1. Market Presentation: AUSTRALIA August 2010 Adrian Humphreys COUNTRY MANAGER > www.lloyds.com/MARKETPRESENTATIONSwww.lloyds.com/MARKETPRESENTATIONS

2. © Lloyds Content 1 What is Lloyd's? Conclusions 5 2 ACCESSING LLOYDS 3 FOCUS ON DISTRIBUTION 4 LLOYDS AUSTRALIA

3. © Lloyds3 1 What is LLOYDS? LLOYDS ENVIRONMENT > History > Strong Results > Good Performance > Strength and Stability > Lloyds Overview

4. © Lloyds From Coffee House……to Lloyds Members 1 LLOYDS Business > History 1689 Ships and goods insured by wealthy individuals acting on a personal basis. Lloyds Coffee House; first recorded February 1689. 1800 – 1850s Development of syndicates Present Day iPhone 1712 First steam engine 1750s Beginning of the Industrial Revolution 1805 Battle of Trafalgar 1876 Telephone invented Historical Context

5. © Lloyds 2009 annual results of a profit before tax of AUD7,736 1 Core strength > Strong Result 29.3% AUD 7,692m AUD 4,014m 84.0% AUD 32,732m AUD 3,778mProfit before tax AUD 1,914mInvestment return 13.7%Return on capital (pre-tax) AUD 35,970mGross written premiums 91.3%Combined ratio Source: Lloyds pro forma financial statements, 2009 Interim Results: Rate of Exchange used : 1 GBP = 2 AUD 31.4% AUD 7,324m AUD 3,322m 83.1% AUD 32,828m (0.9%) (AUD 206m) AUD 2,872m 111.8% AUD 29,964m AUD7,736m AUD 3,538m 23.9% AUD 43,946m 86.1% 20072008 2006 2005 2009

6. © Lloyds Lloyds continues to do well against its PEERS. 1 Core strength > Good Performance Sources: Sources i) Insurance Information Institute (estimate-2009), ii) Reinsurance Association of America, iii) Company data (8 European companies: 17 Bermudian companies) COMBINED RATIO

7. © Lloyds Lloyds strengthened position is recognised by the rating agencies 1 Core strength > Good Performance Sources: Source: AM Best, Fitch and S&P, 2009 Upgraded Unchanged Downgraded Negative outlook S&P rating actions since January 2002 - Lloyds IFS rating has been upgraded to A+, despite downgrades in the wider market

8. © Lloyds Lloyds strengthened position is recognised by the rating agencies 1 Core strength > Good Performance Sources: Source: AM Best, Fitch and S&P, 2009 Lloyds insurer financial strength (IFS) is interactively assessed by three leading insurance rating agencies: A (Excellent). Stable Outlook. Affirmed July 2009 A+ (Strong). Stable Outlook. Affirmed 4 August 2009 A+ (Strong). Stable Outlook. Affirmed 30 July 2009

9. © Lloyds Chain of Security provides excellent security and Capital Efficiency 1 Core strength > Strength and Stability Source: Society of Lloyds financial statements, Annual Report, (March 2010) - Rate of Exchange used : 1 GBP = 2 AUD 1 st Link 2 nd Link 3 rd Link Syndicate Level Assets AUD 74,800m MembersFunds at Lloyds AUD 26,318m Several Assets Mutual Assets Central Fund AUD 1,996m Corporation Assets AUD 286m Subordinated Debt / Securities AUD 1916m Callable LayerAUD 1,366m AUD 1.1bn

10. © Lloyds The impact of Large losses, economic downturn and the rating environment poses various challenges and a robust cycle management is necessary 1 ACCESSING LLOYDS > 2010 Lloyds Overview … Source: Market Review Report, 22 nd June 2010, Lloyds Analysis Team Costliest 1st quarter on record : Lloyds continues to be impacted by frequency of large losses this year CERTAIN CLASSES IMPACTED BY LARGE RISK LOSSES: Energy Market again in Deepwater and Aviation is facing another difficult year ECONOMIC DOWNTURN : still poses significant threat as further claims deterioration is expected in the medium term Rating environment : continues to be softer than plans anticipated Cycle management: Robust cycle management is needed as the soft market deepens

