Rate Monitor Report and Quarterly U.S. Property & Casualty Profitability Analysis

Transcription

1 Rate Monitor Report and Quarterly U.S. Property & Casualty Profitability Analysis Fourth Quarter 2016 Prepared by Aon Benfield Analytics

2 Table of Contents Section 1 Section 2 Section 3 Section 4 Rate trends Quarterly performance metrics and analysis Year-To-Date (YTD) performance metrics and analysis Additional information 2

3 Rate Trends 4th Quarter 2016 The pricing environment in the U.S. P&C commercial market is soft, but conditions vary based on territory, line of business and size of the account The commercial property market remains in a prolonged soft cycle, although the overall magnitude of rate decreases has continued to moderate Generally larger accounts are more competitive than smaller accounts, although middle market accounts are becoming more competitive (carriers reported rates flat to down 2%) There has been softening in terms and conditions in some lines of business Commercial casualty lines experiencing positive rate increases include cyber, commercial auto, general liability and umbrella However, rates in the aggregate are not moving directionally or in proportion to underlying longterm cost trends (higher severity trends were reported in commercial auto, excess casualty and medical malpractice) Carriers reported rate increases in Homeowners of 2% on average, with exposure increases of up 3% - 5% Rate increases in Homeowners have been moderating for the past 2 years 3

4 Rate Trends 4th Quarter 2016 Both commercial and personal auto liability rates increased for the third quarter in a row Carriers submitting rate increases are motivated by the increased frequency and severity of auto claims, which are partially fueled by a continued increase of miles driven, speeding and distracted driver claims Carriers expect rates in commercial and personal auto to increase in 2017, but there is uncertainly as to whether the rates will keep pace with long-term cost trends Some carriers expect the frequency of losses to decline in a few years due to safer vehicles, but severity is expected to remain elevated for the foreseeable future Internationally rates remain under pressure and have been down more than U.S. rates except where material catastrophes have occurred, such as Canada Carriers stated that the most competitive lines remain marine, aviation and energy Overall, the reinsurance marketplace conditions remain challenging, although the pace of rate deterioration appears to be decelerating Based on the rate indices, rate filings and carrier comments, the most competitive lines remain Energy, aviation and marine Commercial property (particularly on the larger cat exposed accounts) Construction 4

5 Aon Benfield Commercial Casualty Rate Indices Rate Change 10% 8% 6% 4% 2% 0% -2% -4% -6% -8% -10% All Co. Avg Specialty Co. Avg Standard Co. Avg 2009, Q4 2010, Q1 2010, Q2 2010, Q3 2010, Q4 2011, Q1 2011, Q2 2011, Q3 2011, Q4 2012, Q1 2012, Q2 2012, Q3 2012, Q4 2013, Q1 2013, Q2 2013, Q3 2013, Q4 2014, Q1 2014, Q2 2014, Q3 2014, Q4 2015, Q1 2015, Q2 2015, Q3 2015, Q4 2016, Q1 2016, Q2 2016, Q3 2016, Q4 Standard: Chubb Limited., American International Group, Inc., Hartford Financial Services Group, Inc., Travelers Companies Inc., XL Group plc, W.R. Berkley Corporation and CNA Financial Corporation Specialty: Arch Capital Group Ltd, Allied World Assurance Company Holdings, AG, Markel Corporation, RLI Corp., W.R. Berkley Corporation and CNA Financial Corporation. Some groups report a Commercial Line rate change which includes both property and casualty. Most carriers state that commercial casualty rates have been flat to declining, but some lines of business are achieving rate increases Commercial auto has been one line that has seen high single-digit rate increases There has been an uptick in demand for cyber Carriers are reporting single digit rate increases in cyber, but the increases are less than in prior quarters Carriers reported that overall rates in general liability and umbrella are up marginally for the year Workers compensation has experienced an increase in competition with some carriers reporting rate decreases in the mid single digit range In professional lines, several carriers reported that overall rates declined 2%, with D&O rates down as much as 4% Source: Aon Benfield Inc. 5

