Fidelis Insurance Holdings Limited March 2019 Fidelis: The Winning - - PowerPoint PPT Presentation

SLIDE 1

Fidelis Insurance Holdings Limited

March 2019

SLIDE 2

Fidelis: The Winning Model in a Changing Market

Underwriting

• utperformance,

profitable top-line growth, and partnership income Efficient Capital Management Sustainably Superior ROEs in an Uncorrelated Market

+ =

2

1. Bespoke products Focused offering of innovative products with embedded profitability 2. Superior market access Relevance in all pillars (Bespoke, Specialty, Reinsurance, Partnership Fee income),

reputation and multi-decade relationships driving lead roles

3. Disciplined underwriting supported by state of art toolkit In-house system and differentiated analytics,

aggregation and risk management platforms

4. Flexible capital allocation Innovative range of 3rd party partnerships to optimise risk and enhance returns 5. Custom built, lean operating platform with no-legacy issues FireAnt & Tyche 6. Exceptional management team

Proven track-record aligned with prior experience of working together Execution focused; switched from Specialty to Bespoke; exited hedge funds for traditional investment portfolio

7. Diversified partnership driven earnings stream Rated Q/S, Socium Re, Bespoke & Specialty Q/S

Product innovation driven by superior underwriting, flexible capital allocation and efficient platform driving ROE outperformance

SLIDE 3

Secular Market Change

1 (Source: Swiss Re Sigma report)

Unlike 2005 no significant company rating impairments - no barriers to entry for new capital third party vehicles As a Result price increases in 2018 and 1 January 2019 were only flat to marginally up unless directly loss affected

2017/2018 was the costliest catastrophe 18 months on record – over USD 220bn1

The old model of relying on regular catastrophe losses to drive pricing corrections and broad 2006-style hard markets is severely impaired Fidelis’ Strategy facilitates profitable growth following the secular market change with the focus on innovation and new risk markets If you do the same things, do them better

FIDELIS’ FOUR PILLAR STRATEGY

§ In this market Fidelis deploys its underwriting expertise driven by two philosophies:

Innovating new product streams for new uses for the insurance balance sheet

3

SLIDE 4

Four Pillar Strategy: Diversified Income and Investment

4

SLIDE 5

• 1. Focused offering of Bespoke products with embedded profitability

Bespoke – 47% of GPW but through overall risk allocation; 64% of NPW in 2018 Gross Premiums Written ($m) Key drivers of demand: How is Fidelis positioned to succeed?

• Bespoke is a specific risk transfer
• pportunity often driven by

regulatory capital relief, capital efficiency or transaction facilitation

• Customised modelling and

wordings that closely defines that exposure

• Fidelis sets the terms and conditions

with embedded intellectual property and barriers to entry

• Each bespoke transaction requires an

understanding of the specific risk driver

• Strong engagement with

counterparties and technical expertise is key

Characteristics of bespoke products:

• Highly specialised models tailored to

the risk profile and driven by extensive data history

• Low and stable attritional loss exposure
• Carefully defined tail loss exposure
• Little/no correlation to peak

catastrophe perils so highly capital efficient

GWP Bespoke $0 $50 $100 $150 $200 $250 $300 $350

2016 2017 2018 GWP Bespoke $188 $210 $319

GPW 2016 – 2018 CAGR: 30% 5

0% 10% 20% 30% 40%

2016 2017 2018 IBNR 9% 15% 30% Incurred 10% 4% 1%

Bespoke Net Developed Loss Ratio by Accident Year

SLIDE 6

Reinsurance – 47% of GPW but through risk allocation 30% of NPW in 2018

1 Based on 2017 year end total shareholders’ equity

Fidelis has achieved sustained growth in Reinsurance since its inception in 2015

• Strong retail and wholesale broker relations combined with long standing client relations
• Market-leading analytic capabilities, enabling portfolio optimization
• Quoting market on 79% of reinsurance business written in 2018
• Avoiding unprofitable lines of business and an optimized blend of regional and nationwide

carriers

• Targeting clients with first-rate data
• Focusing on attachment points exposed to true catastrophe events
• No direct commercial and industrial business; no property binders

8% Whole Account 2% Retro 90% Property Cat XOL Reinsurance Re Reinsurance GWP by Pr Product - 2018 2018 Reinsurance Net Developed Loss Ratio by Accident Year Reinsurance Gross Premiums Written ($m)

