1. Umbrella Liability CARe May 7 – 8, 2007 Stephen Kantor

2. RSUI Group, Inc. 2006 Book of Business Binding Authority D & O General Liability Professional Liability Property Umbrella

3. RSUI Group, Inc. 2006 Book of Business Largest States California Texas Illinois New York Florida

4. RSUI Group, Inc. 2006 Umbrella Book of Business Significant Reinsurance on Umbrella Mostly Treaty, Limited Facultative 5 – 10% is “Supported” Business

5. RSUI Group, Inc. 2006 Umbrella Book of Business Excess Higher Limit Higher Attachment Point Umbrella Filed Form Highest Average Premium Lead Excess Follows Underlying

6. RSUI Group, Inc. Price Monitor Rate Change Factors Underlying GL Limit Underlying Auto Limit Insured GL Limit Insured Auto Limit GL Exposure # Insured Autos

7. RSUI Group, Inc. Price Monitor (ILF [U+L] – ILF [U] ) current Limit Change = (ILF [U+L] – ILF [U] ) expiring = Difference in Limits (DIL) Exposure Change = k (GL Exp Chg) + (1-k) (Auto Exp Chg) k Depends on the Number of Autos

8. RSUI Group, Inc. Price Monitor Premium Change Rate Change = (Exposure Change x DIL Change)

9. RSUI Group, Inc. Price Monitor – Layer Pricing $4M xs $1M compared to $1M $5M xs $5M compared to $4M xs $1M $10M xs $10M compared to $5M xs $5M $1 st Million is Higher of Actual and ISO Manual ALWAYS rate the Primary!

10. RSUI Group, Inc. Tidbits Majority of Reported Claims Close Without Payment Reported Claims during 2006 by AY 1990 - 1995 95 New Reports Expected Reporting Patterns Paid Incurred Claims Year 1 0% 6% 17% Year 2 7% 22% 37% Year 3 24% 44% 52% Year 10 95% 98% 86%

11. RSUI Group, Inc. Slices and Dices By Policy Type By Limit By Hazard Grade By SIC By Claim Type Large Losses Excluding Nursing Homes

12. RSUI Group, Inc. Managing IBNR Peg Loss Ratio IBNR = (Peg x EP) - Reported Loss Revise when Reported Loss Above Loss Peg Certain Number of Years Past AND Open Claims / Reported Claims < X% OR Paid / Incurred > Y% Consideration – Does Sarbanes-Oxley Change Everything?