1. RMWG Outbrief October 11, 2007 Chris Kunstadter Vice President XL Insurance (+1) 212-321-6510 chris.kunstadter@xlgroup.com

2. Page 23-Oct-15 Agenda  The state of the space insurance industry  RMWG Topics

3. Page 33-Oct-15 Recent Issues in Space Insurance  Third-Party (Liability) Insurance  Impact of Proton failure  Chinese ASAT test  First-Party (Physical Damage) Insurance  Losses in 2007 exceed premium  Delays in Sea Launch and Proton launches

4. Page 43-Oct-15 Proton Launch Failure in Kazakhstan

5. Page 53-Oct-15 Recent Debris Events in LEO www.st-suunnittelu.fi/romu/ www.centerforspace.com Chinese ASAT Test, 11 Jan. Proton Aux Motor Explosion, 14 Feb. Breeze-M Explosion, 19 Feb. Estimated debris >5-10 cm from Jan & Feb 2007 breakup events: FY-1C (Jan 11): >2,200 pieces Beidou 2A (Feb 2): 100 pieces Proton Aux Motor (Feb 14): 60 pieces CBERS 1 (Feb 18): 24 pieces Briz-M stage (Feb 19): 1,000 pieces

6. Page 63-Oct-15 Profitability Relaxed UnderwritingFlight to Quality Inadequate Reserves Increased Capacity Seek Market Share Inadequate Rates Mounting Losses Profits Rise Rates Increase Capacity Decrease Insolvencies/Withdrawals The Insurance Market Cycle Rates Decrease Hard Market Soft Market You are here?

7. Page 73-Oct-15 Insured Launches

8. Page 83-Oct-15 Market Exposure In Orbit

9. Page 93-Oct-15 Launch Vehicle Failure Rates Current GEO launch vehicles* * Current GEO launch vehicles included in this survey are: Ariane 5, Atlas 5, Delta 4, H-2A, Long March 3A/B/C, Proton M/Breeze M, Soyuz Fregat & Soyuz 2, Zenit 3/SL Average

10. Page 103-Oct-15 Satellite Failure Rates Commercial communications satellites 1 st year (i.e., “post-separation/IOT” phase) By manufacturer*, since 1997 Average * Major “Western” manufacturers of commercial communications satellites included in this survey are AAS, Antrix, Astrium, Boeing, LM, Loral, Orbital 15.8%

11. Page 113-Oct-15 Satellite Failure Rates Commercial communications satellites 2 nd & subsequent years (i.e., “in-orbit” phase) By manufacturer*, since 1997 Average * Major “Western” manufacturers of commercial communications satellites included in this survey are AAS, Antrix, Astrium, Boeing, LM, Loral, Orbital

12. Page 123-Oct-15 Split of Claims Between Launch and In-Orbit Phases

13. Page 133-Oct-15 Annual Premiums and Losses

14. Page 143-Oct-15 Total Cumulative Return for Space Insurance Market (since 1998)

15. Page 153-Oct-15 RMWG Topics  Commercial human spaceflight task force  Subgroup of RMWG  Brainstorming and developing agenda for topics to be brought to the full RMWG  Specifically looking at human spaceflight issues  Ongoing effort

16. Page 163-Oct-15 Topics for further study  Requirements and availability of insurance for personal space flight  FAA safety regulation of human space flight  Inter-party waivers of liability  State-based legislative initiatives  MPL calculation methodologies  Definition of third parties under concurrent operations  Application of industry standards