Lockton Global Energy London

Lockton Global Energy London

Lockton Global Energy is part of the larger Lockton Companies Group. We are the largest privately owned global insurance broker. Our focus is on our clients and our people rather than external analysts and institutional shareholders. The Lockton company structure has produced a unique culture where creative, driven and proactive people can thrive, and where client advocacy and service are of paramount importance. About Lockton Clients in over 125 countries Exceptional client retention rate (96%*) Over 11% annual organic growth since 2000 90% reinvestment due to our private ownership About the Global Energy team Over 500 clients Over 50 million revenues Over 175 associates Over $1 billion premiums placed

Formation of Lockton Global Energy (LGE) A fresh take on risk Lockton Global Energy London, (LGE) was formed in 2014 to create a market leading London centre of excellence for energy business within the Lockton group. As well as appealing directly to clients throughout the oil and gas industry, LGE has enhanced Lockton s reach by developing an integrated global platform to support our worldwide offices and partners. Our role as a strategic resource makes LGE unique in the London markets and allows for a fresh and truly collaborative approach. This model enables us to always put our clients interests first and obtain the very best results. Lockton Global Energy Hubs Global reach The group s footprint now extends to offices in London, Bermuda, Dubai and Singapore. LGE in London has been pivotal in the growth of Lockton s global energy offering. With LGE, the Lockton Global Network has a dedicated and highly experienced energy team based in London allowing direct access to Lloyd s and European company markets. The diagram below details the office locations and number of energy professionals per location. Geographies Served: European Retail/Worldwide Wholesale 3 20 4 120 NYC London LA 2 Texas Bermuda 7 Dubai 5 5 China Singapore 4 Thailand Geographies Served: Asia Pacific Geographies Served: Americas Geographies Served: Middle East and Africa 2 Philippines

Our Service Proposition The LGE London team was recruited from a combination of high performers from the insurance industry and the risk management side of the energy sector. This unique recruitment strategy gives us the ability to act as an extension of our clients organisation, as well as being highly effective insurance market practitioners. Our flexible service delivery allows us to adapt to provide the level of service our client s require. We can act in a purely transactional capacity, as a fully embedded risk manager, or any service level in between. Our enhanced offering which spans the Upstream, Midstream and Downstream sectors includes: Contract Review Our team are specialists in contract reviews and have vast experience in reviewing documentation ranging from; Licence Agreements Joint Operating Agreements Drilling/ Well Services/General Service contracts Offtake Agreements EPIC and Minor Works contracts We will conduct a review and advise where we feel there is unnecessary risk being accepted in addition to ensuring the insurance section of the contract reflects sufficient insurance requirements. Due diligence for acquisitions and divestments Our expert team can provide due diligence support for projects, whether it be the development, purchase or sale of an asset. We will work with you to identify insurance and risk transfer requirements, advise on risk allocation between the interested parties and provide documentation to support any project or lender requirements. Lender requirements We understand the importance of working with lenders in order to ensure the insurance programme includes the appropriate clauses to address lenders rights over the policy. We will work with you to ensure any insurance placement is compliant with the terms of lenders agreements and documentation is immediately issued upon placement of the insurance programme or the commencement/redetermination of your lending facility.

Construction project advisory We recognise our clients are often in the early stages of developing their assets and therefore will require Construction All Risks insurance for projects in excess of cover available under any Physical Damage policy. Our team has expertise in providing advice to your project team regarding insurable project values and costs and will utilise our strong market experience to ensure the programme is placed with leading markets in the relevant sector. Business Interruption review It is important that a Business Interruption product is tailored to suit the needs of your business. In the event of a loss, it is critical the coverage responds to protect cash flow until operations resume to levels experienced prior to the loss. We will conduct a review of your requirements and provide an insurance solution with appropriate coverage, limits and indemnity periods to best protects your business. Lockton Global Energy Lockton Claims Team 3 Teams 1 Office Working Together Lockton Processing Team Client service Technicial specialist Market expertise Contract review Broking Slip production Endorsement production Premium/credit management Invoice production Back office administration Claims advisory services Claims Managment Payment collection from markets

