The Aon Benfield Aggregate

Aon Benfield Analytics Market Analysis The Aon Benfield Aggregate Results for the six months ended June 30, 2015 Risk. Reinsurance. Human Resources.

Table of Contents Global Reinsurer Capital... 3 Executive Summary... 4 ABA Capital.... 5 Capital Development....5 Capital Management....7 Premium Income... 8 Earnings... 12 Underwriting Performance... 13 Investment Results.... 15 Net Income.............................................. 16 Return on Equity... 17 ABA Valuation.... 18 Financial Strength Ratings.... 19 Appendix 1: ABA Data.... 20

Global Reinsurer Capital Aon Benfield estimates that global reinsurer capital totaled USD565 billion at June 30, 2015, a reduction of 2% since the end of 2014. This calculation is a broad measure of capital available for insurers to trade risk with and includes both traditional and alternative forms of reinsurer capital. Exhibit 1: Global Reinsurer Capital USD (billions) 700 600 500 400 300 200 100 0 Traditional Capital Alternative Capital Global Reinsurer Capital 410 385 400 340 6% 368 388 17 22 19 22 24 28 44 50 64 68 Source: Company reports, Aon Benfield Analytics -17% 18% 321 378 18% 470 455-3% 447 428 11% 505 461 7% 540 490 575 565 6% -2% 511 497 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 Traditional capital fell by 3% to USD497 billion in the first half of 2015, driven by strengthening of the US Dollar and the impact of rising interest rates on bond valuations. The operating performance of major insurers and reinsurers remained solid, aided by below average insured catastrophe losses, economic recovery in the United States and exposure growth in emerging markets. Alternative capital has continued to increase, albeit at a slower pace than before, the total rising by 6% to USD68 billion at June 30, 2015. This is reflected in near record levels of catastrophe bond issuance, further expansion of fully collateralized placements and growing utilization of sidecar vehicles. Evolution of the ABA Aon Benfield Aggregate (ABA) reports are produced on a half-yearly basis, with the aim of highlighting current trends in the Property and Casualty (P&C) reinsurance marketplace. Recent merger and acquisition (M&A) activity has resulted in a degree of consolidation among ABA constituents. Platinum, Catlin and Montpelier were absorbed into RenaissanceRe, XL and Endurance effective March 2, 2015, May 1, 2015 and July 31, 2015, respectively. The results of these three companies remain in the ABA up until the end of 2014, but are only included in this report from the date of acquisition. The lack of data in this transitional phase means that some business has not been captured (around USD3 billion of premium). The ABA now comprises 26 publicly-listed holding companies ( the listed ABA ) and two US-domiciled subsidiaries of Berkshire Hathaway, namely National Indemnity Company (NICO) and General Reinsurance Corporation (Gen Re). As standalone operating companies, the results of NICO and Gen Re tend to be impacted by intra-group transactions. To provide a more meaningful picture of the sector s underlying performance, many of the charts and ratios used in this report focus on the listed ABA. Aon Benfield Analytics Market Analysis 3

Executive Summary Recent strengthening of the US Dollar has had a significant impact on the data underlying this report. Underwriting performance remains strong, given low global catastrophe losses. Four large ABA constituents report in Euros (Hannover Re, Mapfre, Munich Re and SCOR). Income statements are translated to US Dollars at average exchange rates, while balance sheets are translated at period-end exchange rates. The combined ratio of the listed ABA rose by 0.8 percentage points to 91.1% in the first half of 2015. P&C underwriting profit fell by 13% to USD6.8 billion, half of which related to favourable prior year reserve development. Based on average daily rates, the US Dollar strengthened by 19% against the Euro in the first half of 2015, relative to the prior year comparative period. The increase over the six months to June 30 was 8%. Traditional reinsurance capital has declined in US Dollar terms, while alternative capital continues to grow. Aon Benfield estimates that global reinsurer capital fell by 2% to USD565 billion in the first half of 2015, despite a 6% increase in alternative capital to USD68 billion. The shareholders' funds of the 28 ABA constituents fell by 4% to USD332 billion at June 30, 2015, but the total was up slightly at constant exchange rates, driven by solid earnings. Special dividends were paid by Amlin, Beazley, Hannover Re, Hiscox, Lancashire and Swiss Re, suggesting management teams remain comfortable with their capital positions. Premium growth is being achieved, despite difficult market conditions. In original reporting currencies, two-thirds of the ABA constituents achieved growth in property and casualty (P&C) premiums in the first half of 2015. Acquisition effects were significant and much of this growth occurred in primary insurance. Few companies reported organic expansion of their reinsurance business. The benefit of lower catastrophe losses was out-weighed by the impact of weakening pricing and changes in business mix on the attritional loss and expense ratios. Investment yields continue to decline, with little prospect of relief in the near term. Across the listed ABA, the ordinary investment yield has declined steadily from 4.4% in 2007 to 2.8% in the first half of 2015, despite higher levels of asset risk being assumed. Headline return on equity has eroded modestly but remains resilient. Across the listed ABA, net income attributable to common shareholders fell by 12% to USD12.3 billion in the first half of 2015. This represented a return on equity of 10.7%. Sector consolidation is underway as companies look to achieve the advantages of scale and diversification. Platinum, Catlin and Montpelier no longer appear in the ABA, having been absorbed into RenaissanceRe, XL and Endurance effective March 2, 2015, May 1, 2015 and July 31, 2015 respectively. Major transactions involving ACE, PartnerRe and White Mountains are expected to impact the ABA going forward and further corporate activity is considered likely. Alternative capital has driven catastrophe risk transfer costs down. Reinsurers continue to incorporate material alternative capital (through ILS, sidecars and asset management mandates) to lower their cost of underwriting capital. The availability of more favourable terms resulted in most ABA constituents reporting increased reinsurance cession ratios in the first half of 2015. 4 The Aon Benfield Aggregate Results for the six months ended June 30, 2015

