Dear Fellow LHBA Builder and LHBA GL Trust Member:


It is with great pride that I am able to serve as your Chairman of the Board of Trustees of the Louisiana Home Builders Association General Liability Trust and that we are able to present the 2003 Trust Year Annual Report for your review. Louisiana Home Builders Association builder members asked for a solution to the general liability crisis that faces homebuilders all across the nation; in direct response to this request, the LHBA GL Trust was formed. To the best of our knowledge, our Trust is the first self-insured general liability program in the country that is tailored exclusively to the homebuilding industry. Since the creation of the GL Trust, we are aware other programs have been or are being created by home builder associations in other states. We are certain that of the general liability options available in Louisiana, your GL Trust is the only opportunity a builder has to get general liability coverage from a company that is wholly owned and operated by home builders.

The success of the Trust depends upon our collective willingness to dedicate ourselves to the long-term solutions to our general liability needs. Our desire to self-insure as a group aligns all of us to a common purpose and goal – general liability coverage that is both available and affordable. The better we perform as a group, the more we will benefit from this collaborative effort. If we work together and stay committed, we will continue to be able to obtain the most cost effective general liability protection available. Providing quality construction, effective management of our workers and subcontractors, in-depth knowledge of the New Home Warranty Act provisions and developing professional relationships with our clients that balance their hopes, dreams and realistic expectations, will ensure our place in continuing to provide for the American Dream of home ownership.

The independent audited financial statement as of December 2003 indicates that we are off to a great start. The Trust was created on March 20, 2003 and for everyone that came into the program during the first year, the premiums were prorated. Our Statement of Financial Position reflects liability items Security Deposits ($743,409.00) and Member Distribution Payable ($786,044.00). On the Statement of Income and Policyholders’ Surplus, reflects Contribution Income of $1,564,956.00 that resulted in a net income of $786,044.00, money declared to go back to you in the form of future dividends.

As of December 31, 2004, the Trust is 600 members strong who contribute an estimated annual premium of $4,700,000.00. We look forward to continued success and appreciate your faith in this program and your efforts in making all of us proud to what we have been able to build together.

Sincerely,

Kenneth W. Jones
Chairman, LHBA GL Trust