News

PACE is financially strong, data-driven

At its meeting on Dec. 3, 2012, the PACE Board of Trustees heard a presentation of the Capital Equity Report by Kevin Wick, an actuary with PricewaterhouseCoopers (PwC).

The report estimated funding needs within a range of scenarios and set forth a process to develop funding for underwriting, reserving, asset and credit, and operational requirements. The report reflects the steps PACE continues to take toward data-driven decision-making as its driving force.

PwC’s presentation was the first part of a two-part study, beginning with a “quantification” of where PACE now stands. The second part of the study will include a calculation of how to achieve a desirable level of risk with adequate funding to ensure continued operation.

The financial report by Mike Doherty showed that general liability claims for the 2012-13 policy year were slightly above average, though such claims have slowed over the past several months.

Property claims are above average at this point in the policy year. The total picture shows that overall claims, however, are slightly above the target of 33.9 percent.

The trustees heard many other presentations during the daylong meeting, including an audit presentation, an update on the trust’s investments and a loss-control report. The trustees also approved the draft Underwriting Manual.

The overall picture presented to the trustees reveals a sound institution with strong finances and diligent management. PACE continues to dominate a niche that provides affordable and reliable insurance to school districts and ESDs against property losses and casualty.