6 Comparison of Commercial Casualty Rate Indices Casualty lines rate changes by quarter as reported Aon Benfield Company Sample Year Qtr CIAB (GL) Market Scout CLIPS All Co. Avg Specialty Co. Avg Standard Co. Avg 2009 Q4-5.6% -4.7% 0.0% 0.7% 0.7% 0.5% 2010 Q1-4.9% -4.3% 0.0% -0.1% -1.0% 0.7% 2010 Q2-6.3% -3.3% -1.0% -1.5% -2.5% -0.1% 2010 Q3-5.4% -3.7% -1.0% -1.2% -1.7% -0.6% 2010 Q4-2.2% -4.7% -1.0% -1.2% -2.1% -0.6% 2011 Q1-2.8% -4.7% 0.0% 0.1% -0.5% 0.4% 2011 Q2-1.0% -3.7% 1.5% 1.3% 0.0% 1.8% 2011 Q3 0.3% -1.3% 2.0% 2.5% 0.9% 3.3% 2011 Q4 2.2% 0.7% 3.0% 3.7% 2.0% 4.6% 2012 Q1 3.4% 2.0% 5.0% 5.1% 4.3% 5.4% 2012 Q2 4.3% 3.7% 6.0% 6.1% 5.6% 6.6% 2012 Q3 4.2% 4.7% 6.0% 7.2% 6.6% 7.7% 2012 Q4 3.3% 4.7% 7.0% 7.0% 6.8% 7.3% 2013 Q1 4.5% 4.7% 7.0% 6.5% 6.4% 7.2% 2013 Q2 3.5% 5.0% 6.0% 6.2% 5.9% 7.1% 2013 Q3 2.9% 4.3% 6.0% 6.0% 6.0% 6.4% 2013 Q4 2.3% 3.7% 5.0% 5.1% 5.1% 5.8% 2014 Q1 1.5% 2.7% 4.0% 4.3% 4.4% 4.7% 2014 Q2 0.1% 2.3% 3.0% 3.9% 3.4% 4.1% 2014 Q3 0.7% 1.3% 3.0% 3.4% 2.9% 3.6% 2014 Q4-0.5% 0.7% 2.0% 2.3% 2.9% 1.8% 2015 Q1-2.3% 0.3% 2.0% 2.0% 2.8% 1.3% 2015 Q2-3.1% 0.0% 1.0% 1.1% 1.6% 1.0% 2015 Q3-2.9% 0.0% 0.8% 0.6% 1.1% 0.7% 2015 Q4-3.5% -3.0% 0.8% -0.2% -0.2% -0.1% 2016 Q1-3.2% -3.7% 0.3% -0.1% -0.1% -0.3% 2016 Q2-3.7% -1.7% 0.3% 0.0% -0.1% 0.0% 2016 Q3-3.2% -1.0% 0.8% 0.3% 0.0% 0.3% 2016 Q4-2.7% -1.3% 0.8% -0.4% 1.2% Annual % -11.1% -5.0% -5.8% -6.2% -4.7% % -6.0% 0.3% 0.4% 0.1% 0.5% % -4.0% -0.8% -1.0% -1.8% -0.1% % -2.3% 1.6% 1.9% 0.6% 2.5% % 3.8% 6.0% 6.3% 5.8% 6.8% % 4.4% 6.0% 6.0% 5.8% 6.6% % 1.8% 3.0% 3.5% 3.4% 3.6% % -0.7% 1.2% 0.9% 1.3% 0.7% % -1.9% 0.6% 0.3% -0.1% 0.3% Rate Change 8% 4% 0% -4% -8% -12% -16% Aon Benfield All Co Avg CIAB (GL) CLIPS Market Scout 2009, Q4 2010, Q1 2010, Q2 2010, Q3 2010, Q4 2011, Q1 2011, Q2 2011, Q3 2011, Q4 2012, Q1 2012, Q2 2012, Q3 2012, Q4 2013, Q1 2013, Q2 2013, Q3 2013, Q4 2014, Q1 2014, Q2 2014, Q3 2014, Q4 2015, Q1 2015, Q2 2015, Q3 2015, Q4 2016, Q1 2016, Q2 2016, Q3 2016, Q4 Carriers are seeing a broad range of rates depending on line of business, territory and size of the account Despite the flat and declining rates, some carriers still view the overall U.S. commercial casualty market at attractive Source: Aon Benfield Inc., CIAB, CLIPS and Market Scout 6

7 U.S. National Average Rate Change 10% 8% 6% 4% 2% Auto Liab WC Excess WC GL Lead Umbrella Total Umbrella / Excess Liab 0% -2% -4% -6% 2014, Q1 2014, Q2 2014, Q3 2014, Q4 2015, Q1 2015, Q2 2015, Q3 2015, Q4 2016, Q1 2016, Q2 2016, Q3 2016, Q4 The Aon National Rate Index captured rate increases in workers compensation, GL commercial auto, GL, workers compensation and umbrella This contrasts with several carriers reporting casualty rates down in workers compensation and flat in most other commercial casualty lines Source: Aon s National Casualty Quarterly Rate Report 7

