Exhibit 4 - Broker Recommendation Letter
LOCKTON COMPANIES 214.969.6700
2100 Ross Avenue, Suite 1400, Dallas, TX 75201-6706 lockton.com
5/12/2021
City of Denton
215 E McKinney
Denton, TX 76201
Re: City of Denton 5/25/2021-22 Denton Energy Center Property Renewal Proposal
To Whom it May Concern:
Thank you for the opportunity to assist the City of Denton with the 5/25/2021-22 Denton Energy
Center Property policy renewal.
Power generation risks are seeing hard market conditions across the board as capital continues to
leave the segment due to poor loss experience. Going into Q1 2021 when we were in the market
with the Energy Center’s risk, we were seeing base case renewal starting point at 25% to 30% rate
rise from expiring. The incumbent program for this placement was a quota-shared program split
amongst four (4) carriers. Combined, the incumbent markets presented a renewal premium of
$582,618, not including taxes & fees, which is a 27.31% rate increase from last year.
Lockton worked to obtain two (2) bindable options to present to the City – one with the incumbent
quota share carriers (which consists of SwissRe, AIG, Starr, and Lloyds), and the other with AEGIS.
Upon reviewing the quotes, AEGIS is willing to offer 100% of the property insurance, rather than
having it be in a quota-share program. Limits between the two (2) quoted options remain
consistent with the limit set at $159,805,92. AEGIS presented us with a premium of $467,000 – not
including taxes & fees, which is a $115,618 lower premium than the alternative quoted option.
Lockton recommends the City bind its Energy Center Property Insurance with AEGIS for a total
annual deposit premium of $467,000 plus applicable taxes and fees.
Thank you for the opportunity to work with the City of Denton. Please let us know if you have any
questions regarding this renewal.
Sincerely,
Neil Cohen
Senior Vice President, Practice Leader
Lockton Companies.