Political Violence & Terrorism Insurance in African Markets

CONTENTS INTRODUCING RKHRB INTRODUCING NEWBRIDGE RECENT NEWS REPORTS HEADS OF COVER FOR PVT GEOGRAPHICAL FOCUS PVT; YOUR COMPANY’S PROBLEM OR SOMEONE ELSES? HOW TO ACCESS THE MARKET THE NRP MODEL SUMMING UP Q&A

Introducing RKHRB/Hyperion THE WORLD’S LARGEST EMPLOYEE-OWNED INSURANCE GROUP Hyperion Insurance Group was founded in 1994 and is headquartered in the City of London. Beginning life as a small London broker, the Group is now a leading independent and employee-owned international insurance and reinsurance intermediary group. Hyperion employs more than 3,000 people across 37 countries globally.

Introducing RKHRB/Hyperion OUR BUSINESSES Hyperion has established itself as the world’s largest employee-owned insurance group by placing balance, strong organic growth and highly selective acquisitions at the heart of its strategy. Balance Key to the Group’s past success and future growth is maintaining a balance in its distribution model, geographic spread, products and services; with the goal of becoming the best in class in all areas in which we specialise. Organic growth The best talent in the market drives Hyperion’s strong organic growth, with a five-year average organic growth of 14%, three times that of publicly listed peers. Selective acquisitions Strategic acquisitions are an important part of the Group’s strategy as it continues to grow its international footprint, only ever targeting businesses well known to us and that fit Hyperion’s distinctive ethos and culture.

Introducing RKHRB/Hyperion Howden Howden is a leading retail broking and risk management business serving clients throughout the world. Howden has a strong independent global network with operations in 30 countries, outside of the USA.

Introducing RKHRB/Hyperion RKH Specialty A leading independent specialty lines broker, RKH Specialty creates unique risk solutions, programmes and facilities across a wide range of industries and risk classes, placing complex risks for some of the world’s largest companies. RKH Reinsurance RKH Reinsurance delivers specialty and facultative reinsurance solutions to clients across the world, with specific focus on the UK, USA, Latin American and Caribbean markets. Including Niche products such as Political Violence.

The DUAL Group DUAL, the underwriting division of Hyperion Insurance Group, is the world’s largest international MGA and Lloyd’s largest international coverholder.

Introducing RKHRB/Hyperion Combined, the businesses create the fifth-largest Lloyd’s broker.

Introducing Newbridge   Introducing Newbridge Newbridge Risk Partners has launched on the Castel Underwriting Agencies MGA formation platform to target political violence and terrorism risks. The new underwriting cell will be fully focused on the emerging markets regions including, but not limited to Sub-Saharan Africa, Latin & South America, MENA and the Gulf States, and Asia regions. It will distribute its products via both the London market and overseas brokers.

Newbridge is led by Chris Kirby and Henry Buchanan, who are both partners in the business. Kirby previously led the political violence team at IGI,Interhanover and Lloyds. Chris has a 20-year insurance career focused on crisis management and, in particular, political violence, terrorism, political risk, credit and war related perils both from underwriting and broking perspectives. Buchanan has over 10 years’ experience, most recently as deputy underwriter on the political violence and terrorism underwriting team at Chaucer Syndicates.   Newbridge joins aerospace cell Altitude Risk Partners on the Castel MGA platform. Its capacity is provided by a number of Lloyd’s syndicates.

DRC - Uganda, 12 May Hundreds of people protested in the eastern town of Beni after a machete attack by Ugandan rebels killed six people on 11 May. The attack was blamed on the Allied Democratic Forces (ADF), an Islamist rebel group. Kenya, 15 June Al-Shabaab is expected to continue targeting government and learning institutions and military personnel, there remains potential for attacks against tourist sites such as hotels and shopping malls over the medium term. Mozambique, 29 July The government accused the main opposition party Renamo of violating a ceasefire deal signed in September 2014 by clashing with the army in the north-western province of Tete. South Africa, 27 July Police reportedly fired live ammunition, rubber bullets and water cannon at protesters in Port Elizabeth's Northern Areas, where 33 schools have been closed due to a shortage of teachers. South Sudan, 13 August Even if a peace agreement is reached, sporadic clashes between rebel splinter groups and government troops will likely continue Kenya, 5th May Tensions in Kenya are set to rise following the country's worst terrorist attack in 17 years. Gunmen from the militant Somali group al-Shabaab stormed Garissa University on 2 April and killed 148 people after identifying them as Christian. Somalia - East Africa, 17 July The leader of al-Shabaab issued an Eid recruitment message that highlighted the Islamist militant group's ambition to expand its operations in Kenya, Ethiopia, Djibouti and Uganda. Somalia, 27 July Military officials reported that clashes between government troops and al-Shabaab militants left at least 10 people dead in the Araise area of Gedo region.

