1. Quick Tour FOR BROKERS & MANAGING AGENTS > www.lloyds.com/QUICKTOURwww.lloyds.com/QUICKTOUR  About Lloyd’s  > filip.wuebbeler@lloyds.comfilip.wuebbeler@lloyds.com Recent Updates: June 2010  Update of the geographic profile of insurance, growth and outlookgeographic profile Lloyd’s history, market structure and core strengths Click HERE for Tutorial Click HERE to launch dashboard

2. © Lloyd’sQUICK TOUR (About Lloyd's)2 Content History Market structure Geographic Profile Global Network Core Strengths Click Box to navigate

3. © Lloyd’sQUICK TOUR (About Lloyd's)3 Navigation About QUICK TOUR is designed to be used as a dashboard (in PowerPoint Show Mode). This enables quick navigation to areas of interest using the various dashboard tools summarised below. Click Any Box to navigate to area of interest Click Any Top Box to navigate to any other section Click Top Left Box to return to CONTENT

4. © Lloyd’sQUICK TOUR (About Lloyd's)4 History From Coffee House… to reconstruction

5. © Lloyd’sQUICK TOUR (About Lloyd's)5 From Coffee house… to Lloyd’s members 1689  Ships and goods insured by wealthy individuals acting on a personal basis.  Lloyd’s Coffee House; first recorded February 1689.  Importance of information. 1800 – 1850s  Development of the concept of “Lloyd’s member”.  Development of syndicates 1712 First steam engine 1750s Beginning of the Industrial Revolution 1805 Battle of Trafalgar 1876 Telephone invented Historical Context

6. © Lloyd’sQUICK TOUR (About Lloyd's)6 190419111960s From marine… to every type of insurance 1906 San Francisco earthquake 1917-1990 Rise and fall of Communism 1914-1918 1939-1945 The world at war 1969 Man on the moon Historical Context

7. © Lloyd’sQUICK TOUR (About Lloyd's)7 Piper AlphaAsbestosisHurricane Hugo Exxon ValdezHurricane Andrew European storms …to a string of losses

8. © Lloyd’sQUICK TOUR (About Lloyd's)8 From Reconstruction… to new structure 1996  Reconstruction & Renewal  Corporate members introduced since 1994.  Equitas reinsures liabilities from 1992 and prior years. 2001  Lloyd’s regulated by the FSA. 2002  Governance structure amended.

9. © Lloyd’sQUICK TOUR (About Lloyd's)9 Market Structure The market place and its stakeholders…

10. © Lloyd’sQUICK TOUR (About Lloyd's)10 Lloyd’s is different  Lloyd’s is a Society of Members that operates as an insurance market.  Lloyd’s is not an insurance company.  Lloyd’s has members. It does not have shareholders. Lloyd’s consists of a number of participants  The Society of Lloyd’s.  Lloyd’s Members.  Members Agents.  Lloyd’s Syndicates  Lloyd’s Managing Agents.  Lloyd’s Brokers.

11. © Lloyd’sQUICK TOUR (About Lloyd's)11 Source: Lloyd’s as at 31/12/09; * some risks are placed directly with managing agent-owned service companies Lloyd’s Market Structure Members Policyholders  Direct  Reinsurance 52 Managing Agents Management 84 Syndicates Underwriting Members Agents Brokers Coverholders Service Companies* BUSINESS FLOW CAPITAL PROVISION  Corporate  Individual Corporation of Lloyd’s SEE: www.lloyds.com/directorieswww.lloyds.com/directories

12. © Lloyd’sQUICK TOUR (About Lloyd's)12 Lloyd’s Managing Agents Source: Lloyd’s as at 01/01/09  The syndicates underwriting at Lloyd’s form one of the world’s largest commercial insurers, and a leading reinsurer.  The Lloyd’s market is home to 52 managing agents which currently manage 84 syndicates. Members Policyholders  Direct  Reinsurance 48 Managing Agents Management 78 Syndicates Underwriting Members Agents BUSINESS FLOWCAPITAL PROVISION  Corporate  Individual Corporation of Lloyd’s Members Policyholders  Direct  Reinsurance 51 Managing Agents Management 80 Syndicates Underwriting Members Agents  Corporate  Individual Corporation of Lloyd’s 176 Lloyd’s Brokers Service Companies

