EXECUTIVE SUMMARY OF FINDINGS

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Aldous Hodges
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1 2013 FLASPÖHLER SURVEY EXECUTIVE SUMMARY OF FINDINGS Cedants Evaluate Reinsurers (Non-Life / North America) Results from 1186 Cedants

2 CEDANT NON-LIFE 2013 TABLE OF CONTENTS ABOUT THE STUDY 1 RESULTS SEGMENTATION 2 TREATY RESULTS 3 SATISFACTION... 3 IMPORTANT REINSURER EVALUATION AND SELECTION FACTORS... 5 BEST REINSURERS BY FACTOR... 6 OTHER EVALUATION CATEGORIES... 7 BEST REINSURERS BY VOTE AND BY RATING... 8 REINSURER PERCEPTUAL MAP... 9 REINSURERS PREFERRED BY LINE OF BUSINESS CEDING PREFERENCES PREMIUM AND REINSURANCE VOLUMES OTHER TOPICS DEMOGRAPHICS FACULTATIVE ONLY RESULTS 17 SATISFACTION IMPORTANT REINSURER EVALUATION AND SELECTION FACTORS BEST REINSURERS BY FACTOR BEST REINSURERS BY VOTE AND BY RATING REINSURER PERCEPTUAL MAP PREMIUM AND REINSURANCE VOLUMES DEMOGRAPHICS ABOUT FLASPÖHLER RESEARCH GROUP 24

3 CEDANT NON-LIFE ABOUT THE STUDY This Executive Summary of Findings is produced specifically for the use of survey respondents, in part as a token of appreciation for your continued commitment to this survey. Please accept our sincere gratitude for your support. The 2013 Flaspöhler Survey : Cedants Evaluate Reinsurers (Non-Life / N.A.) was initiated in 1993 as a biennial study of cedant perceptions about non-life reinsurers and important reinsurance selection and usage topics. The 2013 survey consisted of about 40 questions concerning reinsurer utilization, perceptions of reinsurers, overall satisfaction, reinsurer evaluation factors, broker vs. direct ceding and other pertinent topics. Forty-two (42) reinsurers were evaluated: 1. ACE Tempest Re 2. Alterra Re 3. Arch Re (Bermuda) 4. Arch Re (Facultative) 5. Arch Re (U.S.) 6. Argo (Peleus) 7. Arial Re AWAC 10. Axis Re (U.S.) 11. Berkley Re America 12. Catlin (Bermuda) 13. Catlin (U.S.) 14. EMC Re 15. Endurance Re 16. Everest Re (Bermuda) Hiscox 21. Ironshore Re 22. Lancashire Re Maiden Re 25. Mapfre Re 26. Montpelier Re (Bermuda) 27. Montpelier Re (U.S.) Odyssey Re 30. PartnerRe (U.S.) 31. Platinum UWs 32. QBE Re 33. R+V Re 34. RenaissanceRe 35. SCOR Global P&C Tokio Millennium Re Validus Re 41. White Mountains Re 42. XL Re America These survey results are based on interviews with 1186 cedants, representing 487 companies. The overall results of this study are accurate to within ±2.52% at a 95% level of confidence. When we asked survey respondents Do you have the impression that the information collected in this survey provides reinsurers with what they need to improve the way they do business?, nine out of ten cedants replied affirmatively. Thank you again for your vote of confidence.

CEDANT NON-LIFE 2013 2 RESULTS SEGMENTATION What reinsurance products are you responsible for? Cedants were given the options Treaty Only, Facultative Only and Both Treaty and Facultative.

8% This Executive Summary is divided into two sections: "Treaty" and "Fac Only." "Treaty" refers to those respondents who identified themselves as having treaty responsibility.

4 CEDANT NON-LIFE RESULTS SEGMENTATION What reinsurance products are you responsible for? Cedants were given the options Treaty Only, Facultative Only and Both Treaty and Facultative. About 60% place treaty business (in green) and the remaining 40% place facultative only (in blue). Both Treaty & Fac 39.0% Treaty only 21.2% Fac only 39.8% This Executive Summary is divided into two sections: "Treaty" and "Fac Only." "Treaty" refers to those respondents who identified themselves as having treaty responsibility. "Fac Only" refers to those respondents who identified themselves as responsible for only facultative, with no treaty responsibilities at all. For responses from the Treaty group, refer to page 3. For responses from the Facultative Only group, refer to page 17.