ABA Capital The reported shareholders funds of the ABA companies stood at USD332 billion at June 30, 2015. The total for the listed ABA was USD231 billion. At constant exchange rates, these figures were broadly unchanged relative to the end of 2014. Exhibit 2: ABA Shareholders Funds (SHF) USD (billions) 400 300 200 100 NICO & Gen Re Listed ABA Total ABA 269 282 226 233 12% 5% 196 79 188 16% 78 45 48 44 15% -17% 24% 37 180 184 192 203 152 151 317 337 345 332 6% 2% -4% 90 109 106 101 227 229 240 231 0 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 Capital Development The US Dollar strengthened by 8% against the Euro over the six months to June 30, 2015. The simple mechanics of translating the shareholders funds of Hannover Re, Mapfre, Munich Re and SCOR to US Dollars at the revised rate resulted in a reduction in ABA capital of USD10.1 billion. Applying constant exchange rates, listed ABA capital rose by 1% to USD242 billion. Net income stood at USD12.4 billion and new equity of USD3.5 billion was issued in support of M&A activity. These positive factors offset unrealized investment losses of USD4.7 billion, dividends of USD7.3 billion and share buybacks of USD2.5 billion. Exhibit 3: Evolution of Listed ABA Shareholders Funds 260 12.4-10.9 USD (billions) 250 240 230 220 239.8 3.5-4.7-2.5-7.3 0.2 230.5 210 200 FY 2014 SHF Additional capital Net income Foreign Investment exchange losses Share buybacks Dividends Other SHF Aon Benfield Analytics Market Analysis 5

Between them, NICO and Gen Re reported USD101 billion of shareholders funds at June 30, 2015, representing 31% of the ABA total. On a combined basis, Munich Re, Swiss Re and ACE contributed USD97 billion or 29%. More than half of the ABA constituents reported shareholders funds in excess of USD5 billion, while three remained below USD2 billion. Exhibit 4: Shareholders Funds at June 30, 2015 100 90 USD (billions) 80 40 70 60 30 50 40 20 30 20 10 10 0 RenaissanceRe, XL and Fairfax reported capital growth of 25%, 22% and 5%, respectively, in the first half of 2015, driven by new equity issued in support of M&A activity (USD0.8 billion, USD1.9 billion and USD0.8 billion, respectively). Eleven ABA constituents reported reductions in capital, driven by a combination of adverse foreign exchange movements, unrealized investment losses and continued active capital management. The most significant declines were at Swiss Re (7%), Amlin (6%) and NICO (5%). Exhibit 5: Growth in Shareholders Funds (Original Reporting Currencies) 30% 25% 20% 15% 10% 5% 0% -5% -10% 6 The Aon Benfield Aggregate Results for the six months ended June 30, 2015

Capital Management Capital returned to investors by the listed ABA totalled USD9.8 billion in the first half of 2015, split USD7.3 billion to dividend payments and USD2.5 billion to share buybacks. These figures were down on the prior year, as companies involved in M&A activity placed their capital management plans on hold. Special dividends were paid by Amlin, Beazley, Hannover Re, Hiscox, Lancashire and Swiss Re. Exhibit 6: Dividends & Share Buybacks as a Percentage of Opening Capital 14% 12% Dividends Share buybacks 10% 8% 6% 4% 2% 0% Aon Benfield Analytics Market Analysis 7

Premium Income Total premiums written by the ABA stood at USD150 billion in the first half of 2015, of which USD112 billion related to property & casualty (P&C) business. The reductions relative to the prior year are heavily influenced by movements in exchange rates. Exhibit 7: ABA Total Premiums Written 200 175 150 Other GPW P&C GPW Total GPW 137 144 151 171 43 150 USD (billions) 125 100 75 50 40 41 43 97 103 109 128 38 112 25 0 1H 2011 1H 2012 1H 2013 Gross P&C premiums written by the listed ABA totaled USD103 billion in the first half of 2015, of which USD55 billion was direct insurance and USD48 billion was assumed reinsurance. Comparisons with the prior year are impacted by the depreciation of the Euro against the US Dollar and the absence of approximately USD3 billion of premium relating to Catlin, Montpelier and Platinum. Exhibit 8: ABA P&C Gross Premiums Written USD (billions) 160 140 120 100 80 60 40 NICO & Gen Re Insurance Reinsurance Total 128 109 19 103 97 5 4 4 49 56 93 99 112 10 55 20 56 53 48 0 1H 2011 1H 2012 1H 2013 In original reporting currencies, two-thirds of the ABA constituents achieved growth in P&C premiums in the first half of 2015. The significant swing in exchange rates was positive for the US Dollar denominated business of companies reporting in other currencies and negative for the international business of those reporting in US Dollars. 8 The Aon Benfield Aggregate Results for the six months ended June 30, 2015

On a constant currency basis, Hannover Re, SCOR and Mapfre reported growth of 10%, 6% and 8%, respectively, while Munich Re posted a decline of 8%. Acquisitions bolstered the figures at XL (Catlin from May 1, 2015), Validus (Western World from October 2, 2014), RenaissanceRe (Platinum from March 2, 2015) and Fairfax (Brit from June 5, 2015). Gross premiums written at NICO fell by 51% to USD9.0 billion, around half of which related to a 50% intra-group quota share with GEICO. The prior year was impacted by large loss portfolio transactions with GEICO and Liberty Mutual. Lancashire reported a 33% decline, or 11% excluding the effect of multi-year contracts written in the prior period. Exhibit 9: Growth in P&C Gross Premiums Written (Original Reporting Currencies) 30% 20% 10% 0% -10% -20% -30% -40% -50% -60% *P&C reinsurance segment only (as disclosed) Exhibit 10 shows the split of P&C premiums between primary insurance and assumed reinsurance across all of the ABA constituents in the first half of 2015, based on our best interpretation of sometimes inconsistent/incomplete company disclosure. Exhibit 10: P&C Segmental Splits 12 10 P&C Insurance P&C Reinsurance 8 USD (billions) 6 4 2 0 * P&C insurance relates to Risk Solutions (ERGO excluded) Aon Benfield Analytics Market Analysis 9

