Market Presentation. North America. > > May 2012

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1 Market Presentation North America HANK WATKINS PRESIDENT, LLOYD S AMERICA DEBORAH MOOR PRESIDENT, LLOYD S CANADA May 2012 > >

2 Content INTRODUCTION Sean McGovern Director, North America & General Counsel 1 LLOYD S CANADA Deborah Moor President, Lloyd s Canada 2 LLOYD S AMERICA Hank Watkins President, Lloyd s America 3 2

3 2 Lloyd s CANADA (Re)insurance Market Lloyd s Business Profile Coverholders Events 3

4 Insurance Market >Macro Themes 2 ECONOMY Canadian economy slowed in 2011: annual GDP growth of 2.5% Continued strong exports offset by slower inventory growth Rising levels of consumer debt and falling confidence Declining government spending INSURANCE M&A and new entrant activity: Intact buys AXA and Jevco Burns & Wilcox buys Chesterfield brokers Some improvement in personal lines results but commercial lines environment is very competitive almost no growth excluding Lloyd s Some recovery in auto results but product remains at whim of political debate Desjardins announces launch of direct commercial insurance services reinsurance Consecutive large losses (hail, wildfire) and concerns regarding earthquake exposures driving some retrenchment amongst Lloyd s players New CAT bond covers Canadian quake exposures Source: Economy: Market Intelligence based on IHS Global Insight and other economic reports; May 2012; Insurance and Reinsurance: based on local intelligence from Lloyd s Canada. 4

5 insurance Market > Market Size Direct Premiums for Total Market: in billion CAD Loss Ratios for Total Market: in % Market Lloyd's Market Lloyd's Source: Market Intelligence calculation based on: MSA Market Share Report Property & Casualty, Canada 2012 Canada Non-Life Market 2011: 1% 11% 1% 2% 4% 18% Personal Property 50% KEY FEATURES 13% 1% Commercial Property Aircraft Auto Boiler and Machinery Liability Marine Accident and Sickness Others Majority of growth in overall market driven by growth of auto premiums Average accident year combined ratios >100 for all industry sectors Some improvement in auto results but Ontario model is still broken 2 5

6 insurance Market > Competitor Ranking 2 Lloyd s Underwriters still #1 in commercial lines following Intact/AXA merger 2011 Market Leaders in CAD m Excluding Auto & Personal Property 2011 Loss Ratio 2010 Combined Ratio* (All Risks) Lloyd's Intact 1,622 1,750 62% 52% Aviva Chartis RSA Northbridge Zurich Co-operators % 66% 56% 57% 60% 64% Economical % Source: Market Intelligence calculation based on: MSA Market Share Report Property & Casualty, Canada

7 Lloyd s > Classes of business 2 Lloyd s Underwriters saw double digit growth in Canada again in 2011 Overall underwriting profitability steady Major lines of business breakdown 2011 * (in million CAD) Liability Commercial Property Reinsurance Other Personal Property Premiums 2011* Loss Ratio 2011* 67% 58% 70% 57% 66% DWP 11 DWP 10 DWP 09 Aviation Marine % 100% Source: Market Intelligence calculations based on P&C Canada 2012 Market Share Report - MSA Research Inc. * Please note: This figure does not include Reinsurance premiums. 7

8 insurance Market > Commercial Property DWP for Commercial Property: in million CAD ,601 5,617 5, Top 5 Companies in Com. Property: prems in CAD / loss ratios in % Premiums 6, Market Lloyd's Loss Ratio Intact 892.0m 59 Lloyd s 634.0m 58 Aviva 483.4m 69 KEY CHARACTERISTICS GDP growth driven largely by natural resource investment Cutbacks in government spending and reduced infrastructure investment Lloyd's wrote 26% of industry premium increase Large & specialty risks seeing some increases OUTLOOK 2012 Most markets (including Lloyd s) reducing their appetite for cat-exposed business Energy & resource sector will continue to be growth engine of the Canadian economy 2 Co-operators 394.6m 75 Chartis 377.8m 83 High Canadian dollar dampening business activity and wealth in other parts of the economy Source: Market Intelligence calculation based on: MSA Market Share Report Property & Casualty, Canada