13. © Lloyd’sQUICK TOUR (About Lloyd's)13 Sources of Lloyd’s Capital Source: Lloyd’s, Annual Report, (March 2010), www.lloyds.com/Lloyds_Market/Financial_performance/Financial_reports/2009_Annual_Report.htmwww.lloyds.com/Lloyds_Market/Financial_performance/Financial_reports/2009_Annual_Report.htm Members Policyholders  Direct  Reinsurance 48 Managing Agents Management 78 Syndicates Underwriting Members Agents BUSINESS FLOWCAPITAL PROVISION  Corporate  Individual Corporation of Lloyd’s Members Policyholders  Direct  Reinsurance 51 Managing Agents Management 80 Syndicates Underwriting Members Agents  Corporate  Individual Corporation of Lloyd’s 176 Lloyd’s Brokers Service Companies .. By Type 15% 38% 47% UK Listed Individual Members International  Financial security gives confidence to capital providers and peace of mind to policyholders.  It is the members of Lloyd’s who provide the capital to support the syndicates’ underwriting.  Members are drawn from some of the world’s major insurance groups and companies listed on the UK stock exchange as well as individuals and limited partnerships.

14. © Lloyd’sQUICK TOUR (About Lloyd's)14 Sources of Lloyd’s Capital Source: Lloyd’s, Annual Report, (March 2010), www.lloyds.com/Lloyds_Market/Financial_performance/Financial_reports/2009_Annual_Report.htmwww.lloyds.com/Lloyds_Market/Financial_performance/Financial_reports/2009_Annual_Report.htm Members Policyholders  Direct  Reinsurance 48 Managing Agents Management 78 Syndicates Underwriting Members Agents BUSINESS FLOWCAPITAL PROVISION  Corporate  Individual Corporation of Lloyd’s Members Policyholders  Direct  Reinsurance 51 Managing Agents Management 80 Syndicates Underwriting Members Agents  Corporate  Individual Corporation of Lloyd’s 176 Lloyd’s Brokers Service Companies Bermudian Insurance Industry UK Insurance Industry Worldwide Insurance Industry US Insurance Industry Names (Limited Liability) Names (Unlimited Liability) By Geography

15. © Lloyd’sQUICK TOUR (About Lloyd's)15  Performance Management Lloyd’s Franchise Model  Syndicate business planning  Underwriting standards  Monitoring / benchmarking  Claims, reinsurance and run-off management  Syndicate capital  Central assets  Realistic Disaster Scenarios  Risk management framework Syndicates submit plans on an annual basis and performance against plans is reviewed / benchmarked on a quarterly basis Lloyd’s has set capital requirements centrally using its own risk based capital model since 1995 (Individual Capital Assessment (ICAs) Undertaking disaster planning process, to identify and monitor key aggregation and catastrophe risk exposures Members Policyholders  Direct  Reinsurance 48 Managing Agents Management 78 Syndicates Underwriting Members Agents BUSINESS FLOWCAPITAL PROVISION  Corporate  Individual Corporation of Lloyd’s Members Policyholders  Direct  Reinsurance 51 Managing Agents Management 80 Syndicates Underwriting Members Agents  Corporate  Individual Corporation of Lloyd’s Source: http://www.lloyds.com/Lloyds_Market/Performance_management_framework/ http://www.lloyds.com/Lloyds_Market/Performance_management_framework/ Establishment of Franchise Board and model in 2002 to improve market profitability and protect Lloyd’s central assets and address divergence in syndicate performance.  Capital Management  Risk Management 176 Lloyd’s Brokers Service Companies

16. © Lloyd’sQUICK TOUR (About Lloyd's)16 Lloyd’s Brokers Members Policyholders  Direct  Reinsurance 48 Managing Agents Management 78 Syndicates Underwriting Members Agents BUSINESS FLOWCAPITAL PROVISION  Corporate  Individual Corporation of Lloyd’s Members Policyholders  Direct  Reinsurance 51 Managing Agents Management 80 Syndicates Underwriting Members Agents  Corporate  Individual Corporation of Lloyd’s The interaction between brokers and underwriters is the source of the market's reputation for innovation and creativity. Non-Lloyd's brokers can now deal directly with managing agents subject to meeting the same commercial and regulatory standards that apply to Lloyd's brokers.  Regulatory Approval …has been approved by an appropriate regulatory body;  PROFESSIONAL INDEMNITY …meets our enhanced PI requirements;  TOBA …has entered into a terms of business agreement with each managing agent with whom it intends doing business;  Arrangements to protect monies …has arrangements for protecting insurance/client monies;  London Market processes and standards …is able to handle and process the business in accordance with relevant London market standards and practices. Source: http://www.lloyds.com/Lloyds_Market/Market_participants/Managing_Agents/Managing_Agents_dealing_with_non-Lloyds_brokers.htm http://www.lloyds.com/Lloyds_Market/Market_participants/Managing_Agents/Managing_Agents_dealing_with_non-Lloyds_brokers.htm 176 Lloyd’s Brokers Service Companies

