
- Budget Retail Ltd G I M Hart (Assessors) Ltd
- Car Care Plan Ltd Gma Imagine Ltd
- Car Care Plan (Holdings) Ltd Green Flag Group Ltd
- Caravan Club Ltd (The) Group Direct Ltd
- Centrus Ltd Guardian Royal Exchange Plc
- Centurion Guarantees Ltd Helphire Finance Ltd
- Cheltenham Insurance Brokers Ltd Helphire Group Plc
- Hertz (UK) Ltd Mbp Holdings Ltd
- Highway Group Services Plc Mcconechy’s Insurance Services
Ltd
- Highway Insurance Holdings Plc Minibusplus Ltd
- Hill House Hammond Ltd Mma Insurance Plc
- Holding & Barnes Plc Motor Caravan Insurance Agency Ltd
- Hollyrig Ltd Motor Insurance Repair Research Centre (The)
- Homeserve Retail Warranties Ltd Motorcare Holdings Ltd
- Howgud Ltd Motorcare Services Ltd
- Hsbc Insurance Brokers Holdings Ltd Motorway Direct Plc
- Hsbc Insurance Brokers Ltd Msl Legal Expenses Ltd
- Hsbc Insurance (UK) Ltd National Insurance And Guarantee
Corporation Ltd
- Imagine Underwriting Ltd Nationwide Car Care Ltd
- Inchcape Plc Norwich Union Insurance Services Ltd
- Innovation Group Plc (The) Nsa (Ventures) Ltd
- Jackson Batten And Co Ltd Omni (Brokers) Ltd
- John Paton & Son Ltd Oughtred And Harrison Holdings Ltd
- John Paton (Insurance Services) Ltd Oughtred And Harrison
Ltd
- John Reynolds Group Ltd (The) Outright Co Uk Ltd (The)
- Jubilee Motor Policies Ltd Paynes Garage(Holdings) Ltd
- Just Car Clinics Group Plc Peter Best Insurance Services Ltd
- K G J Insurance Brokers (Stourbridge) Ltd Preferred
Assurance Co Ltd
- Kgj Insurance Services Ltd Provident Financial Plc
- Kwik-Fit Insurance Services Ltd Provident Insurance Plc
- Laindon Holdings Ltd Rbs Insurance Group Ltd
- Legal & General Group Plc Regency Finance & Insurance
Services Ltd
- Levelprompt Ltd Regency Finance & Insurance Services
(Administration) Ltd
- Lifesure Property & Holdings Ltd Road Transport & General
Insurance Co Ltd
- Lloyds Tsb Group Plc Roadsure Ltd
- Marsh International Ltd Roco Truck Bodies Ltd
- Marsh UK Group Ltd Roger Cash And Sons Ltd
- Mayleigh House Holdings Ltd Royal & Sun Alliance Insurance
Group Plc
- R&Sa Marketing Services Plc
- S G Smith (Motors) Insurances And Management Services Ltd
- Sabre Insurance Co Ltd
- Santam UK Ltd
- Surrey Independent Advisers Ltd
- Tawa UK Ltd
- Tradex Insurance Co Ltd
- Trafalgar Insurance Plc
- Unicom Insurance Services Ltd
- United Friendly General Insurance Ltd
- Universal Salvage Plc
- Userve Ltd
- Viridian Capital Ltd
- Viridian Enterprises Ltd
- Visionex 2000 Ltd
- Volkswagen Insurance Service (Great Britain) Ltd
- W A Ringrose Ltd
- Wellington Syndicate Services Ltd
- Wellington Underwriting Holdings Ltd
- West Yorkshire Insurance Co Ltd
- Westbury Motor Auction Ltd
- Westminster Motor Insurance Association Ltd
- Wren Ltd
- Z Insurance Management Ltd
- Zs Management Ltd
- Zuk Holdings Ltd

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5th December 2007

Splashy new convertibles cross the pond

For many of us, spontaneity and boating just don’t mix. We have to plan and prepare to either trailer our boat to the ramp or take the car to the boat to enjoy time on the water. But now, an inspired inventor from New Zealand is promising to make your time on the water much more accessible.

Part jet boat, part sports car, the Aquada, from Gibbs Technology, is the first amphibious vehicle of the 21st Century to perform capably on the water and on the road. On the water it can top 30 mph and tow a skier. On land it can run fast enough to earn you a speeding ticket in any state.

Best of all, it is ready for a swim anytime. Drive down a boat ramp or off the beach, push one button and 12 seconds later, the Aquada is on plane, cruising towards your destination.

