2. Presidential Politics & Profitability in the Property/Casualty Insurance Industry Insurance Information Institute November 1, 2004 Robert P. Hartwig, Ph.D., CPCU, Senior Vice President & Chief Economist Insurance Information Institute  110 William Street  New York, NY 10038 Tel: (212) 346-5520  Fax: (212) 732-1916  bobh@iii.org  www.iii.org

3. Sectors Thought to be Favored, by Winner of 2004 Presidential Election BUSH P/C Insurance Asset Managers Energy/Oil/Coal HMOs/Drug Cos./ Benefit Managers Dividend Paying Stocks Defense KERRY Life Insurers Fannie Mae/Freddie Mac Alternative Energy Hospitals/Med Devices Medicaid HMOs Bonds/Municipal Bonds Home Builders Source: Wall Street Journal, October 7, 2004, D4, from survey of major brokerage firms.

4. P/C Insurance Industry ROE by Presidential Party Affiliation, 1950–2004E BLUE = Democratic President RED = Republican President Source: Insurance Information Institute Truman Nixon/FordKennedy/ Johnson EisenhowerCarterReagan/BushClintonBush

5. P/C Insurance Industry ROE by Presidential Administration, 1950-2004* *ROE for 2004 estimated by III. Truman administration ROE of 6.97% based on 3 years only, 1950-52. Source: Insurance Information Institute OVERALL RECORD: 1950-2004 Democrats8.00% Republicans7.85% Party of President has little bearing on profitability of P/C insurance industry

6. Insurance Industry Contributions, Election Cycles 1990-2004* *Data for current cycle released by Federal Election Commission as of September 13, 2004 Source: Federal Election Commission via Center for Responsive Politics at www.opensecrets.org. Insurance industry contributions are overwhelmingly Republican: $144 million, 79% more than the $81 million contributed to Democrats 64% of insurance industry contributions since 1990 have gone to Republicans

7. Insurance Information Institute On-Line