Association of reinsurance professionals in France 1 September 2010 APREF PRESENTATION

Association of reinsurance professionals in France 2 Summary page page APREF Organisation and Tasks 3 APREF Actions and 2010 Global view 21 Paris reinsurance market place26

Association of reinsurance professionals in France 3 Creation Creation  APREF was created in 2005 by merging 3 French reinsurance organisations in France APREMAF ( APREMAF (Association of reinsurance professionals in France) ARF ARF (French Reinsurance Association) UREF UREF (Union of Foreign Reinsurers in France)

Association of reinsurance professionals in France 4 Objectives Objectives  APREF main objectives are  APREF main objectives are : To be a think tank on all reinsurance subjects linked to the French market activities To be a discussion forum on the French market reinsurance topics and to debate with the reinsurance industry players To monitor relations between reinsurers and Professional Associations, Public Authorities and any other market organisation To contribute to the developing and the appeal of the reinsurance industry within the Paris market place To maintain an international network of contacts and exchanges with other organisations or reinsurance markets APREF works with all the market professionals

Association of reinsurance professionals in France 5 Actions Actions  APREF main actions: Gather the French Reinsurance industry market players Gather the French Reinsurance industry market players to analyse the legal, financial and technical changes regarding reinsurance Contribute to reflexions on topics affecting reinsurance Contribute to reflexions on topics affecting reinsurance together with the insured, the insurers, the brokers and the public authorities Work at improving knowledge on risks Work at improving knowledge on risks and their modelling to better define and develop the extreme and emerging risks insurability

Association of reinsurance professionals in France 6 Actions Actions Improve the French reinsurance market transparency, efficiency security, and competitiveness Improve the French reinsurance market transparency, efficiency, security, and competitiveness Communicate on the expertise and on the professionals Communicate on the expertise and on the professionals in the risk and reinsurance industries in France Maintain a good relation and dialogue on common topics Maintain a good relation and dialogue on common topics and best practices with other market places and foreign associations APREF contributes to the market’s development

Association of reinsurance professionals in France 7 Operating mode Operating mode  APREF  APREF : Analyses the market topics with its members Analyses the market topics with its members, within committees, commissions and working groups according to a theme distribution Consults the associate members in meetings Consults the associate members in meetings with the commissions and working groups Exchanges with the professional organisations and the Public Authorities Exchanges with the professional organisations and the Public Authorities on current reinsurance themes APREF activities are lead in compliance with the law on fair trading principles and regulations

Association of reinsurance professionals in France 8 Members Members Reinsurers May be involved in all activities Vote at General Assemblies Contribute to notes and market positions published on the Website Associate members Associate members All professionals linked to reinsurance (search on added diversity) May attend International and Paris market committees, non technical and catastrophe commissions Kept informed on all actions but not bound by APREF positions APREF is open to the whole reinsurance industry: reinsurers, brokers, captives, GIE, run-off, consultants …

Association of reinsurance professionals in France 9 A representative force A representative force   APREF is the representative body of: : Around forty members and thirty associates: The main reinsurers operating in the French market Associate members, involved in the reinsurance industry and its professionals in France Near Near 95% of ceded premiums by the French market to professional reinsurers in Life and Non Life   Comparing APREF with other reinsurance markets associations The highest number of reinsurers as members Higher diversity of associate members One of the highest number of publications APREF represents around 95% of the reinsurance market in France

Association of reinsurance professionals in France 10 Association of reinsurance professionals in France Members Members ALLIANZ ALLIED WORLD AMF ARCH RE ASPEN RE AXIS RE EUROPE BERKSHIRE HATHAWAY CCR EVEREST RE GEN RE HANNOVER RE HISCOX LIBERTY SYNDICATES LLOYDS MAPFRE RE MCR MILLI RE MS FRONTIER RE MUNICH Re MUT RE NEW RE ODYSSEY RE PARIS RE PARTNERRE QBE INTERNATIONAL RGA R & V SCOR SECURA SIGNAL IDUNA RE SIRIUS INTERNATIONAL SWISS RE TOKIO MILLENIUM TRANSAMERICA RE TRANSATLANTIC RE VALIDUS XL RE EUROPE