“People really like the idea of the freedom of being able to drive on water and land,” says Alan Gibbs, who began designing the Aquada in 1997 after searching for and failing to find an amphibious vehicle suited to his personal use.

“People will buy one for fun initially, but will find it useful as well,” he maintains. In fact, Gibbs uses his Aquada on the Thames River to avoid traffic in downtown London. Imagine using one in a city with limited river crossings such as Manhattan or Washington, DC?

Gibbs’ personal difficulties launching a boat in the shallow harbor in front of his home in his native New Zealand led him to experiment with amphibious vehicles. “When the tide went out, it left a mile of mud flats,” says Gibbs. “If you towed the boat out to the water, by the time you got the trailer back on land and returned, the boat was either high and dry or a half-mile out to sea.” He initially built a large catamaran with wheels, but soon found it was clumsy and slow on both land and in the water, traits common to many early amphibians.

During World War II, the U.S. Army rolled out floating six-wheeled transports called DUKWs, commonly known as “Ducks,” that could motor at six miles per hour in the water and climb onto the beaches to deliver supplies at invasion sites. They weren’t fast, but they got the job done, by some estimates moving as much as 18 million tons of supplies ashore during the 90 days following the Normandy invasion.

The Duck’s design incorporated a water-tight hull around an existing truck body. The hull, drawn up by yacht designer, Rod Stephens, Jr. of Sparkman and Stephens Inc., proved seaworthy enough to cross the English Channel, a challenge that many amphibious vehicle designers use to test their craft. Today, tourists can board restored Ducks to sightsee in more than a dozen cities across the U.S., including Boston, Miami and Austin.

The early ’60s brought the introduction of the Amphicar to America. This water-going convertible, known as the Model 770 because it went seven miles per hour in the water and 70 on the road, was built in Germany. More than 3,000 were imported to the U.S., making the Amphicar the most common amphibious vehicle designed for recreational use ever built. Today, the International Amphicar Owners Club estimates that some 600 or more Amphicars remain seaworthy.

John Lambert, a longtime owner of an Amphicar and member of the club, says the floating cars appeal to car enthusiasts and collectors, many of whom remember seeing one during their childhood and never forgot the experience.

“When we go to our local lakes, people still say ‘Wow, what is that?’ It’s an attention getter,” says Lambert. “When you drive head-first down the boat ramp, people think you’re trying to kill yourself.”

Once in the water, an Amphicar can run all day, taking about an-hour-and-a-half to burn a gallon of gas. The car is pushed by a pair of nylon propellers driven by a special transmission. The front wheels serve as rudders, steering the car while afloat.

Many club members, following nautical tradition, have named their Amphicars and also maintain dual registrations as both a car and a boat. Carrying both car and boat insurance is a common practice as well.

The club holds its annual international convention in Celina, OH, each July. Last year more than 60 Amphicars and their owners gathered for parades, “swim-ins” and other amphibian-themed activities.

The continued appeal of the Amphicar more than 40 years after its introduction may bode well for Gibbs’ Aquada. But the vehicle itself shares little of its predecessor’s technology or attributes, other than the convertible top.

The Aquada’s composite body is designed to get up on plane rather than push through the water at displacement speeds. The wheels retract to reduce drag. Powered by an impeller rather than a propeller, it handles like a jet boat. Preproduction models used a 2.5-liter, 160-hp Range Rover engine, but the engine will be upgraded to a 3.2-liter, generating 230 hp, for the version that will eventually be sold in the U.S. The increase in horsepower should lead to higher top end speeds. Maximum draft is about two feet when the wheels are down.

n 2004, an Aquada crossed the English Channel, doing so in just over two hours, four hours faster than the existing record. The Aquada’s top speed of more than 30 mph shattered the old amphibious vehicle speed record of just eight mph. Billionaire and Virgin Galactic chief Richard Branson piloted the vehicle on its historic crossing.

When the Aquada enters the water a single button directs the onboard computer to begin the changeover from land to sea. The vehicle automatically disengages the drivetrain, retracts the wheels, locks the transmission in the proper gear, and engages the water jet impeller. The transition takes about five seconds and the Aquada is up to full speed a few seconds later. The driver simply continues driving and steering as though on land, except the brakes no longer work.

Of course, all this technology doesn’t come cheap. When introduced in the U.S. in 2009, the expected asking price for a new Aquada will be around $85,000. However, Gibbs has also developed a more budget-friendly amphibian.