9 Lloyd s > Commercial Property 2 Lloyd s commercial property book dominated by specialty classes 2011 Premiums CAD 634m Detailed classes Commercial Property Energy Offshore 80% 12% Property Binder 60% Property Open Market 18% Other Property lines 8% Terrorism 4% Engineering 4% Power Generation 3% Pecuniary Losses 3% Livestock & Bloodstock 1% Energy Onshore 8% Source: Market Intelligence calculation based on: Xchanging data 9

10 insurance Market > Liability Premiums for Liability: in million CAD ,967 4,908 5,041 5,204 KEY CHARACTERISTICS Even more abundant capacity continues to drive reductions Market 2010 Top 5 Companies in Liability: prems in CAD / loss ratios in % Premiums Lloyd's Loss Ratio Lloyd s 854.7m 67 Intact 552.1m 52 Aviva 344.9m 66 Chartis 331.0m 67 Zurich 280.0m 38 Lloyd s is the source, accounting for 80% of market growth in 2011 Class action activity still moderate Pipeline spills impact loss ratio but are somewhat offset by reserve releases OUTLOOK Growth prospects uncertain: New entrants Domestic companies defending Can Lloyd s get any bigger? Should Lloyd s get any bigger? Source: Market Intelligence calculation based on: MSA Market Share Report Property & Casualty, Canada

11 Lloyd s > Liability breakdown 2 Half of Lloyd s large liability book is professional lines and specialty 2011 Premiums CAD 855m Detailed classes General Liability 54% Professional Indemnity 28% Other Liability 13% Financial Institutions 40% Energy Liability 29% Airport Liability 19% Marine Liability 12% Directors & Officers 5% Source: Market Intelligence calculation based on: Xchanging data 11

12 CAD millions Lloyd s > Distribution 2 The largest 10 London brokers accounted for 67% of business into Lloyd s Top 10 Brokers by Premiums 2011 Lloyd s Distribution % CAD 2.1bn 48% Open Market Coverholders BR1 BR2 BR3 BR4 BR5 BR6 BR7 BR8 BR9 BR10-50 Accident & Health Aviation Casualty Casualty Treaty Energy Marine Overseas Motor Property (D&F) Property Treaty Source: Market Intelligence calculation based on: Xchanging data 12

13 Lloyd s >Coverholder Profile 2 COVERHOLDER HEAT MAP BY PROVINCE SERVICE COMPANIES Toronto CL IL 88 BC 29 AB 109 TX LA QC GA FL Montreal Calgary ON 60 Vancouver Total Lloyd s Coverholders* 310 A slowdown in new coverholder applications and deregistration of those without active binders results in a reduction in active coverholder numbers Lloyd s service companies are a prominent presence in the Canadian market Source: Market Intelligence calculation based on: Delegated Authority Team, (May 2012); * only counting active binding authorities as of May

14 insurance Market > Regulatory changes 2 Attorney in Fact Signing Process for Canadian open market & reinsurance risks Mandatory since ; feedback has been largely positive Still working through some special cases to determine most appropriate approach, especially global contracts and non-canadian coverholders Over 7000 contracts have now been signed via the AIF system in Montreal Provincial regulators reviewing operation/licensing of MGAs, including controls over delegation of underwriting authority OSFI consultation regarding earthquake exposure modelling and capitalisation risk that approach will become even more conservative OSFI has confirmed it will not seek Solvency II equivalency 14