17. © Lloyd’sQUICK TOUR (About Lloyd's)17 Geographic Profile From Geographic split to profile…

18. © Lloyd’sQUICK TOUR (About Lloyd's)18 Based on: Hess, T., “The Opening up of International Insurance Markets: Trends and Consequences”, (2006) Shifting Business and Insurance landscape Business Environment increasing income / complexity & maturity of economy Culture / Buying Behaviour / Market Dynamics / Regulation Rapid industrialisation FDI/capital inflow Focus on commercial lines Young population Vietnam Motor/household insurance Savings products Increasing home/car ownership Emergence of a middle-income class China Reform of old (state-owned) companies New start-ups Brazil Increasing role of services Protection of start-ups Growth of personal lines Protection products Turkey Large conglomerates Credit & Surety Poland FDI capital outflow Increasing liability business Wealth management South Korea Corporate (re)insurance Ageing population Singapore Captives US XOL Insurance Environment sophisticated products / buyers / complexity of risks

19. © Lloyd’sQUICK TOUR (About Lloyd's)19 Lloyd’s Business Split – 2009 Source: Lloyd’s, Annual Report, (March 2010), www.lloyds.com/Lloyds_Market/Financial_performance/Financial_reports/2009_Annual_Report.htmwww.lloyds.com/Lloyds_Market/Financial_performance/Financial_reports/2009_Annual_Report.htm US & Canada 45% UK 20% Europe 16% Other Americas 6% Central Asia & Asia Pacific 9% Rest of the World 4%

20. © Lloyd’sQUICK TOUR (About Lloyd's)20 Gross Domestic Product* – 2000 Source: *Purchasing Power Parity based on: IMF, World Economic Outlook (April 2010); http://www.imf.org/external/pubs/ft/weo/2010/http://www.imf.org/external/pubs/ft/weo/2010/ Canada888bn US9.9 trillion Mexico1.0 trillion Brazil1.2 trillion Argentina 338bn UK1.5 trillion France 1.5trillion Germany2.1trillion Italy1.3 trillion Turkey512bn Russia1.1 trillion India1.5 trillion Saudi Arabia353bn South Africa295bn China3.0 trillion Japan3.2 trillion Korea775bn Indonesia500bn Australia528bn Size of bubble proportionate to level of Purchasing Power Parity in USD; benchmarked to US (2000) (IMF ESTIMATE)

21. © Lloyd’sQUICK TOUR (About Lloyd's)21 Gross Domestic Product* – 2010 Canada1.3 trillion US14.7 trillion Mexico1.5 trillion Brazil2.1 trillion Argentina 609bn UK2.1 trillion France 2.1 trillion Germany2.8 trillion Italy1.7 trillion Turkey932bn Russia2.2 trillion India3.8 trillion Saudi Arabia618bn South Africa521bn China9.7 trillion Japan4.2 trillion Korea1.4 trillion Indonesia1.0 trillion Australia882bn Size of bubble proportionate to level of Purchasing Power Parity in USD; benchmarked to US (2010) (IMF FORECAST) Source: *Purchasing Power Parity based on: IMF, World Economic Outlook (April 2010); http://www.imf.org/external/pubs/ft/weo/2010/http://www.imf.org/external/pubs/ft/weo/2010/

22. © Lloyd’sQUICK TOUR (About Lloyd's)22 Gross Domestic Product* – 2015 Canada1.6 trillion US18.2 trillion Mexico2.1 trillion Brazil2.8 trillion Argentina 771bn UK2.7 trillion France 2.6 trillion Germany3.3 trillion Italy2.0 trillion Turkey1.2 trillion Russia2.9 trillion India6.2 trillion Saudi Arabia838bn South Africa700bn China16.8 trillion Japan5.1 trillion Korea1.9 trillion Indonesia1.5 trillion Australia1.1 trillion Size of bubble proportionate to level of Purchasing Power Parity in USD; benchmarked to US (2015) (IMF FORECAST) Source: *Purchasing Power Parity based on: IMF, World Economic Outlook (April 2010); http://www.imf.org/external/pubs/ft/weo/2010/http://www.imf.org/external/pubs/ft/weo/2010/

