Page 1 Recording of this session via any media type is strictly prohibited. Page 1 Score! BRAZIL Score! Culture & Compliance in Latin America’s Hottest Market: BRAZIL

Page 2 Recording of this session via any media type is strictly prohibited. Our Speakers: D EBBIE R ODGERS Senior Vice President, Global Risk Management, Aramark A NGELO C OLOMBO President and CEO, Allianz Global Corporate and Specialty : Moderator : G EOFFREY P ETERS Managing Director, Willis North America-International

Page 3 Recording of this session via any media type is strictly prohibited. What to Expect Challenges dealing with the Brazilian landscape involving a major event Brazil as an emerging power but still in a growth mode Risk Management best practices and the consequences of non compliance Industry-specific insurance changes and trends Program implementation challenges and strategies

Page 4 Recording of this session via any media type is strictly prohibited. Brazil Overview 5 th largest country in area 7 th in GDP US $2.2 trillion Population : 200M Unemployment : 6% US companies operating in Brazil: more than 200 of top 500. Insurance markets in Brazil forecasted to grow at an average rate of 10%.

Page 5 Recording of this session via any media type is strictly prohibited FIFA World Cup

Page 6 Recording of this session via any media type is strictly prohibited. Scope of Services Public Catering Operation – Concessions, commercial display area, regional items and beer garden “Catering Operational Services” - FIFA / LOC staff, Media Center, volunteer program, youth program and locker room food and beverage services Third Party Restaurant – Cleaning and security crew, stadium staff

Page 7 Recording of this session via any media type is strictly prohibited. FIFA Confederations Cup June 15 – 30, venues Challenges  No prior business in Brazil  New business partner  Stadium readiness  Stadium infrastructure  Contracts  Protests  Health & safety hazards

Page 8 Recording of this session via any media type is strictly prohibited FIFA World Cup FIFA’s Vision: Develop the game, Touch the world, Build a better future.

Page 9 Recording of this session via any media type is strictly prohibited. The Stats M 12K – 14K Matches Days Cities Spectators Employees to be vetted by FIFA, hired / trained

Page 10 Recording of this session via any media type is strictly prohibited. FIFA World Cup June 12 – July 13, widely spread venues Expectations  Equipment requirements defined well in advance  Larger menu variety (including hot food items and regional food items)  Extended beverage service programme  Higher speed of service

Page 11 Recording of this session via any media type is strictly prohibited. Risk Assessment

Page 12 Recording of this session via any media type is strictly prohibited.

Page 13 Recording of this session via any media type is strictly prohibited. 13 Wednesday, February 26, 2014 / Courtesy of BusinessInsurance.com

Page 14 Recording of this session via any media type is strictly prohibited. Page 14 Allianz Global Corporate & Specialty Brazilian Insurance & Reinsurance Markets Sao Paulo, February 2014

Page 15 Recording of this session via any media type is strictly prohibited. Brazilian Insurance Market Insurance & Reinsurance markets have significantly grown over the last years Insurance Premium Premium Ceded to Reinsurance Local Admitted CAGR 16% CAGR 21% Premium in BRLm Source: SUSEP

Page 16 Recording of this session via any media type is strictly prohibited. Brazilian Insurance Market Decreased profitability in reinsurance as complex risks have been progressively transferred from insurers to reinsurers Source: SUSEP, Terra Brasis Report

Page 17 Recording of this session via any media type is strictly prohibited. New Regulatory Framework LocalAdmittedOccasional Minimum CapitalUSD 30mUSD5mnone Right of first refusal 40% of treaties and facultative none Retrocession to markets other than Admitted and Occasional NoneYes Max book Retrocession 50%No limitations Restriction to insurers None Cession limited to 10% of reinsured portfolio, except surety Intra Group restrictions None*Limited to 20% per contract Credit ratingLocally established Mirrors head office * Intragroup Retrocessions limited to 20% per contract