15 Lloyd s > Events in Canada 2 Canadian promotional activities in 2012 will be focused on industry conferences 2012 KEY CANADIAN CONFERENCES BC Brokers Conference Kelowna, May Canadian RIMS Saskatoon, Sept National Insurance Conference Quebec City, Sept Ontario Brokers Conference Toronto, Oct Quebec Brokers Conference Montreal, Nov OTHER LLOYD S CANADA PROMOTIONAL ACTIVITIES Annual coverholder gatherings & Lineage user groups Presentations to brokers gatherings, universities, insurance professional bodies Representing Lloyd s at other Canadian industry gatherings P&C Industry Forum, IBC Conferences, Toronto Insurance Conference Representing Lloyd s on boards and industry committees IBC National Business Committee, Institute for Catastrophic Loss Reduction, Canadian Board of Marine Underwriters, Nuclear Insurance Association of Canada, Reinsurance Research Council TORONTO 200 Bay Street, Royal Bank Plaza Deborah Moor, President Sean Murphy, VP & Attorney in Fact Key roles Regulatory strategy & management Lloyd s promotion and market development support Operational oversight including local compliance Facilities Hot desk / Meeting / Presentation facilities for visiting Managing Agents & Brokers Small to medium receptions MONTREAL 1155 Rue Metcalfe, Sun Life Building Lucie Payette, Sr. Operations Manager Frank Flood, Business Analyst Mary Arabian, Compliance Executive TELUS Key roles AIF Signing Process Attorney in Fact office (incl. coverholders & OMCs) Lineage operations management & control Lineage customer relationships & training Facilities Meeting facilities for visiting Managing Agents & Brokers

16 3 Lloyd s AMERICA (Re)insurance market Lloyd s Business Profile Coverholders Events 16

17 Lloyd s > US Economic & Political Outlook 3 Gross Domestic Product (GDP) (nominal GDP levels in billion US$; Real GDP change) Presidential race is tight 20,000 5% Potential for Democrats to lose Senate majority to Republicans 15,000 10,000 5, % 3.0% 1.7% 2.1% 2.3% 3.4% 3.2% 2.7% 4% 3% 2% 1% 0% -1% -2% PPACA (Obama Care) may be partially repealed if Romney and Republicans win Dodd Frank / Financial Services Reform may be scaled back, with limited impact on P/C insurers. Repeal is unlikely % % -4% Potential impact to FIO following Romney win and departure of Treasury Secretary Geithner SOURCE: IHS Global Insight ( May 2012 Party of president has marginal impact on profitability of the P/C industry Economic growth will accelerate modestly, but unevenly, in 2012 Consumer confidence will continue to improve, along with investment and spending Housing market will remain weak through 2012 Inflation should remain around 2%, with energy spikes likely Private sector hiring should continue to improve, with unemployment below 8% Interest rates will remain low through year-end SOURCE: Market Intelligence based on IHS Global Insight and other economic sources (May 2012).

INSURANCE MARKET >Market Profiles 3 2011 MARKET SEGMENTS* 2010 vs 2011 +3.0% 2010 vs 2011 +3.0% 2010 vs 2011 +1.7% US$ 443.5bn US$ 40.7bn US$ 30.6bn 2011 LLOYD S SEGMENTS US$ 196m US$ 5.0bn US$ 5.

18 INSURANCE MARKET >Market Profiles MARKET SEGMENTS* 2010 vs % 2010 vs % 2010 vs % US$ 443.5bn US$ 40.7bn US$ 30.6bn 2011 LLOYD S SEGMENTS US$ 196m US$ 5.0bn US$ 5.8bn 2010 vs % 2010 vs % 2010 vs % SOURCE: Market data (E&S & Admitted) based on SNL, (2012); Market data (reinsurance) based on RAA, (2012) SOURCE: US Reporting System, LEG 720 (2012) Admitted Market Reinsurance Surplus Lines Property / Casualty industry growth will be strongest since 2004, likely exceeding 4% A traditional hard market is unlikely in 2012 Increased demand for commercial insurance will be driven by property, marine, liability, WC Absent a significant CAT, industry capacity will hit a new record by year-end Investment environment will continue to improve, with realised capital gains returning as a profit driver NOTE: * Please note that Total Market (including Lloyd's) represents the domestic players plus Lloyd's; Lloyd's Exempt business is not accounted for, as it does not fit under any of the 3 categories above 18

