THE 2017 CEFOR NOMIS OCEAN HULL REPORT (VESSELS WITH REGISTERED IMO NUMBER)

Transcription

1 THE 2017 CEFOR NOMIS OCEAN HULL REPORT (VESSELS WITH REGISTERED IMO NUMBER)

2 OCEAN HULL REPORT INCLUDED DATA Underwriting years Vessels with a registered IMO-number. (For statistics on small coastal tonnage, see «The 2017 Cefor COASTAL Hull report») If not indicated otherwise on the slide, figures are presented on accident year basis (claims allocated to the calendar year in which the claim occurred). as reported by 31 December 2017 (i.e. without IBNR loading for claims not yet registered or incurred by this date).

3 OCEAN HULL REPORT CONTENTS Page 5 Introduction (Contents / history / Definitions) Page 9 Cefor position in the global hull insurance market 2016/ Cefor hull insurance market 2017/ Cefor share of World fleet Page 12 Page 27 Page 33 Page 39 Page 45 Key figures Ocean portfolio Key figures by age group Key figures by vessel type group Key figures by size group Key figures by sum insured layers Key figures: Breakdown of number of vessels Claims frequency Claim cost per vessel/ per Sum Insured/ per gross ton Average claim cost

4 4 OCEAN HULL REPORT CONTENTS Page 51 Page 53 Breakdown by flag and classification society Number of vessels by flag, 16 largest Number of vessels by classification society, 6 largest Exposure curves Sum Insured bands (<5, <20, <100, and >100 MUSD; for partial claims / all claims) Explanations Page 56 Cost Driving Factors Inflation Index (by date of loss) Legal disclaimer Cefor provides the statistics material in this presentation for general information purposes only. All key figures are derived from the Cefor portfolio, which reflects a minor part of the world fleet, the selection of ships being biased by Nordic underwriting preferences. Therefore Cefor can accept no responsibility and shall not be liable for any loss which may arise from reliance upon the information provided. With reference to Commission Regulation (EC) No 267/2010 on the application of Article 101(3) and the European Commission's Guidelines for the Assessment of Horizontal Agreements (the "Horizontal Guidelines ), we further stress that the statistical data presented in this publication is non-binding in its character.

5 5 THE NORDIC MARINE INSURANCE DATABASE The () is a joint database project of Cefor members active in the Hull & Machinery market to compile insurance data and vessel characteristics for statistical purposes, administered by Cefor. From its foundation in 1985 until 1997, the data was compiled by appointing Cefor a facultative reinsurer to which members of the Norwegian Hull Agreement ceded 0.1% of their H&M insurance. Premium and claims information was exchanged via Borderaux, the lead insurer providing details of each claim. In 1996, the hull agreement was discontinued, but the statistics cooperation continued. In 1998, steps were taken to update the database electronically instead of manually. From December 1999, Cefor could produce up-to-date hull figures on regular basis. The scope of reporting was extended substantially by including nonlead business. From 2000, also business back to underwriting year 1995 was updated electronically. In the following years, several new major Cefor members joined the cooperation, reporting retrospective data from 1995 underwriting year. In 2009, data from Gjensidige and Tryg was integrated, dating back to underwriting years 2000 and 2003 respectively. In 2012, data from Alandia was added, starting with underwriting year Further, If extended their scope of reporting to include all Nordic business. In 2015, the reporting format was modernized and the database migrated to a new technical platform. In 2016, data from Skuld was added, dating back to underwriting year From 2016, all member report according to the modernized reporting format. By 31st December 2016, in all 262,853 vessel-years and 73,404 claims were registered on underwriting years 1985 through 2017 for the ocean hull portfolio (vessels with IMO number). The statistics in this report comprise data from the following marine insurers: Alandia, Bluewater (until 2008), Codan, Gjensidige, If, Gard, NEMI (until 2009), Norwegian Hull Club, Skuld, The Swedish Club, Tryg (until 2009), Zurich (until 2002).

6 6 OCEAN HULL REPORT DEFINITIONS All amounts are presented in USD. Rate of exchange applicable to convert the figures from the original currencies into USD: Insured values: av. rate of exchange of the month the insurance coverage gets into force Paid claims: av. rate of exchange of the month of the payment transaction Outstanding claims: av. rate of exchange of December 2017 Underwriting year = year in which the insurance policy attaches All claims are net of any applicable deductibles. Total Claims = Paid claims + Outstanding claims TLO (total losses) = claims in excess of 75% of the Sum Insured 1 Partial Losses = all claims <= 75% of the Sum Insured IBNR ( Incurred but not reported ) = reserve for claims adjustments and registration backlog 1 According to Clause 11-3 of the Insurance Plan, a constructive total loss (CTL) is defined as a claim exceeding 80% of the sum insured ( To cater for currency conversion issues, the Cefor Statistics Forum includes in its total loss statistics all claims exceeding 75% of the sum insured.