5 CEDANT NON-LIFE 2013 Treaty Results 3 TREATY RESULTS SATISFACTION Would you rate your overall level of satisfaction with the direct/broker market P&C reinsurers you use as...? Two-thirds (67.2%) of treaty cedants are Very Satisfied with the direct reinsurers they use. Q13 - Would you rate your overall level of satisfaction with the direct Non-Life reinsurers you use as...? Very Satisfied 51.3% 67.2% Somewhat Satisfied 26.1% 36.6% Neither Satisfied Nor Dissatisfied 3.6% 7.5% Somewhat Dissatisfied 2.1% 4.0% Very Dissatisfied 1.0% 0.6% Two-thirds (68.6%) are Very Satisfied with the broker market reinsurers they use. Q14 - Would you rate your overall level of satisfaction with the broker market Non-Life reinsurers you use as...? Very Satisfied 49.2% 68.6% Somewhat Satisfied 26.6% 42.3% Neither Satisfied Nor Dissatisfied 2.3% 5.9% Somewhat Dissatisfied 1.7% 2.1% Very Dissatisfied 0.8% 0.5%

6 CEDANT NON-LIFE 2013 Treaty Results 4 Are your relationships with reinsurers, overall,? One half (48.8%) of treaty cedants indicated that relationships with reinsurers are improving. Q15 - Are your relationships with reinsurers, overall,? Improving 44.8% 48.8% Declining 1.3% 2.2% Not really changing 49.9% 53.0% Are your relationships with reinsurance brokers, overall,? (new question) Just under half (41.1%) believe that relationships with brokers are improving. Q29 - Are your relationships with reinsurance brokers, overall,? Improving 41.1% Declining 3.2% Not really changing 55.8% 2013 Overall Treaty

7 CEDANT NON-LIFE 2013 Treaty Results 5 IMPORTANT REINSURER EVALUATION AND SELECTION FACTORS Treaty cedants were asked to rate the importance of each factor in their evaluation of a reinsurer. Underwriting Capabilities Financial Value Financial Security Client Orientation Expertise & Market Knowledge Underwriters who are easily accessible; Underwriters you respect and trust Consistent in their underwriting decisions; UWs with authority to make decisions UW philosophy compatible with yours Offers pricing that is consistent with the services and security provided Differentiate clients based on clients own inception-to-date experience Offers insurance cover and service package which adds value to your company Is highly rated by objective rating agencies; Is free of legacy issues Is reviewed and approved by your security committee Teams who understand your business; Geared to providing solutions; Negotiates openly Marketing reps who bring value through regular contact; Is easy to work with Genuinely cares about a long-standing business relationship Staff with strong technical expertise to understand your business Is innovative and creative in putting together solutions Superior knowledge in lines of business that interest you Tailor made risk mgt solutions; Demonstrates leadership in risk mgt Timely Service Provides timely quotes; Returns calls promptly; Provides timely handling of all documents Value-Added Services Claims Handling Ability Approach To Contracts & Contract Wording Claims services and consulting; UW services and consulting Actuarial services and consulting; General business services and consulting Non-risk transfer services and consulting; NatCat Modeling services Enterprise Risk Management Services Claims expertise you don t have in house; Pays claims in a timely manner A reasonable and collaborative approach to paying claims Competent support in claims handling; Assistance in rejecting unjustified claims Assistance in drafting wording The factor Financial Security was again rated (9 = Very Important / 1 = Not important) as the most important by treaty cedants. Q24 - Please rate how important each of the following factors is to you, yourself, when selecting and evaluating a reinsurer. Financial Security Client Orientation Financial Value Timely Service Underwriting Capabilities Expertise and Market Knowledge Approach to Contracts Claims Handling Value-added Services