The Quadski, a combination ATV and PWC, is also expected to be on sale in 2009. The vehicle can run at more than 40 miles per hour on the water and handle the beach or trail with ease. While designed for the recreational market, the Quadski’s added usefulness in the water could benefit wilderness search and rescue groups and others who patrol the outdoors. The target price for the Quadski is $15,000-$18,000.

Gibbs has not restricted his design work to the recreational market. The research and development of the Aquada, more than $100 million worth by his count, has spawned more than 70 patents, technology that he is offering to the military as well.

Teamed up with Lockheed Martin, Gibbs has developed several potential amphibious craft for the military, including the Humdinga, a swimming version of the Humvee. The four-wheel-drive Humdinga runs at more than 100 mph on land and can go 40 mph on the water.

While it remains to be seen whether or not the Aquada will be a hit in the U.S., it certainly represents a huge leap forward in performance on both land and water. And while it may never grow into more than a novel way to get around, like the Segway, driving a car down a boat ramp and taking off across the lake will always turn heads.

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5th December 2007

Play it safe: prepare for anything that might come up with the right warranties and contracts

KEEPING VEHICLES on the road and in good working order so your business doesn’t suffer can depend on the kind of warranty and service program your vehicles carry. Study the fine print in warranty and service policies when buying or leasing your new or used business vehicles. Standard warranties and service contracts cover most major components, such as the engine, transmission, steering, suspension and electrical systems. Emissions are usually covered for five years or 50,000 miles. Rust and corrosion can be a concern: Toyota’s warranties cover corrosion perforations for 60 months with unlimited mileage.

New vehicle warranty periods remain, on average, the same for 2006 as they were in 2005, except for hybrids. With the introduction of gasoline/electric models, most companies carry longer warranties on their hybrid components. Ford’s Escape Hybrid has a standard warranty for three years or 36,000 miles bumper to bumper, plus a warranty for eight years or 100,000 miles on its nickel-metal-hydride battery. GM’s Duramax diesel engine is covered for five years or 100,000 miles, and many Chrysler and Dodge light trucks are covered for seven years or 70,000 miles. The Mitsubishi Raider pickup is backed by a five-year or 60,000-mile bumper-to-bumper warranty.

Fleet vehicles have exceptionally comprehensive warranties. GM’s Limited Warranty protects the entire vehicle, including tires, for a period of three years or 36,000 miles. There is no deductible for repairs, and the contract also covers sheet-metal corrosion for six years or 100,000 miles as well as towing costs.

If your warranty runs out and you plan to keep your vehicles, you can buy an extended warranty to pick up coverage when the original warranty expires. This is particularly important if your certified pre-owned vehicles’ first-owner warranty is not transferable, or the fast warranty is about to lapse. When buying an extended warranty, check for deductibles, which can be budget-busters, and be aware that the price is negotiable. Ask if you must pay for repairs upfront and wait for reimbursement, even if the vehicles are covered by a warranty.

Not all dealers provide warranties backed by the manufacturer, but if you own a Ford truck, for example, you can request Ford’s Extended Service Plan rather than sign up for an aftermarket contract that a dealer may prefer.

Extended warranties are also sold by independent companies, such as www.warrantydirect.com, and are great for comparing quotes. While bypassing your local dealer can be risky if you want to be guaranteed genuine factory replacement parts, some extended warranties can be contracted for the length of time and mileage you specify. But make sure they can be honored at your brand’s dealerships nationwide.

Unless your vehicles are covered by fleet programs, a service contract may suit your needs better than an extended warranty. Service contracts can be purchased anytime, not only when you buy the vehicle, although they may not be factory-backed like extended warranties usually are. Some of the least expensive service contracts are offered by insurance companies, but again, read the fine print and know what the deductibles are.

Dodge has a Business Link priority service program for small businesses that provides extended-hours repairs, free loaners and no enrollment fee, even if you don’t buy a vehicle. Nissan’s programs include a choice of bronze, silver or gold coverage that provides service and preventive maintenance every three or six months, and three plans for certified pre-owned vehicles.

JILL AMADIO is Enterpreneur’s “Wheels” columnist.

Get Down to Business

Be ready for the long haul with these pickups that gill lighten
your load off-road and on, while still giving you a comfortable
place to sit.