7 7 OCEAN HULL REPORT - DEFINITIONS Types of vessels specified Vessel Type group Vessels Types included Lloyd s List Intelligence Code BULK Bulk, Ore, Cement BAC, BBU, BCB, BCE, BOR, BWC CAR/RORO Car Carrier, RoRo MVE, URC, URR CARGO Dry Cargo, General Cargo, Reefers, GCT, GGC, GPC, GRF, MLV Pallett Vessels, Animal Transport Vessels CHEM./PRODUCT Chemical Carriers, Product / Acid / Edible Oil / TAC, TCH, TCO, TEO, TFJ, TFO Fish Oil / Fruit Juice / Wine / Molasses / TMO, TPD, TWA, TWN, TWT Waste/ Water Tankers CONTAINER Container UCC, UCR FISHING Fishing vessels FFC, FFF, FFP, FFS, FTR,FWF,FWH LNG/LPG Gas Carriers LNG, LPG, LNG/LPG LBK, LCN, LNG, LPG, LNP OTHER any other ships and floating units, any codes not specifically defined otherwise, like Barges, Cranes, Floating Storage, Floating Production, Pollution Control Vessels, Mud boat, OBO, Research vessels, Cable, Seismic Search vessel, Flo/Flo, etc.

8 8 OCEAN HULL REPORT DEFINITIONS Types of vessels specified contd. Vessel Type group Vessels included Lloyd List Intelligence Code PASSENGER All types of passenger vessels and ferries, LOF, LOP, MPR, OFY, OHF, OHS, Passenger/Roro, Highspeed Craft PRR, PZZ SUPPL./OFF. Supply, Anchorhandling, Standby, Drilling OBS, OBT, ODS, OIB, OIF, OIS, Vessel, General Service Vessel, OIT, OLT, OMN, OMT, OOS, OPP, Supply (Tug, Anchor), Tug/Icebreaker ORP, OSU, OSY, OSZ, OWO, XAA, XAF, XAG, XAH, XAT, XCT, XFF, XFS, XFT, XPT, XTG, XTI, XTP, XTR, XTS, XTT, XTX TANK Tanker, Sludge Vessel, Crude Oil Tanker OSC, OTC, TAS, TBK, TCR, TNA, Asphalt Carriers, Bunkering Tanker, Naval Auxiliary TRR, TTA, TUV Excluded from the statistics in this report are the following offshore energy units: LFP, LFR, LFS, LGP, LPS, TPD, TFP, TFS, YDP, YDS

9 9 Breakdown of Global Marine Hull* Premium 2016 Spain 1.6% USA 3.7% Other 13.4% UK (IUA) 5.4% UK (Lloyd's) 17.3% ** The Swedish Club 9.4% Tromstrygd 0.7% Skuld 6.3% Alandia Insurance 5.3% Codan 6.5% Singapore 11.8% Netherlands 1.8% Latin America 5.2% Korea, Republic of 2.8% Japan 7.8% Italy 3.8% Germany 1.4% France 4.0% World Brazil 1.0% China 10.9% Nordic (Cefor) 8.1% Norwegian Hull Club 22.7% Møretrygd 1.6% If 5.7% Gjensidige 4.0% Cefor HDI Global (Norge) 6.4% Gard 30.7% Fender Marine 0.9% * «Hull» premium on this slide includes both ocean and coastal hull business for all hull-related insurance types (Hull, hull interest, freight interest, loss of hire, builder s risk, fishing (catch & gear)). ** Lloyd s premium includes proportional and facultative reinsurance. Other countries premium includes only direct business. Sources: IUMI Global Marine Insurance Report by Astrid Seltmann, published September 2017, and Cefor Annual Report 2016

