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                                                                    EXHIBIT 10.1

                                   SCHEDULE I

                          INVESTMENT POLICY GUIDELINE(1)

I.   PORTFOLIO

     1.   The Client is IPCRE LIMITED (formerly International Property
          Catastrophe Reinsurance Company Ltd.)

          The invested portfolio is comprised of the assets held within the
          following accounts:

          (i)    AGM PROP      Invests primarily in US Dollar High-Grade Fixed
                               Income Securities

          (ii)   AGM PROM      Invests primarily in Money Market Instruments in
                               various currencies as directed by the client from
                               time to time.

          (iii)  AGM PREP US   Invests in US Equities only

          (iv)   AGM PREP GE   Invests in Global Equities

          hereinafter collectively referred to as "the Portfolio".

          a.   The Portfolio represents capital for solvency purposes of the
               Client.

          b.   The primary objective of the Portfolio is preservation of
               capital. A secondary objective is returns commensurate with the
               Benchmarks as hereinafter defined.

     2.   The Portfolio is to be invested only in the asset class(es) detailed
          below; together with all subsequent additions thereto of which the
          Company is given notice, and all other property acquired therefrom,
          proceeds therefrom, or in substitution therefor, less authorized
          payment by the Custodian.

<TABLE>
<CAPTION>
                             Asset Class                   Min %    Max %
                 --------------------------------------------------------
<S>                   <C>                                  <C>      <C>
                 [X]  Fixed Income Securities                 0      100
                                                           -----    -----
                 [X]  Money Market Instruments                0      100
                                                           -----    -----
                 [X]  Equity Securities                       0       20
                                                           -----    -----
                 [ ]  Convertible Bonds
                                                           -----    -----
                 [ ]  Equity Derivatives
                                                           -----    -----
                 [ ]  Financial Derivatives
                                                           -----    -----
                 [X]  Foreign Exchange Contracts              0       20
                                                           -----    -----
                 [ ]  Foreign Exchange Derivatives
                                                           -----    -----
                 [X]  Money Market Funds                      0      100
                                                           -----    -----
                 [X]  Repurchase Agreements                   0      100
                                                           -----    -----
                 [ ]
                                                           -----    -----
                 [ ]
                                                           -----    -----
</TABLE>

          Other asset classes shall not be permitted without the express written
          approval of the Client.

                 [ ] Additional detail is attached as Asset Class Schedule.

          a.   The Portfolio shall be denominated in US DOLLARS, hereinafter
               referred to as the Base Currency.

     3.   Counterparty Risk

          a.   Wherever possible, all securities transactions shall be executed
               "delivery versus payment."

          b.   All securities transactions shall be executed with commercial
               banks, investment banks, brokers and trading firms
               ("Counterparties") of recognized standing in the financial
               markets.

          c.   To the extent that OTC Options and other derivatives, Foreign
               Exchange Contracts and Repurchase Agreements are permitted in
               Section I.2, they shall be executed with Counterparties of
               recognized standing in the financial markets. Further, such
               Counterparties shall carry Investment Grade Ratings, as defined
               by Moody's or Standard & Poor's.



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II.  BENCHMARK

     The Portfolio performance shall be measured with regard to the following
     composite index which shall be considered the base asset allocation of the
     Client:

<TABLE>
<S>                                                                       <C>
            Salomon Smith Barney Eurodollar Bonds 1-3 year AAA/AA Index     42.5
                                                                          ------
            Salomon Smith Barney Eurodollar Bonds 3-5 year AAA/AA Index     42.5
                                                                          ------
            US S & P 500 Index                                               7.5
                                                                          ------
            MSCI World All Countries Free Daily Total Return Net (USD)       7.5
                                                                          ------
</TABLE>

III. CUSTODIAN

     1.   The main Custodian is AIG GLOBAL INVESTMENT TRUST SERVICES, LTD.,
          although additional Custodian accounts may be opened with the approval
          of the Client.