8 Personal Lines Rate Indices Personal lines rate changes by quarter as reported Year Qtr Market Scout (Personal Lines) Aon Benfield (HOonly) 2010 Q % 2011 Q % 2011 Q % 2011 Q % 2011 Q % 2012 Q1 1.7% 6.7% 2012 Q2 1.7% 6.8% 2012 Q3 2.7% 6.9% 2012 Q4 3.7% 7.4% 2013 Q1 3.7% 7.6% 2013 Q2 3.7% 6.8% 2013 Q3 3.3% 6.9% 2013 Q4 3.0% 6.3% 2014 Q1 2.3% 5.7% 2014 Q2 3.3% 5.3% 2014 Q3 3.0% 4.1% 2014 Q4 2.7% 3.6% 2015 Q1 2.0% 3.7% 2015 Q2 1.0% 2.6% 2015 Q3 1.7% 3.1% 2015 Q4-0.7% 2.7% 2016 Q1-0.7% 2.4% 2016 Q2 1.0% 2.2% 2016 Q3 0.7% 2.3% 2016 Q4 1.3% 2.0% Annual % 7.4% % 6.3% % 3.6% % 2.7% % 2.0% Rates in personal lines continue to increase, although the increases in homeowners rates continue to moderate Personal auto has experienced an increase in severity and frequency in recent accident years Carriers are expecting the positive rate momentum in personal lines to continue in 2017 Source: The Aon Benfield Homeowners rate index is based on approved rate filings for the top twenty insurance groups in each state. Rate Change 8% 7% 6% 5% 4% 3% 2% 1% 0% -1% 2010, 4Q 2011, 1Q 2011, 2Q Aon Benfield All Co Avg (HO only - Filed) Market Scout Barometer (Personal Lines) 2011, 3Q 2011, 4Q 2012, 1Q 2012, 2Q 2012, 3Q 2012, 4Q 2013, 1Q 2013, 2Q , 3Q 2013, 4Q 2014, 1Q 2014, 2Q 2014, 3Q 2014, 4Q 2015, 1Q 2015, 2Q 2015, 3Q 2015, 4Q 2016, 1Q 2016, 2Q 2016, 3Q 2016, 4Q

9 Comparison of Commercial Property Rate Indices Commercial property lines rate changes by quarter as reported Year Qtr CIAB Market Scout Barometer Aon US 2010 Q4-4.9% -4.7% -6.3% 2011 Q1-2.0% -4.7% -5.7% 2011 Q2 2.4% -3.0% -1.9% 2011 Q3 3.0% -0.3% -0.5% 2011 Q4 5.7% 2.0% 0.3% 2012 Q1 6.7% 3.0% 1.5% 2012 Q2 7.6% 4.7% 2.5% 2012 Q3 6.0% 6.3% 2.8% 2012 Q4 5.7% 5.0% 1.5% 2013 Q1 6.8% 5.7% 2.4% 2013 Q2 6.0% 5.7% 0.8% 2013 Q3 3.9% 5.3% 1.2% 2013 Q4 2.0% 3.7% 1.6% 2014 Q1 0.0% 2.7% 0.8% 2014 Q2-2.7% 2.3% -0.9% 2014 Q3-1.7% 1.3% -0.1% 2014 Q4-2.3% 1.0% -2.0% 2015 Q1-4.2% 1.0% -3.1% 2015 Q2-5.5% 0.0% -3.6% 2015 Q3-5.4% 0.7% -3.7% 2015 Q4-3.6% -2.3% -1.2% 2016 Q1-5.4% -3.7% -4.1% 2016 Q2-6.3% -2.3% -5.6% 2016 Q3-4.8% -1.0% -3.0% 2016 Q4-4.6% -2.3% -4.2% Annual % 4.8% 2.1% % 5.1% 1.5% % 1.8% -0.6% % -0.2% -2.9% % -2.3% -4.2% Rate Change 8% 6% 4% 2% 0% -2% -4% -6% -8% 2010, 4Q 2011, 1Q 2011, 2Q 2011, 3Q 2011, 4Q 2012, 1Q 2012, 2Q 2012, 3Q 2012, 4Q 2013, 1Q 2013, 2Q 2013, 3Q 2013, 4Q For 4Q and the year, cat exposed business has seen rate decreases up in the double digits. There has been an indication that corrective underwriting action will translate into improving property rates during , 1Q CIAB Market Scout Barometer Aon US 2014, 2Q 2014, 3Q 2014, 4Q 2015, 1Q 2015, 2Q 2015, 3Q 2015, 4Q 2016, 1Q 2016, 2Q 2016, 3Q 2016, 4Q 9