8 CEDANT NON-LIFE 2013 Treaty Results 6 BEST REINSURERS BY FACTOR Treaty cedants rated reinsurers they were familiar with, according to the factors on the previous page that they, themselves, felt were important. The top rated reinsurers for each of the factors is listed below, in alphabetical order, with the best reinsurer on each factor identified in green. Underwriting Capabilities RenaissanceRe Hiscox Montpelier Re (Bda) Financial Security (tie) PartnerRe (U.S.) R+V Re RenaissanceRe Tokio Millennium Re Expertise & Mkt Knowledge RenaissanceRe PartnerRe (U.S.) Validus Re Financial Value R+V Re RenaissanceRe Tokio Millennium Re Client Orientation Maiden Re Montpelier Re (Bda) R+V Re RenaissanceRe Timely Service Maiden Re Montpelier Re (Bda) Platinum UWs R+V Re RenaissanceRe Tokio Millennium Re Approach to Contracts R+V Re (tie) SCOR Global P&C Arial Re Maiden Re Montpelier Re (Bda) Montpelier Re (U.S.) RenaissanceRe Tokio Millennium Re Claims Handling Arch Re (Bda) Maiden Re Montpelier Re (Bda) RenaissanceRe Value-Added Services Maiden Re Arch Re (U.S.) R+V Re RenaissanceRe

9 CEDANT NON-LIFE 2013 Treaty Results 7 OTHER EVALUATION CATEGORIES What in your view is the best indication of quality in a reinsurer? Two-thirds of treaty cedants view Financial Strength (64.8%) as the best indication of quality. Q18 - What in your view is the best indication of quality in a reinsurer? Financial strength 64.8% 69.1% Consistency of risk appetite Continuity of offer through the market cycle Expertise of people handling the account (new) 33.3% 38.7% 45.8% 47.9% 51.8% Flexibility with terms & conditions (new) 25.7% Consistency of strategy Continuity of people handling the account (new) 24.0% 28.8% 23.7% Technical knowledge 18.4% 21.9% Ability to offer alternative reinsurance solutions (structured reinsurance, insurance-linked securities) Additional services offered Risk management practices Other 7.9% 5.4% 5.1% 7.0% 3.8% 3.3% 2.0% 1.1% Please rate the importance of each of the following potential services offered by a reinsurer - according to the specific needs of your company. (9 = Very Important / 1 = Not important) Industry data/expertise was rated as the most important service by treaty respondents. Q23a - Please rate the importance of each of the following potential services offered by a reinsurer - according to the specific needs of your company. Industry data/expertise Input on view of risk severity or volatility (new) 6.8 Access to underwriting and claims experts Helping you address emerging Industry Issues Cat Modeling Claims audits Product development Policy form and coverage consulting Underwriting audits Enterprise Risk Management

10 CEDANT NON-LIFE 2013 Treaty Results 8 BEST REINSURERS BY VOTE AND BY RATING Treaty cedants were asked to name the reinsurers that are the best, overall (up to ten reinsurers could be selected). The top voted reinsurers are shown next, in order Lloyd's PartnerRe 8. RenaissanceRe 9. Everest Re U.S. 10. XL Re America Voted Best (in order) According to the combined Flaspöhler evaluation and selection factor ratings, the most highly rated reinsurers are shown below, in order. This group had an excellent combined factor rating of (on a scale of 1-9) RenaissanceRe Maiden Re 9. R+V Re 10. Rated Best (in order)

11 CEDANT NON-LIFE 2013 Treaty Results 9 REINSURER PERCEPTUAL MAP Reinsurers above the horizontal blue axis are above average on Financial Security. Reinsurers to the right of the vertical red axis are above average on Service, Support, Expertise factors. Reinsurers near the lines are perceived as average. Weak Service, Support, Expertise Strong Financial Security Avg Weak Financial Security Strong Both Strong Service, Support, Expertise This diagram shows how each reinsurer is perceived, in relation to the other reinsurers, according to the nine evaluation & selection factors. Only reinsurers who were rated above average on both axes are shown. Financial Security + Financial Security - Tokio Millennium Re RenaissanceRe PartnerRe (U.S.) R+V Re Arch Re (U.S.) SCOR Global P&C Hiscox Validus Re Montpelier Re (Bda) Catlin (Bda) + Service, Support, Expertise 2013 Flaspöhler Cedant N.A. Overall Treaty Underwriting Capabilities Financial Value Client Orientation Expertise and Market Knowledge Timely Service Value-added Services Claims Handling Approach to Contracts Only companies in the upper-right (best) quadrant are shown. -