INSURANCE MARKET >Market Players 3 2011 E&S MARKET TOP PLAYERS* 2011

Reporting System SOURCE: RAA Reinsurance Underwriting Reports Lloyd s is a

remains strong despite 2011 results Keep an eye on Lexington / Chartis this

19 INSURANCE MARKET >Market Players E&S MARKET TOP PLAYERS* 2011 REINSURANCE MARKET TOP PLAYERS* SOURCE: SNL Financial 2012 and Lloyd s US Reporting System SOURCE: RAA Reinsurance Underwriting Reports Lloyd s is a dominant player in the US Surplus Lines and Reinsurance Markets Brand remains strong despite 2011 results Keep an eye on Lexington / Chartis this year! NOTE: * Please note that competitor rankings include only domestic players and Lloyd s 19

20 Lloyd s > Gross Written Premium Europe (including UK) 34% US (including Canada) 41% US & Canada 43% % % % 2007 Source: Lloyd s Annual Report 2011 Other Americas 8% Other Americas 7% % % % 2007 Rest of the World 5% Europe + UK Central Asia & Asia Pacific 12% 16% + 18% = 34% % + 20% = 36% % + 20% = 36% % + 22% = 38% % + 24% = 38% % % % %

21 LLOYD S > Premium Breakdown 3 The US market is well-developed. Lloyd s growth should mirror GDP growth. 42% 2011 Direct vs RI 2011 Methods of Placement 2011 Methods of Distribution US$ 12.1bn 58% Direct Reinsurance 34% 8% US$ 12.1bn 58% Direct Facultative Treaty 29% US$ 12.1bn 71% Brokers Coverholders Property (D&F) 2011 Classes of Business (Direct and RI) Property (D&F) 0% 25% 50% 75% 100% Prems. $ 3.7bn Property Treaty Casualty Marine 2% 1% 3% 5% 9% 30% Property Treaty Casualty Energy $ 2.9bn $ 2.1bn $ 1.1bn Energy Accident & Health Aviation Overseas Motor Casualty Treaty 10% 17% USD 12.1bn Source: Market Intelligence calculations based on Xchanging report LEG REG % Marine Accident & Health Overseas Motor Aviation Casualty Treaty Direct Reinsurance $ 1.2bn $ 0.5bn $ 0.2bn $ 0.3bn $ 0.1bn 21

22 2011 GSP ( USD mn) Lloyd s > Top 10 States (E&S Premium) 3 Lloyd s share of the E&S market in Texas, Louisiana, Georgia, Virginia and Florida ranges from 20 31%. Catastrophe capacity provided by Lloyd s fills a critical need in these states Lloyd s Market Share of State Premium 31% 17% 20% 11% 25% 18% 23% 20% 20% 14% Excludes Reinsurance GSP stands for Gross Signed Premiums as registered by the US reporting system in 2012 Source: Market Intelligence calculations based US Reporting system and SNL Financial 21% Property Energy Liability Prop + Liab 0 Texas California Florida New York Louisiana New Jersey Georgia Massachusetts South Carolina Pennsylvania Virginia Property Other Liability General Liability Pecuniary Loss Aviation Marine & Energy PA & Health Motor Source: Market Intelligence calculations based on: US Reporting system and SNL Financial; Gross of outward reinsurance; GSP stands for Gross Signed Premiums as registered by the US reporting system in

Updated 2011 class review reports WHAT IS CLASS REVIEW?