IV.  GENERAL FIXED INCOME GUIDELINES

     1.   Currency

          The Fixed Income Portfolio is a  [ ] Single Currency Account
                                           [ ] Hedged Currency Account
                                           [X] Multi-Currency Account
                                                         as hereinafter defined.

          a.   A Single Currency Account shall be invested 100% in the Base
               Currency as defined in Section I.2.a. Securities denominated in
               or linked to other currencies are permitted only at the direction
               of the Client.

          b.   A Hedged Currency Account shall be invested in securities
               denominated in or linked to any currency provided, however, that
               foreign exchange contracts, futures and/or options are executed
               to reduce the net non-Base Currency exposure to less than 5% of
               the Portfolio Market Value.

          c.   A Multi-Currency Account shall be invested in securities
               denominated in or linked to any currency. Whether or not foreign
               exchange contracts, futures and or options are permitted in
               Section I.2., the non-Base Currency exposure of the Portfolio
               shall not exceed 20.0% of the Portfolio Market Value. The net
               non-Base Currency exposure shall not exceed 20.0 % of the
               Portfolio Market Value

               Unless permitted in Section I.2., Foreign Exchange Contracts
               shall not be executed for a Multi-Currency Account except for the
               acquisition or disposition of securities or for the conversion of
               coupon/dividend receipts to the Portfolio Base Currency; no
               hedging or speculative currency transactions are permitted.

     2.   Country Risk

          The Portfolio is a [X] Diversified Country Risk Account
                             [ ] Targeted Country Risk Account
                                                         as hereinafter defined.

          All country limits are percent of Portfolio MARKET Value on date of
          purchase and refer to the country of issuer or guarantor. In the case
          of banking institutions, the country of a full branch shall be deemed
          to be the domicile of the head office. Country exposures shall not
          exceed the greater of the country limit or U.S. $5,000,000 equivalent
          at the time of purchase.

          A Diversified Country Risk Account permits the following per country
          limits.

<TABLE>
<S>                                                                         <C>
          a.   United States                                                100%

          b.   Canada                     Switzerland                        75%
               Germany                    United Kingdom
               Japan

          c.   EEC, EIB, ECSC, World Bank (IBRD), Other Supranationals       50%
</TABLE>


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<TABLE>
<S>                                                                         <C>
          d.  Australia    Finland        Luxembourg        Portugal         25%
              Austria      France         Netherlands       Spain
              Belgium      Ireland        New Zealand       Sweden
              Denmark      Italy          Norway

          e.  Other (Total value of all securities not covered
                 under IV.2.a.-d. above)                                     10%
</TABLE>

               A Targeted Country Risk Account specifically targets the
               investment opportunities in one or more particular countries as
               detailed below:

               ________________________    ___________%
               ________________________    ___________%
               ________________________    ___________%

               [ ] Additional detail attached as Country Risk Schedule.

     3.   Issuer Limits

          a.   Except in the case of Supranational, Sovereign, and Sovereign -
               supported issues, where the limits under IV.2 above apply, the
               securities of one issuer should not exceed the greater of 10.0%
               of the Portfolio MARKET Value or U.S. $5,000,000 at time of
               purchase.

     4.   Issue Limits

          a.   In the case of fixed income securities, no holding should exceed
               the greater of 10% of the amount outstanding or U.S. $5,000,000
               nominal at the time of purchase.

     5.   Maturity Limits

          a.   In the case of fixed income securities, no individual security
               shall have a remaining MODIFIED DURATION greater than EIGHT
               YEARS.

          b.   In the case of money market securities, no individual security
               shall have a remaining MATURITY greater than TEN YEARS,
               notwithstanding the frequency of any rate reset provision of the
               security.

          c.   The Portfolio shall maintain a target WEIGHTED AVERAGE MODIFIED
               DURATION of between approximately 1.25 AND 3.75 YEARS. For
               purposes of this calculation only, the maturity of a floating
               rate security is deemed to be its next succeeding reset date.

     6.   US Securities

          The purchase of US securities IS permitted.