10 10 Breakdown of Cefor Marine Hull* Premium 2017 Møretrygd Gjensidige 1.5% 4.0% Alandia Insurance 5.5% Codan 6.0% If 5.9% Fender Marine 1.2% Tromstrygd 0.7% Gard 31.3% The Swedish Club 7.8% Total Cefor marine hull* premium 2017: USD million Source: Cefor Annual Report 2017 Skuld 10.1% Norwegian Hull Club 26.1% * Total amount including DNK war risk premium. The premium breakdown in the graph on this slide includes both ocean and coastal hull business for all hull-related insurance types (Hull, hull interest, freight interest, loss of hire, builder s risk, fishing (catch & gear)). All following statistics are pure Hull & Machinery statistics based on vessels with IMO-number only, and EXCLUDE loss of hire, hull/freight interest, builder s risk. For claims trends for small craft & fishing vessels check The Cefor COASTAL Hull report 2017

11 11 THE CEFOR FLEET AS OF 2017 Cefor market participation as % of World Fleet IMO-number ships > 1,000 gross ton Gross tonnage Year of build 1) >10000 Grand Total Cefor share % 24.0% 16.9% 45.4% 35.2% % 23.7% 35.4% 48.2% 34.3% % 19.6% 36.1% 54.6% 34.1% % 19.6% 25.3% 46.9% 31.8% % 11.1% 15.2% 30.4% 16.2% % 11.5% 15.1% 23.9% 10.9% <1987 or unknown 3.9% 4.3% 6.5% 15.1% 5.3% World fleet ,754 1, ,058 12, ,350 1,492 1,202 8,026 14, , ,166 7, , ,755 5, , ,274 3, , ,093 <1987 or unknown 7,877 1, ,371 11,482 Total Cefor share 9.5% 16.1% 24.8% 45.1% 25.9% Total World fleet 21,153 6,838 3,749 26,198 57,938 1) Cefor share calculated as the number of vessels partly or wholly covered by Cefor members in underwriting years 2016 & 2017, divided by the total number of ships with registered IMO-number in the world fleet. World fleet count as according to Lloyd s List Intelligence World Fleet Update as of January 2018.

12 OCEAN HULL NUMBER OF VESSELS 18,000 Number of vessels, by year of exposure 16,000 15,154 16,10915,990 15,506 15,714 14,000 12,000 10,000 13,130 13,257 12,327 11,886 10,656 10,790 10,509 9,574 9,679 8,000 6,829 7,293 6,966 6,573 6,973 7,564 8,312 6,000 5,869 4,000 2,

13 OCEAN HULL INSURED VALUES Average sum insured, by underwriting year 40,000,000 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 0 Includes all insured vessels per underwriting year (renewed & new business). 13

14 OCEAN HULL INDEX 250% Evolution of average Sum insured and gross ton 1995=100% 200% 150% 100% 50% Index Average Sum Insured Index Average gross ton Includes all insured vessels per underwriting year (renewed and new business). 14

15 OCEAN HULL AVERAGE CHANGE IN INSURED VALUES ON RENEWAL 15.0% 10.0% 5.0% 5.9% 2.3% 8.7% 2.4% 0.0% -5.0% -10.0% -15.0% -14.8% -7.9% -4.3% -5.2% -6.4%-6.2%-6.0% -7.4% -9.3% -20.0% Based on renewals only in respective year, i.e. excluding new business. In stable market conditions, one would expect to see some reduction in the insured value on renewed vessels due to the aging factor. 15

16 OCEAN HULL AGE Average age, by underwriting year

17 OCEAN HULL - DEDUCTIBLES Average Standard Deductible (USD), by underwriting year 250,000 Average Std. Deductible Av.Std. Ded. <= 500,000 USD 200, , ,000 50, Average Std. Deductible 187, , , , , , , , , , , , , , , , , , , , , , ,710 Av.Std. Ded. <= 500,000 USD 112, , , , , , , , , , , , , , , , , , , , , , ,438 Includes all insured vessels per underwriting year (renewed and new business). 17

18 OCEAN HULL CLAIM PER VESSEL 120,000 USD Claim per vessel, by date of loss 100,000 80,000 60,000 40,000 20,000 Claim bands: > 50 MUSD , ,239 4, , ,515 7,843 4,966 3, <= 50 MUSD 6, , , ,680 13,971 3,731 3, ,586 11, ,483 2, <= 30 MUSD 5,828 5,888 9,396 9,094 3,071 7,241 8,761 6,806 17,013 6,707 14,883 20,056 14,516 8,442 5,450 4,084 6,094 13,906 5,461 13,258 4,690 9,112 5 <= 10 MUSD 9,011 10,504 7,207 9,877 11,547 3,944 6,244 4,047 7,728 15,059 8,935 9,669 9,936 6,836 5,242 6,706 6,245 10,184 7,640 8,096 4,048 4,641 1 <= 5 MUSD 23,498 22,294 18,799 18,331 15,390 20,970 18,339 17,264 24,472 19,328 24,958 27,179 28,285 25,109 19,030 18,065 18,455 18,100 16,669 19,441 15,973 12,749 <= 1 MUSD 23,698 21,038 22,805 20,430 20,813 22,469 21,144 21,869 22,988 25,511 28,001 31,871 31,241 25,618 25,326 25,948 20,194 20,798 20,687 22,111 20,088 17,265 IBNR ,648 18