Reinsurance $0 $50 $100 $150 $200 $250 $300 $350

2016 2017 2018 Reinsurance $181 $265 $328

• 2. Focused book of Homogeneous Property Catastrophe Reinsurance

Fidelis outperformed peers in 2017 during the largest catastrophe year on record, 2017 losses have now reduced from 2.9% of equity to 1.8%1 as at 12/31/2018

The above loss ratios exclude unallocated loss adjustment expenses

6 0% 10% 20% 30% 40% 50% 60% 70%

2016 2017 2018 IBNR 35% 14% 33% Incurred 26% 33% 29%

SLIDE 7

Specialty – 6% of GPW in 2018 – Premium reduction From $71m to $44m caused by seasonalisation of multi-year products Specialty Net Developed Loss Ratio by Accident Year Specialty Gross Premiums Written ($m) 14% Marine 59% Energy Sp Speci cial alty GWP P by by Product - 2018 2018 27% Aviation and Aerospace

Specialty $0 $20 $40 $60 $80

2016 2017 2018 Specialty $35 $71 $44

The above loss ratios exclude unallocated loss adjustment expenses

Specialty Portfolio Overview

• Business lines primarily include aviation, war, energy, marine, terrorism
• Marine predominantly liabilities and select hull clients
• Predominantly high excess catastrophe placements for energy & business
• Innovative underwriting approach focused on profitability versus growth
• Private placements driven by long-term client relationships
• Seek out capacity driven layers with attractive pricing
• Excellent broker network and support in a saturated environment
• Ability to adapt to ever changing market dynamics and ramp up if dislocated
• Opportunistic catastrophe driven Property Risk
• 2. Specialty Focused on Core Clients and Niche Opportunities

25 years of trading relationships and experience in all lines allows us to upsize with market opportunities

7 0% 5% 10% 15% 20% 25% 30%

2016 2017 2018 IBNR 4% 13% 18% Incurred 8% 6% 9%

SLIDE 8

• 2. Superior Market Access

Driven by Relevance Reputation and Multi-Year Relationships

Reinsurance top 3 brokers contribute 84%

• f GPW with over 200 years of

relationship with senior management Bespoke & Specialty deals with 40 brokers top 3 Insurance brokers represent ~50%

• f GWP

Third party capital from previous relationships from 2005 Scirocco, Accordion, Saltire, Kinesis & Socium MGA’s: Contract with market leaders on a long term basis in closely defined niches with strict delegation and ownership stake where appropriate Specialty: Strong relationship over many decades with brokers & clients led to niche Aviation, Marine & Energy portfolio Reinsurance: Directly visited 85% of target/in-force clients in 2018/19

Multi-year relationships

“Mr Brindle is acknowledged to be one of the most successful underwriters in the worldwide insurance market and has a track record of outperformance

• ver the past 30 years” AM Best

August 2018 Lead 98% of Bespoke business with key buyers and decision makers Lead 79% of reinsurance business

Reputation

Capability to deploy significant line size Unique brand as the market of first resort for innovation, distressed and private deals

Relevance

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Fidelis has achieved compelling results across product segments

SLIDE 9

• 3. Disciplined and Creative Underwriters

Allocating Risk & Capital between

• wn & third party balance sheets for
• ptimised risk/return
• Management has market-leading

expertise that manages risk on gross / net basis

• Active Management of Risk increases

capital efficiency

Risk & Return Committee Four Pillars Underwriting & Marketing Conference Calls

• Real time peer review

and management of portfolios

• Active management
• f risk resulting in

unique portfolios

• Daily underwriting

call attended by CEO

Creativity in Bringing New Products to Market

• In-house expertise to

innovate client-led solutions

• Rate Maker rather than

Rate Taker

• Finding growth through

first mover advantage

Superior Solutions for Clients

• Ability to move quickly to deliver

bespoke products without cumbersome Lloyd's restrictions

• Long-term relationships with quality

clients while respecting core broker distribution model

Disciplined Underwriting approach

Prudent and proven underwriting and risk management framework

• Focus on maintaining a uniform &

consistent underwriting approach

• Drives consistent capital allocation

across different business lines

Key differentiators

• No legacy data systems
• In-house development team means fit for

Fidelis

• No black box third party assumptions
• 2019 Fidelis will be in top 5% of companies
• n real time catastrophe exposure

monitoring

Underwriting Approach

Jarvis

Tyche Prequel FireAnt

Model platform for capital allocation, industry leading performance FireAnt is an innovative insurance pricing, analytic, and portfolio optimization tool All submissions logged in a single custom- developed underwriting system Integrated group-wide data store with data definition & data quality checks