Association of reinsurance professionals in France 11 Association of reinsurance professionals in France Associate Members Associate Members ALD RE (SOCIETE GENERALE) AMS RE AON BENFIELD ASSURANCES ST HONORE SIACI ASSURATOME ASSURPOL AXA CESSIONS BOPS Avocats CALYON (CREDIT AGRICOLE) CARRAIG (SANOFI) CEFAREA (Centre d’arbitrage France) CHILTINGTON DES COURTIS DEWEY & LEBOEUF GLOBAL RE GUY CARPENTER HMN LA REASSURANCE INTERCONTINENTALE (COVEA) MDB NASCO KARAOGLAN OIRC (TOTAL) SEGS (Syndicat du run-off en France) TOWERS WATSON VERSPIEREN GLOBAL MARKETS WILLIS GRAS SAVOYE RE WINSTON

Association of reinsurance professionals in France 12 Association of reinsurance professionals in France Organisation Organisation BUREAU President : F. Vilnet, PartnerRe Vice President : L. Pietropoli, Odyssey Re Treasurer : O. Monmoton, Hannover Re General Delegate : B. Dollfus, APREF Paris Market Place & International Committees Executive Committee Technical Committee Financial & Legal Committee Secretary General J.M. Szmaragd, SCOR

Association of reinsurance professionals in France 13 Association of reinsurance professionals in France Technical Committee President : I. Hux, Swiss Re Life Commission President : G. Thivant, SCOR Motor Commission President : J.M Houisse, SCOR Catastrophe Commission President : H. Duke, Swiss Re Construction Commission President : J. Tuccella, SCOR Credit Commission President : P. Barrault, SCOR Casualty Commission President : P. Richard, Swiss Re Agriculture Commission President : N. Chatelain, Paris Re Organisation Organisation

Association of reinsurance professionals in France 14 Association of reinsurance professionals in France Organisation Organisation Motor Commission Annuities WG President: C. Nivarlet, Secura Impact of Environment on Motor Liability WG President : C.Studievic, Odyssey Re Methodology: human assistance assessment WG President : F. Blanchet, SCOR

Association of reinsurance professionals in France 15 Association of reinsurance professionals in France Organisation Organisation Long term Care WG President: P. Trainar, SCOR

Association of reinsurance professionals in France Organisation Natural Catastrophe WG President: L. Heroui, Hiscox

Association of reinsurance professionals in France 17 Association of reinsurance professionals in France Organisation Organisation Casualty Commission Environment Liability WG President: S. Lassa, SCOR

Association of reinsurance professionals in France 18 Organisation Organisation Financial & Legal Committee President : Y. Besnard, SCOR Portfolio transfers WG President : A. Bricard, SCOR Finite WG President : X.Colonna, SCOR Legal Commission President: P. Isac, Munich Re

Association of reinsurance professionals in France 19 Association of reinsurance professionals in France Organisation Organisation Paris Market Place & International Committees President : J.L Gourgeon, Paris Re Attractiveness Commission President : A. Pin, PartnerRe

Association of reinsurance professionals in France 20 Association of reinsurance professionals in France 2010 Global view  Reinsurance market: a transition period The crisis consequences The crisis consequences: New regulation and tightening solvency rules for insurers and reinsurers Common approach of insurers/reinsurers on market patterns and systemic risks Solvency II with an increasing demand for reinsurance APREF, a year of development on APREF, a year of development on: Communication and initiatives on market topics (reinsurance) Developing private and public websites Industrial risks Committee project Search of new members and associates

Association of reinsurance professionals in France 21 Association of reinsurance professionals in France : Actions  APREF has undertaken a number of actions, in particular  APREF has undertaken a number of actions, in particular : Talks with the Treasury and politicians (Agriculture, Natural catastrophes, Bodily Injury & Medical hearings) Notes on market topics such as Agriculture, Natural Catastrophes, Construction, Credit, LT Care, Civil Liability, Terrorism, Medical Liability… Catastrophes Commission working on exposures in market branches Monitoring APREF-FFSA common position on Paris market place and proposals (Market Place High Committee), creation of a commission on attraction subjects Setting up new WGs on technical and legal subjects News and memos available on : apref.org

