Shareholder Involvement

The company requires that every shareholder also appoint a director. Each shareholder, regardless of premium size, has one vote. A simple majority governs. Raffles’ shareholder responsibilities include controlling losses, participating in board meetings, and educating other high quality companies about the captive concept. Management strength lies in a strong committee structure and individual involvement of all directors during frequent meetings held both in the Cayman Islands and other locations outside the United States. Presently, the committees and their primary responsibilities are:

1. Underwriting – Advises the Board on desirable risks to be assumed and ensures that the assumed risks are adequately underwritten.

2. Risk Control – Sets loss control goals for its members. Reviews loss control reports and works with members to meet the required loss control and claims management goals of the company.

3. Investment – Advises the board on policies for the investment of the company’s assets.

4. Finance – Reviews the company’s interim and audited financial statements and monitors each member’s compliance with their financial obligations to the company.

5. Membership Development – Assists members in educating prospective new members about Raffles and the benefits of Raffles membership.

6. Technology & Networking – Enhances the operations of the company through technology and promotes business networking amongst members.

7. Long Range Planning – Develops future plans for the company based on strategic analysis.

Each shareholder is encouraged to attend all Raffles meetings and actively participate on the committee of his/her choice.

Membership Criteria

1. Management Commitment to Safety

2. Financially Strong Company

3. Loss Experience Average or Better than Average for Industry

4. Ownership/Business Philosophy Compatible with Raffles Group

5. Minimum Casualty Premium of $150,000