Differentiated Underwriting Model Enables Informs

&

With State-of-the-Art Underwriting, Aggregation and Risk Management Platforms

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• 4. Superior Risk Selection and Capital Allocation to Maximise Returns

ü Market-leading expertise that manages risk on gross / net basis real time ü Real-time decisions to allocate risk and capital between own & 3rd party balance sheets ü Diversified capital & risk-taking approach via 3rd parties increases cross-sell, idea generation and new business

Fidelis is able to analyse real time, profitability vs diversified risk capital requirement for incoming business business matched with appropriate capital

Share of GPW (outside circle) and NPW (inside circle)

10

Reinsurance Specialty Bespoke

SLIDE 11

In Inputs

• 5. Custom Built Lean Operating Platform

1This slide contains forward –looking information.

See “ Important Note” slide 21

All key data records, calculations and aggregations built in-house to leverage competitive advantage in data manipulation and real-time reporting.

Fidelis will benefit from economies of scale that will increase the ratio of underwriting profit to G&A expense in future years

PRE PREQUEL - Submission workflow, Policy & Claims Administration, Outwards Reinsurance, Business planning, Sanctions and Compliance FI FIREANT – Exposure Management, Pricing & Rating, Portfolio Rollups, Business Planning, Threats Analysis TY TYCHE – Capital Modelling Platform, Optimisation In Inputs

• MGA Reporting
• Electronic Data

Interchanging

• Policy Data
• AIR (Catastrophe, Cyber)
• EXACT (Energy)
• PREQUEL (Terror, Credit,

PR) JA JARVIS – DA DATA HUB

Summary KPIs

6.6 7.2 7.6 2016 2017 2018

Fidelis’ GPW per head ($m)

2.1 2.8 4.3 1.9 1.3 3.1 8.3 Argo Aspen Axis Beazley Hiscox Lancashire Ren Re

2018 GPW per head ($m)

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$(0.45) $0.01 $0.17 $0.22 $0.33 $1.15 Aspen Axis Beazley Hiscox Lancashire Ren Re

2018 underwriting profit per $ of G&A expense

$1.53 $1.70

• 20%

30% 80% 130% 2016 2017 2018

Mature state underwriting profit per $ of G&A expense

(1) G&A expenses have been restated to align with changes in Fidelis’ accounting policies

$(0.08)

SLIDE 12

• 6. Exceptional Management Team with Proven Track Record

* Four of the executive have worked together for over 25 years

The Fidelis Executive management team bring together 200+ years of cumulative experience in broking, underwriting, corporate and actuarial roles as well as long-term client and broker relationships

12

30+ Years CRO, Group Executive Director Specialty broking, MGA, Specialty underwriting - Lancashire

Charles Mathias *

20+ Years CFO & CEO Bermuda Chief Actuary – XLC Bermuda

Hinal Patel

30+ Years CEO UK Co CEO Global Reinsurance Specialty – Aon Benfield

Daniel Burrows *

20+ Years COO & General Counsel Head of group legal - Aspen

Patricia Roufca

30+ Years Head of Strategic Relationships Specialty Broking, Equity, Corporate & IR – Lancashire, Execution

Jonny Creagh-Coen*

15+ Years CUO UK, Head of Bespoke & Specialty Bespoke & Specialty Broking, Underwriting – Hiscox, JLT, MMC Capital, Marsh

Richard Coulson

15+ Years Head of Partnerships & International Reinsurance R/I underwriting, Third party capital – Hiscox

Philip Vandoninck

20+ Years CUO Bermuda & Head

• f Reinsurance

R/I Underwriting – Amlin

Richard Holden

15+ Years CEO & CFO Ireland CFO PartnerRe Insurance

Rob Kelly

Richard Brindle*

30+ Years Lead Lloyd’s Underwriter

• ver two decades and

founded Lancashire Insurance (2005) and Fidelis insurance (2015).

SLIDE 13

Return on Capacity (Profit Before Personnel Expenses as % of Capacity)

1 6

Lancashire Total Return Under Brindle Leadership1 vs. Peer Group

(1) Richard Brindle served as Lancashire’s CEO from its formation in 2005 until 30 April 2014; Lancashire’s IPO was completed on December,16 2005. (2) Peer Group for Lancashire comparison includes Ace, XL, Arch, Everest, PartnerRe, Axis, Allied World, Renaissance Re, Validus and Montpelier, Greenlight Re and Third Point Re, Hiscox, Amlin, Catlin, Beazley, and Novae. Market performance from December 2005 until December 2013.