BASE MAJOR
MODEL ENGINE FEATURES

Chevrolet 4.3-liter V-6 Manual transmission
Silverado

Dodge Ram 3.7-liter V-6 Manual transmission, rear
anti-lock brakes, cargo lamp

Ford F-150 4.2-liter V-6 Manual transmission, 4-door,
removable tailgate, ABS,
2 power outlets

Honda Ridgeline 3.5-liter V-6 Automatic transmission, 4-door,
4WD, ABS, rollover sensor, roof
rails, 3 power outlets, split-fold
rear seat

Nissan Titan 5.6-liter V-8 Automatic transmission, 1 power
point, energy-absorbing steering
column

Toyota Tundra 4.0-liter V-6 Manual transmission, ABS

SEATING/ MAX TOWING
MODEL BED LENGTH CAPACITY PRICE

Chevrolet 5/78.7 in. 8,400 lbs. $18,190
Silverado

Dodge Ram 3/76.6 in. 3,300 lbs. $21,700

Ford F-150 3/78.8 in. 2,400 lbs. $19,640

Honda Ridgeline 5/60 in. 5,000 lbs. $17,700

Nissan Titan 5/76.1 in. 9,400 lbs. $23,250

Toyota Tundra 3/98.2 in. 5,000 lbs. $16,155

AT YOUR SERVICE: If you own or lease a fleet, your local dealership is the obvious choice for servicing your company vehicles, but on-the-road repairs may necessitate a tow to another garage. No problem if you have a service card such as GM’s Fleet Service Card–accepted at more than 600 GM dealers across the United States, whether the need is for fuel, maintenance or emergency repairs. It comes with an ID number, so only your drivers can use it, and only for the products and services your company has authorized.

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11th September 2007

Peddling the re-cycled life

I should start a reinsurance company. Whatever the 2006 hurricane season brings, rates are climbing and will be, well into 2007. Premiums up, claims down; hell, a fool could make money. I am therefore perfectly qualified. Here’s how it would work

You need a million dollars to kick things off. You put up some collateral and borrow it. It’s not that hard. My car cost almost that. Hock the kids. Then bang the million into a letter of credit trust, and borrow $50 million against it. Now we’re off to the races.

A fast dog-and-pony show for the private equity boys; a call to Stone Point Capital (motto: “Have we got millions for you!”); lunch with some hedge-fund heavyweights. Before you know it, you’re staring down the business end of a billion dollars.

You rent a crumbling rat hole on the wrong side of Hamilton, the reinsurance capital of the world. Telephone, the Internet, some desks and notepads; Bob’s your uncle.

You ask around for who’s looking for a fat raise and some share options (almost everyone). You hire a chairman with a famous face and a secret drug problem. He’s so grateful to be back in the business, he works for nothing. You hire two or three lukewarm bodies that go by the sobriquet of “underwriters,” find an accountant who hasn’t been struck off recently and a couple of secretaries. You buy the three catastrophe computer models and phone A.M. Best, who hand you an A-because they gave everyone else one. Besides, your prospects are rosy.

Then you take a long lunch because the hard part is coming up. You need a name for this venture.

Quite a few good ones are taken. You want something that indicates sturdiness, purpose, single-mindedness and a spot of pizzazz. You reject Lotta Re, Robber Re and Rocker Re, and settle instead on Forever Reinsurance Holdings. On the way back from lunch you hire an ad agency and tell them to come up with some pictures of forts and castles and a cutline. You settle on: “Re. Re. Re. Re. Re. Re. Re. Re-spect. When I get home.”

You fly to Monte Carlo and become epically drunk at all the parties. Everyone notices. They think, “Man, he must be on top of things if he can behave like that in public.” Back in Bermuda, you receive the brokers and their clients, and buy them all a boozy lunch. They buy as much reinsurance as you can dole out. Led Zeppelin plays your Christmas party.

I know what you’re thinking. You’re thinking, “This guy is an idiot. His low-quality approach is bound to fail. Within a year or two, he’ll be making huge losses and his name will be mud.”

Exactly.

You’re not in this for the long haul. That’s for truck drivers. Year One, you take a salary of $2 million, and award yourself a bonus of $3 million more. Share options all round. Dish out press releases about how great you are, and drop hints about acquiring Munich Re.

Here’s the beautiful part. If you fail, so what? You’ve got several million, everyone else gets jobs at other reinsurers, the backers shrug their shoulders and that’s the end of that. If the hurricane season is friendly and you actually make a profit, up your salary by 100 percent, your bonus by 200 percent, marry Paris Hilton, and 15 minutes later get divorced for even more millions.

You go on Oprah and cry. Time magazine puts you on the cover, “How it all went wrong.” Al Pacino plays you in the movie, “Reinsure This!” You consult on the movie, and for the Class of 2008, at $50,000 an hour. You live like a king. A year later, you do it all again. Sweet.

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