19 OCEAN HULL CLAIMS BY TYPE PAID & OUTSTANDING AS REPORTED, NO IBNR RESERVE ADDED Breakdown of number of claims by type of claim % 15.5% 8.5% 2.0% 40.9% 1.6% Machinery 9.0% Fire/Explosion 42.3% Machinery Fire/Explosion Collision Collision Contact Grounding Contact Grounding Heavy weather Heavy weather 20.6% Other / unknown 19.0% Other / unknown 11.0% 2.3% 10.4% 2.2% Total number of claims: : 16, : 2,898 19

20 OCEAN HULL CLAIMS BY TYPE PAID & OUTSTANDING AS REPORTED, NO IBNR RESERVE ADDED Breakdown of claims cost by type of claim % 11.0% 1.3% 7.3% Machinery 33.5% 20.2% Machinery Fire/Explosion 20.0% Fire/Explosion Collision Contact Grounding 43.2% Collision Contact Grounding Heavy weather Heavy weather Other 10.5% / unknown Other / unknown 7.5% 11.9% 13.6% 7.0% 10.5% Total cost of claims in USD million: : 5, :

21 OCEAN HULL CLAIMS FREQUENCY INCL. IBNR RESERVE FOR FREQUENCY OF PARTIAL CLAIMS Claims frequency by date of loss (%) 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% all claims > 10,000 USD >500,000 USD Comment: Claims < USD account for about half of all claims. Registration of these may vary over time and by company and will thus influence the registered frequency. In addition any increase/decrease of insurance deductibles will have impact on the registered frequency 21

22 OCEAN HULL CLAIMS FREQUENCY INCL. IBNR RESERVE FOR FREQUENCY OF PARTIAL CLAIMS Claims frequency by date of loss 40.00% 0.35% 35.00% 0.30% 30.00% 25.00% 0.25% 0.20% 20.00% 15.00% 10.00% 0.15% 0.10% 5.00% 0.05% 0.00% all claims (left axis) 30.1% 30.0% 33.6% 32.3% 30.6% 28.7% 29.7% 28.8% 29.9% 29.5% 29.7% 31.5% 32.3% 27.0% 24.6% 26.0% 22.8% 23.0% 22.6% 22.9% 22.6% 22.1% partial claims (left axis) 29.8% 29.8% 33.4% 32.1% 30.3% 28.6% 29.5% 28.7% 29.7% 29.4% 29.5% 31.3% 32.2% 26.9% 24.5% 26.0% 22.7% 22.9% 22.5% 22.8% 22.6% 22.0% TLO claims (right axis) 0.24% 0.18% 0.19% 0.14% 0.21% 0.16% 0.20% 0.11% 0.17% 0.11% 0.14% 0.14% 0.11% 0.13% 0.04% 0.05% 0.08% 0.09% 0.06% 0.13% 0.06% 0.09% 0.00% 22

23 OCEAN HULL CLAIM PER VESSEL INCL. IBNR RESERVE FOR PARTIAL CLAIMS Claim per vessel by date of loss (USD) 120, ,000 80,000 60,000 40,000 20, all claims 68,459 59,724 58,207 67,346 50,822 54,624 63,799 49,987 79,104 66,606 95, ,86 87,709 69,856 66,912 61,388 91,517 70,831 57,906 68,528 45,046 50,463 partial claims 49,385 47,105 48,407 61,326 38,841 45,376 45,087 42,062 60,944 60,097 70,041 89,238 75,960 59,646 57,813 55,080 49,506 62,200 49,254 55,717 42,240 45,017 TLO claims 19,074 12,619 9,800 6,020 11,981 9,248 18,712 7,925 18,160 6,509 25,655 17,628 11,749 10,210 9,099 6,309 42,011 8,631 8,652 12,810 2,806 5,445 23

24 OCEAN HULL CLAIM PER INS. VALUE INCL. IBNR RESERVE FOR PARTIAL CLAIMS Claim per Sum Insured by date of loss (%) 0.450% 0.400% 0.350% 0.300% 0.250% 0.200% 0.150% 0.100% 0.050% 0.000% all claims partial claims TLO claims