12 CEDANT NON-LIFE 2013 Treaty Results 10 REINSURERS PREFERRED BY LINE OF BUSINESS Which non-life reinsurers do you prefer to use for each of the following lines? The most preferred reinsurers by treaty cedants for each line of business are listed below, in alphabetical order, with the best reinsurer for the line identified in green. Line Preferred Line Preferred Auto Casualty - Clash Covers Casualty - Excess Casualty - Facultative Maiden Re Odyssey Re PartnerRe (U.S.) SCOR Global P&C Arch Re (U.S.) Maiden Re PartnerRe (U.S.) Odyssey Re PartnerRe (U.S.) Berkley Re America Maiden Re Odyssey Re Casualty - Umbrella Casualty - Working Layer General Liability Marine Maiden Re PartnerRe (U.S.) QBE Re Maiden Re PartnerRe (U.S.) SCOR Global P&C PartnerRe (U.S.) QBE Re SCOR Global P&C AWAC Axis Re (U.S.) Catlin (U.S.) Validus Re

13 CEDANT NON-LIFE 2013 Treaty Results 11 Line Preferred Line Preferred Professional Liability Property - Catastrophe Property - Excess - Per Risk Axis Re (U.S.) Berkley Re America PartnerRe (U.S.) Catlin (Bda) Endurance Re R+V Re RenaissanceRe Validus Re XL Re America PartnerRe (U.S.) SCOR Global P&C Property - Facultative Property - Pro Rata Workers Comp Arch Re (U.S.) Catlin (U.S.) XL Re America Catlin (U.S.) Maiden Re SCOR XL Re America Alterra Re Catlin (U.S.) Maiden Re PartnerRe (U.S.) Tokio Millennium Re

14 CEDANT NON-LIFE 2013 Treaty Results 12 CEDING PREFERENCES For what reason(s), if any, would you consider paying a higher premium to use a specific reinsurer? Over half (53.5%) of treaty cedants indicated they would consider paying a higher premium based upon a Strong existing relationship. Q23b - For what reason(s), if any, would you consider paying a higher premium to use a specific reinsurer? Strong existing relationship A superior rating 37.4% 36.8% More capacity Superior service 34.3% 34.5% 32.1% 41.2% Critical underwriting support Stronger balance sheet Superior experience Fast claims payment Superior management/leadership Significant facultative support Provides a wide range of structures Access to Natural Catastrophe modeling (ne w) Retention analysis and/or structure recommendations (new) Ease of access to reinsurer s senior management Large Claim handling expertise Collateralized Trust Enterprise Risk Management assistance (new) Other None - Would never pay a higher premium 27.0% 26.7% 23.6% 28.0% 20.9% 19.7% 19.0% 18.4% 17.5% 19.7% 13.4% 11.4% 11.3% 9.4% 11.2% 11.2% 9.0% 12.5% 8.6% 7.3% 8.0% 7.3% 7.2% 3.8% 2.6% 11.9% 14.7% 53.5% 55.4% Whom do you primarily rely on to give you information about the creditworthiness of your reinsurers? Cedants were almost evenly divided between A.M. Best and Brokers. Q33 - Whom do you primarily rely on to give you information about the creditworthiness of your reinsurers? A.M. Best 31.0% 33.7% Brokers 28.7% 30.6% Internal Committee 23.3% 27.0% S&P 3.5% 5.7% Information directly from Reinsurer 3.1% 3.5% Financial Analysts 2.9% 2.1% Other 2.0% 2.9%

15 CEDANT NON-LIFE 2013 Treaty Results 13 PREMIUM AND REINSURANCE VOLUMES What was the amount of gross premium volume of your company in 2012? Treaty cedants were evenly divided between Less than $100 million, $100 million to <$500 million, and Over $1 billion. Q5 - What was the amount of gross premium volume of your company in 2012? Less than $100 million 29.3% 29.9% $100 million to less than $500 million 28.9% 29.9% $500 million to less than $1 billion 11.4% 10.8% Over $1 billion 30.5% 29.5% For 2013 do you expect your company s gross premium volume to...? Most treaty cedants (78.6%) expect their company's GPV to Increase. Q7 - For 2013 do you expect your company s gross premium volume to...? 78.6% Increase 61.5% 5.2% Decrease 11.7% 16.2% Stay the same 26.8%

