Hi Vince,

I am enclosing a report on my thoughts about risk and return behaviour of an  
insurance portfolio. Your input on this will be very helpful. 

I have given Vasant a copy of this report and am working with him towards 
improving  this. In the mean time, I happened to mention this idea in a 
meeting with David  Porter, Per Sekse, Brad Blesie and David Hoog and there 
seems to be some  interest in understanding how this works. In fact, David 
Hoog subsequently  reviewed this with me and suggested some changes. Those 
changes have been included in this report.

The idea here is simple and just a starting point.  While it provides a broad 
picture on how risk and return will behave at portfolio level,  I am hoping 
to be able to relax some of the assumptions to get more realistic picture in 
near future.

Looking forward to your input,

Sincerely,

Amitava