Upstream Energy / Energy Liability Our Upstream Energy team specialise in the design and placement of complex, multi-coverage, insurance programs for clients throughout the Upstream Energy sector and its support industries. In this heavily regulated environment, an already challenging operating environment has been further compounded by the significantly reduced commodity price. Operator, contractors and services companies alike need innovative and cost effective methods of managing their risks. The LGE team is made up of experienced insurance practitioners and former risk managers, our aim is to provide a service which smooths the gap between clients and the traditional insurance broker. We understand that a client s service needs are as varied as their business types and we are set up to provide support at any level a client needs: from a simple coverage review through to a fully embedded risk manager. LGE provides risk management advice and risk transfer, whether that be commercially, through mutualisation or through captive utilisation. Our clients range in size from start up to multinational, all of whom enjoy the benefits of our fully integrated claims, service and placements teams. Areas of Expertise include: Exploration & Production (onshore & offshore) Drilling Contractors (onshore & offshore) Service Contractors (onshore & offshore) Midstream Operators Construction All Risks (onshore and Offshore) Coverages include: Physical Damage Hull & Machinery / Increased Value Operators Extra Expense / Contingent Operators Extra Expense Business Interruption Loss of Hire Construction All Risks Third Party Liabilities (Commercial General Liabilities & Excess Umbrella limits) Environmental Impairment Liabilities Oil Pollution Act Liabilities (OPA) Marine Employers Liability Charterer s Liability

Identifying risks Lockton Global Energy is experienced in the challenges faced by upstream organisations. We recognise an organisation s risk management requirements and appetite vary greatly. We are able to support their growth, through efficient and cost effective risk identification and management. We focus on; Operational Risks Natural Disasters Environmental Requirements Construction Risks Mergers and Acquisitions Emerging Technologies Legal and Contractual Liabilities Policy Wording and Coverage analysis LGE Contacts Blake Roseveare +44 (0) 20 7933 2737 blake.roseveare@uk.lockton.com Andy Neve +44 (0) 20 7933 2460 andy.neve@uk.lockton.com Matt Preston +44 (0) 207 933 2446 matt.preston@uk.lockton.com Sarah Belchamber +44 (0) 20 7933 2041 sarah.belchamber@uk.lockton.com Michael Lohan +44 (0) 207 933 2834 michael.lohan@uk.lockton.com Oliver Brooking +44 (0) 20 7933 2448 oliver.brooking@uk.lockton.com

Downstream Energy Our team have vast experience placing insurance for clients throughout the downstream energy sector encompassing refining, petrochemical, transport and storage. This capital-intensive sector faces increased pressure from growing customer demand under rapidly expanding regulatory constraints.the high property and business interruption exposures in this sector, coupled with significant third party liabilities, mean the insurance purchase is an essential tool for managing the balance sheet. Our clients are able to benefit from our global market access and ability to provide flexible coverage options to respond to fluctuating market forces. Areas of Expertise include: Refining Petrochemicals Gas Processing LPG & LNG Transport & Distribution Ports & Terminals Identifying risks Lockton Global Energy is experienced in the challenges faced by downstream organisations. We recognise an organisation s risk management requirements and appetite vary greatly. We are able to support their growth, through efficient and cost effective risk identification and management. We focus on; Operational Risks Natural Disasters Environmental Requirements Construction Risks Mergers and Acquisitions Emerging Technologies Policy Wording and Coverage analysis LGE Contacts Gary Doran +44 (0) 20 7933 2939 gary.doran@uk.lockton.com Sarah Monk +44 (0) 20 7933 2812 sarah.monk@uk.lockton.com Steve Garrod +44 (0) 207 933 2933 steve.garrod@uk.lockton.com Patrick Smith +44 (0) 20 7933 2810 patrick.smith@uk.lockton.com

