1. JLT Aerospace Airline Group Placings & Airline Consolidation Presented by Ian Krise 1 October 2010 RAASI XV Aviation and Space Insurance Conference

2. Agenda  AXIOM InRe and JLT Aerospace  Airline Group Placings –What are the Options and Why? –Insurance Benefits –Insurance Drawbacks  Airline Consolidation –A worldwide phenomenon –A merger or an acquisition? –Long term consequences and who benefits

3. JLT Aerospace  JLT Aerospace handles approximately 15% share of worldwide airline market, over 20% excluding US market. Our share is rising

4. JLT Aerospace 2010  2010 Airline wins include : STC Rossiya Indigo program including Avia Nova, Tiger Airways, Spirit Airlines, Mandala and Wizz Air DHL NACIL (Indian Airlines /Air India)

5. Airline Group Placings: 3 Options Combined Slip All airlines Combined Slip All airlines Off-slip Airline A Off-slip Airline A Off-slip Airline B Off-slip Airline B Main slip Off-slip Airline C Off-slip Airline C Slip for Airline A Slip for Airline B Slip for Airline C A. Combined Slip B. Main slip and off-slips C. Simultaneous marketing

6. Airline Group Placings: Advantages and Disadvantages Insurance Advantages  Obviously Premium volume and resultant rating levels  Coverage benefits - Smaller Airlines obtain the same or similar coverages as larger airlines  Market presence for any issues that may arise during the placement Insurance Disadvantages  Claims may adversely effect all airlines in the Group  Any claim resultant rise in premium needs to be subject to an agreed formula for "who pays what"  Difficulty for an Airline to leave an Airline Group placing - Higher Stand alone rates/premium  Group placings can prove restrictive for smaller airlines - Lack of influence  Insurers spread of risks diminishes - Either insurers write one whole group or miss out altogether

7. Airline Group Placings: Summary  Airline group placings are here to stay and are increasing globally  Only Insurers/Reinsurers & Brokers that have the required size and expertise can handle them  Overall it is a benefit to Airlines  Represents a loss of premium income and underwriting choice for Insurers/Reinsurers

8. Airline Consolidation  A worldwide phenomenon - why?  A merger or an acquisition?  Long term consequences - who benefits?

9. Airline Consolidation: Summary  Global mega carriers are not new and are increasing globally  Excluding niche airlines - a matter of survival for airlines  Historically new start ups and LCCs have helped to mitigate the merger and acquisition activity