25 OCEAN HULL CLAIM PER GROSS TON INCL. IBNR RESERVE FOR PARTIAL CLAIMS Claim per gross ton by date of loss (USD) all claims partial claims TLO claims

26 OCEAN HULL AVERAGE CLAIM COST INCL. IBNR RESERVE FOR PARTIAL CLAIMS Average claim cost per individual claim (USD) by date of loss 450, , , , , , , ,000 50, all claims 227, , , , , , , , , , , , , , , , , , , , , ,432 excl. total losses 165, , , , , , , , , , , , , , , , , , , , , ,607 26

27 OCEAN HULL BY AGE GROUP Breakdown of vessels by age group, by year of exposure % % 11.4% 16.7% 16.5% 25.9% 29.4% 16.3% 0-5 years 5-10 years years 12.1% years years > 100 years 19.2% 21.6% 30.7% 0-5 years 5-10 years years years years > 100 years Total number of vessels: : 76, : 15,714 27

28 OCEAN HULL BY AGE GROUP PAID & OUTSTANDING AS REPORTED, NO IBNR RESERVE ADDED Claims frequency per age group years 5-10 years years years years Comment: Claims < USD account for about half of all claims. Registration of these may vary over time and by company and will thus influence the registered frequency. In addition any increase/decrease of insurance deductibles will have impact on the registered frequency 28

29 OCEAN HULL BY AGE GROUP PAID & OUTSTANDING AS REPORTED, NO IBNR RESERVE ADDED 120,000 Claim per vessel (USD) per age group 100,000 80,000 60,000 40,000 20, years 5-10 years years years years , ,113 87,478 74,215 52, ,062 75,028 71,686 67,486 47, ,261 82,613 76,692 69,613 48,918 29

30 OCEAN HULL BY AGE GROUP PAID & OUTSTANDING AS REPORTED, NO IBNR RESERVE ADDED 0.50% 0.45% 0.40% 0.35% 0.30% 0.25% 0.20% 0.15% 0.10% 0.05% 0.00% Claim per Sum Insured (%) per age group 0-5 years 5-10 years years years years % 0.280% 0.309% 0.384% 0.463% % 0.215% 0.266% 0.346% 0.411% % 0.235% 0.280% 0.358% 0.429% 30

31 OCEAN HULL BY AGE GROUP PAID & OUTSTANDING AS REPORTED, NO IBNR RESERVE ADDED Claim per gross ton (USD) per age group 0-5 years 5-10 years years years years

32 OCEAN HULL BY AGE GROUP PAID & OUTSTANDING AS REPORTED, NO IBNR RESERVE ADDED 500, , , , , , , , ,000 50,000 0 Average claim cost (USD) per age group 0-5 years 5-10 years years years years , , , , , , , , , , , , , , ,350 32

33 OCEAN HULL BY VESSEL TYPE Breakdown of vessels by vessel type, by year of exposure % 8% 11% 22% Bulk Car/RoRo 12% 22% Bulk Car/RoRo Cargo Cargo 5% 4% 4% 2% 17% 13% 9% 5% Chem./Prod. Container 6% Fishing LNG/LPG 4% Other Passenger 4% Suppl./Off. 3% Tank 16% 13% 4% 8% Chem./Prod. Container Fishing LNG/LPG Other Passenger Suppl./Off. Tank Total number of vessels: : 76, : 15,714 33

34 OCEAN HULL BY VESSEL TYPE PAID & OUTSTANDING AS REPORTED, NO IBNR RESERVE ADDED Claims frequency per vessel type group Bulk Cargo Cont./Car/ RoRo Passenger Tank Supply/Off Tank includes in this and the following slides: Chemical/Product, LNG/LPG, OBO and other tank vessels, Claims < USD account for about half of all claims. Registration of these may vary over time and by company and will thus influence the registered frequency. In addition any increase/decrease of insurance deductibles has impact on the registered frequency 34

35 OCEAN HULL BY VESSEL TYPE PAID & OUTSTANDING AS REPORTED, NO IBNR RESERVE ADDED Claim per vessel (USD) per vessel type group 300, , , , ,000 50,000 0 Bulk Cargo Cont./Car/ RoRo Passenger Tank Supply/Off ,000 45,348 81, ,097 60,613 38, ,860 39,965 65,096 99,575 49,217 32, ,268 42,821 73, ,879 54,681 35,617 35

