Exhibit 4 - Recommendation Letter
LOCKTON COMPANIES 214.969.6700
2100 Ross Avenue, Suite 1400, Dallas, TX 75201-6706 lockton.com
9/27/2023
City of Denton
215 E McKinney
Denton, TX 76201
Re: City of Denton 10/1/2023-24 Property Insurance Renewal Proposal
To Whom it May Concern,
Thank you for the opportunity to assist the City of Denton with the 10/1/2023-24 Property Insurance Policy
Renewal.
The property insurance market continues to be a pain point for buyers, insurers, and reinsurers alike.
Catastrophic losses have adversely affected commercial property, helping to fuel one of the most challenging
markets in a generation. Insurance carrier capacity, retentions, and pricing reflect the difficult market
conditions. Building valuation remains a significant discussion point in most renewals, with insurers concerned
about the effects not only on losses from hurricanes but from wildfires, severe convective storms, and
earthquakes as well.
Lockton approached five commercial property insurers (AIG, QBE, Zurich & Travelers) including the incumbent
carrier, AFM. All outside markets Lockton approached pointed to concerns with aggregation of values, total
policy limits, wind/hail deductibles, and pricing. The four non-incumbent markets Lockton approached
declined to quote the renewal. AFM was able to offer competitive terms and pricing for the 10/1/2023-24
term. AFM has provided renewal terms at an annual premium of $810,431 (excluding TRIA). This represents a
5% rate increase year over year. AFM’s competitive renewal terms are considerably more favorable than the
broader commercial property market. This is a reflection of AFM’s continued partnership with the City of
Denton, as well as Denton’s pro-active approach to providing accurate replacement cost values.
Lockton recommends that the City of Denton renew its property insurance with AFM for the 10/1/2023-2024
term.
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.