Power Generation Our Power Generation team provides both retail and wholesale advocacy across the major classes of Property Damage and Business Interruption, Liability, Construction, Terrorism, and Political Risks. This capital-intensive sector faces increased pressure from evolving electricity market demand patterns and requires insurance solutions that evolve with them. The rise of renewables and the erosion of traditional base load markets have brought new participants into the power generation space, participants who require insurance risk transfer solutions that are responsive to the needs of both equity investors and finance parties. Areas of expertise include: Combined Cycle Gas Turbines Coal Fired Steam Turbines Biomass/Biogas Turbines Waste to Energy Hydro Electricity Transmission & Distribution Systems Lockton Service Lockton Global Energy s service philosophy is the culmination of strategic planning and coordination throughout the year. Depending on your needs, we have the strength and depth to be your risk management partner 365 days a year whilst providing access to our global marketing expertise, ensuring the highest level of service and the most competitive results. Lockton Global Energy achieves results for its clients by adding value to the risk management and insurance buying process in the following ways; Global Marketing & Placement Contractual Review Construction to Operational Handover Insurance Policy Wordings Risk Engineering/Loss Control Claims Management Technological Innovations LGE Contacts Gary Doran +44 (0) 20 7933 2939 gary.doran@uk.lockton.com Michael Bogdan +44 (0) 207 933 2301 michael.bogdan@uk.lockton.com Steve Garrod +44 (0) 207 933 2933 steve.garrod@uk.lockton.com Patrick Smith +44 (0) 20 7933 2810 patrick.smith@uk.lockton.com

Renewable Energy As one of the leading insurance brokers within the renewable energy arena we have vast experience placing cover for clients throughout the renewable energy sector. With a comprehensive knowledge of the market, we are in the best position to be able to source the right bespoke product in line with client requirements. Renewable energy projects are becoming larger and more complex in scale as technologies evolve. With governmental focus shifting away from fossil fuels to less polluting sources of energy, the expansion of the industry shows no sign of slowing. Established engineering firms, energy providers and manufacturers are now joining forces with pioneers in renewable energy to keep up with demand. They are among the largest companies in the world and are well accustomed to the challenges of major technical risks. LGE s areas of expertise include: Onshore and Offshore Wind turbines Solar (PV / CSP) Hydroelectric Dams Biogas Waste to Energy Identifying risks Lockton Global Energy is experienced in the challenges faced by renewable energy companies. We recognise an organisation s risk management requirements and appetite vary greatly. We are able to support their growth, through efficient and cost effective risk identification and management whilst providing flexible coverage option to respond to fluctuating market forces. We focus on; Operational Risks Natural Disasters Construction Risks Mergers and Acquisitions Emerging Technologies Policy Wording and Coverage analysis LGE Contacts Gary Doran +44 (0) 20 7933 2939 gary.doran@uk.lockton.com Nadin Hamdan +44 (0) 20 7933 2497 nadin.hamdan@uk.lockton.com Michael Bogdan +44 (0) 207 933 2301 michael.bogdan@uk.lockton.com Patrick Smith +44 (0) 20 7933 2810 patrick.smith@uk.lockton.com

