1. Parametric Risk Management Products for Weather and Natural Catastrophe Risks 35th Conference and General Assembly of AIO Algiers, May 26 th 2008

2. AIO 2008 2 Partner Re: Highlights International Multi-Line Reinsurer  Property, Casualty, Catastrophe, Life, ART and Specialty Strong Balance Sheet  Credit Ratings: AA- (S&P), A+ (AM Best)  Total Assets: $16.0 Billion (as of 12/31/2007)  2007 Premium: $3.75 Billion Historic Highlights  Established in 1993 in Bermuda as a CAT reinsurer  Expanded into multi-line reinsurance through SAFR (French) and WinterthurRe (Swiss) acquisitions  Further diversified through the establishment of PartnerRe US, Alternative Risk Transfer and Life units Relevant Lines of Business  Global Catastrophe, Weather and Agriculture

3. AIO 2008 3 Natural Disaster Exposure: Africa Source: United Nations Office for the Coordination of Humanitarian Affairs

4. AIO 2008 4 2007 UNCTAD Report: Key Findings Africa: lowest insurance penetration in the world  Measured by premiums per capita Main Reasons Identified  Lack of Support for Local Financial Markets  Limited Awareness of the Benefits of Insurance among the General Populations  Outdated Products and Services  Regulatory Barriers  Tax Barriers My Conclusion  Additional support for local insurance institutions and product development in Africa is required for market development

5. AIO 2008 5 Parametric Products: What are they? Payment of Losses  Based upon values calculated from an index  Index serves as a proxy to actual losses  Payment formula is defined in advance (relationship between selected index and insurance coverage) Types of Underlying Indices  Independent, objective and verifiable measure (e.g. rainfall, temperature, wind speed, earthquake intensity)  Related to an insurable interest (assets or economic flows) Conceptual Examples  Drought: Less than X cm of rain at a location pays Y  Wind: Category X storm within Y km of location pays Z  Quake: Richter scale X within Y km of location pays Z  Can be complex: Rain shortfall of successive 10 day periods

6. AIO 2008 6 Parametric Products: Why use them? Benefits:  Reduced moral hazard and adverse selection  Lower administrative costs  Customizable, yet transparent structures  Appetite from the International Reinsurance Market  Efficient in transferring CAT risks from developing countries  Potential to target underserved market segments that lack exposure and historic loss data  Versatility: can be bundled with other financial products  Simplified Risk Assessment: Does not require broad exposure data that is often unavailable. Limitations:  Not an “all-risk” product  Basis Risk Summary  Parametric products can be effectively and efficiently offered in some areas where traditional insurance can not be written

7. AIO 2008 7 Global Index Reinsurance Facility: GIRIF Objectives:  Develop sustainable local markets  Develop local capacity  Promote specialized financial and technical capacity for new markets Key Stakeholders:  International Financial Institutions  Multilateral and Bilateral Donors  Ultimately, Local Financial Institutions Local Financial Institution Benefits:  “Technology Packages” for Local Insurers  GIRIF Invest in suitable technologies to support new markets  Certainty of execution (sustainability and outreach)  Provide confidence to end-users (credibility)

8. AIO 2008 8 GIRIF: Development Approach Bridge the Technical Gaps  By joining commercial and public development expertise for the creation of new markets Bridge the Regulatory and Legal Gaps  By assisting in the development of commercially viable regulatory standards for emerging markets Build a sustainable marketplace  By building technical capacity within local financial institutions  By warehousing pilot programs and packaging them into a market acceptable scale  By assisting in the education of the marketplace regarding parametric products  By establishing long-term sustainable pricing in new programs  By serving as a lead underwriter to develop new programs in a manner appealing to the international reinsurance community

9. AIO 2008 9 Why is Partner Re involved with GIRIF? Desire additional portfolio diversification  The potential of a developed, self-sustaining African catastrophe market is appealing Develop sustainable new markets  Willingness to invest in the short term for long term market development  Decrease frictional costs for market development  Leverage investments in new technologies  Promote the broad participation of the reinsurance market Willing to lend first hand experience from other markets  Strong track record in developing countries  Understanding of local market needs

10. AIO 2008 10 What does GIRIF offer? To Private Financial Institutions….  Opportunity to launch parametric agriculture and catastrophe products  Potential support from donors and development institutions for initial stages of product development  Education of key stake holders (potential end-users, regulatory authorities, financial institutions)  Design of commercial insurance programs  Pricing support  Support the preparation of technical note for product approval  Development of insurance policies  Certainty of Execution  Long Term Partnership

11. AIO 2008 11 PartnerRe Contact Information Brian Tobben Senior Vice President PartnerRe New Solutions, Inc. One Greenwich Plaza Greenwich, CT 06880 (203) 485-4626 brian.tobben@partnerre.com