The Corporation follows the practice of obtaining reinsurance to limit its exposure to losses. Under agreements in effect at February 29, 2004, these reinsurance agreements limit the Corporation’s exposure to a maximum amount of $2.5 million (2003–$2.0 million) on any one occurrence.

The reinsurance arrangements also limit the Corporation's liability in respect to a series of claims arising out of a single occurrence, including catastrophic claims, to a maximum of $5.0 million (2003–$6.7 million). These arrangements protect the Corporation against losses up to $150.0 million (2003–$166.7 million).

Certain lines of insurance carry maximum limits lower than these amounts. While these arrangements are made to protect against large losses, the primary liability to the policyholders remains with the Corporation.

The Corporation evaluates the financial condition of its reinsurers to minimize the exposure to significant losses from reinsurer insolvency.

The figures shown in the Statement of Operations, excluding discontinued operations, are net of the following amounts relating to reinsurance ceded to other companies:

(IN THOUSANDS OF DOLLARS)
Fiscal Year	Minimum Lease Payment
2005	$  2,566
2006	$  2,499
2007	$  2,460
2008	$  2,439
2009	$  2,491
thereafter	$ 10,369