23. © Lloyd’sQUICK TOUR (About Lloyd's)23 Top Sovereign Wealth Funds* – 2010 US52bnNorway443bn Russia90bn Ireland31bn France28bn UAE662bn Saudi Arabia432bn Kuwait203bn Libya70bn Qatar65bn China787bn Singapore370bn Hong Kong140bn Australia59bn Korea27bn Malaysia25bn Size of coloured bubbles represent total disclosed SWF assets; benchmarked to China (2010) (SWF INSTITUTE ESTIMATE) Source: *Estimate based on: Sovereign Wealth Fund Institute, (June 2010); figures are aggregated on funds, which were disclosed at www.swfinstitute.org/www.swfinstitute.org/

24. © Lloyd’sQUICK TOUR (About Lloyd's)24 Direct Insurance Market* – 2008 Canada57bn US662bn Mexico11bn Brazil25bn Argentina 6bn UK107bn France 92bn Germany132bn Italy58bn Turkey8bn Russia38bn India7bn Saudi Arabia3bn South Africa8bn China45bn Japan106bn Korea31bn Indonesia2bn Australia28bn Size of bubble proportionate to level of total direct market in USD; benchmarked to US (2008) (III ESTIMATE*) Source: *Estimate based on III Fact Book; www.iii.org; for detailed statistics and clear market definitions, please refer to the local regulator & Regional Watch: www.lloyds.com/REGIONALWATCHwww.iii.orgwww.lloyds.com/REGIONALWATCH

25. © Lloyd’sQUICK TOUR (About Lloyd's)25 Direct Insurance Market* – 2000 – 2008 Canada57bn US662bn Mexico11bn Brazil25bn Argentina 6bn UK107bn France 92bn Germany132bn Italy58bn Turkey8bn Russia38bn India7bn Saudi Arabia3bn South Africa8bn China45bn Japan106bn Korea31bn Indonesia2bn Australia28bn Size of bubble proportionate to level of total direct market in USD; benchmarked to US (2008) (ESTIMATE*) Source: *Estimate based on III Fact Book; www.iii.org; for detailed statistics and clear market definitions, please refer to the local regulator & Regional Watch: www.lloyds.com/REGIONALWATCHwww.iii.orgwww.lloyds.com/REGIONALWATCH > 200% > 100% - 200% < 100% 2000 - 2008 Premium Growth

26. © Lloyd’sQUICK TOUR (About Lloyd's)26 Global Network From structures to licences and offices…

27. © Lloyd’sQUICK TOUR (About Lloyd's)27 US Excess & Surplus Licence Network Reinsurance only Lloyd's is specifically registered or licensed to write reinsurance business only.* *See: www.lloyds.com/crystal for detailed access routes + exemptionswww.lloyds.com/crystal Reinsurance from outside the territory Territories where Lloyd’s is not registered or licensed but can transact cross-border reinsurance business.* Insurance + Reinsurance 52 territories where Lloyd’s is licensed to underwrite insurance and reinsurance business.*

28. © Lloyd’sQUICK TOUR (About Lloyd's)28 Licence Network 1990 s EU legislation allows Lloyd’s to carry on insurance in other EEA member states on an establishment & services basis 1997 Lloyd’s Japan established 2000 Lloyd’s Asia established 2002 EU establishment licence Spain 2006 Lloyd’s becomes an onshore re-insurer in China 2008 ‘Admitted reinsurer’ status in Brazil and EU establishment licences in Poland and Austria 2009 EU establishment licence in Portugal

29. © Lloyd’sQUICK TOUR (About Lloyd's)29 Office Network 1 1 1 1 2 2 2 2 3 3 3 3 3 3 3 3 1 1 1 1 1 4 4 4 3 3 3 3 2 4 Local underwriting with co-located Syndicates (or via a Lloyd’s regulated entity); Country Manager with Market Development Role Europe 3 Country Manager with Market Development Role 2 Country Representative for regulatory requirements 1 Country Representative for minimum regulatory requirements TypeMarket Development ScopeTerritories Europe Austria, Denmark, Norway, Portugal Argentina, Belize, Chile Namibia, Zimbabwe Cyprus, Greece, Israel, Malta New Zealand South Africa Australia, Hong Kong (SAR) Benelux, France, Germany, Ireland, Italy, Poland, Spain, Sweden, Switzerland Brazil China Japan Singapore North America www.lloyds.com/AMERICA

30. © Lloyd’sQUICK TOUR (About Lloyd's)30 Core strengths From Performance to ratings…