36 OCEAN HULL BY VESSEL TYPE PAID & OUTSTANDING AS REPORTED, NO IBNR RESERVE ADDED Claim per Sum Insured (%) per vessel type group 0.5% 0.4% 0.3% 0.2% 0.1% 0.0% Bulk Cargo Cont./Car/ RoRo Passenger Tank Supply/Off % 0.362% 0.223% 0.357% 0.178% 0.155% % 0.398% 0.201% 0.137% 0.141% 0.140% % 0.377% 0.213% 0.244% 0.158% 0.147% 36

37 OCEAN HULL BY VESSEL TYPE PAID & OUTSTANDING AS REPORTED, NO IBNR RESERVE ADDED Claim per gross ton (USD) per vessel type group Bulk Cargo Cont./Car/ RoRo Passenger Tank Supply/Off

38 OCEAN HULL BY VESSEL TYPE PAID & OUTSTANDING AS REPORTED, NO IBNR RESERVE ADDED Average claim cost (USD) per vessel type group 1,200,000 1,000, , , , ,000 0 Bulk Cargo Cont./Car/R oro Passenger Tank Supply/Off , , ,112 1,044, , , , , , , , , , , , , , ,203 38

39 OCEAN HULL BY SIZE GROUP Breakdown of vessels by GT size group, by year of exposure % 3.4% 0.3% 9.4% 6.5% 4.2% 0.4% 8.8% Gross ton: 8.5% 4.9% 7.4% 11.0% 11.1% 14.8% 9.8% < 1,000 1,000-5, % 5,000-10,000 10,000-20, % 20,000-30,000 30,000-40,000 40,000-50, % 50,000-60,000 60,000-90,000 90, , , , % >= 170, % 16.1% 9.0% < 1,000 1,000-5,000 5,000-10,000 10,000-20,000 20,000-30,000 30,000-40,000 40,000-50,000 50,000-60,000 60,000-90,000 90, , , ,000 >= 170, % 13.8% Total number of vessels: : 76, : 15,714 39

40 OCEAN HULL BY SIZE GROUP PAID & OUTSTANDING AS REPORTED, NO IBNR RESERVE ADDED Claims frequency per GT size group < 1,000 1,000-5,000 5,000-10,000 10,000-20,000 20,000-30,000 30,000-40,000 40,000-50,000 50,000-60,000 60,000-90,000 90, , , , >= 170,000 Comment: Claims < USD account for about half of all claims. Registration of these may vary over time and by company and will thus influence the registered frequency. In addition any increase/decrease of insurance deductibles will have impact on the registered frequency 40

41 OCEAN HULL BY SIZE GROUP PAID & OUTSTANDING AS REPORTED, NO IBNR RESERVE ADDED 800,000 Claim per vessel (USD) per GT size group 700, , , , , , ,000 0 < 1,000 1,000-5,000 5,000-10,000 10,000-20,000 20,000-30,000 30,000-40,000 40,000-50,000 50,000-60,000 60,000-90,000 90, , , ,000 >= 170, ,299 54,156 78,118 60,749 71,847 76,157 65,507 71,958 78, ,885 52, , ,185 36,034 63,352 69,967 58,568 69,293 46,902 37,572 54,966 59,532 75,236 44, ,647 44,420 70,907 65,116 65,022 72,583 55,491 55,750 66, ,590 65, ,878 41

42 OCEAN HULL BY SIZE GROUP PAID & OUTSTANDING AS REPORTED, NO IBNR RESERVE ADDED Claim per Sum Insured (%) per GT size group 0.60% 0.50% 0.40% 0.30% 0.20% 0.10% 0.00% < 1,000 1,000-5,000 5,000-10,000 10,000-20,000 20,000-30,000 30,000-40,000 40,000-50,000 50,000-60,000 60,000-90,000 90, , , ,000 >= 170, % 0.311% 0.333% 0.250% 0.274% 0.244% 0.171% 0.176% 0.146% 0.272% 0.058% 0.516% % 0.245% 0.294% 0.279% 0.236% 0.282% 0.138% 0.106% 0.118% 0.076% 0.088% 0.035% % 0.278% 0.315% 0.264% 0.255% 0.262% 0.154% 0.145% 0.133% 0.167% 0.075% 0.236% 42

43 OCEAN HULL BY SIZE GROUP PAID & OUTSTANDING AS REPORTED, NO IBNR RESERVE ADDED Claim per GT (USD) per GT size group < 1,000 1,000-5,000 5,000-10,000 10,000-20,000 20,000-30,000 30,000-40,000 40,000-50,000 50,000-60,000 60,000-90,000 90, , , , >= 170,000 43