War on Land & Associated Perils Sabotage & Terrorism SRCC & MD War on Land & Associated Perils PV Plus

Tier 3 As per Tier 2 Forced Abandonment CCP (mobile assets) Tier 2 As per Tier 1 Including WIRRM Hostile Acts Tier 1 Sabotage & Terrorism SRCCMD Looting & Pillaging

Middle East & GCC Africa Eastern Europe Asia Pacific Middle East & GCC Africa South America

Ownership – domestic or international? Any political allegiances? Internal Risk Ownership – domestic or international? Any political allegiances? Industry type – high / medium / low risk? Who are your customers / clients / suppliers? What security do you have? Employees – nationalities, religions? External Risk Host country? Relationship within the region? Government - Democratically elected or military junta? Urban or rural location? Who are your neighbours?

RKH Fac NRP Clients Local cedents Local brokers

Lack of emerging market expertise Greater distribution network Standard commissions Recognised market leaders Increasing demand for coverage

Profitability through Sustained Strategic Growth What & How ? Market Knowledge What & How ? Target Profitability Identifying Opportunities Outstanding Service Efficient Processes & Systems Clear Communication Leadership V C S NRP Profitable Results What do we need to do Examples Proactive Selective Global Focused Professional How are we going to do it Examples Collaborative Agility Ownership Core Strengths Responsive New Business Opportunities Identify Prioritise Action

Dedicated Exposure management system & team Utilised at pre & post underwriting Management reporting & monitoring

Why use RKHRB Using RKHRB combines local knowledge with the Global Knowledge of Hyperion Group behind your client base RKHRB is a market leader at placing “stand-alone” Political Violence policies with a minimum of Best A - Rated Security. Our market reputation is based on our exceptional service and offers: RKHRB has an in-house binder with full underwriting authority as well as open-market relationships.such as Newbridge. RKHRB can Quote and Bind individual risks within 24 hours with good information. Preferential rates due to excellent market relationships and volumes of business placed. Cover can be provided for a wide range of perils including Terrorism, Sabotage, Riots, Strikes, Civil Commotion, Malicious Damage, Insurrection, Revolution, Rebellion, Mutiny, Coup d’Etat . Cover can be extended to include looting and War and/or Civil War

Political Violence Reinsurance   What extensions can be purchased to the PTS policy  and what other wordings are available   Suppliers - Named Customers - Named Utilities- Power, Water Denial Of Access – Agreed Radius All following the Material Damage Proviso of a INSURED MATERIAL DAMAGE LOSS

Underwriting Considerations Occupancy, Car parking, Public & vehicular access; Losses or threats in last 5 years; Risk appetite in region; Risk outlook for policy period: Exclusive Analysis CREAM; Wordings and coverage provided: S&T, SRCC, War; Specific risk parameters: Security, Loss history, Surrounding area. Application Form; Name and Address of Insured; Location information to street address or postcode level (Excel format) preferable to have the coordinates in terms of Longitude and Latitude; Policy limits and deductibles requested; Security arrangements: Distance to Police or Army post, Details of surrounding neighbourhood, proximity to government, religious or other iconic buildings, Security guards, fencing, access control CCTV, alarms, scanners, barriers etc; Description of premises: Construction,

Exclusive Analysis & Insurance

Political Violence Reinsurance Working RKHRB and Newbridge Please provide us with the basic info being: Insured Name Occupation Total Value Limit ( in the agg required ) Deductible Required Schedule Of Values And Location Details “TARGET/FIRM ORDER” Net to ERT Premium if Available. Proposal Form ( Can Follow later ) Declaration Of NO Losses, threats, Incidences OR what issues have the assured had ? NewBridge will then EVALUATE and PRICE the risk and work to provide capacity if required with other Lloyds Markets.  

Why deal just with RKHRB and Newbridge This is why... Dealing directly us means one contact point that is “looking after you and your clients” and “looking after you and our clients interests regionally and globally. Placing a book of business rather than individual risks will attract cheaper rates You can offer this cover to all their clients as standard, resulting in a competitive edge If there is enough business to warrant a book of business then some could possible consider a profit commission payable after the year has run off clean

What next? You could provide us with a list of all your current accounts including information on values, locations, limits, occupations, deductibles, renewal dates and current premium spend (a confidentiality agreement can be agreed) Overiders /Profit commissions can be negotiated once Underwriters can see the size of the book and the territories and occupations involved Location information is key – risks with good location information can certainly command better premiums and terms