1. LMG Forum 23 June 2010

2. 2 Confidence in Lloyds 2002-2010 Base: All respondents (n=301) Source: Q17 How positive do you feel about using Lloyds as a market in which to do business in the next three years, very positive, quite positive, not very positive or not at all positive?

3. 3 Lloyds process performance v other markets 2004-2010 Base: All respondents (n=301) Source: Q18b Compared with other insurance markets, how do you think Lloyds performs on each of the following aspects of business processing? Net %age saying Lloyds better

4. Oct 2001 LMP slip Dec 2004 John Tiner Contract Certainty challenge Jan 2006 Contract Certainty 65% June 2006 Market Reform Slip June 2007 Contract Certainty Code of Practice Dec 2008 FSA agree legacy success June 2007 Market Reform Contract Dec 2007 FSA agree Contract Certainty success Nov 2009 Exchange live June 2010 Endorsements pilot Dec 2007 Market Reform Contract Endorsement EMRCE Placing – modernisation timeline

5. 5 RI3K In 2009 1364Individual users 203Underwriting comparison 16974Links bound in 8 different countries 4491Endorsements 18402ACORD Data messages

6. 6 Legacy Policies –With FSA agreement market wide measurement ended in December 2008 –Continuous improvement through Arrow visits & Underwriting Minimum Standards reviews –Approx 239,000 legacy policies reduced to approx 29,000

7. Sept 2006 IMR live Nov 2006 ECF live Usability releases Oct 2008 IMR Agreement signed July 2009 IMR upgrade – robust infrastructure in place Dec 2009 IMR security model live – expands scope of A&S & ECF March 2010 Time and motion study – ECF twice as quick as paper Sept 2010 ECF2 live – major usability upgrade for carriers May 2008 90% of OP submissions via IMR Insurers Market Repository timeline

8. 8 How successful has the Lloyds market been at reform? April '07 - 14.4% in scope Apr 07 Dec 08 100 0 December 08 - >90% in scope 16,000 transactions per month 82,000 claims to date Money to client 40% faster Electronic Claims BENEFIT

9. 9 Comparative service performance of Lloyds Clear lead for Lloyds on all claims performance measures Strong commitment to paying fair claims High calibre claims people Claims staff are committed to delivering excellent service Highly responsive to broker needs Processes claims speedily Quick to agree and settle large complex claims Base: All Claims personnel (n=150) Q15: Thinking again about the five locations, London, Lloyds, Bermuda, the US and Europe, which markets do you most closely associate with excellence in each of the following areas? You can say as many or as few as you like. Please remember, even if you dont deal directly with each market we are still interested in your perception.

10. 10 ECF impact on service to clients 2009; started on the back foot, but Q3 and 4 trend is very positive... Base: All Claims Personnel Q2 (n=50), Q3 (n=50) Q4 (n=51) Q19b: Thinking now about ECF. do you think that the introduction of ECFs has improved service to your clients? Q19b1: Would you say the service has stayed about the same or got worse?

11. 11 How successful has the Lloyds market been at reform ? Jan 08 – 45% Original Premiums Apr 07 Nov 08 100 0 62,976 transactions per month 456,305 transactions to date November 08 - 96% Original Premiums Faster money movement to the Managing Agent. 1 day = £600,000 investment income on average Contributing to profitability Accounting & settlement BENEFIT

12. 12 Why Have a Bureau Model? Net Settlement – reduces working capital requirements. For example, in 2009 XIS processed £46.7bn of premium through central settlement, which netted to £7.7bn of actual cash movement Leverage scarce skills – multiple followers benefit from sharing scarce technical skills Once only data entry and processes – enter data once for multiple parties, especially in the subscription market Faster movement of cash – rolling daily settlement on 1 day, 3 day,1 week,1 month Reduced broker and insurer back office effort (and cost) – Independent studies demonstrate a factor of 5-9x reduction in numbers of accounting staff required to process Lloyds v. equivalent number of open market (non-subscription) claims and premium transactions Enforcement of standards – both business processing and electronic messaging – multiple bilateral agreements not necessary Single connection – connect to 1 trading partner, connect to all – accelerates electronic take- up Complex workflow orchestration – authoritative view of process status across multiple parties. Especially in the subscription market e.g. ECF / Class@ Lloyds The London Bureau demonstrates the business value to all participants that a hub type business and technical service can bring compared to typical Open Market practices

13. 13 Key Metrics 40m page hits per month 400k DRI messages per month 6,500 registered users 10.5 m documents stored IMR – SLA Performance & Key Metrics

14. 14 Amlin 1.G6 – why, when, how, what and whether 2.Xchanging 3.Lloyds 4.Internal Amlin issues

15. 15 % of risks placed electronically: current and 2012 Base: All respondents (n=301)

16. 16 Where and how risks are placed: current and in 2012 Base: All respondents (n=301) Current 2012

17. 17 2010 Work-Plan

18. 18 2010 Work-Plan

19. 19 The Future Solvency II – Preparation Solvency II – Delivering Solvency II – Embedding