44 OCEAN HULL BY SIZE GROUP PAID & OUTSTANDING AS REPORTED, NO IBNR RESERVE ADDED Average Claim cost (USD) per GT size group 9,000,000 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 < 1,000 1,000-5,000 5,000-10,000 10,000-20,000 20,000-30,000 30,000-40,000 40,000-50,000 50,000-60,000 60,000-90,000 90, , , ,000 >= 170, , , , , , , , , ,867 2,626, ,427 13,333, , , , , , , , , , , , , , , , , , , , , ,945 1,208, ,829 3,367,050 44

45 OCEAN HULL BY SUM INSURED LAYER PAID & OUTSTANDING AS REPORTED, NO IBNR RESERVE ADDED Breakdown of vessels by sum insured layer, by year of exposure % 3.7% 0.4% 10.1% 3.3% 0.4% Insured values: 18.2% <= 30 MUSD MUSD % MUSD MUSD > 300 MUSD <= 30 MUSD MUSD MUSD MUSD > 300 MUSD 66.1% 71.5% Total number of vessels: : 76, : 15,714 45

46 OCEAN HULL BY SUM INSURED LAYER PAID & OUTSTANDING AS REPORTED, NO IBNR RESERVE ADDED Claims frequency per Sum Insured layer Insured values: <= 30 MUSD MUSD MUSD MUSD > 300 MUSD All Comment: Claims < USD account for about half of all claims. Registration of these may vary over time and by company and will thus influence the registered frequency. In addition any increase/decrease of insurance deductibles will have impact on the registered frequency 46

47 OCEAN HULL BY SUM INSURED LAYER PAID & OUTSTANDING AS REPORTED, NO IBNR RESERVE ADDED Claim per vessel (USD) per Sum Insured layer 2,200,000 2,000,000 1,800,000 1,600,000 1,400,000 1,200,000 1,000, , , , ,000 0 Insured values: <= 30 MUSD MUSD MUSD MUSD > 300 MUSD All ,447 81,456 66, ,073 2,028,600 72, ,580 62,562 58, , ,891 52, ,386 72,516 63, ,742 1,031,545 62,113 47

48 OCEAN HULL BY SUM INSURED LAYER PAID & OUTSTANDING AS REPORTED, NO IBNR RESERVE ADDED Claim per Sum Insured (%) per Sum Insured layer 0.50% 0.45% 0.40% 0.35% 0.30% 0.25% 0.20% 0.15% 0.10% 0.05% 0.00% Insured values: <= 30 MUSD MUSD MUSD MUSD > 300 MUSD All % 0.210% 0.099% 0.152% 0.470% 0.225% % 0.163% 0.087% 0.075% 0.033% 0.175% % 0.187% 0.093% 0.114% 0.234% 0.200% 48

49 OCEAN HULL BY SUM INSURED LAYER PAID & OUTSTANDING AS REPORTED, NO IBNR RESERVE ADDED Claim per GT (USD) per Sum Insured layer Insured values: <= 30 MUSD MUSD MUSD MUSD > 300 MUSD All

50 OCEAN HULL BY SUM INSURED LAYER PAID & OUTSTANDING AS REPORTED, NO IBNR RESERVE ADDED 20,000,000 Average Claim cost (USD) per Sum Insured layer 18,000,000 16,000,000 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 0 Insured values: <= 30 MUSD MUSD MUSD MUSD > 300 MUSD All , , ,320 1,021,902 19,111, , , , , ,327 1,308, , , , , ,877 9,362, ,409 50

51 OCEAN HULL BY FLAG Breakdown of vessels by largest flags, by year of exposure 2.3% 6.0% 1.9% 9.0% 18.4% 5.6% 4.9% BHS - Bahamas CYP - Cyprus 5.1% GRC - Greece 3.5%2.5% LBR - Liberia 2.5% 3.2% 1.2% 1.3% 1.4% 2.5% 11.6% 7.9% 3.4% 5.7% 17.9% NIS - Norway int.reg. NOR - Norway PAN - Panama 2.2% USA ATG - Antigua&Barbuda 5.6% DIS - Denmark FIN - Finland 1.3% SWE - Sweden DEU- Germany HKG - Hongkong 11.1% MLT - Malta MHL - Marshall Islands NLD - Netherlands SGP - Singapore 6.7% GBR - UK 4.7% 1.2% other 1.0% 1.3% 2017 BHS - Bahamas CYP - Cyprus 5.3% 3.2%2.5% 1.7% 3.3% 2.5% 12.3% 7.0% 3.5% 5.6% GRC - Greece LBR - Liberia NIS - Norway int.reg. NOR - Norway PAN - Panama USA ATG - Antigua&Barbuda DIS - Denmark FIN - Finland SWE - Sweden DEU- Germany HKG - Hongkong MLT - Malta MHL - Marshall Islands NLD - Netherlands SGP - Singapore GBR - UK other Total number of vessels: : 76, : 15, as of 31 December 2016

