1. Peer Analysis Perspectives As of 12/31/2011 March 29 th, 2012

2. Peer Analysis Overview  SAA P&C Client Portfolios  21 Clients (18 Primary / 3 Reinsurers)  26 Portfolios 2

3. RISK ASSET ALLOCATION 3

4. Risk Asset Allocation Review Typical Risk Assets 1. U.S. Equities 2. International Equities 3. High Yield Fixed Income 4. Convertible Bonds 5. Emerging Market Debt 6. REITs 4

5. Risk Asset Allocation - % of Portfolio 5

6. Risk Asset Allocation - % of Surplus 6

7. Risk Asset Allocation By Portfolio Size 7

8. 8

9. Risk Asset Allocation 9

10. 10

11. CORE FIXED INCOME ALLOCATION REVIEW 11

12. Fixed Income Portfolio Duration & Portfolio Size 12

13. Fixed Income Portfolio Book Yield & Portfolio Size 13

14. Fixed Income Portfolio Book Yield & Duration 14

15. Risk Asset Allocation By Fixed Income Portfolio Duration 15

16. Risk Asset Allocation By Fixed Income Portfolio Duration 16

17. PERFORMANCE REVIEW 17

18. Fixed Income Performance 18

19. Total Portfolio Performance - Risk Asset Allocation Impact 19

20. Total Portfolio Performance - Duration Impact 20

21. Fixed Income Investment Management Fees 21

22. LOOKING AHEAD 22

23. Latest Headlines Economic Headlines Theme - Improving GDP revised upward for Q4-2012 to 3% from 2.8%; Personal income and spending up but soft in January; Motor vehicle sales roar in February; Consumer confidence gains in February; ISM manufacturing disappoints but still growing; Pending home sales post another gain; Federal Reserve beige book shows recovery gaining traction. 23

24. 24 Yield Enhancement Mechanisms Increase Non-Treasury Allocation Duration Extension Emerging Market Debt/Equity High Yield Fixed Income REITs High Dividend Equity Sector Specialty Mandate (in lieu of core bond) Risk Asset Allocation to Surplus Ratio Global Portfolio Positioning

25. Total Portfolio Volatility vs. Surplus Volatility 25 Total portfolio and surplus portfolio materially diverge. Negative Tail Risk This is how a typical bond/equity allocation gets insurers into trouble...reserve leverage.

26. Prospective Asset Class Returns 26  Prospectively, low yield environment significantly hinders core fixed income total return expectations;  Rising rates will affect financial statement presentation and, at worst, misinterpretation.  As usual, the questions is how much risk are you willing to take for additional returns.

27. DISCUSSION & QUESTIONS 27