16 CEDANT NON-LIFE 2013 Treaty Results 14 What is your BEST ESTIMATE of the total amount you will spend on ceded reinsurance (including both facultative and treaty) for all of 2013? Most treaty cedants estimate their ceded reinsurance total amount to be over $1 million. Q10 - What is your BEST ESTIMATE of the total amount you will spend on ceded reinsurance (including both facultative and treaty) for all of 2013? Less than $100, % 1.8% $100,000 to less than $500, % 4.2% $500,000 to less than $1 million 2.4% 2.7% $1 million to less than $5 million 17.6% 18.1% $5 million to less than $10 million 10.4% 13.0% $10 million to less than $25 million 16.4% 17.4% $25 million to less than $50 million 18.2% 16.8% $50 million to less than $100 million 9.6% 11.0% $100 million or more 17.5% 16.3% For 2013 do you expect your company s reinsurance ceded premium to...? Results are evenly mixed with respect to amount ceded changes in Q10b - For 2013 do you expect your company s reinsurance ceded premium to...? Increase 37.3% 43.1% Decrease 18.5% 26.7% Stay the same 36.0% 38.5%

17 CEDANT NON-LIFE 2013 Treaty Results 15 OTHER TOPICS Which of the following publications do you trust most for providing accurate and effective information about insurance and reinsurance? Below are the top five publications selected by treaty cedants, in order. Trusted Publications 1. Best s Review Online 2. Best s Review Print 3. Wall Street Journal Print 4. Insurance Journal Online 5. Property Casualty 360 (National UW) Online Which industry conferences do you visit? Listed below are the four most popular Industry Conferences among treaty cedants. Industry Conferences Treaty 1. PCI 37.4% 2. NAMIC 21.5% 3. NAPSLO 13.2% 4. PLUS 12.0%

18 CEDANT NON-LIFE 2013 Treaty Results 16 DEMOGRAPHICS Which of the following best describes your primary functional responsibilities (not title) at your company? Most treaty cedants' primary functional responsibilities include Underwriting / UW Management (35.8%). Q1 - Which of the following best describes your primary functional responsibilities (not title) at your company? Underwriting/UW Management 35.8% 40.5% Reinsurance President or CEO 27.7% 29.3% 26.1% 27.8% Finance or CFO Risk Management Actuarial/Act Management General Management Product/LOB Specialist Chief Risk Officer (new) 9.7% 8.7% 9.4% 11.9% 7.9% 6.8% 7.9% 9.5% 5.5% 5.5% 4.9% Administration/Operations Sales or Marketing Claims 4.5% 3.8% 3.7% 5.1% 7.3% 7.4% Other 1.9% 4.6% For which of the following lines do you, yourself, have primary responsibility for selecting a reinsurer? About half of treaty cedants are responsible for Property - Catastrophe (56.0%) and/or Property - Excess - Per Risk (48.1%). Q26 - For which of the following lines do you, yourself, have primary responsibility for selecting a reinsurer? Property - Catastrophe Property - Excess - Per Risk Property - Facultative (new) Casualty - Umbrella Casualty - Excess General Liability Casualty - Working Layer Auto Property - Pro Rata Casualty - Clash Covers Casualty - Facultative (new) Workers Comp Professional Liability - D&O, Non-medical E&O Marine Structured Reinsurance Surety / Fidelity Medical Malpractice Agribusiness Capital markets via fronting/transforming reinsurer Accident & Health Aviation Trade Credit Political Risk 25.9% 25.8% 25.6% 22.9% 19.3% 21.5% 15.5% 19.3% 12.4% 11.9% 11.2% 12.2% 11.0% 15.9% 9.7% 8.7% 7.9% 8.1% 5.0% 3.7% 4.7% 5.2% 4.1% 3.5% 3.1% 2.0% 2.3% 3.0% 48.1% 38.2% 35.7% 43.7% 34.4% 39.8% 33.9% 40.7% 33.5% 41.7% 31.7% 35.9% 33.3% 56.0% 59.6% 59.4%

19 CEDANT NON-LIFE 2013 Facultative Only Results 17 FACULTATIVE ONLY RESULTS SATISFACTION Are your relationships with reinsurers, overall,? One-third (35.1%). of fac cedants think relationships with reinsurers are improving Q15 - Are your relationships with reinsurers, overall,? Improving 35.1% 45.6% Declining 2.0% 3.6% Not really changing 50.9% 62.9% 2013 Overall Fac Only 2011 Overall Fac Only Are your relationships with reinsurance brokers, overall,? One-quarter (28.3%) of fac cedants think relationships with brokers are improving. Q29 - Are your relationships with reinsurance brokers, overall,? Improving 28.3% Declining 7.5% Not really changing 64.2% 2013 Overall Fac Only