10 Cumulative Commercial Property Rate Indices 115% CIAB Market Scout Barometer Aon US 110% 105% 100% 95% 90% The U.S. commercial property market remains very competitive and overall rates were down from 1.5 5% (with larger accounts still experiencing larger rate decreases) Some carriers believe the elevated frequency of natural catastrophes are mitigating the size of the rate decreases However, other carriers state that pricing is dynamic and they will remain competitive on price to retain some of their more profitable accounts Source: Aon, CIAB and Market Scout 10

11 Table of Contents Section 1 Section 2 Section 3 Section 4 Rate trends Quarterly performance metrics and analysis Year-To-Date (YTD) performance metrics and analysis Additional information 11

12 4Q 2016 Profitability Observations Catastrophe losses for most groups were elevated, fueled by Hurricane Matthew Overall reserves redundancies were lower, as there was a significant amount of reserve strengthening by some groups in commercial and personal auto, workers compensation, A&E as well as lines in run-off Earned premiums increased overall, fueled by acquisitions Overall this led to an 4.4 pp increase in the combined ratio (to 97.8%) and a 2.3% decrease in ROE (to 6.6%) Just over half of the P&C groups beat their initial quarterly consensus earnings estimates groups, which was on par with 4Q

13 YTD 4Q 2016 Profitability Observations 2016 Year-to date results mirrored the fourth quarter results Catastrophe losses were elevated, due to Hurricane Matthew, the Fort McMurray wildfire, flooding in the gulf area as well as an increase in wind and hail losses Reserve redundancies decreased from 3.9% to 2.6% Earned premiums increased from 2.2% to 3.9% Investment results were mixed, with most groups reporting increases, but a few groups reporting sharp declines Total equity (excluding Berkshire) decreased 1.5% Driven by share buybacks and dividends of $31B, offset by net income of $23B and unrealized gains of $2B 13

14 4Q 2016 Actual vs. Estimated EPS by Sector EPS estimated vs. actual Miss Beat % Beat EPS Target Industry (51) Reinsurance (9) Small Cap Specialty (7) Specialty (13) Personal (9) Commercial (7) Large Cap (6) % 20% 40% 60% 80% 100% Missed Target Est. Beat Target Est. Note: There are 54 insurance and reinsurance groups included in this report. However, an EPS estimate was not available for 3 groups. The number next to each sector represents the number of groups in that sector. Miss or Beat refers to the number of groups that did not meet (Miss) or exceeded (Beat) the consensus EPS estimate. 14

15 4Q 2016 Profitability 54 Insurance and Reinsurance Groups Equity P&C Earned Premium Change¹ Comm Lines & Casualty Rate Change % 5% 650 Quarter +1.1% +1.9% +1.4% -0.9% 10% 3% ($Billion) % 3.8% 6.1% 3.8% 2.1% 3.4% 1% -1% -0.2% -0.1% 0.0% 0.3% 0.8% 575 0% -3% 550 Q Q Q Q Q % Q Q Q Q Q % Q Q Q Q Q Equity (ex Berkshire) NWP / Equity 3 Combined Ratio Quarter +1.1% +2.0% +0.7% -5.2% % 95% 93.4% 93.2% 98.9% 94.7% 97.8% 0.9 ($Billion) % % 300 Q Q Q Q Q Q Q Q Q Q % Q Q Q Q Q Notes: 1) Quarterly % change year over year (i.e. Percentage change from 4th Quarter 2015 vs. 4th Quarter 2016) 2) Represents a sample of 11 groups which focus on Commercial Casualty business 3) NWP (Trailing Twelve Months) / Equity 15