Exhibit 11 captures the growth/contraction in the primary insurance and assumed reinsurance segments of the ABA constituents in the first half of 2015, based on our best interpretation of sometimes inconsistent/incomplete company disclosure. Two-thirds reported growth of their primary insurance operations. Of the few reporting organic reinsurance business expansion, the most notable were Hannover Re, SCOR, Mapfre and Amlin. Exhibit 11: P&C Segmental Growth (Original Reporting Currencies) 25% 15% Reinsurance GPW Insurance GPW 5% -5% -15% -25% -35% -45% -55% * P&C insurance relates to Risk Solutions (ERGO excluded) Total P&C premiums ceded to third parties by the listed ABA stood at USD18.1 billion in the first half of 2015. This represented a cession ratio of 17.6%, up from 15.8% in the prior year period. Net premiums written totalled USD84.6 billion. Reinsurance utilisation rose most significantly at Endurance, Lancashire and QBE. The biggest reductions were at RenaissanceRe and Hiscox. Exhibit 12: Reinsurance Cession Ratios 40% 35% 30% 25% 20% 15% 10% 5% 0% *P&C reinsurance segment only (as disclosed) 10 The Aon Benfield Aggregate Results for the six months ended June 30, 2015

Total P&C net premiums earned by the ABA stood at USD84.8 billion in the first half of 2015. The contribution from the listed ABA was USD76.4 billion. Exhibit 13: P&C Net Premiums Earned 10 9 8 7 USD (billions) 6 5 4 3 2 1 0 *P&C reinsurance segment only (as disclosed) Almost two-thirds of the listed ABA companies reported growth in P&C net premiums earned in the first half of 2015. Significant expansion at RenaissanceRe, Validus and XL was fuelled by acquisitions, while the outcomes at SCOR and Hannover Re were influenced by foreign exchange movements. Additional reinsurance purchases were a feature at most of the companies reporting lower net premiums earned. At constant exchange rates, the reduction at QBE was 2%. Exhibit 14: Growth in P&C Net Premiums Earned (Original Reporting Currencies) 30% 20% 10% 0% -10% -20% *P&C reinsurance segment only (as disclosed) Aon Benfield Analytics Market Analysis 11

Earnings Overall profitability remains relatively stable, but earnings are becoming increasingly reliant on benign catastrophe experience and material reserve releases. Growing price competition and low interest rates continue to pressure underlying returns on equity. Exhibit 15: Listed ABA Pre-Tax Profit 40 30 Other Pure life technical result P&C underwriting result Investment income Capital gains/losses Pre-tax profit USD (billions) 20 10 0-10 0.5 15.4 15.0 17.7 15.1-20 1H 2011 1H 2012 1H 2013 The listed ABA reported pre-tax profit of USD15.1 billion in the first half of 2015. The reduction of USD2.6 billion relative to the prior year was mainly influenced by strengthening of the US Dollar. P&C underwriting profit fell by 13% to USD6.8 billion, including USD3.4 billion of favourable prior year reserve development (49% of the total). Ordinary investment income fell by 10% to USD12.1 billion, while capital gains fell by 47% to USD2.9 billion. Exhibit 16 shows the distribution of reported pre-tax profits. On a combined basis, NICO, Swiss Re, Munich Re and ACE contributed USD12.4 billion, or 61% of the total. Fairfax was the only company to report a loss, driven by USD0.5 billion of unrealized losses on fixed-income securities. Exhibit 16: Pre-Tax Results 6 5 USD (billions) 4 3 2 1 0-1 12 The Aon Benfield Aggregate Results for the six months ended June 30, 2015

Underwriting Performance The combined ratio of the listed ABA deteriorated by 0.8 percentage points to 91.1% in the first half of 2015, despite a further reduction in reported catastrophe losses and increased support from the favourable development of prior year reserves. These positive factors were out-weighed by the effects of weakening pricing and business mix changes on attritional loss and expense ratios. On an accident year basis (excluding prior year reserve adjustments), the combined ratio of the listed ABA deteriorated by 1.7 percentage points to 95.5%. Exhibit 17: Listed ABA Combined Ratio Composition Prior year reserve adjustment Expense ratio Attritional loss ratio Total catastrophe losses 114.1% 29.1% 91.1% 89.9% 90.3% 91.1% 3.7% 5.4% 3.7% 2.7% 59.1% 59.6% 57.6% 58.8% 60.4% 30.2% 30.7% 30.7% 31.4% 32.4% -4.2% -2.9% -3.8% -3.5% -4.4% 1H 2011 1H 2012 1H 2013 Exhibit 18 shows the distribution of reported combined ratios across the listed ABA constituents in the first half of 2015. All were profitable on a calendar year basis, although half reported weaker results relative to the prior year. The median outcome was 89.4%, up from 88.5% in the first half of 2014. Exhibit 18: Combined Ratios 120% Loss ratio Expense ratio Listed ABA combined ratio 100% 80% 60% 40% 20% 0% *P&C reinsurance segment only (as disclosed) **Excluding funds withheld Aon Benfield Analytics Market Analysis 13

Exhibit 19 shows the P&C underwriting results reported by the listed ABA constituents. On a combined basis, Swiss Re, ACE and Munich Re contributed USD2.5 billion, or 37% of the total. Exhibit 19: P&C Underwriting Results 1.0 0.9 0.8 0.7 USD (billions) 0.6 0.5 0.4 0.3 0.2 0.1 0.0 *P&C reinsurance segment only (as disclosed) **Excluding funds withheld Exhibit 20 shows prior year reserve development as a percentage of P&C net premiums earned by the listed ABA constituents. Just over half of the companies reported higher releases in the first half of 2015, relative to the prior year comparative period. None reported net additions to reserves. Exhibit 20: Prior Year Loss Reserve Adjustments 25% 20% 15% 10% 5% 0% -5% *P&C reinsurance segment only (as disclosed) ** No disclosure 14 The Aon Benfield Aggregate Results for the six months ended June 30, 2015