Page 18 Recording of this session via any media type is strictly prohibited. Wording: new regulation increases complexity  Only admitted policies allowed  Standard wording by line of business provided by the insurance regulator (Susep)  Risks required to be classified under 7 specific lines of business, additional complexities to create multiline insurance (Susep’s Rule 395)  Since June 2013, singular insurances are no longer authorized (Susep’s Rule 458)  Non-standard policy wordings adapted to the needs of the insured through particular clauses or additional covers can still be used, but must be previously approved by the regulator, with the corresponding actuarial note (3–4 months)  Arbitration clause: local legislation requires written agreement by the client  Portuguese wording prevails in bi-lingual policies / slips  Susep’s mandatory clauses in slips: insolvency, intermediary, cancellation, law & jurisdiction

Page 19 Recording of this session via any media type is strictly prohibited. Claims: in line with global practices  Loss Adjuster must be assigned by the carrier in the local market, renowned international loss adjusting companies have local representation in Brazil  Handling process fully aligned with global practices  Law firms involved in claims litigation must have local representation, specialized local and global law firms have local offices in Brazil  Local Reinsurers may enforce claims control  Large insurers and reinsurers have fully dedicated staff to all lines of business  Average time of claims settlements, after adjustments:  Insurers: 30 days  Reinsurers: 8-10 days

Page 20 Recording of this session via any media type is strictly prohibited. Carrier 3rd Party Reinsurer Reinsurer (HQ) Brazil Outside Brazil Taxes Overrider Total Costs 0%7,5% + 2,0% + 0,38% + 1,3875% 5% on cession 8,7675% 0% 5% on cession 5% Premium Flow – Option 1 Insured Reinsurer Local License 0% Cost of Capital Captive Local Placement 100 %

Page 21 Recording of this session via any media type is strictly prohibited. Carrier 3rd Party Reinsurer Reinsurer (HQ) Taxes Overrider Average Costs + 2,0% + 0,38% + 1,3875% 7,5%11,2675% Premium Flow - Option 2 Admitted Placement Local Reinsurer 0%Cost of Capital CAPTIVE 0%7,5% Average Costs Taxes Overrider Local Placement + 2,0% + 0,38% + 1,3875% 5% on cession8,7675% 0%5% on cession5% 0%Cost of Capital Brazil Outside Brazil Insured 20% 80% 100%

Page 22 Recording of this session via any media type is strictly prohibited. Carrier Reinsurer 2 Taxes Overrider Average Costs + 2,0% + 0,38% + 1,3875% 7,5%11,2675% Premium Flow - Option 3 Admitted Placement Reinsurer 1 Local 0%Cost of Capital CAPTIVE 0%7,5% Average Costs Taxes Overrider Local Placement + 2,0% + 0,38% + 1,3875% 5% on cession8,7675% 0%Cost of Capital Brazil Outside Brazil Insured 60% 40% 100%

International Insurance Programs: solution for clients with international exposure Geographical territories Policy scope (limits and conditions) Geographical territories Policy scope (limits and conditions) Captive fronting based on client needs Harmonizing overall coverage by including local companies under the Master in DIC / DIL Local policies follow best market standards  Administration of local taxes  Taking local supervisory aspects into consideration, e.g. minimum local retention  Including mandatory local coverage  Adequately reflecting and covering client local risk  Risk based premium allocation Potential sharing of risks with a panel of coinsurers / reinsurers Pooling of local policies via reinsurance *) Singapore DIC/DIL Germany ItalyAustriaAustraliaThailand US 1 US 2 US 3 Umbrella Property Example Liability Example Singapore DIC/DIL Germany Italy AustriaAustralia Thailand US FOS (optional) Germany Italy Austria FOS not recommended * to the degree legally permitted Local policies issued dependent on risk and maturity of market:  Master cover provides global umbrella  Harmonized coverage across the program  Combines best local practice with global requirements  Local regulations are complied with (taxes/levies)  Premium is allocated in relation to localrisk and exposure

Page 24 Recording of this session via any media type is strictly prohibited. Questions, Final Comments and Contact Information G EOFFREY M. P ETERS Managing Director Willis North America - International A NGELO C OLOMBO President and CEO Allianz Global Corporate & Specialty D EBBIE R ODGERS SVP, Global Risk Management Aramark Corporation

Page 25 Recording of this session via any media type is strictly prohibited. Please complete the session survey on the RIMS14 mobile application. Please complete the session survey on the RIMS14 mobile application.