1 Text Goes Here 00/00/ Entrepreneurial Insurance Symposium The New Landscape; Building Competitive Advantage Tuesday, September 14, 2010 Kevin H. Kelley Chief Executive Officer Ironshore, Inc.

2 Uncertainty Is The Hallmark Of The First Decades Of This Century September 11, 2001 Hurricane Katrina Credit Crisis British Petroleum – Deepwater Horizon Unchartered Waters

3 Uncertainty Will Drive Behavior; Increase Risk Premium Drive Syndication / Diversification Counter-Party Concerns Many Examples: British Petroleum, Lehman Brothers, AIG, etc.

4 Challenge Of Regulation Regulation Will Deal With The Past, Creating A Different Future Managing Size Will Be A Supreme Challenge Opportunity Cost Of Compliance Could Be Fatal

5 So What? The Big Will Be Smaller Markets Will Be Less Concentrated “Basic Change Is The Result Of A Confluence Of Forces, Rarely Just One Force. Always Ask Yourself If There Are Enough Different Forces Pushing In The Same Direction Before You Make A Judgment.” - John Naisbitt Source: Capitalism 4.0 The Birth Of A New Economy In The Aftermath Of Crisis - By Anatole Kaletsky

Market Dynamics Are Shifting Top Other Liability (Claims Made) WritersTop Excess & Surplus Lines Writers Source: A.M. Best. Financial crisis caused instability at many top insurers... creating significant opportunity to capture business and hire talented professionals Source: SNL Statutory Information. 6

7 Creative Disruption Creative Disruption Versus Destruction Opportunity Or Threat

8 Traits Needed To Succeed Agility And Nimbleness = Pace Flexible Operating Strategies Innovation Efficient Delivery Of Increased Expectations Instinct Versus Models Economic Models That Match Reward And Risk

9 Building Competitive Advantage Within This New Normal; The Alpha Distribution – Defining The Objective Cost – Control Product Leadership Ambition People – Getting, Developing And Keeping – Culture

10 The Entrepreneurial Class Is America’s Competitive Advantage Entrepreneurialism Changes Lives Risk And Reward Concepts That Support; The Business Judgment Rule

11 Building An Entrepreneurial Culture Performance Based Individual Accountability – Small Units Ownership

12 Opportunity See It Seize It Create Value From It