Exhibit 21 shows the reported accident year combined ratios (excluding prior year reserve movements) of the listed ABA constituents. Four companies reported underwriting losses on this basis. Exhibit 21: Accident Year Combined Ratios 120% 100% Listed ABA 80% 60% 40% 20% 0% *P&C reinsurance segment only (as disclosed) **Excluding funds withheld Investment Results The listed ABA reported cash and investments of USD860 billion at June 30, 2015, split fixed-income securities 66%, cash/short-term 8%, loans 7%, deposits with cedants 6%, equities 5% and other 7%. The underlying and total investment yields reported through income statements since 2006 are captured in Exhibit 22. The former has fallen by more than a third since 2007, reflecting the impact of the low interest rate environment. Exhibit 22: Listed ABA Investment Yield (Annualized) 6% Total investment yield (incl. capital gains/losses)* 5% 4.9% 4.8% 4.4% Ordinary investment yield* 4% 4.0% 3.8% 3.9% 3.7% 4.4% 3.4% 3.4% 4.0% 3.9% 3.8% 3% 3.5% 3.5% 3.1% 2% 2.9% 2.9% 2.8% 1.9% 1% FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 *Reported through income statements, excluding unit-linked and with-profit business Aon Benfield Analytics Market Analysis 15

Exhibit 23 shows the underlying and total investment yields reported by the ABA constituents through their income statements in the first half of 2015. Investment classification varies and direct comparison of results can therefore be misleading. Fairfax and PartnerRe are notable for recognizing all unrealized gains and losses through their income statements. Exhibit 23: Investment Yields (Annualized) 6% 5% 4% Ordinary investment yield* Total investment yield* 3% 2% 1% 0% -1% *Reported through income statements, excluding unit-linked and with-profit business Net Income The ABA reported net income attributable to common shareholders of USD17.3 billion in the first half of 2015, a reduction of 6% relative to the prior year. Net income across the listed ABA fell by 12% to USD12.3 billion. Exhibit 24: ABA Net Income Attributable to Common Shareholders USD (billions) 20 15 10 NICO & Gen Re Listed ABA 15.1 2.9 16.0 3.6 18.4 4.4 17.3 4.9 5 2.5 12.2 12.4 14.0 12.3 0 2.2 0.3 1H 2011 1H 2012 1H 2013 Exhibit 25 shows the distribution of net income by ABA constituent. The combined results of NICO, Munich Re, Swiss Re and ACE totalled USD10.7 billion, representing 62% of the total. 16 The Aon Benfield Aggregate Results for the six months ended June 30, 2015

Exhibit 25: Net Income Attributable to Common Shareholders 5 4 USD USD (billions) 3 2 2 1 1 0 0 Return on Equity Exhibit 26 shows the development of net income attributable to common shareholders relative to average common shareholders funds across the listed ABA since 2006. Return on equity over this period (encompassing both the financial crisis and the record year for insured catastrophe losses) averaged 11.9%. Exhibit 26: Listed ABA Common Net Income ROE (Annualized) 25% 20% 15% 10% 5% 21.6% 16.8% 3.7% 14.5% 11.3% 4.6% 11.4% 11.1% 11.1% 10.7% 0% FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 Exhibit 27 shows return on equity by listed ABA constituent, based on reported net income in the first half of 2015. Only nine companies reported improved performance on this measure, relative to the prior year period (see data in Appendix 1). Exhibit 27: Common Net Income ROE (Annualized) 20% 15% Listed ABA 10% 5% 0% Aon Benfield Analytics Market Analysis 17

ABA Valuation As at September 1, 2015, the overall market capitalization of the ABA companies had fallen by 1% since the beginning of the year. The trailing price-to-book ratio was unchanged at 1.06x. Exhibit 28: ABA Market Capitalization 140 120 100 80 60 40 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Source: Bloomberg Note: As of September 1, 2015, excluding Berkshire Hathaway Exhibit 30: ABA Trailing Price-to-Book Ratio 1.3 1.2 1.1 1.0 0.9 0.8 0.7 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Source: Bloomberg Note: As of September 1, 2015, excluding Berkshire Hathaway Exhibit 29 shows the share price development of individual ABA companies since the beginning of 2015. Exhibit 31 shows the evolution of the trailing price-to-book values of individual ABA companies since the beginning of 2015. Exhibit 29: Share Price Development Since Jan 1, 2015 Exhibit 31: Trailing Price-to-Book Ratios Lancashire SCOR PartnerRe Markel Beazley Hannover Re Hiscox QBE Arch White Mountains Amlin Argo Axis XL Validus Swiss Re RenaissanceRe Endurance Allied World Aspen Everest Re Fairfax Alleghany Munich Re Mapfre ACE -15% -5% 5% 15% 25% Source: Bloomberg Note: As of September 1, 2015 Beazley Hiscox Amlin Lancashire Markel Arch Hannover Re Fairfax QBE ACE White Mountains PartnerRe RenaissanceRe Validus Everest Re Endurance Allied World Aspen Alleghany SCOR Swiss Re Axis Argo Mapfre XL Munich Re Source: Bloomberg September 1, 2015 January 1, 2015 0.0 0.5 1.0 1.5 2.0 2.5 18 The Aon Benfield Aggregate Results for the six months ended June 30, 2015

