1. Current International Trends in Reinsurance African Reinsurance Brokers AIO 16 th Reinsurance Forum October 2010, Casablanca Omar NGADI

2. Current International Trends in Reinsurance Start of 2009 : Excessive capital overcapacity crawling interest rates low financial returns

3. Current International Trends in Reinsurance Trends: Year 2009 Financial Crisis had not the same impact on Reinsurance than Finance Excessive equity generated USD 14 billion underwriting overcapacity Important gains due to low number of events and high profits

4. Current International Trends in Reinsurance Trends: Year 2009 Fall of combined ratios Combined ratios ( non Life) 20082009 Top 25 Reinsurers100% Between 70% and 80% Munich Re97,9%65,7%

5. Current International Trends in Reinsurance Trends: Year 2009 Decrease in insurance services demand except for Asia & latin America Lower insurance rates due to high competition between insurance companies & high retention

6. Table 1: Premium volume by region in 2009 Sigma n°2/2010 Total Business premium volume (in millions of USD) change (in %) inflation-adjusted share of world market (in %) premiums as a % of GDP premiums per capita (in USD) 20092008200920082009 America 1 349 4951 450 407-6,1-2,533,196,911 470,20 North America 1 238 5861 344 105-7,1-3,230,467,943 634,50 Latin America 110 910106 3025,78,12,732,82192,2 Europe 1 610 6201 703 7131,8-9,939,617,581 861,50 Western Europe 1 525 9531 605 6232,6-10,737,538,462 922,40 Central and Eastern Europe 84 66798 090-10,99,92,082,75262,7 Asia 989 451934 5772,86,424,336,8243,1 Japan and newly industrialized Asian economies 699 012676 979-0,43,517,1910,333 307,60 South and East Asia 261 887229 06812,116,66,443,4374 Middle East and Central Asia 28 55228 5303,42,70,71,5492 Africa 49 28752 829-11,11,91,213,2648,8 Oceania 67 24178 543-9,68,81,656,241 862,90 World 4 066 0954 220 070-1,1-3,61006,98595,1 Industrialized countries 3 532 7163 706 806-1,8-5,386,888,613 404,90 Emerging markets 533 379513 2653,51113,122,8991,5

7. Current International Trends in Reinsurance Trends: Year 2010 High frequency and impact of natural disasters/losses estimated at USD 22 billion for 1st half 2010 Aggravation of combined ratios Persistence of Low interest rates with no signs of a pick-up Low financial returns  Perfect conditions for a market recovery ?

8. Table 2: Major Losses in 2010 MonthCountryNatureLoss estimate JanHaitiEarthquake$ 150 million FebChileEarthquake$ 15 billion FebeuropeXynthia/ storms$ 3.4 billion FebAustraliaStorms$ 1.3 billion AprGulf of MexicoDeepwater/OIL RIG 1.6 billion Jul/AugRussiaDrought, Fire- Jul/AugPakistanFloods$ billion

9. Table 3: 1st Half 2010 Performance Top 25 Reinsurers Shareholders fundsUSD 235 billion Invested fundsUSD 837 billion Profits before tax (1st half 2010)USD 15 billion *ie 65% increase compared to 1 st half 2009

10. Current International Trends in Reinsurance Downward trends Very low interest rates Overall decrease of rates for all classes of business except those threatened by disasters (drilling platform / Chile). 12 to 15% reduction for property risks Rates maintained for retrocession business Rates maintained for non drilling liability business

11. Current International Trends in Reinsurance Downward trends Overall decrease of ROL to 6% Reinsurers feel that trend would go on till 2011  Soft market A new Katrina could reverse the trend Global Reinsurance Forum (GRF) agreed to stabilize the rates Come back of alternative risk transfers ?

12. Current International Trends in Reinsurance The African Reinsurance Market A market largely dependant on international reinsurers & brokers Currently benefiting from the soft market Need of concentration rather than fragmentation  As seen in the international market (table 4)

13. Table 4:Top 5 Global Reinsurance Groups Ranked By Net Reinsurance Premiums Written Net Reinsurance Premium written (Mil. $) Pretax Operating Income (Mil. $) Total Adjusted Shareholders' Funds (Mil. $) RankingCompanyCountry200920082009200820092008 1Munich ReGermany33,704.629,076.86,064.46,304.430,372.128,235.4 2Swiss ReSwitzerland22,896.724,296.01,280.68,152.626,151.720,266.1 3Hanover ReGermany13,639.010,196.31,217.9428.38,113.56,636.6 4 Berkshire Hathaway Re US12,362.012,123.0N.A. 64,146.050,795.0 5Lloyd'sUK9,733.56,701.01,983.01,062.228,929.820,523.9

14. Current International Trends in Reinsurance The African Reinsurance Market Solvency II, what benefit to Africa ? The issue of ratings : SCR Case African reinsurance premium USD 2.5 Billion Share of African Reinsurers : 40% African reinsurance brokerage : USD 80-100 million African Brokers Share: 3% ?! Urgent need for a Mega African reinsurance broker

15. Thank you.