     7.   Credit Risk

          a.   All securities purchased for the Portfolio which carry a long
               term rating by either Standard & Poor's or Moody's shall have a
               rating of AA- or AA3 or better at the time of purchase.
               Notwithstanding the foregoing, securities may be purchased for
               the Portfolio which have ratings of A- or A3 or better provided
               that, in aggregate, they do not constitute more than 25% of the
               Portfolio MARKET Value. (Securities which are not so rated at the
               time of intended purchase shall not be permitted except on a case
               by case approval of the Client.)

               All securities purchased for the Portfolio which carry a short
               term rating by either Standard & Poor's or Moody's shall have a
               rating of A-1 or P-1 or better at the time of purchase.
               Notwithstanding the foregoing, securities may be purchased for
               the Portfolio which have ratings of A-2 or P-2 or better provided
               that, in aggregate, they do not constitute more than 25% of the
               Portfolio MARKET Value. (Securities which are not so rated at the
               time of intended purchase shall not be permitted except on a case
               by case approval of the Client.)

          b.   Unrated securities ARE permitted. The unrated securities shall
               have credit quality at the time of purchase, as determined in
               good faith by the Company, equivalent to other permitted
               securities which are rated as in IV.7.a. The Client shall be
               notified at least quarterly as to the composition and status of
               the unrated securities held in the Portfolio.



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          c.   A security purchased either in accordance with Section IV.7.a.
               which receives a downwardly revised rating or in accordance with
               Section IV.7.b. which receives a newly established rating that in
               either case would make such security ineligible for further
               purchase remains a permitted security to the extent of the then
               current holdings.

          d.   Private placements ARE permitted. Any private placements
               purchased for the Portfolio shall be marketable securities. This
               permission is specifically intended to allow the purchase of
               unlisted securities.

          [ ]  Additional detail is attached as Credit Risk Schedule.


     8.   Realized Gains/Losses

          Net realized capital gains and losses should be minimized. (For
          example: To the extent fixed income assets are permitted, bond switch
          activity to enhance returns is encouraged, but should not become
          excessive and should be undertaken within the context of minimizing
          net gains and losses).


V.   GENERAL EQUITY GUIDELINES

     1.   The U.S. Equity portion of the Portfolio seeks to replicate the
          aggregate price and yield performance of the Standard & Poor's 500
          Composite Stock Price Index (the "S&P 500 Index"), an index which
          emphasizes large capitalization companies in the United States.

     2.   The Global Equity portion of the Portfolio seeks to outperform the
          total return of the MSCI World All Countries TR Free (USD) Index.


VI.  FEES

     The fee schedule will be calculated as follows: 0.35% per annum on the
     first $100 MILLION U.S. dollars, or equivalent of Portfolio MARKET value;
     0.25 % per annum on the next $100 MILLION; and 0.15 % per annum on any
     amount exceeding $200 MILLION.

     The fees will be calculated based on the previous month end MARKET value of
     the portfolio (including accrued interest) and are payable MONTHLY IN
     ARREARS. The fees shall be reduced proportionally for any part of a period
     in which this Agreement is not in full effect.

     [ ] Additional detail is attached as Supplementary Fee Schedule







Signed by          /s/ John Weale, Vice President
          ------------------------------------------------
                        for and on behalf of
                            IPCRE LIMITED





Signed by:         /s/ Robert Hennessy, Director
           -----------------------------------------------
                        for and on behalf of
            AIG GLOBAL INVESTMENT CORP. (IRELAND) LIMITED



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                                   SCHEDULE II

                               AUTHORIZED PERSONS

     Name(s) and address(es) of persons authorized to give and receive notices,
     consents or other communications.

     Name                             Address
     ----                             -------
     Robert Hennessy                  AIG Global Investment Corp. (Ireland) Ltd.
     Orla O'Grady Walshe              AIG Centre
                                      IFSC
                                      North Wall Quay
                                      Dublin 1
                                      Ireland

                                      PHN: 353-1-672-0222
                                      FAX: 353-1-672-0267
                                      TLX: 91965


     Name                             Address
     ----                             -------
     John R. Weale                    IPCRe Limited
     Dennis J. Higginbottom           P.O. Box HM 152
     James P. Bryce                   Hamilton HM AX
                                      Bermuda

                                      PHN: 441-298-5100
                                      FAX: 441-292-8085



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