Financial Strength Ratings Exhibit 32: Financial Strength Ratings Main Operating Company A.M. Best Standard & Poor s ACE Tempest Reinsurance Ltd A++ Review Negative AA Negative Allied World Assurance Co Ltd A Stable A Stable Amlin AG A Stable A Stable Arch Reinsurance Ltd A+ Stable A+ Stable Argo Re Ltd A Stable - - Aspen Bermuda Ltd A Stable A Stable Axis Specialty Ltd A+ Stable A+ Stable Beazley Insurance Company, Inc A Stable - - Catlin Insurance Company Ltd A Stable A Stable Endurance Specialty Insurance Ltd A Stable A Stable Everest Reinsurance (Bermuda) Ltd A+ Stable A+ Stable General Reinsurance Corporation A++ Stable AA+ Watch Negative Hannover Rück SE A+ Stable AA- Stable Hiscox Insurance Company (Bermuda) Ltd A Stable - - Lancashire Insurance Company Ltd A Stable A- Stable MAPFRE Re, Compania de Reaseguros SA A Stable A Stable Markel Bermuda Ltd A Stable A Stable Munich Reinsurance Co A+ Stable AA- Stable National Indemnity Company A++ Stable AA+ Watch Negative Odyssey Reinsurance Company A Stable A- Stable Partner Reinsurance Co Ltd A Review Negative A+ Negative QBE Re (Europe) Ltd A Stable A+ Stable Renaissance Reinsurance Ltd A+ Negative AA- Stable SCOR Global P&C SE A Stable A+ Positive Sirius International Insurance Corp A Review Negative A- Negative Swiss Reinsurance Co A+ Stable AA- Stable Transatlantic Reinsurance Co A Positive A+ Stable Validus Reinsurance Ltd A Stable A Stable XL Re Ltd A Stable A+ Stable Source: A.M. Best, Standard & Poor s Ratings as at August 2015 Upgrade / outlook raised since September 2014 Downgrade / outlook lowered since September 2014 Aon Benfield Analytics Market Analysis 19

Appendix 1: ABA Data Exhibit 33: Results for the six months ended June 30, 2015 Company Listed Groups Reporting Currency (millions) P&C Gross Premiums Written P&C Gross Premiums Written Change P&C Net Premiums Earned P&C Net Premiums Earned Change ACE USD 10,332 10,775 4% 7,328 7,326 0% Alleghany USD 2,693 2,568-5% 2,153 2,092-3% Allied World USD 1,662 1,707 3% 1,068 1,215 14% Amlin GBP 1,891 2,008 6% 1,118 1,037-7% Arch USD 2,567 2,541-1% 1,767 1,854 5% Argo USD 983 1,035 5% 662 681 3% Aspen USD 1,635 1,642 0% 1,183 1,203 2% Axis USD 3,053 2,867-6% 1,946 1,845-5% Beazley USD 1,078 1,100 2% 805 858 7% Catlin USD 3,660 - - 2,038 - - Endurance USD 1,847 2,163 17% 878 848-3% Everest Re USD 2,683 2,672 0% 2,417 2,639 9% Fairfax USD 3,837 4,117 7% 2,917 3,142 8% Hannover Re EUR 4,078 4,972 22% 3,370 3,894 16% Hiscox GBP 979 1,096 12% 643 710 10% Lancashire USD 635 424-33% 361 298-18% Mapfre EUR 8,623 9,639 12% 6,416 7,046 10% Markel USD 2,703 2,518-7% 1,915 1,901-1% Montpelier USD 513 - - 319 - - Munich Re 1 EUR 8,478 9,002 6% 8,028 8,455 5% PartnerRe USD 2,719 2,522-7% 2,034 1,948-4% Platinum USD 261 - - 251 - - QBE USD 8,491 8,692 2% 6,947 6,229-10% RenaissanceRe USD 1,217 1,306 7% 547 677 24% SCOR EUR 2,400 2,859 19% 2,059 2,450 19% Swiss Re USD 11,809 11,093-6% 9,044 8,995-1% Validus USD 1,668 1,846 11% 949 1,151 21% White Mountains USD 1,373 1,395 2% 997 1,032 3% XL USD 4,540 5,482 21% 2,851 3,383 19% ABA (Listed Sector) USD 109,075 102,759-6% 81,562 76,375-6% Gen Re USD 578 548-5% 279 300 8% NICO USD 18,217 8,977-51% 14,753 8,160-45% ABA (Total) USD 127,871 112,285-12% 96,594 84,835-12% Figures in reporting currencies, but converted to USD (millions) for ABA lines 1 P&C reinsurance segment only (as disclosed) 20 The Aon Benfield Aggregate Results for the six months ended June 30, 2015

Exhibit 33: Results for the six months ended June 30, 2015 (cont d) Company Listed Groups Loss Ratio Loss Ratio Expense Ratio Calendar Year Expense Ratio Combined Ratio Combined Ratio Change ACE 58.0% 58.0% 30.2% 30.0% 88.2% 88.0% -0.2pp Alleghany 57.6% 54.6% 31.8% 33.8% 89.4% 88.4% -0.9pp Allied World 55.3% 62.3% 29.8% 31.7% 85.1% 94.0% 8.8pp Amlin 53.7% 54.6% 33.3% 36.0% 87.0% 90.6% 3.5pp Arch 52.2% 54.7% 33.5% 34.4% 85.7% 89.1% 3.4pp Argo 55.5% 55.0% 40.1% 39.5% 95.7% 94.5% -1.1pp Aspen 52.9% 55.4% 36.0% 35.8% 88.8% 91.2% 2.4pp Axis 57.0% 59.2% 34.3% 36.1% 91.3% 95.3% 4.0pp Beazley 51.1% 48.7% 39.0% 37.0% 90.1% 85.7% -4.5pp Catlin 50.6% - 34.4% - 85.0% - - Endurance 49.7% 48.5% 35.4% 35.6% 85.0% 84.1% -1.0pp Everest Re 56.1% 57.3% 26.4% 26.8% 82.5% 84.1% 1.6pp Fairfax 60.5% 59.0% 32.3% 32.6% 92.8% 91.6% -1.2pp Hannover Re 1 69.2% 69.9% 26.1% 25.7% 95.3% 95.6% 0.3pp Hiscox 3 38.5% 35.7% 43.5% 46.8% 82.0% 82.5% 0.5pp Lancashire 34.5% 32.0% 36.1% 43.1% 70.6% 75.1% 4.4pp Mapfre 67.9% 70.8% 27.8% 28.3% 95.7% 99.1% 3.4pp Markel 60.2% 51.7% 37.7% 37.9% 97.9% 89.6% -8.3pp Montpelier 29.4% - 34.4% - 63.8% - - Munich Re 2 63.5% 61.8% 30.7% 31.1% 94.2% 92.8% -1.4pp PartnerRe 57.3% 55.8% 30.5% 30.9% 87.8% 86.7% -1.1pp Platinum 30.8% - 32.7% - 63.5% - - QBE 63.1% 59.8% 33.4% 35.5% 96.5% 95.3% -1.2pp RenaissanceRe 25.7% 36.4% 28.5% 30.4% 54.1% 66.7% 12.6pp SCOR 60.4% 59.3% 30.5% 31.6% 90.9% 90.9% 0.0pp Swiss Re 56.4% 54.4% 31.2% 35.0% 87.6% 89.4% 1.8pp Validus 33.9% 44.0% 34.6% 33.8% 68.5% 77.9% 9.4pp White Mountains 51.4% 53.7% 35.8% 35.2% 87.2% 88.9% 1.7pp XL 58.2% 56.8% 30.8% 32.7% 89.0% 89.5% 0.5pp ABA (Listed Sector) 59.0% 58.7% 31.4% 32.4% 90.3% 91.1% 0.7pp Gen Re 3 38.2% 62.5% 41.7% 33.7% 79.9% 96.1% 16.2pp NICO 3 84.0% 76.0% 13.1% 17.7% 97.1% 93.8% -3.4pp ABA (Total) 62.7% 60.4% 28.6% 31.0% 91.4% 91.3% 0.0pp 1 Excluding funds withheld 2 P&C reinsurance segment only (as disclosed) 3 As calculated by Aon Benfield Market Analysis Aon Benfield Analytics Market Analysis 21

