April 1, 2004

TO: MEMBERS OF THE GEORGIA SELF-INSURERS GUARANTY TRUST FUND

RE: Annual Report for 2003

As of December 31, 2003, the Georgia Self-Insurers Guaranty Trust Fund (“Fund”) has continued payment of workers’ compensation benefits, medical expenses, and rehabilitation services to nearly 300 injured workers and their dependents. Approximately $14 million dollars of benefits have been paid to these workers or to their dependents on their behalf. The Fund has recovered approximately $4.5 million in reimbursement from the Subsequent Injury Trust Fund, bankruptcy courts, and excess insurance carriers. These funds have been recovered as a result of an aggressive program implemented by the Fund to seek all remedies and relief available to it in mitigation of the cost of servicing the claims of insolvent members.

The Fund consists of approximately 300 active members. This membership figure has remained relatively constant for the last three (3) years after declining from a membership high of 437 companies in 1995. However, a significant firming of the insurance market since September 11, 2001 has resulted in a steady increase in applications for new membership. It appears clear that this trend will continue for the foreseeable future in light of the current insurance climate.

To date, forty-one (41) members of the Fund have become insolvent since 1991. In 23 of these insolvencies, the Fund has been called upon to take over the obligation of the employers. Over 300 of the open claims have been resolved, and we are currently servicing only 48 open matters. Of the 23 bankruptcies, security being held by the Fund was adequate to respond to liabilities in all but ten (10) employer bankruptcies.

As of December 31, 2003, the Self-Insurers Guaranty Trust Fund’s total assets exceed $9 million dollars.

For more information about the Georgia Self-Insurers Guaranty Trust Fund, please visit our website at www.gaguaranty.com.

The members of the Board of Trustees appreciate your cooperation and participation in the continued operation and funding of this necessary endeavor.

Sincerely,

Charles Hipps, Chairman

Board of Trustees