Cyber Security in the Energy Sector The Energy sector has significantly increased the connectivity between Operational Technology (OT) networks (devices and control processes) and Information Technology (IT) networks (business and desktop applications)in order to improve reliability and create efficiencies. The connection between these traditionally air gapped systems gives operators ever increasing real-time control and oversight of their operations not imagined a decade ago. However, these improvements in system connectivity can add significant cyber risk into a system. OT networks are often full of legacy systems that are vulnerable and unpatched. This is often due to the concern of operational downtime and the costs and risks involved with patching old systems. By connecting networks together these systems are much more vulnerable to the exploitation, misuse or simple failure of cyber systems which can cause significant damage and disruption. Cyber Attacks in the News There has been a significant increase in the number of documented cyber incidents reported. The Dragonfly malware attack in 2013/4, which lead to the compromise of more than 1000 energy companies in the USA and Europe, primarily in their Industrial Control Systems (ICS). In 2016 the Board of Water and Light, a Michigan USA public water and electric utility, fell victim to a ransomware attack which culminated in the shutdown of their network to isolate the malware. Ukraine suffered the first known example of a cyber-attack bringing down a major power network at the end of 2015. The attack left around 700,000 homes in Western Ukraine without power for several hours. The FBI warned in 2017 that statesponsored hackers were targeting nuclear facilities in the US after at least a dozen US power plants were successfully breached and Britain s GCHQ reported that attackers may have compromised Britain s energy grid, as it warned that cyber criminals are targeting the country s energy sector.

How Vulnerable am I? The more the drive for connecting systems to achieve the increasing demand for speed, efficiency, control and convenience, the greater the vulnerability and attack surface that is available to an attacker or criminals, as well as to misuse by staff. A successful exploitation of a critical ICS system could be a major incident for an energy supplier. The loss of control of an Oil Pipeline valve or Power Generation equipment due to a cyber-attack could cause a significant supply outage or worse, physical damage to plant or an environmental incident. Outside the unique cyber challenges in the Energy sector there are the cyber risks seen in all businesses. HR, Payroll and Payments, Financial and Corporate Systems all come with their own vulnerabilities. Indeed, the majority of cyber-attacks are still financially motivated, linked to the increase of ransomware and IP theft related attacks. How can I mitigate this risk? By understanding the risks cyber connectivity brings, companies can implement mitigations and controls to ensure the likelihood for success of a cyber-attack is reduced and if it is successful it is identified and managed in a quick and efficient manner. One risk mitigation technique is the transfer of risk to insurance, however traditional Property, Causality and Environmental policies weren t designed to respond to a cyber incident, let alone offer the first party breach response services that will help remediate and protect an organisation s reputation. Lockton is uniquely positioned to help clients on their cyber security journey with significant industry knowledge and specialism in Cyber and Energy risk management. To aid clients through the journey of risk transfer, Lockton s Global Cyber & Technology team have arranged a facility to provide three levels of coverage to supplement your existing insurance purchase and fits your business requirements. 1. Non-Physical Business Interruption and Cyber Extortion 2. Traditional Cyber and Data Breach Insurance 3. Cyber Wrap Extension for Property Damage/Property Damage BI/Operators Extra Expense This facility can be structured as an add-on to your property package purchased through Lockton Global Energy or on a stand-alone basis. We want to make your first steps into cyber insurance as simple as possible. Therefore our facility are able to give premium indications based on the information already provided to the market through your existing insurance submission. Further information is only necessary should you choose to move the indication to a fully bindable quote. Cyber Contacts Max Perkins +44 (0) 20 7933 2694 max.perkins@uk.lockton.com Liam Brown +44 (0) 20 7933 2719 liam.brown@uk.lockton.com Peter Erceg +44 (0) 207 933 2608 peter.erceg@uk.lockton.com

