For more than a century, AAA has made sure that when you've needed us, we've been there for you. We have remained strong through many economic cycles by prudently managing your club and its insurance arm.

We have stood by members and policyholders during good times and bad. The bad have included the Great Depression, World War II, the 1989 Loma Prieta earthquake, and the 1991 fire in the Oakland hills. When the Angora fire raced through South Lake Tahoe, Calif., in 2007, AAA provided debit cards or checks to policyholders on the spot, while other insurance companies were asking those affected to collect receipts and await reimbursements. That fire began on a Sunday afternoon, and by the following day 16 AAA claims adjusters and a full-service claims trailer were on the scene. Getting our members going again, whether they've had flat tires or lost their homes, is the reason we're in business.

The economy and markets worldwide are going through a difficult period, with major banks and other financial institutions in disarray. Despite these upheavals, I can assure you that AAA continues to be financially strong. You can see details in our most recent annual report by going online and visiting AAA.com/annualreport.

Although we too have been affected by the economic downturn, our combined members' equity and policyholders' surplus stands at nearly $3 billion. These sizable resources allow us to continue offering you safety, security, and peace of mind and ensure that we can weather any financial or natural storm that comes our way.

Your club remains in the enviable position of having a strong balance sheet, as the rating agency A.M. Best notes in giving our insurance products the A+ rating assigned to companies that have "a superior ability to meet their ongoing insurance obligations."

We are confident that AAA will continue to earn your trust on the highways and everywhere else that our strength and stability can
protect you.