16 4Q 2016 Profitability 54 Insurance and Reinsurance Groups Return on Equity P&C Earned Premium Change Combined Ratio -15% -10% -5% 0% 5% 10% 15% YOY -5% 0% 5% 10% 15% 50% 65% 80% 95% 110% 125% YOY Reins -8.4 Pers Spec +0.7 Comm -3.7 LargeCap Reins +8.7 Industry -2.3 Industry Comm +4.4 Spec -2.3 Reins Industry +4.4 SCSpec +1.7 Comm Pers -1.9 Pers +1.9 Spec SCSpec +8.2 LargeCap +4.9 SCSpec LargeCap +6.8 Reserve Development to Premium Catastrophe Losses to Premium Combined Ratio ex-cat & Reserve Development -10% -5% 0% 5% 10% YOY 0% 2% 4% 6% 8% 10% YOY 50% 65% 80% 95% 110% 125% YOY Reins -12.0% -1.4 LargeCap +1.6 LargeCap -0.7 Spec +1.8 Pers -4.4 Comm -2.5 Industry +2.2 SCSpec +2.5 Spec -4.7 SCSpec +4.3 Comm +2.5 Industry +0.2 Pers +0.1 Spec +3.6 Pers +2.5 Comm +4.5 Industry +2.0 Reins +5.2 LargeCap 16.1% +5.9 Reins +4.9 SCSpec +1.4 CY Quarter YOY Point Change Note: CY Quarter = Current Year Quarter; YOY Point Change = Percentage point change from 4th Quarter 2015 vs. 4th Quarter

17 Table of Contents Section 1 Section 2 Section 3 Section 4 Rate trends Quarterly performance metrics and analysis Year-To-Date (YTD) performance metrics and analysis Additional information 17

18 YTD 4Q 2016 Profitability 54 Insurance and Reinsurance Groups Equity P&C Earned Premium Change 1 Comm Lines & Casualty Rate Change YTD -0.8% +3.6% 15% 5% % 3% ($Billion) % 2.2% 3.9% 1% -1% 0.9% 0.3% 575 0% -3% 550 Q Q Q % Q Q % Equity (ex Berkshire) YTD -5.3% -1.5% NWP / Equity 3 125% Combined Ratio ($Billion) % 95% 93.5% 96.0% % % 325 Q Q Q Q Q % Q Q Notes: 1) Quarterly % change year over year (i.e. Percentage change from YTD 4th Quarter 2015 vs. YTD 4th Quarter 2016) 2) Represents a sample of 11 groups which focus on Commercial Casualty business 3) NWP (Trailing Twelve Months) / Equity 18

19 YTD 4Q 2016 Profitability 54 Insurance and Reinsurance Groups Return on Equity P&C Earned Premium Change Combined Ratio -15% -10% -5% 0% 5% 10% 15% YOY -5% 0% 5% 10% 15% 50% 65% 80% 95% 110% 125% YOY Comm -4.5 Pers Reins +3.5 Reins -3.3 Reins Spec +1.4 SCSpec -1.9 Comm Comm +2.0 LargeCap -1.1 Industry Industry +2.5 Industry -0.8 LargeCap LargeCap +3.6 Pers +0.4 SCSpec SCSpec +4.8 Spec +2.9 Spec Pers -0.3 Reserve Development to Premium Catastrophe Losses to Premium Combined Ratio ex-cat & Reserve Development -10% -5% 0% 5% 10% YOY 0% 2% 4% 6% 8% 10% YOY 50% 65% 80% 95% 110% 125% YOY Reins +0.8 Spec +1.2 LargeCap +0.3 Spec +1.5 LargeCap +1.6 Comm -0.3 Industry +1.3 Industry +0.9 Reins +1.0 Comm +0.8 Reins +1.7 Industry +0.3 SCSpec +2.3 Pers -2.3 SCSpec +0.8 Pers +0.4 Comm +1.5 Spec -1.3 LargeCap +1.7 SCSpec +1.7 Pers +1.7 CY Quarter YOY Point Change 19

20 Table of Contents Section 1 Section 2 Section 3 Section 4 Rate trends Quarterly performance metrics and analysis Year-To-Date (YTD) performance metrics and analysis Additional information 20

21 Objectives A primary objective of this report is to provide an update on U.S. P&C rate trends Casualty rate trends are derived from a variety of public sources and represent Aon Benfield s best estimate of casualty rate changes Casualty rate trends are also extracted from Aon s National Casualty Quarterly Rate Report The Aon Benfield Homeowners rate index is based on approved rate filings for the top twenty insurance groups in each state The Aon Benfield rate change indices are compared to other rate change indices including: CIAB, CLIPS and Market Scout The Aon US Commercial Property index is taken from Aon s Global Risk Insight Platform (GRIP) The report also provides insight into the profitability of the U.S. P&C Industry The U.S. P&C Industry is represented by 54 public insurance and reinsurance groups The groups are predominantly U.S. non-life and have been categorized into six sectors 21

