JUN 8 – 10, Relevancy of the Bermuda Market in a Fast Changing World

Speakers: Alan Waring, CEO, International Specialty Brokers Limited Rees Fletcher, Chairman, ACE Bermuda Patrick Tannock, President, XL Insurance (Bermuda) Ltd.

Discussion areas: Unique customer focused solutions customized to complement the captive insurance industry Is Bermuda still the best suited domicile to provide low frequency high severity type products? High quality cost efficient capacity from highly rated carriers New product differentiation Do customers still value the Bermuda market ability to execute quickly to put capital to work to provide solutions to emerging issues? Impact of Consolidation

A Little History 1947 – CV Starr Selects Bermuda for American International Underwriters 1960’s – Fred Reiss Selects Bermuda for his Captive Insurance Concept – Bermuda becomes and remains largest domicile 1970’s/80’s – captives write 3 rd party business due to US tax rules. Creates Bermuda insurance/reinsurance market 1985 – Liability crisis – ACE Formed, Followed by XL,CODA and then Starr Excess Finite/Financial – Centre Re Formed – Bermuda begins its global reputation for innovation 1993 – post Andrew - Property Cat – Mid Ocean Re, Ren Re, etc 1997/98 – Transformer Companies – Arrow Re, Lehman Re, CGA – develops into companies trading risk to Hedge funds 2002 – post 9/11 - Treaty Reinsurance & Insurance Capacity 2005 – post Katrina – Reinsurance and Insurance Capacity 2007 – Side cars emerge – to allow quick entry/exit for investors 2006 – various London companies move to Bermuda & Bermuda companies continue to establish London and Lloyds operations 2010 – Bermuda establishes itself as leader in Insurance Linked Securities

Bermuda Stats and Facts Capital and Surplus in excess of $500bn Annual Premium into market in excess of $120bn $500m to $1bn of capacity in each of Property, Casualty & Professional World’s Largest Captive Domicile In Top 2 Global Reinsurance Centers Leader outside US for Liability capacity for US risks The leader for Property Cat Reinsurance Leading ILS Market Provide 26% of the capacity for Lloyds of Londonii Write 14% of aggregate global reinsurance premium Include 15 of the top 40 reinsurers in the world

Stats and Facts Bermuda’s reinsurers paid nearly 30% of the insured losses from 2005 Hurricanes Katrina, Rita and Wilma Bermuda’s reinsurers paid $22 billion to rebuild the US Gulf and Florida coasts from the horrific hurricanes seasons of 2004 and 2005 Bermuda’s carriers provide more than 60% of the hurricane reinsurance in Florida and Texas. Bermuda’s carriers provide up to one third of US crop reinsurance in key states Bermuda’s carriers support 25% of the US medical liability insurance and reinsurance market Bermuda’s reinsurers contributed $35 Billion between to U.S. catastrophe losses (Source – ABIR Fact Sheet June 2015)

Stats and Facts 50% of the reported losses for the 2012 Costa Concordia cruise liner sinking 16% of the reported liabilities for United States’ 2012 Hurricane Sandy 29% of the reported liabilities for the international reinsured share of the 2011 Japanese earthquake. 37% of the reported liabilities for Europe’s 2010 Windstorm Xynthia 38% of the reported liabilities for Chile’s 2010 earthquake 51% of the reported liabilities for New Zealand’s aggregated 2010 and 2011 earthquakes 22% of the theoretical $1 Billion market loss for the 2009 Air France crash (Source – ABIR Fact Sheet June 2015)