11. © Lloyds11 2 ACCESSING LLOYDS? > Priorities > Coverholders > Initiatives > Brokers > Claims LLOYDS ENVIRONMENT

12. © Lloyds The 2010 Priorities of Lloyds have been identified as follows: 2 ACCESSING LLOYDS > 2010 Lloyds Priorities Source: Market Review Report, 22 nd June 2010, Lloyds Analysis Team Performance management - A resolute focus on underwriting discipline and risk management Solvency II - Implementing Solvency II at Lloyds in a way that protects, and where possible, enhances Lloyds capital structure and efficiency The Exchange - Increasing adoption and use of The Exchange Claims Transformation - Driving a transformation in the way the Lloyds market handles claims to enhance the experience of the customer Access to business - Improving access to business through streamlining coverholder management strengthening broker relationships and gaining new trading rights

13. © Lloyds Lloyds holds the coverholder market as an important segment of the overall business 2 ACCESSING LLOYDS > Lloyds and Coverholders Source: Market Review Report, 22 nd June 2010, Lloyds Analysis Team Strategically important distribution channel providing Lloyds with local expertise, access to local markets without costly operations Sources of product innovation and intelligence Allows Lloyds to access smaller and medium sized risks across different classes and territories

14. © Lloyds Flexibility, Underwriting Freedom and Extra Capacity were given as the 3 biggest advantages of being a coverholder for Lloyds 2 ACCESSING LLOYDS > Lloyds and Coverholders Source: Lloyds US MGA Survey

15. © Lloyds The principal factors that would make MGAs choose an insurer other than Lloyds are admitted status, coverage, claims payment and ease of doing business 2 ACCESSING LLOYDS > Lloyds and Coverholders Source: Lloyds US MGA Survey

16. © Lloyds..The development of the coverholder channel, subject to proper and appropriate controls, will be a particular area of focus, with the objective of improving both awareness and the efficiency of this distribution channel (Lloyds Strategy 2010 – 2012) 2 ACCESSING LLOYDS > Coverholder Initiative Source: Lloyds US MGA Survey Technology & Standards: We want to improve operational efficiency of the coverholder distribution model through information standards and taking advantage of e-trading opportunities. Routes to market: We want to make the route to market for new coverholder business as simple and transparent as possible. Coverholder experience: We want to make life easier for a coverholder to do business with Lloyds.

17. © Lloyds Distribution findings – Lloyds will remain a broker market 2 ACCESSING LLOYDS > Coverholder Initiative Source: xx The Corporation is clear that Lloyds is and will remain a broker market Brokers are changing – they are increasingly placing in most efficient markets and have greater reach internationally Winners will have scale or a strong niche position; Others will be challenged in the near term by the rate of change in Lloyds and wider environments The Corporations focus is on reducing the cost of access to the Lloyds market Existing Lloyds brokers are playing a significant role in managing the change successfully

18. © Lloyds The corporation has specific actions for the 2010 to maintain and develop market attractiveness ACCESSING LLOYDS > Brokers Source: Lloyds Strategy 2010-2012 2 Support but not cross into the work of the Brokers and Managing Agents Make placing businesses into the Lloyds Market more efficient Support Small Brokers to Develop and Grow Undertake Promotional and Educational Activities aimed at existing and potential brokers and coverholders Provide more detailed market insight for Managing Agents and Brokers

19. © Lloyds19 The claims services in Lloyd's compared to our peers is very good australia > Claims services vs Competitors 2 Source The Claims Landscape Claims Monitor 2009, December 2009, Gracechurch Consulting