22 Insurance and Reinsurance Groups by Sector Sector Group Sector Group Sector Group LargeCap American International Group, Inc. SCSpec AMERISAFE, Inc. Comm Cincinnati Financial Corporation LargeCap Allstate Corporation SCSpec Baldwin & Lyons, Inc. Comm CNA Financial Corporation LargeCap Berkshire Hathaway Inc. SCSpec EMC Insurance Group Inc. Comm Hartford Financial Services Group, Inc. LargeCap Chubb Corporation SCSpec Global Indemnity plc Comm Old Republic International Corporation LargeCap Progressive Corporation SCSpec Kingsway Financial Services Inc. 1 Comm XL Group plc LargeCap Travelers Companies, Inc. SCSpec First Acceptance Corporation 1 Comm Fairfax Financial Holdings Limited SCSpec Employers Holdings, Inc. Comm Hanover Insurance Group, Inc. Spec Allied World Assurance Company Holdings, AG SCSpec United Fire Group, Inc. Spec American Financial Group, Inc. SCSpec Hallmark Financial Services, Inc. Reins Aspen Insurance Holdings Limited Spec Arch Capital Group Ltd. Reins AXIS Capital Holdings Limited Spec Argo Group International Holdings, Ltd. Reins Endurance Specialty Holdings Ltd. Spec Assurant, Inc. Reins Everest Re Group, Ltd. Spec ProAssurance Corporation Pers Donegal Group Inc. Reins PartnerRe Ltd. 1 Spec Markel Corporation Pers Erie Indemnity Company Reins RenaissanceRe Holdings Ltd. Spec Navigators Group, Inc. Pers Kemper Corporation Reins Validus Holdings, Ltd. Spec OneBeacon Insurance Group, Ltd. Pers Horace Mann Educators Corporation Reins Greenlight Capital Re, Ltd. Spec RLI Corp. Pers Infinity Property and Casualty Corporation Reins Maiden Holdings, Ltd. Spec Selective Insurance Group, Inc. Pers Mercury General Corporation Reins Alleghany Corporation Spec W.R. Berkley Corporation Pers State Auto Financial Corporation Spec White Mountains Insurance Group, Ltd. Pers Safety Insurance Group, Inc. Pers Hilltop Holdings Inc. Notes: 1) Estimated EPS not available 22

23 Contact Information Greg Heerde Head of Americas Analytics Aon Benfield Analytic Tracy Hatlestad COO of Analytics Aon Benfield Analytics Brian Alvers Head of Americas Actuarial Aon Benfield Analytics Mike McClane Market Analysis - Americas Aon Benfield Analytics michael.mcclane@aonbenfield.com For information on Aon rate indices, please contact: National Casualty Quarterly Rate Indices All Other Aon Rate Indices Michael Gruetzmacher Chris Cortese michael.gruetmacher@aon.com chris.cortese@aon.com 23

24 About Aon Benfield Aon Benfield, a division of Aon plc (NYSE: AON), is the world s leading reinsurance intermediary and full service capital advisor. We empower our clients to better understand, manage and transfer risk through innovative solutions and personalized access to all forms of global reinsurance capital across treaty, facultative and capital markets. As a trusted advocate, we deliver local reach to the world s markets, an unparalleled investment in innovative analytics, including catastrophe management, actuarial and rating agency advisory. Through our professionals expertise and experience, we advise clients in making optimal capital choices that will empower results and improve operational effectiveness for their business. With more than 80 offices in 50 countries, our worldwide client base has access to the broadest portfolio of integrated capital solutions and services. To learn how Aon Benfield helps empower results, please visit aonbenfield.com. Sources: Commercial Lines Insurance Pricing Survey (CLIPS), Council of Insurance Agents and Brokers (CIAB), Market Scout, SNL Financial, LC and Aon plc Aon Benfield Inc This document is intended for general information purposes only and should not be construed as advice or opinions on any specific facts or circumstances. This analysis is based upon information from sources we consider to be reliable, however Aon Benfield does not warrant the accuracy of the data or calculations herein. The content of this document is made available on an as is basis, without warranty of any kind. Aon Benfield disclaims any legal liability to any person or organization for loss or damage caused by or resulting from any reliance placed on that content. Members of the Aon Benfield Analytics will be pleased to consult on any specific situations and to provide further information regarding the matters discussed herein. 24