Exhibit 33: Results for the six months ended June 30, 2015 (cont d) Company Listed Groups Prior Year Reserve Adjustment Prior Year Reserve Adjustment Prior Year Reserve Adjustment as % of NPE Accident Year Prior Year Reserve Adjustment as % of NPE Accident Year Combined Ratio Accident Year Combined Ratio Change ACE -188-236 2.6% 3.2% 90.8% 91.3% 0.5pp Alleghany -102-96 4.7% 4.6% 94.1% 93.0% -1.1pp Allied World -94-86 8.8% 7.0% 93.9% 101.0% 7.1pp Amlin -40-48 3.6% 4.7% 90.6% 95.2% 4.6pp Arch -176-147 9.9% 7.9% 95.6% 97.0% 1.4pp Argo -23-9 3.5% 1.3% 99.2% 95.8% -3.4pp Aspen -60-59 5.1% 4.9% 93.9% 96.1% 2.2pp Axis -129-121 6.6% 6.5% 98.0% 101.9% 3.9pp Beazley -73-75 9.1% 8.7% 99.2% 94.3% -4.9pp Catlin -49-2.4% - 87.4% - - Endurance -105-116 11.9% 13.7% 96.9% 97.7% 0.8pp Everest Re -3-1 0.1% 0.0% 82.6% 84.1% 1.5pp Fairfax -131-152 4.5% 4.8% 97.3% 96.5% -0.9pp Hannover Re 1 33-100 -1.0% 2.6% 94.3% 98.2% 3.9pp Hiscox -90-123 14.0% 17.3% 96.0% 99.8% 3.8pp Lancashire 2-61 -0.5% 20.6% 70.1% 95.6% 25.5pp Mapfre n.d. n.d. - - - - - Markel -167-296 8.7% 15.6% 106.6% 105.2% -1.4pp Montpelier -73-22.8% - 86.6% - - Munich Re 2-320 -300 4.0% 3.5% 98.2% 96.4% -1.8pp PartnerRe -325-398 16.0% 20.4% 103.7% 107.1% 3.4pp Platinum -76-30.1% - 93.6% - - QBE 131-69 -1.9% 1.1% 94.6% 96.4% 1.8pp RenaissanceRe -34-55 6.2% 8.2% 60.3% 74.9% 14.6pp SCOR n.d. n.d. - - - - - Swiss Re -302-360 3.3% 4.0% 90.9% 93.4% 2.4pp Validus -112-154 11.8% 13.4% 80.3% 91.3% 11.0pp White Mountains -7-13 0.7% 1.3% 87.9% 90.1% 2.3pp XL -123-157 4.3% 4.7% 93.4% 94.1% 0.8pp ABA (Listed Sector) -2,829-3,366 3.5% 4.4% 93.8% 95.5% 1.7pp Gen Re -60-45 21.5% 15.0% 101.5% 111.1% 9.7pp NICO -314-833 2.1% 10.2% 99.3% 104.0% 4.7pp ABA (Total) -3,202-4,244 3.3% 5.0% 94.7% 96.4% 1.7pp Figures in reporting currencies, but converted to USD (millions) for ABA lines n.d. = not disclosed 1 Excluding funds withheld 2 P&C reinsurance segment only (as disclosed) 22 The Aon Benfield Aggregate Results for the six months ended June 30, 2015

Exhibit 33: Results for the six months ended June 30, 2015 (cont d) Company Listed Groups Net Investment Income Net Investment Income Capital Gains / Losses Capital Gains / Losses Total Investment Return Total Investment Return Change ACE 1,109 1,113-177 37 932 1,150 23% Alleghany 225 216 132 70 357 286-20% Allied World 84 87 139 25 224 112-50% Amlin 21 27 51 57 72 84 17% Arch 152 188 56 46 208 234 12% Argo 44 43 30 21 74 64-13% Aspen 96 94 45 28 141 122-13% Axis 198 181 57-54 254 126-50% Beazley 27 28 20 15 47 44-7% Catlin 63-79 - 142 - - Endurance 80 74 6 26 86 100 16% Everest Re 254 248 80-35 335 213-36% Fairfax 254 409 1,656-512 1,910-103 n.m. Hannover Re 619 748 88 50 708 799 13% Hiscox 20 20 9 7 29 27-8% Lancashire 16 20-4 0 12 21 68% Mapfre 964 964 107 136 1,071 1,100 3% Markel 179 183 25 12 203 195-4% Montpelier 25-43 - 68 - - Munich Re 1 3,370 3,613 1,189 1,567 4,559 5,180 14% PartnerRe 247 225 308-140 555 85-85% Platinum 35 - -1-34 - - QBE 339 291 89 282 428 573 34% RenaissanceRe 85 90 42-1 127 89-30% SCOR 240 264 48 110 288 374 30% Swiss Re 1 2,119 1,788 509 823 2,628 2,611-1% Validus 51 68 113 61 163 129-21% White Mountains 54 47 178 42 232 89-61% XL 498 401 100 9 598 410-31% ABA (Listed Sector) 13,422 12,109 5,586 2,933 19,009 15,042-21% Gen Re 445 193-35 53 410 246-40% NICO 2,996 3,298 1,653 1,393 4,649 4,691 1% ABA (Total) 16,864 15,599 7,204 4,379 24,068 19,979-17% Figures in reporting currencies, but converted to USD (millions) for ABA lines n.m. = not meaningful 1 Reported through income statements, excluding unit-linked and with-profit business Aon Benfield Analytics Market Analysis 23