20. © Lloyds20 3 Lloyds Australia Ltd Lloyds Australia > Global Context > Profile > Purpose

21. © Lloyds Source: Market Intelligence calculation based on Xchanging figures. Rates of exchange calculated using 2009 average – Rate of Exchange used : 1 USD = 1.1 AUD Australia is Lloyds 4 th largest market… Growth has been steady over the past 10 years 3 LLOYDS Business >Global Context Lloyds Top 7 territories 2009 Direct 2009 Reinsurance Lloyds premiums (AUD) 14.3bn 5.61bn 1.76bn 0.99bn 0.77bn 0.55bn 1.21bn 53% 13% 76% 87% 56% 47% 87% 24% 13% 44% Germany France Bermuda Australia Canada UK US

22. © Lloyds 2007 – 2009 LLOYDS PREMIUMS: BY DISTRIBUTION Lloyds data is based on Xchanging REG 258, (2010); unaudited figures based on country of origin and processing by calendar year; please refer to Appendix for detailed summary of Lloyds Data Limitations. ! TOTAL AUD 1,023mAUD 1,120m AUD 1,221.8m 2009 LLOYDS PREMIUM GROWTH: BY DISTRIBUTION Binding AuthoritiesDirectReinsurance AUD m +9.1% Gross Signed Premiums in: million AUD +9.5% 3 Lloyds premiums continue to grow in Australia, dominated by Binding Authorities and Direct lines. Reinsurance experienced the strongest year-on-year growth of 33% (AUD 74.8m) whilst Binding Authority business increased by 5% (AUD 21.89m) LLOYDS Business >Distribution Overview Source: Market intelligence based on Xchanging; Country Manager soft intelligence, (March 2010): Rate of Exchange used : 1 USD = 1.1 AUD

23. © Lloyds Lloyds premiums are dominated by Property and Liability classes. Liability experienced the most significant growth during 2009 at 12.9% (AUD 66m). 2007 – 2009 LLOYDS PREMIUMS: BY CLASS Lloyds data is based on Xchanging REG 258, (2010); unaudited figures based on country of origin and processing by calendar year; please refer to Appendix for detailed summary of Lloyds Data Limitations. ! 2009 LLOYDS PREMIUM GROWTH: BY CLASS MiscellaneousMotorPA & Health MarineAviationTransit Property Liability AUD m Gross Signed Premiums in: million AUD TOTAL AUD1,023mAUD 1,119.8mAUD 1,222.1m +9.1% +9.5% 3 LLOYDS Business >Business Profile Source: Market intelligence based on Xchanging; Country Manager soft intelligence, (March 2010): Rate of Exchange used : 1 USD = 1.1 AUD

24. © Lloyds24 Promote and protect the Lloyds brand in Australia and facilitate the development of new relationships. Gateway to Australian market with broad expertise available to assist in business development activities. Australian Team: General Rep:Adrian Humphreys Compliance Manager: Peter Fryer General Office:Martina Lee OFFICE FACILITIES RELATIONSHIP FACILITATOR >Work with local market and provide input into coverholder and broker initiatives > Assistance with local market intelligence; > Networking events/promotional & sponsorship activities; > Facilitate introductions for new business; > Point of contact and primary Lloyds market resource. BRAND PROMOTION & PROTECTION > Promote the profile of the Lloyds brand; > Ensure general interests of Lloyds are served; Legislative and regulatory compliance with the law. Meeting Room available Teleconferencing system SEE ALSO: www.lloyds.com/AUSTRALIA www.lloyds.com/MARKETINTELLIGENCEwww.lloyds.com/AUSTRALIA www.lloyds.com/MARKETINTELLIGENCE View from Lloyds Australia Office window – May 2010 LLOYDS AUSTRALIA >Purpose 3

25. © Lloyds25 4 Conclusions

26. © Lloyds Maintaining relationships through delivery Conclusion > Relationships Source: Lloyds Strategy 2010-2012 4

27. © Lloyds27