20 CEDANT NON-LIFE 2013 Facultative Only Results 18 IMPORTANT REINSURER EVALUATION AND SELECTION FACTORS Fac cedants were asked to rate the importance of each factor in their evaluation of a reinsurer. Underwriting Capabilities Financial Value Financial Security Client Orientation Expertise & Market Knowledge Underwriters who are easily accessible; Underwriters you respect and trust Consistent in their underwriting decisions; UWs with authority to make decisions UW philosophy compatible with yours Offers pricing that is consistent with the services and security provided Differentiate clients based on clients own inception-to-date experience Offers insurance cover and service package which adds value to your company Is highly rated by objective rating agencies; Is free of legacy issues Is reviewed and approved by your security committee Teams who understand your business; Geared to providing solutions; Negotiates openly Marketing reps who bring value through regular contact; Is easy to work with Genuinely cares about a long-standing business relationship Staff with strong technical expertise to understand your business Is innovative and creative in putting together solutions Superior knowledge in lines of business that interest you Tailor made risk mgt solutions; Demonstrates leadership in risk mgt Timely Service Provides timely quotes; Returns calls promptly; Provides timely handling of all documents Value-Added Services Claims Handling Ability Claims services and consulting; UW services and consulting Actuarial services and consulting; General business services and consulting Non-risk transfer services and consulting; NatCat Modeling services Enterprise Risk Management Services Claims expertise you don t have in house; Pays claims in a timely manner A reasonable and collaborative approach to paying claims Competent support in claims handling; Assistance in rejecting unjustified claims Approach To Contracts & Contract Wording Assistance in drafting wording The factors Timely Service and Underwriting Capabilities were rated (9 = Very Important / 1 = Not important) as the most important by fac cedants. Q24 - Please rate how important each of the following factors is to you, yourself, when selecting and evaluating a reinsurer. Timely Service Underwriting Capabilities Client Orientation Expertise and Market Knowledge Financial Value Financial Security Approach to Contracts Claims Handling Value-added Services Overall Fac Only 2011 Overall Fac Only

21 CEDANT NON-LIFE 2013 Facultative Only Results 19 BEST REINSURERS BY FACTOR Fac cedants rated reinsurers they were familiar with, according to the factors on the previous page that they, themselves, felt were important. The top rated reinsurers for each of the factors is listed below, in alphabetical order, with the best reinsurer on each factor in green. Underwriting Capabilities Arch Re (Fac) Berkley Re America Catlin (U.S.) XL Re America Financial Security Arch Re (Fac) Berkley Re America Catlin (U.S.) XL Re America Expertise & Mkt Knowledge Arch Re (Fac) Berkley Re America XL Re America Financial Value Arch Re (Fac) Berkley Re America Catlin (U.S.) XL Re America Client Orientation Arch Re (Fac) Berkley Re America Catlin (U.S.) XL Re America Timely Service Arch Re (Fac) Catlin (U.S.) Montpelier Re (U.S.) Odyssey Re XL Re America Approach to Contracts Arch Re (Fac) Catlin (U.S.) Montpelier Re (U.S.) XL Re America Claims Handling Arch Re (Fac) Catlin (U.S.) XL Re America Value-Added Services Arch Re (Fac) Catlin (U.S.) Montpelier Re (U.S.) XL Re America

22 CEDANT NON-LIFE 2013 Facultative Only Results 20 BEST REINSURERS BY VOTE AND BY RATING Fac cedants were asked to name the reinsurers that are the best for facultative (up to five choices possible). The top voted reinsurers are shown below, in order Arch Re (Fac) 3. Best for Facultative (in order) Catlin (U.S.), (tie) According to the combined Flaspöhler evaluation and selection factor ratings, the most highly rated reinsurers are shown below, in order. This group had an excellent combined factor rating of (on a scale of 1-9) Arch Re (Fac) XL Re America 6. Catlin (U.S.) Rated Best (in order) 7., (tie)