Competitors Market Share Analysis Downloadable Triangulations 2011 Update: Top 4 States + Total US

com/classreview BENEFITS Compares Lloyd s with our key competitors Insights on relevant business

23 Updated 2011 class review reports WHAT IS CLASS REVIEW? Class of Business Analysis by Territory Comparison of Lloyd s vs. Competitors Market Share Analysis Downloadable Triangulations 2011 Update: Top 4 States + Total US Managing Agent, Broker and Coverholder Versions available on > BENEFITS Compares Lloyd s with our key competitors Insights on relevant business information: premiums, market shares & incurred loss ratios* Mapping of Lloyd s specialty classes Download underlying data* Data reviewed by market participants *Incurred loss ratios and underlying data are only available for Managing Agents

24 Lloyd s > Coverholder Profile 3 COVERHOLDERS BY REGION WESTERN REGION NORTHEASTERN REGION COVERHOLDER HEAT MAP BY STATE Total Lloyd s Coverholders CL TX LA IL GA FL SOUTHEAST REGION CENTRAL REGION Coverholders with Active Binders 0 83 Total premium written by Lloyd s coverholders (MGA s) in 2011 was US$ 2.8bn Joint outreach to this critical distribution force by London and Lloyd s America remains a priority in Activities include participation in AAMGA and NAPSLO conferences and support of their member education efforts AAMGA Community Service and Marketing Awards for the Coverholder Toolkit Source: Market Intelligence calculation based on: Delegated Authority Team, (May 2012); * only counting active binding authorities as of May

25 Lloyd s >Coverholders 3 New plaques for Lloyd s coverholder offices in the US 25

26 Lloyd s >Admitted Market Snapshot 3 ADMITTED MARKETS 2010 vs 2011 Illinois Kentucky +0.8% -0.1% 31% 2011 Lloyd s Admitted US$ 196m 34% US Virgin Islands -4.6% 35% Accident & Health Aviation Casualty Transit Marine Overseas Motor Property (D&F) Illinois Lloyd s Business Class Breakdown Kentucky Lloyd s Business Class Breakdown US Virgin Islands Lloyd s Business Class Breakdown 65% 2011 Total Lloyd s US$ 65.8m 6% 3% 13% 13% 64% 2011 Total Lloyd s US$ 68.4m 12% 5% 4% 14% 54% 2011 Total Lloyd s US$ 61.9m 28% 15% 3% Admitted Insurer since 1927 Lloyd s largely writes E&O, D&O and liquor liability Source: Market Intelligence calculation based on: Xchanging, LEG 720, (2012) Admitted Insurer since % of Lloyd s business is bloodstock Admitted Insurer since 1971 Lloyd s wrote 35% of the local non-life market in

LLOYD S >Challenges & Opportunities 3 CHALLENGES Perception of Lloyd s as being complicated and remote Lloyd s mystique Economic recovery has begun but remains spotty, particularly in the housing

27 LLOYD S >Challenges & Opportunities 3 CHALLENGES Perception of Lloyd s as being complicated and remote Lloyd s mystique Economic recovery has begun but remains spotty, particularly in the housing sector Consolidation in the wholesale distribution segment continues, potentially impacting the flow of business to Lloyd s. Many of the standard (admitted) market insurers continue to pursue business traditionally written by E&S carriers, although the trend shows signs of reversing Rapid advances in technology utilised by US competitors could impact Lloyd s ability to defend and grow MGA business. OPPORTUNITIES While consolidation could be a potential threat, this could work in our favour as the distribution channel becomes more efficient Measurable increase in E&S business written during Q signals end of soft market trend Growth in middle market / SME segments, particularly in professional and management liability lines Improve stakeholders understanding of Lloyd s capabilities and access to the market Continue working with Lloyd s underwriters and brokers on market development activities 27

28 LLOYD S >Insurance Solutions Needed 3 Healthcare 10 INDUSTRIES FOR THE NEXT 10 YEARS Health Sciences Energy (traditional) Alternative energy Petrochemical Agriculture Technology, including bio tech Light manufacturing Export-oriented Shipping (marine, rail, trucking) Source: Market Intelligence based on Insurance Information Institute (I.I.I.); May

