1. Marine & Energy Practice Risk and Insurance Seminar Houston 20 September 2004 John Lapsley Chairman Marine & Energy

2. 2 Marsh Welcoming address

3. 3 Marsh Where historians say it all started…

4. 4 Marsh

5. 5

6. 6 Brief history of Marine Insurance

7. 7 Marsh Brief history of Marine insurance

8. 8 Marsh It’s all to do with a cup of coffee LONDON 1680 EDWARD LLOYD’S COFFEE HOUSE IN TOWER STREET Just a 5 minute walk for ship’s captains Just a 10 minute walk for city financiers

9. 9 Marsh Lloyd’s history – the origins / milestones

10. 10 Marsh Brief history of Marine insurance

11. 11 Marsh Brief history of Marine insurance

12. 12 Marsh Brief History of Marine Insurance

13. 13 Marsh Market capacity greater than at any time in its 315 year history 20022003 GBP 13,230,000,000 18% GBP 14,396,000,000 * Source = Lloyd’s Members Services Unit Lloyd’s today

14. 14 Marsh USA History of Insurance - Milestones

15. 15 Marsh USA History of Insurance - Milestones

16. 16 Marsh The State of the Market Loss Ratio Index 25 75 125 175 225 275 325 375 425 196619681970197219741976197819801982198419861988199019921994199619982000 Source: CEFOR

17. 17 Marsh Global premiums reported 1997 to 2002 (accounting years) Source: CEFOR

18. 18 Marsh World Insurance Market 2001 Premium Volume in USD Billion 957 12 1439 Life, 60% Non-life, 40% Marine, 0.5% Source: Swiss Re & IUMI Marine H&M: 2,8 ~ 0.1% Total: 2,408

19. 19 Marsh Market Shares 2002 3.9% 14.2% 22.1% 59.8% Europe Asia/Pacific North America Rest of World Source: CEFOR/IUMI

20. 20 Marsh Report on marine insurance premiums - by economic areas (USD million) Europe = Albania, Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Netherlands, Norway, Poland, Portugal, Romania, Russia, Slovenia, Spain, Sweden, Switzerland, Turkey, Ukraine, United Kingdom (IUA + Lloyd’s) Asia/Pacific = Hong Kong, India, Indonesia, Japan, North Korea, South Korea, Malaysia, Pakistan, Singapore North America = Bermuda, Canada, USA Rest of the world = Australia, Congo, Egypt, Israel, Ivory Coast, Kenya, Lebanon, Mexico, Morocco, New Zealand, Nigeria, South Africa, Tunisia, United Arab Emirates Europe = Albania, Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Netherlands, Norway, Poland, Portugal, Romania, Russia, Slovenia, Spain, Sweden, Switzerland, Turkey, Ukraine, United Kingdom (IUA + Lloyd’s) Asia/Pacific = Hong Kong, India, Indonesia, Japan, North Korea, South Korea, Malaysia, Pakistan, Singapore North America = Bermuda, Canada, USA Rest of the world = Australia, Congo, Egypt, Israel, Ivory Coast, Kenya, Lebanon, Mexico, Morocco, New Zealand, Nigeria, South Africa, Tunisia, United Arab Emirates RegionPremiums Variation Market share 2002200120002000-20012001-2002200220012000 Europe7,619,0376,654,2926,108,6088.93%14.50%59.81%58.54%55.64% Asia/Pacific2,820,4732,685,1963,025,848-11.26%5.04%22.14%23.62%27.56% North America1,805,6421,618,9511,404,51915.27%11.53%14.18%14.24%12.79% Rest of the world492,985408,770440,602-7.22%20.60%3.87%3.60%4.01% Source: CEFOR/IUMI

21. 21 Marsh Global Marine Premium 1992 - 2002 (USD Million), as reported Source: CEFOR/IUMI

22. 22 Marsh 200 400 600 800 1000 1200 1400 19921993199419951996199719981999200020012002 Accounting Year France Italy Japan Norway Spain UK (ILU/IUA) UK (Lloyd's) USA Global Hull Premium Major Markets 1992 - 2002 (USD Million) Source: CEFOR/IUMI

23. 23 Marsh Absheron

24. 24 Marsh Involvement of Energy roots in Marine Marine to Upstream

25. 25 Marsh Involvement of Energy roots in Marine 1947 Terrebonne Parish, LA – first offshore structure Gulf of Mexico

26. 26 Marsh Involvement of Energy roots in Marine Marine to Upstream 1975 first North Sea structure - Argyll

27. 27 Marsh Buzzard

28. 28 Marsh Involvement of Energy roots in Marine Marine to Upstream

29. 29 Marsh Involvement of Energy roots in Marine Marine to Upstream

30. 30 Marsh Oil Insurance Mutual

31. 31 Marsh Involvement of Energy roots in Marine Marine to Upstream

32. 32 Marsh Fire to Downstream

33. 33 Marsh Fire to Downstream

34. 34 Marsh Summary