52 OCEAN HULL BY CLASS SOCIETY Breakdown of vessels by classification society, by year of exposure % 13.2% 13.5% 14.9% 9.6% 10.1% 10.2% American Bureau 10.1% Bureau Veritas 16.0% DNV GL Lloyd's Register Nippon Kaiji Kyokai others 13.6% American Bureau Bureau Veritas DNV GL Lloyd's Register Nippon Kaiji Kyokai others 38.7% 37.8% Total number of vessels: : 76, : 15, as of 31 December 2016

53 Ceding company's retention of claims (in % of total claims) OCEAN HULL EXPOSURE CURVES Exposure curves by Sum Insured Partial Claims only (<=75%SI) 110% 100% 90% 80% PA claims in % of all claims* : 0-5 MUSD: 72% 5-20 MUSD: 83% MUSD: 85% > 75 MUSD: 66%* * «all claims» includes Costa Concordia cost and other highprofile claims; PA% for claims >75 MUSD is therefore relative low 70% 60% PAID & OUTSTANDING CLAIMS AS REPORTED Sum Insured: 50% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0-5 Mio USD Mio USD Mio USD > 75 Mio USD % The curves are based on 100% shares. For a ceding company writing 10% shares, the exposed values in the given bands are <0.5 MUSD, MUSD, MUSD, >7.5 MUSD. Ceding company's retention as % of SI 53

54 Ceding company's retention of claims (in % of total claims) OCEAN HULL EXPOSURE CURVES Exposure curves by Sum Insured All claims including total losses 110% 100% 90% 80% 70% 60% The curves are based on 100% shares. For a ceding company writing 10% shares, the exposed values in the given bands are <0.5 MUSD, MUSD, MUSD, >7.5 MUSD. 50% Sum Insured 40% PAID & OUTSTANDING CLAIMS AS REPORTED 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 110% 120% 0-5 Mio USD Mio USD Mio USD > 75 Mio USD All % Ceding company's retention as % of SI 54

55 OCEAN HULL EXPOSURE CURVES Exposure Curves Exposure curves are used by reinsurers to price excess of loss reinsurance. The curves indicate the ceding company's retained share of PA claims after ceding claims in excess of a given percentage of a vessel s sum insured. The curves should be applied on individual vessels or groups of vessels with similar values and written shares. The curves are calculated for 100% values. In applications the choice of curve should thus also be based on 100% values. The curves are based on USD claims amounts. Due to exchange rate fluctuations, the ratio between claim cost and insured value may deviate in the original currency. Exposure Curves technicalities The curves are based on H&M covers only for vessels with valid IMO-No. The curves are based on claims incurred in the years (16,441 partial claims; 16,517 claims in all; only claims with cost > 1USD included) The curves are calculated as follows: x = percentage retained C = Individual claims 1) V = Vessel value f(x) = Σ min[c, V*x]/ Σ C 55 1) First set of exposure curves: based on partial claims only; Second set of exposure curves: based on all claims, including total losses / claims exceeding the Sum Insured

56 OCEAN HULL COST DRIVING FACTORS Cost driving factors inflation index, 2000 = 100% 250.0% 225.0% 200.0% 175.0% 150.0% 125.0% 100.0% 75.0% 50.0% USD against EUR (annual exchange rate) Claim per vessel (incl. total losses and IBNR) Steel price index Ship operating costs (Moore Stephens) Partial claim per vessel (incl. IBNR) 56 Sources: Claim indices: Cefor data as of ; Exchange rates: Norges Bank, Ship operation costs: Moore Stephen s, Steel: xxx (check)

57 NOMIS REPORTS 2016 Cefor marine insurance statistics publications at : (check the section) Cefor Annual Report 2017 The 2017 Cefor OCEAN Hull Report The 2017 Cefor COASTAL Hull Report Half-yearly Claims Update Fact Sheet Other marine insurance statistics: IUMI (International Union of Marine Insurance) Statistics issued by IUMI s Facts & Figures Committee: 57