Lloyd’s: THE WORLD’S SPECIALIST INSURANCE MARKET

THE HOME OF INTERNAtIONAL INSURANCE From oil rigs to Ming vases, nothing surprises us. 2

3 THE HOME OF INTERNAtIONAL INSURANCE From origins in marine insurance, Lloyd’s has been covering risks for more than 300 years Lloyd’s is a market where businesses buy and sell insurance What we protect ranges from offices and factories to jewellery, aircraft and the new World Trade Center

4 WHY LLOYD’S? You’re in experienced hands: our market brings together an exceptional level of knowledge and underwriting experience You’re protected: the Corporation of Lloyd’s monitors the market’s performance and approves the capital base for the payment of valid claims by the market You’re connected: the Lloyd’s market can be accessed from many places in the world

How the market works Getting covered 5 The policyholder The brokers The coverholders Members Managing agents Syndicates Corporation of Lloyd’s Please click icons for more info…

Since your risk is large and complex, it may mean several different underwriters sharing the risk. This means you can get cover for risks that might otherwise be uninsurable. Imagine that you have several factories to protect, with specific and complex needs Your broker visits Lloyd’s and goes to the Underwriting Room. Here he can meet interested underwriters face to face and ‘shop around’ to negotiate the best package 6 HOW YOUR RISK IS WRITTEN Once he has struck a deal, the broker returns to you for approval In the event of a claim, you simply go back to your broker to set the process in motion You go to your broker. He advises that Lloyd’s has the expertise for this risk as well as the robust capital structure from which valid claims can be paid Since your risk is large and complex, it may mean several different underwriters sharing the risk. This means you can get cover for very large and complex risks

WELCOMING THE WORLD Lloyd’s covers risks from around the globe 7

8 LLOYD’S can be accessed from 200+ countries and Territories worldwide Source: Lloyd’s Annual Report All figures as at 31 December 2012

LLOYD’S FINANCIAL STRENGTH Our Chain of Security and independent ratings 9

10 LLOYD’S FINANCIAL STRENGTH One of many things that makes Lloyd’s different: the Chain of Security It provides the financial strength that backs all insurance policies written at Lloyd’s It means every policyholder can have full confidence that all valid claims will be paid

11 Figures correct as at December 2012 OUR CHAIN OF SECURITY LINK ONE: SYNDICATE ASSETS (£41,126m/US$67,035m/€50,585m) Before writing business, a syndicate must put up funds to cover their own share of claims These funds are the first port of call when paying policyholder claims

12 Figures correct as at December 2012 LINK TWO: MEMBERS’ FUNDS AT LLOYD’S (£15,660m/US$25,526m/€19,262m) Every member (corporate or individual) must provide sufficient capital to support their underwriting These funds are held in trust for the benefit of policyholders and used only if the syndicate assets have been exhausted OUR CHAIN OF SECURITY

14 OUR CHAIN OF SECURITY LINK THREE: LLOYD’S CENTRAL ASSETS (£2,485m/US$4,051m/€3,057m) The Central Assets are available, at the discretion of the Council of Lloyd’s, to meet any valid claim that cannot be met from the resources of any member further up the chain 13 Figures correct as at December 2012

INDEPENDENTLY ASSESSED In the eyes of leading ratings agencies, Lloyd’s is viewed as enjoying robust capital reserves: Standard and Poor’s: ‘A+’ (strong) Fitch Ratings: ‘A+’ (strong) A.M. Best: ‘A’ (excellent) Lloyd’s Annual Report

FIT FOR THE FUTURE Cybercrime and beyond 15

16 Fit for the future We write cover for 21 st century risks Cybercrime: we’re a leading provider of data-breach and data-security insurance Carbon Credits: we write cover to protect against a drop in the value of carbon credits caused by changes in legislation

17 Fit for the future We create processes for 21 st century risks The Exchange: secure and instant electronic communication between brokers and underwriters Claims processes: delivered an average of 39% reduction in transaction times for 16,000 claims in 2011

Lloyd’s: Your risk Management, managed In summary 18

19 Why lloyd’s? Lloyd’s means: Expertise: a proud 300-year track record, but with a total focus on the risks of the future Strength: our Chain of Security is designed to ensure that all valid claims will be paid Accessibility: we’re open for business in 200+ countries and territories

20 WE LOOK FORWARD TO WORKING WITH YOU

22 WHO’S WHO? Policyholders require insurance cover All over the world, businesses, organisations, individuals and indeed other insurers need insurance to protect themselves against risk.They brief either a broker or coverholder on what they need. Brokers place risks Most risks at Lloyd’s are placed by brokers. Their activities are governed by their country’s own regulator but they must also meet Lloyd’s own eligibility criteria. Coverholders place risks Alternatively, clients can go to local coverholders. They work on behalf of a syndicate, and are authorised by a managing agent to write a certain amount of international business for the syndicate. Click here to return to the main presentation

23 WHO’S WHO? Members provide the capital Members provide the capital to support underwriting in the Lloyd’s market. They include some of the world’s largest insurance companies, listed companies, individuals and limited partnerships. Syndicates write the insurance risks Syndicates accept the risks on behalf of the members. Their underwriters negotiate with brokers to arrive at the costs, terms and conditions of an insurance agreement. Managing agents manage the syndicates These companies are set up by members to manage one or more syndicates. Managing agents employ the underwriting staff and handle the day-to-day running of a syndicate. Corporation of Lloyd’s supports the market The Corporation owns the Lloyd’s brand and provides the infrastructure and licences for the market to operate internationally. It reviews and approves business plans, and manages the Central Fund – the capital that provides that all claims can be paid. Click here to return to the main presentation