Corte Madera, CA - Terra Insurance Company book value per share set a new all-time high of $252.07 at June 30, 2009, on earnings per share of $7.49. The new high represents an almost 4% increase over the then-record of $242.69 set on June 30, 2008. According to Terra President and CEO David L. Coduto, “This is just another example of what a committed team of insurance company owner/insureds and insurance company managers can do when they work together for common objectives: great coverages, great services, outstanding risk management education and implementation, and handsome profits. Terra has now generated net income in every calendar quarter of its existence, and growth in book-value-per-share in all but one of those quarters.” Established in 1969, Terra became a risk retention group in 1988. Initial owner/insureds – most of which are still with the company – purchased their stock for $10 per share.

Mr. Coduto reported that Terra’s underwriting income (income exclusive of investment returns) – which he characterized as “the true life-blood of an insurance company” – was more than two-and-a-half times what it was during the comparative period in 2008. He credited that accomplishment to a “combination of net premium growth, lower claim frequency, and lower reinsurance and operating costs.” Mr. Coduto said that Terra’s net premium growth is principally attributable to owner/insureds’ increased billings.

“Frankly, the extent of our owner/insureds’ increased billings was far beyond ‘pleasantly surprising.’ We believe that much of it can be attributed to the risk management techniques Terra espouses: Select clients and projects with care and charge realistic fees, so you can be sure to perform projects well. Top-flight performance delights clients and that builds a base for future business, while at the same time lowering the risk of problems and claims.”

Terra provides professional liability insurance products to civil, environmental, and geoprofessional engineering firms that gross from $300,000 to more than $100 million annually. Because Terra is a risk-retention group, its insureds must also be the company’s sole owners. A.M. Best Company – the internationally recognized insurance-company rating organization – cites Terra as “the highest-rated risk-retention group in the United States.” (Terra’s score on A.M. Best’s “Capital Adequacy Ratio Tests” is one of the highest of all insurers – not just professional liability insurers – doing business in the United States.)

More information about Terra and the products it offers, as well as free risk-management materials, can be found at www.terrarrg.com, or by contacting Terra Insurance Company, 2 Fifer Avenue/Suite 100, Corte Madera, CA 94925; tel. 1/800-872-0077 (in CA, 415/927-2901); e-mail terra@terrarrg.com.