23 CEDANT NON-LIFE 2013 Facultative Only Results 21 REINSURER PERCEPTUAL MAP Reinsurers above the horizontal blue axis are above average on Financial Security. Reinsurers to the right of the vertical red axis are above average on Service, Support, Expertise factors. Reinsurers near the lines are perceived as average. Weak Service, Support, Expertise Strong Financial Security Avg Weak Financial Security Strong Both Strong Service, Support, Expertise This diagram shows how each reinsurer is perceived, in relation to the other reinsurers, according to the six evaluation & selection factors most important for facultative analysis. Financial Security + Financial Security Arch Re (Fac) - Catlin (U.S.) Berkley Re America + Fac Service, Support, Expertise 2013 Flaspöhler Cedant N.A. Underwriting Capabilities Financial Value Client Orientation Expertise and Market Knowledge Timely Service Overall Fac Only Only companies in the upper-right (best) quadrant are shown. -

24 CEDANT NON-LIFE 2013 Facultative Only Results 22 PREMIUM AND REINSURANCE VOLUMES For 2013 do you expect your company s gross premium volume to...? Nearly all fac cedants (80.9%) expect their company's GPV to Increase. Q7 - For 2013 do you expect your company s gross premium volume to...? Increase 60.2% 80.9% Decrease 4.7% 12.9% Stay the same 14.4% 27.0% 2013 Overall Fac Only 2011 Overall Fac Only For 2013 do you expect your company s reinsurance ceded premium to...? Results are evenly mixed with respect to amount ceded changes in Q10b - For 2013 do you expect your company s reinsurance ceded premium to...? Increase 31.4% 37.4% Decrease 26.0% 26.8% Stay the same 36.6% 41.8% 2013 Overall Fac Only 2011 Overall Fac Only

25 CEDANT NON-LIFE 2013 Facultative Only Results 23 DEMOGRAPHICS Which of the following best describes your primary functional responsibilities (not title) at your company? Nearly all fac cedants' primary functional responsibilities include Underwriting / UW Management (92.6%). Q1 - Which of the following best describes your primary functional responsibilities (not title) at your company? Underwriting/UW Management 92.6% 89.7% Sales or Marketing Reinsurance General Management President or CEO Product/LOB Specialist Administration/Operations Risk Management Actuarial/Act Management Chief Risk Officer (new) 4.0% 7.1% 3.6% 3.9% 1.9% 2.5% 1.7% 2.1% 1.7% 4.3% 1.3% 4.3% 0.8% 2.1% 0.2% 0.0% 0.2% Finance or CFO Claims Other 0.0% 0.0% 0.0% 1.4% 1.9% 0.7% 2013 Overall Fac Only 2011 Overall Fac Only For which of the following lines do you, yourself, have primary responsibility for selecting a reinsurer? Most fac cedants are responsible for Property Fac (77.9%). Q26 - For which of the following lines do you, yourself, have primary responsibility for selecting a reinsurer? Property - Facultative (new) Casualty - Facultative (new) Property - Excess - Per Risk Property - Catastrophe Property - Pro Rata General Liability Casualty - Umbrella Auto Marine Casualty - Excess Workers Comp Casualty - Working Layer Agribusiness Professional Liability - D&O, Non-medical E&O Structured Reinsurance Surety / Fidelity Medical Malpractice Casualty - Clash Covers Aviation Political Risk Capital markets via fronting/transforming reinsurer Accident & Health Trade Credit 32.7% 30.6% 27.4% 24.0% 36.2% 19.6% 33.5% 17.5% 26.5% 17.3% 27.2% 11.8% 16.0% 7.4% 7.0% 6.9% 16.0% 4.8% 18.3% 2.8% 1.9% 2.3% 4.7% 1.4% 1.9% 0.9% 2.3% 0.7% 2.7% 0.5% 1.6% 0.5% 0.8% 0.2% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 49.4% 70.0% 77.9% 2013 Overall Fac Only 2011 Overall Fac Only

26 CEDANT NON-LIFE ABOUT FLASPÖHLER RESEARCH GROUP Flaspöhler Research Group, Inc. ( was founded in 1983 and has conducted surveys in 95 countries and a dozen languages. The company offers unique expertise in B2B and is widely recognized for its work in Insurance and Reinsurance. For more information about the study, please contact: Rick Flaspöhler President Metcalf Ave., Suite 170 Overland Park, KS Direct: Office: frsurveys.com

MarketReView Newsletter

MarketReView Newsletter Issue #7 July 2015 Welcome to the latest edition of Aon Benfield s monthly MarketReView newsletter. The team continues to update the reinsurer profiles on MarketReView as financials