Exhibit 33: Results for the six months ended June 30, 2015 (cont d) Company Listed Groups Pre-Tax Result Pre-Tax Result Change Pre-Tax Return on Equity* Pre-Tax Return on Equity* Change ACE 1,739 1,886 8% 11.8% 12.8% 1.0pp Alleghany 471 411-13% 13.1% 10.9% -2.3pp Allied World 352 141-60% 19.5% 7.6% -11.9pp Amlin 147 143-3% 17.5% 16.5% -1.0pp Arch 402 454 13% 12.7% 12.7% 0.1pp Argo 87 97 11% 10.9% 11.7% 0.8pp Aspen 261 184-29% 15.2% 10.9% -4.4pp Axis 364 240-34% 12.3% 8.1% -4.1pp Beazley 133 155 16% 20.4% 23.0% 2.5pp Catlin 318 - - 16.4% - - Endurance 188 198 5% 12.5% 12.2% -0.3pp Everest Re 717 652-9% 19.4% 15.9% -3.5pp Fairfax 1,643-42 n.m. 36.6% -0.8% -37.4pp Hannover Re 635 741 17% 18.7% 17.9% -0.8pp Hiscox 125 135 8% 18.2% 18.8% 0.7pp Lancashire 99 89-10% 13.3% 13.2% -0.2pp Mapfre 942 815-13% 18.3% 14.5% -3.7pp Markel 170 340 99% 4.9% 8.8% 3.9pp Montpelier 147 - - 15.4% - - Munich Re 2,010 2,267 13% 14.9% 14.9% -0.1pp PartnerRe 716 221-69% 20.9% 6.2% -14.7pp Platinum 106 - - 12.0% - - QBE 487 679 39% 9.0% 12.3% 3.3pp RenaissanceRe 362 254-30% 14.7% 9.4% -5.3pp SCOR 336 455 35% 13.3% 15.5% 2.2pp Swiss Re 2,486 2,850 15% 14.9% 16.4% 1.5pp Validus 443 347-22% 20.4% 16.7% -3.6pp White Mountains 222 81-64% 9.9% 3.6% -6.3pp XL -29 678 n.m. -0.5% 10.6% 11.1pp ABA (Listed Sector) 17,715 15,114-15% 14.6% 12.3% -2.3pp Gen Re 468 264-44% 7.9% 4.5% -3.5pp NICO 4,633 5,165 11% 9.4% 11.3% 1.8pp ABA (Total) 22,815 20,542-10% 12.9% 11.8% -1.2pp Figures in reporting currencies, but converted to USD (millions) for ABA lines n.m. = not meaningful *Calculated by excluding the impact of net realized and unrealized investment gains/losses reported through income statements (annualized) 24 The Aon Benfield Aggregate Results for the six months ended June 30, 2015

Exhibit 33: Results for the six months ended June 30, 2015 (cont d) Company Listed Groups Common Net Income Common Net Income Change Return on Equity* Return on Equity* Change ACE 1,513 1,623 7% 10.2% 11.0% 0.7pp Alleghany 354 308-13% 9.9% 8.1% -1.7pp Allied World 329 134-59% 18.3% 7.2% -11.0pp Amlin 136 133-2% 16.3% 15.4% -0.9pp Arch 380 388 2% 13.5% 13.4% -0.2pp Argo 79 87 10% 9.9% 10.5% 0.6pp Aspen 232 158-32% 16.2% 11.1% -5.1pp Axis 328 219-33% 12.5% 8.3% -4.1pp Beazley 114 133 17% 17.5% 19.8% 2.2pp Catlin 273 - - 16.7% - - Endurance 171 176 3% 13.3% 12.5% -0.8pp Everest Re 584 532-9% 16.3% 14.0% -2.3pp Fairfax 1,119 14-99% 29.1% 0.3% -28.8pp Hannover Re 444 532 20% 14.5% 14.0% -0.5pp Hiscox 120 129 8% 17.5% 18.0% 0.6pp Lancashire 105 93-12% 14.2% 13.8% -0.4pp Mapfre 458 316-31% 11.2% 7.1% -4.1pp Markel 128 282 121% 3.7% 7.4% 3.7pp Montpelier 127 - - 16.9% - - Munich Re 1,694 1,860 10% 12.7% 12.3% -0.4pp PartnerRe 553 129-77% 18.6% 4.1% -14.4pp Platinum 100 - - 11.3% - - QBE 392 488 24% 7.3% 8.9% 1.6pp RenaissanceRe 272 241-11% 15.7% 12.2% -3.5pp SCOR 256 327 28% 10.2% 11.2% 1.0pp Swiss Re 2,028 2,260 11% 12.2% 13.1% 0.9pp Validus 316 237-25% 16.9% 13.1% -3.8pp White Mountains 191 89-54% 9.5% 4.4% -5.1pp XL -24 951 n.m. -0.5% 17.1% 17.5pp ABA (Listed Sector) 14,001 12,330-11.9% 12.2% 10.7% -1.5pp Gen Re 355 189-47% 6.0% 3.2% -2.8pp NICO 4,060 4,748 17% 8.2% 10.3% 2.1pp ABA (Total) 18,416 17,267-6% 10.9% 10.3% -0.5pp Figures in reporting currencies, but converted to USD (millions) for ABA lines n.m. = not meaningful *Common net income as a percentage of average common equity (annualized) Aon Benfield Analytics Market Analysis 25

