5 September 2009 Guy Carpenter Press Briefing www.guycarp.com
Peter Zaffino President & CEO Capital Ideas in a Global Marketplace www.guycarp.com
Richard Booth Vice Chairman Reinsurers withstand the financial crisis www.guycarp.com
Guy Carpenter World ROL Index Increases Were Contained by Large Capital Positions 450 400 350 300 250 200 150 100 50 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Index *1990=100 Source: Guy Carpenter & Company, LLC
Regional Reinsurance Rate Changes Vary The Discounts of 2008 Went Untouched 15 10 5 0 -5 -10 -15 Asia Europe United States World 2007 2008 2009 Source: Guy Carpenter & Company, LLC
Chris Klein Global Head of Business Intelligence Capital Comes Back to the Market www.guycarp.com
Earnings Have Returned Investment Income Contributes Most of Gains 20 USDbn 15 10 5 - (5) (10) (15) (20) (25) 6M08 6M09 Non-Life Underwriting Result Life Underwriting Result Investment Income Realized Gains (Losses) Unrealized Gains (Losses) Interest Expense Other Taxes Net Income Source: Guy Carpenter & Company, LLC
Earnings Increases Drive Capital Higher Shareholders’ Equity Grows Following 2008 Losses 100 USDbn 95 90 85 80 75 70 SHF YE08 Net Income Shares Dividends paid Unrealized Forex Capital Increase Other SHF 6M09 Repurchased Gains (Losses) Movements Source: Guy Carpenter & Company, LLC
Cash Is King Aggregate Cash Surges 316% at 1H2009 10 USDbn 5 - (5) (10) (15) Operating Cash Investing Cash Flow Financing Cash Other Cash Flow Net Increase in Flow Flow Cash 6M08 6M09 Source: Guy Carpenter & Company, LLC
Russell 3000 P&C Insurance Index Book Value 2Q capital rebound 100 Bull market 90 No marked decline after KRW because 80 companies were able to recapitalise easily Slow awareness of the 70 problem of legacy reserves/ deterioration of reserves 60 Major decline Market falls explained by credit crunch/ fall in 50 asset values/ major catastrohes 40 A long term trend? 30 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Source: Guy Carpenter , Bloomberg Data
David Priebe Chairman of Global Client Development Capital Markets Mature, Strategic Use www.guycarp.com
Cat Bonds Return after Silent Fourth Quarter Issuances Are Down, But Experienced Sponsors Committed 4,000 3,500 3,000 2,500 USD, Millions 2,000 1,500 1,000 500 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 1Q 2Q Source : GC Securities Proprietary Database
M&A Market Poised for Growth Increased Activity Likely in Next 24 Months Source : SNL Financial
Henry Keeling CEO of International Operations A Shift on the Continent www.guycarp.com
Peter Zaffino President & CEO - Recap www.guycarp.com
5 September 2009 Guy Carpenter Press Briefing www.guycarp.com
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