Source: Lloyd’s filings. 3) Brindle’s Lloyd’s Syndicates comprise Syndicates 2488 and 488. Note: Other employees, in addition to Richard Brindle, contributed to Brindle's Lloyd's Syndicates' track record. Past performance does not indicate future results. Any investment entails a risk of loss.

Note: Syndicate 2488 and 488’s combined return on capacity (profit before personal expenses as a percentage of capacity) of 16% translates to a 22% pre-tax return on common equity (Assuming a 75% capacity to capital ratio). These returns are Fidelis management’s estimates for capital requirement supporting syndicates 488 and 2488 for the relevant years.

• 6. Exceptional Management Team with Proven Track Record

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SLIDE 14

• 6. Conservative Investment Portfolio

PREDOMINANTLY HIGH QUALITY, SHORT DURATION, FIXED INCOME ASSETS

Ma Main reasons for change:

• The investment results were poor, magnified by the

balance sheet drag caused by rating agency requirement to hold significantly more capital for hedge funds

• The assertions about the alpha that the managers could

provide were unsupported by experience, and the volatility in the results was not compatible with a rated (re)insurance company

• Focus our equity story on our core expertise -

underwriting where we outperform

• Capital efficiency improved

In Investment Strategy as at 12/31/2018

To outperform the benchmark over a full investment cycle, net of fees, through investing in a diversified portfolio of USD investment grade securities and a limited amount of risk assets Du Duration 1. 1.9y 9yrs Yi Yield of ~3 ~3.0% Ma Managed by Goldman Sachs & JPMo Morgan

~9 ~90% of Fixed d Inc ncome ra rated d AAA AAA-A ~5 ~50% in n Cash h and nd Govt. Securi urities

$1. $1.4b 4bn $1. $1.0b 0bn

Ad Adaptation of Fidelis’ s’ investment strategy

In mid 2017 Fidelis’ investment strategy changed to be in line with a traditional re/insurance company with greater than 80% of assets in fixed income & cash and the remainder in risk assets 14

SLIDE 15

• 7. Diversified Partnership Driven Earnings Stream

1The above does not include any profit commissions

Partnership concept

• Fidelis’ market leading position

enables it to access business in excess of its own risk appetite

• Partnership model enables

Fidelis to share such risk with its partners

• Partners get to benefit from

Fidelis’ intellectual property, expertise and origination

$0 $200 $400 $600 $800 $1,000 $1,200

2016 2017 2018 2019E Collateralised $0 $0 $121 $146 Rated $246 $474 $566 $905

Capital Under Management ($m)

Segments covered

• Property Catastrophe

Reinsurance

• Specialty
• Bespoke
• Dislocated post-loss
• pportunities

Rated Quota Shares Collateralised Quota Shares Collateralised ‘Tall Trees’ Socium Re

Pa Partners access Fi Fidelis’ expertise via

15

$0 $2 $4 $6 $8 $10

2016 2017 2018 Overriders $2 $5 $9

Fee Income ($m)1

This slide contains forward –looking information. See “ Important Note” slide 21

SLIDE 16

Market Leading Risk Analysis and Allocation; CROUD

OUTCOME:

• Fidelis is the most th

thoughtf tful, te tech enabled and disciplined underwrite ter with a track record of consistent outperformance across multiple products

• Ready for the next stage of capital evolution; not all risk on our own balance sheet but a

a hybrid risk al allocat ator, al aligned with investors

16

Risk Analysis and Allocation is the fit for purpose alliance of Cus ustomised, d, Rep eputation, Opt ptim imisa isatio ion, Unde nderwri riting ng focus us and nd Disc iscip iplin line C R O U D

Customised

Wi With a lean operation and no no legacy it allows us us a real ti time holisti tic view of risk ac across the organ ganisat ation

• Peak natural Catastrophe

exposures drives rating agency capital models

• Tail Risk is particularly capital

Inefficient

• The more capacity a

(re)insurer can deploy on a deal, the more you can drive price, terms & conditions

Reputation

Ri Richa hard d Br Brindl ndle and nd the he Fi Fidelis team have an unpa unparalleled d reput putation n for wo working wi with clients and an ab ability to deploy sign gnifican ant ca capital into distressed ma markets