Lloyd s >Regional Structure 3 1 Locations Atlanta, GA Pat Talley Central Regional Director Kentucky Joseph Gunset General Counsel New York 2 Chicago, IL 3 Frankfort, KY 4 Los Angeles, CA 5 6 New

29 Lloyd s >Regional Structure 3 1 Locations Atlanta, GA Pat Talley Central Regional Director Kentucky Joseph Gunset General Counsel New York 2 Chicago, IL 3 Frankfort, KY 4 Los Angeles, CA 5 6 New York, NY U.S. Virgin Islands Tony Joseph Western Regional Director Los Angeles Hank Watkins President New York Rodney Smith Southeast Regional Director Atlanta 6 Hank Feuerzeig Lloyd's Attorney in Fact US Virgin Islands 29

Lloyd s >2012 Priorities for US 3 Facilitate access to Lloyd's by educating the US distribution network retail, wholesale & reinsurance brokers - about the market Work with managing agents and London

30 Lloyd s >2012 Priorities for US 3 Facilitate access to Lloyd's by educating the US distribution network retail, wholesale & reinsurance brokers - about the market Work with managing agents and London brokers to develop and maintain mutually productive relationships with key industry groups, including: Provide useful market intelligence and data to managing agents and Lloyd s brokers in support of their US business development efforts Maintain and promote Lloyd's brand within the US insurance, general business, academic and media communities Manage Lloyd's relationships with insurance regulators, state/federal legislators and FIO Ensure cost effective operation of licensed platforms in Illinois and Kentucky 30

31 Lloyd s >2012 Key Events 3 Throughout the year, the US team also participate at Surplus Lines Association meetings and regularly presents at individual broker offices. P/C Joint Industry Forum, New York, NY January St. John s University Insurance Leader of the Year Dinner, New York, NY January RIMS Annual Conference, Philadelphia, PA April IRU Spring Conference, Miami, FL April AAMGA Annual Conference, San Antonio, TX May Andrew Beazley Broker Academy at Lloyd s, London September CIAB Leadership Forum, Colorado Springs, CO October NAPSLO Annual Conference, Atlanta, GA October PCI Annual meeting, Dana Point, CA October PLUS Annual Conference, Chicago, IL November 31

32 Lloyd s > Raising Your Profile 3 LLOYD S IN THE MEDIA COMMUNITY THE ANDREW BEAZLEY BROKER ACADEMY AT LLOYD S (Formerly known as Lloyd s US Broker Programme) Advances understanding among participating brokers of the key role that Lloyd s plays in global insurance and reinsurance Enhances the reputation of the Lloyd s market as a source of underwriting and broking expertise How can you get involved? Allow a programme participant to shadow you for part of the day

33 Market Presentations >Mailing List & Downloads Visit Market Presentation site on lloyds.com > View schedule for upcoming Market Presentations Download any Market Presentation Sign up to Mailing List for upcoming Market Presentations 33

34 Lloyd s > We re there when you re not! Lloyd s Canada Deborah Moor, President (Toronto) Deborah.Moor@lloyds.com Sean Murphy, Vice President & Attorney in Fact (Toronto) Sean.Murphy@lloyds.com Lloyd s America Hank Watkins, President (New York) Hank.Watkins@lloyds.com Rodney Smith, Southeast Regional Director (Atlanta) Rodney.Smith@lloyds.com Pat Talley, Central Regional Director (Kentucky/ Chicago) Pat.Talley@lloyds.com Tony Joseph, Western Regional Director (L.A.) Anthony.Joseph@lloyds.com 34