Exhibit 33: Results for the six months ended June 30, 2015 (cont d) Company Listed Groups Cash and Investments FY 2014 Cash and Investments Change Shareholders Funds FY 2014 Shareholders Funds Change ACE 64,063 64,693 1% 29,587 29,555 0% Alleghany 19,441 19,699 1% 7,473 7,642 2% Allied World 8,539 8,913 4% 3,778 3,625-4% Amlin 4,564 4,261-7% 1,783 1,680-6% Arch 15,741 15,441-2% 6,130 6,138 0% Argo 4,179 4,189 0% 1,647 1,669 1% Aspen 8,654 8,557-1% 3,419 3,363-2% Axis 14,980 14,808-1% 5,821 5,949 2% Beazley 4,451 4,360-2% 1,343 1,347 0% Catlin 9,276 - - 3,992 - - Endurance 6,720 6,617-2% 3,185 3,303 4% Everest Re 17,664 18,236 3% 7,451 7,727 4% Fairfax 25,803 28,543 11% 9,526 9,967 5% Hannover Re 52,080 55,271 6% 7,551 7,673 2% Hiscox 3,490 3,391-3% 1,453 1,414-3% Lancashire 2,343 2,299-2% 1,357 1,333-2% Mapfre 48,244 45,959-5% 9,153 8,721-5% Markel 18,638 18,459-1% 7,595 7,742 2% Montpelier 3,190 - - 1,648 - - Munich Re 1 219,965 222,934 1% 30,018 30,424 1% PartnerRe 17,988 17,492-3% 7,049 7,080 0% Platinum 3,398 - - 1,738 - - QBE 28,597 27,916-2% 11,030 10,949-1% RenaissanceRe 7,269 9,678 33% 3,866 4,837 25% SCOR 25,894 27,655 7% 5,694 5,993 5% Swiss Re 1 137,355 130,445-5% 35,930 33,303-7% Validus 8,409 8,639 3% 3,588 3,657 2% White Mountains 7,802 7,712-1% 3,996 3,975-1% XL 30,466 37,852 24% 10,034 12,247 22% ABA (Listed Sector) 897,320 860,336-4% 239,785 230,956-4% Gen Re 15,672 15,809 1% 11,707 11,846 1% NICO 162,422 156,581-4% 93,998 89,526-5% ABA (Total) 1,075,414 1,032,725-4% 345,489 332,328-4% Figures in reporting currencies, but converted to USD (millions) for ABA lines 1 Excluding unit-linked and with-profit business 26 The Aon Benfield Aggregate Results for the six months ended June 30, 2015

Contacts Mike Van Slooten Head of Market Analysis International Aon Benfield Analytics +44.207.7522.8106 mike.vanslooten@aonbenfield.com Mike McClane Head of Market Analysis Americas Aon Benfield Analytics +1.215.751.1596 michael.mcclane@aonbenfield.com Marie Teissier Senior Analyst Market Analysis International Aon Benfield Analytics +44.207.7522.3951 marie.teissier@aonbenfield.com Eleanore Obst Analyst Market Analysis International Aon Benfield Analytics +44.207.7522.3823 eleanore.obst@aonbenfield.com About Aon Benfield Aon Benfield, a division of Aon plc (NYSE: AON), is the world s leading reinsurance intermediary and fullservice capital advisor. We empower our clients to better understand, manage and transfer risk through innovative solutions and personalized access to all forms of global reinsurance capital across treaty, facultative and capital markets. As a trusted advocate, we deliver local reach to the world s markets, an unparalleled investment in innovative analytics, including catastrophe management, actuarial and rating agency advisory. Through our professionals expertise and experience, we advise clients in making optimal capital choices that will empower results and improve operational effectiveness for their business. With more than 80 offices in 50 countries, our worldwide client base has access to the broadest portfolio of integrated capital solutions and services. To learn how Aon Benfield helps empower results, please visit aonbenfield.com. Aon UK Limited trading as Aon Benfield (for itself and on behalf of each subsidiary company of Aon Plc) ( Aon Benfield ) reserves all rights to the content of this report. This document is intended as a courtesy to the recipient for general information and marketing purposes only and should not be construed as giving advice or opinions of any kind (including but not limited to insurance, tax, regulatory or legal advice). The contents of this document are based on publicly available information and/or third party sources in respect of which Aon Benfield has no control and which have not necessarily been verified. The content of this document is made available without warranty of any kind and without any other assurance whatsoever as to its completeness or accuracy. Aon Benfield disclaims any legal or other liability to any person or organization or any other recipient of this document (together a Recipient ) for loss or damage caused by or resulting from any reliance placed on this document or its contents by such Recipient. Best s Credit Ratings are under continuous review and subject to change and/or affirmation. For the latest Best s Credit Ratings and Best s Credit Reports (which include Best s Credit Ratings), visit the A.M. Best website at http://www.ambest.com. See Guide to Best s Credit Ratings for explanation of use and charges. Best s Credit Ratings reproduced herein appear under license from A.M. Best and do not constitute, either expressly or impliedly, an endorsement of (Licensee s publication or service) or its recommendations, formulas, criteria or comparisons to any other ratings, rating scales or rating organizations which are published or referenced herein. A.M. Best is not responsible for transcription errors made in presenting Best s Credit Ratings. Best s Credit Ratings are proprietary and may not be reproduced or distributed without the express written permission of A.M. Best Company. A Best s Financial Strength Rating opinion addresses the relative ability of an insurer to meet its ongoing insurance obligations. It is not a warranty of a company s financial strength and ability to meet its obligations to policyholders. View our Important Notice: Best s Credit Ratings for a disclaimer notice and complete details at http://www.ambest.com/ratings/notice.

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