• 1994

1994 First Gulf War – Marine Hull

• 2001

2001 WTC – Terror, Aviation, Property, Specialty

• 2006

2006 KRW - Energy, Retro , Specialty

• 2008

2008 IKE - Energy, Model Change

• 2011/

2011/12/ 12/13 13 - NZ Quakes, Tohoku, Thai floods - Retro

• 2014

2014 Reinsurance Dislocation – Composite

• 2016/

2016/17/ 17/18 18 Frequency Cat Losses - Back Ups

Optimisation

Le Leveraging reputation for in innovatio ion t to g generate si significant new busi siness ss fl flow

• Capture risk management

benefits by seamless utilisation of off balance sheet solutions with Fidelis’ own balance sheet

• Ability to leverage off-balance

sheet capital allows Fidelis to set pricing, terms and conditions

Underwriting Focus

Th The key tools an and multi- di discipl plina nary review give Fi Fidelis advantages in data, an anal alytics an and an anal alysis

• Da

Daily underwriting call means

• pportunities are reviewed by

the Group CEO, Richard Brindle, the entire underwriting team plus modellers, actuaries, risk, finance, legal and compliance

• State of the art Prequel

underwriting system, FireAnt aggregation and analytics give re real time and scenari rio based an anal alysis of balance sheet, capital requirements and

• pportunities

Dis iscip iplin line

Us Using daily call, weekly new bus busine ness upda updates and nd mo monthly risk review ensures di discipl pline ne

• Daily call supplemented by

weekly Fo Four Pillars meeting to look at new business

• pportunities and cross selling

possibilities

• Monthly Ri

Risk and nd Re Retur urn n Co Committee monitors aggregations, cross class peril clashes and key risk tolerances

• Exited Hedge funds for

conservative investment portfolio – Concentrate on underwriting skill set

SLIDE 17

Key Financial Highlights

(I (In $ mi millions, exc excep ept fo for pe per sh share da data an and ra ratios) Fo For th the year ended 31 31st

st De

December 2018 2018 Fo For th the year ended 31 31st

st De

December 2017 Gr Gross written premium 691.1 545.9 Ne Net earned premi miums ms 289.0 219.1 Lo Loss ratio(1

(1)

29.1% 42.5% Co Combined ratio(2

(2)

77.7% 86.0% Ma Mature state combined ratio(3

(3)

71.2% 78.1% To Total l in inves estmen ent ret eturn(4

(4)

1.1% 0.0% Fu Fully dilute ted book value per sh share(5

(5)

7.80 8.35 Re Return on

• n Equity(6

(6)

6.2% 0.4% Ma Mature State Return on Equity 11.5% 6.6% Pr Preferred equity 242.2 280.0 Co Common equity 963.2 1,025.2 To Total l Shareh ehold lder ers’ Equit ity 1,205.4 1,305.2

Note: Please find details of footnotes on slide 20

1This slide contains forward –looking information. See “ Important Note” slide 21

17

*Right sizing capital after exit from hedge funds $0 $20 $40 $60 $80 $100 $120 $140 $160

2017 2018 2019E Preferred Share Repurchases $7 $38 $10 Common Share Dividends $0 $115 $66 Common Share Repurchases $2 $0 $8

Track record of capital return to shareholders ($m)

*

SLIDE 18

Potential ratings upgrade of Fidelis to accelerate and/or enhance delivery of above building blocks

• Driven by increased contribution from highly profitable, capital efficient

bespoke business

• Fidelis’ unique positioning to drive:

Ø Gain in market share with existing clients Ø Acquisition of new clients

Future Year ROE Economies of Scale Bespoke Proportion Increase Increase in Fee income Mature State Earnings 2018 Actual ROE

RoE Progression

6.2%

• Growth in GPW to outpace growth in expenses

Fidelis’ ROE Ambition

18

1This slide contains forward –looking information. See “ Important Note” slide 21

• Driven by earn through on business currently on Fidelis’ balance sheet
• NEP/ NWP ratio evolves from 59% currently to 80% “mature state”

50 100 150 200 250 2019 2020 2021 2022 2023

Future net earnings on 2018 and prior written business

• Capital light fee income to grow due to

Ø Ramp up of third party capital under management Ø The increase in quota shares

SLIDE 19

2017 losses as a % of equity 12pps better than peer average, 250% better than nearest peer, Losses reduced from 2.9% of equity to 1.8%1 as at 12/31/2018