35 A Appendix About Market Intelligence Market Statistics for North America 35

Market Intelligence COMPARE COUNTRIES 1 MARKET

key indicators Interactive Google Motion Chart

opportunities & challenges Lloyd s activities

sheets on 39 territories overview of insurance

Update from Country Managers Digest of insurance &

MAs CLASS REVIEW 5 QUESTIONS Class of Business

share analysis Contact us directly Downloadable

36 Market Intelligence COMPARE COUNTRIES 1 MARKET PRESENTATIONS a 2 Benchmarking tool Heat map of key indicators Interactive Google Motion Chart Local perceptions & market statistics Key opportunities & challenges Lloyd s activities COUNTRY PROFILES 3 COUNTRY ROUNDUPS 4 Summary fact sheets on 39 territories overview of insurance market Guide to Lloyd s premiums & licence News Update from Country Managers Digest of insurance & reinsurance news Focus on local brokers, CH and MAs CLASS REVIEW 5 QUESTIONS Class of Business Analysis by territory Visit our website Market share analysis Contact us directly Downloadable triangulations Leave your feedback? FREE DOWNLOAD AT DOWNLOAD

Market Intelligence Team Contacts a Filip Wuebbeler, Manager Email: Focus: filip.

com Team Leader / Northern Europe / Compare Countries Will Davies, Analyst Email: Focus:

37 Market Intelligence Team Contacts a Filip Wuebbeler, Manager Focus: filip.wuebbeler@lloyds.com Team Leader / Northern Europe / Compare Countries Will Davies, Analyst Focus: william.davies@lloyds.com Asia Pacific / South Africa & Ireland / Regional Profile Jessica Doig, Analyst Focus: jessica.doig@lloyds.com Americas / Italy / Spain / Class Review / Engagement Strategy Justine Archer, Graduate Focus: justine.archer@lloyds.com Market Presentation / Compare Countries (Google Motion) / Country Roundups

38 Lloyd s > Northeast Region a 2011 Total Market US$ 24.3bn 2011 Total Lloyd s US$ 5.7bn NORTHEAST: Market Premium Trends In million US$ NORTHEAST: Lloyd s Premium Trends In million US$ 2011 Total Market US$ 6.4bn 2011 Total Lloyd s US$ 1.04bn 38 Aviation Marine & Energy Other Liability Pecuniary Loss General Liability Motor PA & Health Property NORTHEAST: Market Top-10 States (2011) NORTHEAST: Lloyd s Top-10 States (2011) In million US$ In million US$ Detailed analysis available for New York NY = New York; NJ = New Jersey, PA = Pennsylvania; MA = Massachusetts; MD = Maryland; CT = Connecticut; DC = District of Columbia; RI = Rhode Island; WV = West Virginia; NH = New Hampshire. SOURCE: SNL, (2012); Lloyd s US Reporting System, (2012) 38

Lloyd s > Central Region a 2011 Total Market US$ 24.3bn 2011 Total Lloyd s US$ 5.

Market US$ 4.9bn 2011 Total Lloyd s US$ 1.

CENTRAL: Market Top-10 States (2011) CENTRAL: Lloyd s Top-10 States (2011) In million US$ In million US$ LA

39 Lloyd s > Central Region a 2011 Total Market US$ 24.3bn 2011 Total Lloyd s US$ 5.7bn CENTRAL: Market Premium Trends In million US$ CENTRAL: Lloyd s Premium Trends In million US$ 2011 Total Market US$ 4.9bn 2011 Total Lloyd s US$ 1.04bn Aviation Marine & Energy Other Liability Pecuniary Loss General Liability Motor PA & Health Property CENTRAL: Market Top-10 States (2011) CENTRAL: Lloyd s Top-10 States (2011) In million US$ In million US$ LA = Louisiana; IL = Illinois; OH = Ohio; MO = Missouri; TN = Tennessee; IN = Indiana; MN = Minnesota; OK= Oklahoma; WI = Wisconsin; AR = Arkansas. SOURCE: SNL, (2012); Lloyd s US Reporting System, (2012) 39

3bn Aviation Marine & Energy Other Liability Pecuniary Loss General Liability Motor PA & Health Property SOUTHEAST: Market Top-10 States (2011) SOUTHEAST: Lloyd s Top-10