Lockton and the Macquarie Insurance Facility Partnership The Macquarie Insurance Facility (MIF) is an insurance buying programme, delivering purchasing power benefits to investment portfolio companies. MIF was established in 2008 to leverage the combined insurance spend of Macquarie owned and managed businesses. Following significant engagement from these companies, the insurance buying services were expanded to third party private equity and infrastructure funds. MIF Preferred Insurers Sponsor Portfolio Energy Healthcare Infrastructure Industrials Real Estate Technology Retail Broker Non-MIF Insurer Non-MIF Insurer AIG Zurich Chubb C V Starr RSA Axis Navigators Swiss Re HDI Lockton has established a dedicated MIF gatekeeper structure which offers our clients a unique support culture designed specifically for MIF placements enabling us to deliver the best possible results to our clients. The Gatekeeper, is responsible for overseeing the process and relationship between the client, the market and Macquarie. We have extensive experience working with Macquarie portfolio companies and know how to utilize MIF better than any other broker. Our brokers have worked with MIF since it was established and have placed hundreds of programmes around the world. We call this the Lockton/MIF Factor which can supercharge an insurance buyer in the market place. By using MIF, Private Equity firms benefit from; A unique and exclusive product which is private equity focused adding a new tool for operations at PE firms Premium savings enable multiple value creation to general partners The facility is an endorsed and established white label with credible Macquarie firm backing With the inclusion of the MGA, automatic reduction will be available against what is achievable otherwise in the open market Remove frictional cost by allowing MIF to make savings across a portfolio basis The capacity provided are all globally renowned insurers with A+ rated Access to the facility at no cost Access to higher levels of underwriting authority within insurers, including escalation if required

MIF London Facility (MLF) In support of an overall strategy, MIF now offers the MIF London Facility. This facility is an unprecedented Managing General Agent (MGA), based in London, offering market capacity that will generate an automatic cost benefit of up to 15% by reducing the lowest premium rate agreed upon with the open market. How the facility works: MIF Holdings Limited ( MHL ) holds delegated authority to commit AIG Europe Ltd. to a 30% follow line for in-scope insurance policies. Lead 70% is competitively placed in the market. The MIF insurers, including AIG, are still able to compete on the 70%. 30% following line is quoted at 15% reduction from the best price obtained from the lead insurers. This reduction is in addition to savings achieved through MIF s purchasing power. The facility follows all terms and conditions, including claims decisions set by the lead insurer. MLF is unable to participate on Motor Liabs, unless excess of 5MM Accessing the Facility with Lockton Lockton team members helped Macquarie in the development of the Macquarie London facility and were the first broker to successfully negotiate a bindable quote from MLF. We know the facility better than any other broker and therefore are best placed to help clients utilise it effectively to achieve optimum results. Client Lockton Global Energy Lead Insurers (70%) 15% Reduction MIF Leverage MHL Follow Line (30%) Premium Reduction LGE MIF Gatekeepers Gary Doran +44 (0) 7880 987 624 gary.doran@uk.lockton.com Ashlee Lohan +44 (0) 20 7933 2480 ashlee.lohan@uk.lockton.com

LGE s Claims Service LGE s claims practice are here to guide you through the challenging times following an incident. We are dedicated to assisting you through the claims process in an efficient manner to minimise the impact to your business. Pre-loss Assisting our clients with claims protocols and reporting procedures in order for the client to be fully aware of what information is required of them in the event of a loss We will meet with the client and walk them through the claims process, the entities involved and potential problems to look out for Assistance and recommendation with the loss adjuster panel within the policy In the event of a claim: Assist with reporting of claims to insurers Regular liaison with the appointed loss adjuster and other third party experts Regular status reviews of all open claims and provide updates to client Claims advocacy including policy coverage review and analysis and facilitation of claims meetings between insurer, loss adjuster and client Recommending and assisting the client in engaging valued vendor partners who can assist in substantiating/documenting the loss/claim and helping to maximize the insurance recovery Insurer interaction & coordination of claims reporting Claim negotiation with insurers we are absolutely committed to achieving the best possible results for our clients and our claims. Placing functions will work in unison, where necessary, in resolving any claims issues with insurers Post claim: Full close file review and lessons learned exercises

Contacts Downstream/Power Chairman Upstream/Liability Gary Doran Tim Law Blake Roseveare Retail Michael Bogdan Andy Neve Tim Clarke Steve Garrod Matthew Preston Linda Booth Nadin Hamdan Claims Michael Lohan Patrick Smith Graeme Herrington Technical Support Sarah Belchamber Sarah Monk MENA Karen Milne Chief Operating Officer Oliver Broking Bermuda David Way Josh Dircks Henry Dyson