Copyright © W. R. Berkley Insurance (Europe), Limited Anthony Judge UK PI Underwriting Manager W. R. Berkley Insurance (Europe), Limited

Copyright © W. R. Berkley Insurance (Europe), Limited W. R. Berkley Corporation  History to date  Philosophy W. R. Berkley Insurance (Europe), Limited  History to date Solicitors PI, Personal Injury Lawyers, COR

Copyright © W. R. Berkley Insurance (Europe), Limited 1967 – Berkley Dean & Co. Inc Revenues$ Expenses$2, Net Loss$1, – W. R. Berkley Corporation Revenues$ 5.2 billion (4.7) Assets$18.4 billion (17.5) Traded on the NYSEFortune 500 A.M. BestA+ (Superior) Outlook stable Standard & PoorsA+ (Strong) Outlook stable Moody’sA2 (Strong) Outlook stable

Copyright © W. R. Berkley Insurance (Europe), Limited OUR PHILOSOPHY WHY ARE WE DIFFERENT? Long term strategy of decentralised operations  Allows each unit to identify and respond quickly and effectively to changing market conditions and local customers needs  Underwriting and claims decisions made locally Full authority granted  Provides financial accountability and incentives to local management Judged on combined operating ratios ie Return on Capital not volume

Copyright © W. R. Berkley Insurance (Europe), Limited  Enables us to attract and retain the highest calibre professionals People who want to be told what to do all day are not Berkley people  What we lose in efficiency and administration costs due to duplication, we gain in better/quicker decisions Other companies say similar things but reality is very different.  We have no underwriters at “Head Office”

Copyright © W. R. Berkley Insurance (Europe), Limited Acadia Insurance Company Admiral Insurance Group, LLC Admiral Excess Underwriters Admiral Professional Program Admiral Risk Insurance Services, Inc American Mining Insurance Company Berkley Accident & Health, LLC Berkley Agribusiness Risk Specialists Berkley Asset Protection Underwriting Managers, LLC Berkley Aviation, LLC Berkley Canada Inc. Berkley Facultative Reinsurance Services, LLC Berkley Insurance Company Berkley International, LLC Berkley International ART S.A. Berkley International do Brasil Seguros S.A. Berkley International Latinoamerica S.A. Berkley International Seguros S.A. Berkley International Seguros S.A. (Uruguay) Berkley Life and Health Insurance Company Berkley Life Sciences, LLC Berkley Medical Excess Underwriters, LLC Berkley Mid-Atlantic Group, LLC Berkley Net Underwriters, LLC Berkley North Pacific Group, LLC Berkley Offshore Underwriting Managers, LLC Berkley Offshore Underwriting Managers (UK), Ltd Berkley Oil & Gas Specialty Services, LLC Berkley Professional Liability LLC Berkley Re America, LLC Berkley Re Asia Berkley Re Australia Berkley Regional Speciality, LLC Berkley Risk Administrators Company, LLC Berkley Risk Solutions, LLC Berkley Select. LLC Berkley Speciality Underwriting Managers, LLC Berkley Surety Group, LLC Berkley Underwriting Partners, LLC B F Re Underwriters, LLC Carolina Casualty Insurance Group, LLC Clermont Insurance Company Clermont Specialty Managers, Ltd. Continental Western Group, LLC Facultative ReSources, Inc Finsecure Gemini Insurance Company Gemini Transportation Underwriters Great Divide Insurance Company Key Risk Insurance Company Key Risk Management Services, LLC Midwest Employers Casualty Group, LLC Monitor Liability Managers LLC Nautilus Insurance Group, LLC Preferred Employers Group, LLC Regional Excess Underwriters, LLC Riverport Insurance Services, LLC StarNet Insurance Company Union Standard Insurance Group, LLC Vela Insurance Services, LLC Verus Underwriting Managers, LLC W. R. Berkley Insurance (Europe),Ltd W. R. Berkley Syndicate 1967 W. R. BERKLEY CORPORATION MEMBER COMPANIES

Copyright © W. R. Berkley Insurance (Europe), Limited W. R. Berkley Insurance (Europe), Ltd Launched in July 2003 UK FSA approved insurer £80 million start up capital, £143.9 million at Opened Branches in Spain  Madrid office  Barcelona office

Copyright © W. R. Berkley Insurance (Europe), Limited 2007 added Australia Branch 2008 Purchased Irish Professional Risks Ltd to become Irish branch 2009 added Norwegian Branch 2010 started up German Branch 2011 and beyond?

Copyright © W. R. Berkley Insurance (Europe), Limited Solicitors 2003 – GWP 14.2m, Incurred 6.25m, Loss Ratio 44% 2004 – GWP 18.7m, Incurred 17.2m, Loss Ratio 92% 2005 – GWP 15.7m, Incurred 8.5m, Loss Ratio 54% 2006 – GWP 10.5m, Incurred 15.75m, Loss Ratio 150% 2007 – GWP 8.8m, Incurred 8.2m, Loss Ratio 93% 2008 – GWP 7.8m, Incurred 7.4m, Loss Ratio 95% 2009 – GWP 5.5m, Incurred 2.6m, Loss Ratio 47% 2010 – GWP 4.8m, Incurred 0.8m, Loss Ratio 17% 2011 – GWP 4.9m, Incurred 0.1m, Loss Ratio 2%

Copyright © W. R. Berkley Insurance (Europe), Limited Personal Injury Lawyers Specialists  No dabbling  Focussed employees  Easy detection of anomalies Fraud  More difficult to commit Businesses  More LLP’ less partnerships  Earn out visible  Less fixation with status  Profit driven  Business plans Profitable Controlled internally  Rules driven  Process / IT required Regulated externally  Law society / SRA  APIL  MOJ

Copyright © W. R. Berkley Insurance (Europe), Limited Combined operating ratio (COR) Loss Ratio/Ultimate Loss Ratio / Design Loss Ratio  Claims inflation Commission  Brokerage, Profit Commissions, “Over-riders” Reinsurance cost Operating costs including  Internal costs (Me, My team, IT, office space etc etc)  Central costs (License, Solvency II, FSA etc etc)  External costs (consultants, audit, lawyers) Assigned Risks Pool

Copyright © W. R. Berkley Insurance (Europe), Limited COR Scale / growth  Effect of overall company size  Effect of line of business size Fixed vs variable Investment income

Copyright © W. R. Berkley Insurance (Europe), Limited Back to numbers Diverse solicitors portfolio COR  85%ULR  15% Commission  15% Reinsurance  10% Operating Costs  15% ARP  140% Result Personal Injury solicitors portfolio COR  50%ULR  15% Commission  10% Reinsurance  5% Operating Costs  15% ARP  95% Result