40 Lloyd s > Southeast Region a 2011 Total Market US$ 24.3bn 2011 Total Lloyd s US$ 5.7bn SOUTHEAST: Market Premium Trends In million US$ SOUTHEAST: Lloyd s Premium Trends In million US$ 2011 Total Market US$ 5bn 2011 Total Lloyd s US$ 1.3bn Aviation Marine & Energy Other Liability Pecuniary Loss General Liability Motor PA & Health Property SOUTHEAST: Market Top-10 States (2011) SOUTHEAST: Lloyd s Top-10 States (2011) In million US$ In million US$ Detailed analysis available for Florida FL = Florida; GA = Georgia; VA = Virginia; NC North Carolina; AL = Alabama; SC = South Carolina; MS = Mississippi. SOURCE: SNL, (2012); Lloyd s US Reporting System, (2012) 40

Lloyd s > Western Region a 2011 Total Market US$ 24.3bn 2011 Total Lloyd s US$ 5.

Market Top-10 States (2011) WESTERN: Lloyd s Top-10 States (2011) In million US$ In million US$ Detailed analysis

41 Lloyd s > Western Region a 2011 Total Market US$ 24.3bn 2011 Total Lloyd s US$ 5.7bn WESTERN: Market Premium Trends In million US$ WESTERN: Lloyd s Premium Trends In million US$ 2011 Total Market US$ 8bn 2011 Total Lloyd s US$ 2.3bn Aviation Marine & Energy Other Liability Pecuniary Loss General Liability Motor PA & Health Property WESTERN: Market Top-10 States (2011) WESTERN: Lloyd s Top-10 States (2011) In million US$ In million US$ Detailed analysis available for Texas & California CA = California; TX = Texas; WA = Washington; CO = Colorado; AZ = Arizona; OR = Oregon; HI = Hawaii; NV = Nevada; UT = Utah; AL = Alaska. SOURCE: SNL, (2012); Lloyd s US Reporting System, (2012) 41

42 Appendix > Data Limitations & Disclaimer Lloyd s Data Limitations Please note the information contained in this document is based upon data collected from Xchanging and may be incomplete for some classes of business; for instance a substantial figure, which is missing from the REG 258 data set is comprised of UK Motor, which is not processed by Xchanging. Gross Premiums: Original and additional inward premiums, plus any amount in respect of administration fees or policy expenses remitted with a premium but before the deduction of outward reinsurance premiums. Lloyd s figures are based on gross written premiums based on figures processed by Xchanging by processing year and country of origin. Country of Origin: denotes the country from where demand for the insurance / reinsurance emanates; i.e. the coverholder or policyholder, irrespective of the country to which the risk is classified for regulatory reporting purposes. Processing Year: relates to the calendar year in which the premium, additional or return premium is processed by Xchanging, irrespective of the actual underwriting year of account of the risks (which is determined by the inception date of each risk). Example: A policy holder in the UK insuring a holiday home in France would be classified as a UK risk by Country Of Origin, but French for regulatory reporting purposes. Similarly a risk incepting on 1st December 2007 would be classified at 2007 underwriting year of account but may not be processed by Xchanging until 2008 and so be allocated to the 2008 processing year Exchange Rate Policy Annual average exchange rates are used in all conversions. Disclaimer This document is intended for general information purposes only. Whilst all care has been taken to ensure the accuracy of the information Lloyd's does not accept any responsibility for any errors or omissions. Lloyd's does not accept any responsibility or liability for any loss to any person acting or refraining from action as a result of, but not limited to, any statement, fact, figure, 42 expression of opinion or belief obtained in this document. 42

43 43 43

Market Presentation: Canada. > > Deborah Moor Country Manager.

Market Presentation: Canada. > > Deborah Moor Country Manager. Market Presentation: Canada Deborah Moor Country Manager May 2011 > www.lloyds.com/marketpresentations > www.lloyds.com/countryprofiles Insurance Market >Macro Themes ECONOMY Relatively strong economy