Source: The information presented is based on each of the companies 2017 and 2018 year-end earnings releases or financials statements as applicable Catastrophe events included for 2017 are: Hurricane Harvey, Hurricane Irma, Hurricane Maria, California Wildfires, Mexican Earthquakes. Catastrophe events included for 2018 are: Hurricane Michael, Hurricane Florence, Typhoon Jebi, Typhoon Trami, California Wildfires. Amounts are estimated through grossing up of impact where peers provided only a net of reinstatement number `

Superior Underwriting Performance

2018 losses as a % of equity 3pps better than peer average, with the lowest losses in the group

1 Based on 2017 year end Total Shareholders’ Equity

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SLIDE 20

20

Footnotes to Financial Highlights

1. Loss ratio is calculated as: net losses divided by net earned premiums. It also includes the impact of a derivative based upon the total industry losses incurred from Typhoon Jebi which has been included in the investment income rather than net premiums earned and net losses. 2. Combined ratio includes the impact of the Jebi derivative discussed in note (1). 3. Mature state is when the ratio of net earned premium to net written premium is equal to approximately 80% which we expect to achieve in 2023. 4. Total investment return is calculated as: net investment income/(loss) divided by total investible assets, including cash. This includes gains and losses on available for sale assets for 2018. It excludes the gain on the Jebi derivative discussed in footnote 1. During 2018, Fidelis amended its accounting policy such that all fixed income securities acquired in 2018 and going forward are classified as available for sale. 5. Fully diluted book value per share is the equity attributable to Fidelis’ shareholders divided by the sum of common shares outstanding and the dilutive impact of outstanding warrants and restricted stock units. 6. ROE is calculated as the change in diluted book value per share over the opening diluted book value per share adjusted for common

• dividends. Beginning diluted book value per share as of 31st December 2017 was $8.35; ending diluted book value per common share

as of 31st December 2018 was $7.80. ROE includes the dividend declared in February 2018 and paid in March 2018 of $0.94 per share and excludes the impact of the preferred share repurchases.

SLIDE 21

This Presentation was prepared solely by the management of Fidelis Insurance Holdings Limited (the “Company”) or its affiliates and is being furnished solely for informational purposes. The investors of the Company were not involved in the preparation of this presentation and are not responsible for its content. This Presentation and all data, information and all other contents or materials contained herein (collectively, the “Presentation”) were intended for general informational purposes only. This Presentation is not intended to be all-inclusive or contain all the information that may be of interest to any

• reader. This Presentation does not constitute an offer to buy or sell or a solicitation of such an offer of any securities of the Company.

The Company does not accept responsibility or make any representation or warranty with respect to this Presentation. No representation, warranty or covenant is made as to future performance or any other forward-looking statement. This Presentation contains financial data from peer companies for illustrative purposes only. Such data have been obtained based on a variety of public sources, on which we rely without independent verification. No responsibility or liability is accepted for any loss or damage howsoever arising that you may suffer as a result of this Presentation and any and all responsibility and liability is expressly disclaimed by the Company and its directors, officers, affiliates, investors, employees, advisors and agents. This Presentation is provided as of the date on the cover page, does not purport to be all-inclusive or necessarily contain all information that may be of interest to the recipient, and is subject to change, amendment, update, completion and review without notice. This Presentation contains “forward-looking statements”, which includes all statements that do not relate solely to historical or current facts. This includes information on our estimate of the Company's “mature state”. See the Slide called Notes to Financial Highlights. All forward-looking statements rely on a number of assumptions concerning future events, and are subject to a number of uncertainties and other factors, many of which are outside of the control of the Company and other parties and which could cause actual results to differ materially from such forward-looking statements. The Company undertakes no obligation to update or revise the Presentation or any forward-looking statement, whether as a result of new information, future events or

• therwise.

The Company’s reserves and management’s best estimate reflected in historical loss ratios and other financial information is based on our then current state of knowledge and explicit and implicit assumptions relating to the incurred pattern of claims, the expected ultimate settlement amount, inflation and dependencies between lines of business. Such financial information is subject to important assumptions which are likely to be the subject of future change, amendment, update, completion and review, as necessary. The Company’s estimate of natural catastrophe losses involves the exercise of considerable judgement and is based, amongst other factors, on a review of individual treaties and policies to be impacted, information available to date from clients and brokers, initial loss reports, modelled loss projections and exposure analysis. The Company’s actual losses from any loss events may differ materially from the estimates provided and reserves currently held.

Important Notice

21