Association of reinsurance professionals in France 22 Association of reinsurance professionals in France French market : post-crisisIssues French market : post-crisis Issues   Paris Market Place Financial: development (Market Place High Committee, Paris Europlace) Attractiveness: developing means, social and tax environment Insurance: cooperation between insureds, insurers, brokers and reinsurers Reinsurance: improvement (environment and the industry) Security: a risks holistic view and improving the market place mechanisms  The State key role: insurability and protection of the insured as The last resort reinsurer (insurability and security) Incentive to a better global cover (businesses and individuals) A guarantee for fair treatment (all compensation schemes) Risks monitoring and restricted liabilities (Public Private Partnerships)

Association of reinsurance professionals in France 23 Post crisis Regulation  Catastrophe Risks  Catastrophe Risks: Insurers/reinsurers: global approach (Controls, Rating Agencies) Catastrophe Perils : better analysis and cover (terrorism, pandemic..)  Regulation/supervision Regulation (G20, EC, IAIS): standards, practices, models review Solvency II: reconsider the scenarios on market catastrophe (CEIOPS) Macro/micro supervision : monitoring of systemic risks (EU) IFRS: limit volatility linked to accounting standards  ystemic risk  S ystemic risk Risk considered as limited in reinsurance (G30 report, P. Volcker, 2006) Global surveys (The Geneva association, IAIS, FSB) Regulation to refine (EU, USA)

Association of reinsurance professionals in France 24 Association of reinsurance professionals in France Reinsurance in France: facts and challenges Reinsurance market: Facts  Reinsurance market: Facts World market, regulation and tax competition : Fragmented representation: Worldwide Worldwide (GRF - Global Reinsurance Forum) Regional Regional (RAB - CEA Reinsurance Advisory Board) Local Local (ABER, ABIR, APREF, DIMA, RAA, RRC) French market:  French market: Specific local characteristics Cessions and underwriting: linked development On average, stands up better to the crisis Challenges:  Challenges: Reinsurance: Reinsurance: profession, tool and strategic channel to develop develop and improve the Market place Local monitoring very important to develop and improve the Market place local market to be transparent, competitive, secure and efficient Aim for a local market to be transparent, competitive, secure and efficient

Association of reinsurance professionals in France 25 Association of reinsurance professionals in France Paris Market Place Reinsurance : trends  Professionalisation and development of the reinsurance industry Head offices, offices and subsidiaries of major reinsurers Reinsurance brokerage Captives (insured and insurers) Cessions entities Market place tools (GIE) Run-off businesses Consultants  Staff concentration around the Market’s major players Reinsurers established in France Reinsurance brokerage In development: captives, Run-off

Association of reinsurance professionals in France 26 Association of reinsurance professionals in France The PARIS Market Place: Insurance/ Reinsurance 2009 Estimation in volume of premiums Non Life cessions (to professional reinsurers) Non Life cessions (to professional reinsurers) ~ 3,85 Bn Euros 5th world market (3,5%) Life cessions (to professional reinsurers) ~ 1,9 Bn Euros 4th world market (4,5%) Reinsurance underwriting (from France, by professional reinsurers) Reinsurance underwriting (from France, by professional reinsurers) ~ 5,5 Bn Euros 6th world market (3,5%) Reinsurance brokerage ~ 0,175 Bn Euros 3rd world market (5%)

Association of reinsurance professionals in France 27 Association of reinsurance professionals in France Paris Market Place Reinsurance : development  Development of the Reinsurance market place expertise and the quality of supervision Ensure the reinsurance expertise and the quality of supervision regulation and tax security Reinforce the Market Place regulation and tax security Adjust the reinsurance taxation Adjust the reinsurance taxation As acts as a limitation to maintain the actual reinsurers and to attract new players to the Market Place While taking into account the reinsurance international profile