Sony Pictures Entertainment Inc Sony Pictures Entertainment Inc. International Property Pre-Renewal Meeting January 24th, 2013
International Casualty Program Summary
International Premium Summary
Premium / Exposure MCIP - Argentina - Australia - Belgium - China - Hong Kong - Mexico - Russia - Singapore - South Korea - Spain - UK & Ireland - Venezuela - European FoS - Terrorism - Japan EQ DIC/DIL - Italy - UK - Terrorism - Japan EQ Premium: $216,441 Premium: $204,522 Premium: $255,291
Loss Summary 0% 1.5% 0.8% 0%
State of the Market Before Hurricane Sandy Aftermath Market at near-record capacity Large drop in CAT losses compared to 2011 Combined ratio 102.2% v. 110.5% in 2011 Investment income flat, but improving Aftermath Capacity holding steady – surplus of $507.8B (-0.5%) Competition will keep rate increases to a minimum Rates increasing 2-6% on non-CAT exposed business Proactive marketing strategy will minimize impact of rate increase Carrier communication Deductibles/Sublimits Storm Surge Wind/Flood Contingent Business Interruption
Renewal Objectives Carefully review increasingly stringent CAT terms and conditions. Maintain MCIP strategy and continue to achieve saving through policy roll-in. Evaluate alternative markets to keep pricing/terms competitive. Challenge Chubb/Carrier to improve ‘best practices’.
Renewal Timeline Activity Target Date Initial Meeting With SPE to Discuss Objectives, Strategies, Options, Expectations and Process 1/24 Lockton Develops Coverage Specifications and Distributes the Underwriting Package to the Market 1/28 Initial Indications Including Terms and Pricing Due From Carriers 2/18 Lockton Presents Renewal Proposals to SPE Week of 2/18 Conference Call Between SPE and Lockton to Finalize Placement Negotiations are Finalized and Any Remaining Subjectivities Addressed Week of 2/25 SPE Confirms Order to Bind Coverage Lockton Binds Coverage as Instructed and Delivers Insurer Binder and Invoice to SPE Lockton Issues Renewal Instructions to Global Partners Policy Inception 3/1