31. © Lloyd’sQUICK TOUR (About Lloyd's)31 Core Strengths: Lloyd’s Outperforms  Lloyd’s outperforms the market during below average catastrophe years INDUSTRY CAT LOSSES USD BN INDEXED TO 2009 LLOYD’S MAJOR LOSSES USD BN INDEXED TO 2009 Source: Industry - Swiss Re, Sigma No 1/2010; Lloyd’s – Net ultimate claims for major losses per syndicate QMRs, Lloyd’s pro forma financial statements, 31 Dec 2009 0 20 40 60 80 100 120 140 19941995199619971998 19992000200120022003200420052006 20072008 2009 Average 0 1 2 3 4 5 6 7 Industry 1994 - 2008Lloyd's Industry 2009

32. © Lloyd’sQUICK TOUR (About Lloyd's)32 29.3% £3,846m £2,007m 84.0% £16,366m 2007 £1,899mProfit before tax £957mInvestment return 13.7%Return on capital (pre-tax) £17,985mGross written premiums 91.3%Combined ratio 2008 Core Strengths: Strong results Source: Lloyd’s pro forma financial statements, 2009 Interim Results 31.4% £3,662m £1,661m 83.1% £16,414m 2006 (0.9%) (£103m) £1,436m 111.8% £14,982m 2005 £3,868m £1,769m 23.9% £21,973m 86.1% 2009

33. © Lloyd’sQUICK TOUR (About Lloyd's)33 Strong Results: Currency Movements Source: Lloyd’s pro forma financial statements, 31 Dec 2009 GWP GBP m 8% 22% 13% Note: Attribution to foreign exchange movements and increase in local currency stated on a compound basis

34. © Lloyd’sQUICK TOUR (About Lloyd's)34 Core strengths: Good performance  2009 annual results of a profit before tax of GBP 3,868m Lloyd’s continues to compare well against its peers Sources: Sources i) Insurance Information Institute (estimate-2009), ii) Reinsurance Association of America, iii) Company data (8 European companies: 17 Bermudian companies) COMBINED RATIO

35. © Lloyd’sQUICK TOUR (About Lloyd's)35 Core Strengths: Strength and Stability Source: Society of Lloyd’s financial statements, Annual Report, (March 2010) Chain of security provides excellent security and capital efficiency 1 st Link 2 nd Link 3 rd Link Syndicate Level Assets GBP 37,400m Members’ Funds at Lloyd’s GBP 13,159m Several Assets Mutual Assets Central Fund GBP 983m Corporation Assets GBP 143m Subordinated Debt / Securities GBP 958m Callable Layer GBP 683m

36. © Lloyd’sQUICK TOUR (About Lloyd's)36 Core Strengths: Large Solvency surplus Source: Lloyd’s pro forma financial statements, 31 Dec 2009 Note: * Solvency surplus net of solvency deficits GBP m BALANCE SHEET

37. © Lloyd’sQUICK TOUR (About Lloyd's)37 Core strengths: Well Positioned 3 Source: Society of Lloyd’s financial statements, (2008); based on Lloyd’s, Annual Report, (April 2009) Our focus: 1. Performance Management 2. Solvency II 3. The Exchange 4. Claims Transformation 5. Access to business Fitch Ratings A+ (strong), stable outlook Standard & Poor’s A+ (strong), stable outlook A+A+ A A.M. Best A (excellent), stable outlook

38. © Lloyd’sQUICK TOUR (About Lloyd's)38 Appendix

39. © Lloyd’sQUICK TOUR (About Lloyd's)39 Data Limitations The detailed country-level Lloyd’s data used in this document is based on calendar year signed gross premiums sourced from Xchanging. This differs from the Lloyd’s data published in the Annual Report. The accounting-level Lloyd’s data published in the Annual Report is based on calendar year written gross premiums sourced directly from Syndicates. Differences are therefore explained by (1) the timing differences between written and signed gross premiums and (2) inconsistent use of rates of exchange between Syndicates and Xchanging. Please note the information contained in this document is based upon data collected from Xchanging and may be incomplete for some classes of business; for instance a substantial figure, which is missing from the REG 258 data set is comprised of UK Motor, which is not processed by Xchanging. Lloyd’s figures are based on gross signed premiums based on figures processed by Xchanging by processing year and country of origin. Gross Premiums: Original and additional inward premiums, plus any amount in respect of administration fees or policy expenses remitted with a premium but before the deduction of outward reinsurance premiums. Country of Origin: Denotes the country from where demand for the insurance / reinsurance emanates; i.e. the coverholder or policyholder, irrespective of the country to which the risk is classified for regulatory reporting purposes. Processing Year: Relates to the calendar year in which the premium, additional or return premium is processed by Xchanging, irrespective of the actual underwriting year of account of the risks (which is determined by the inception date of each risk). Example: A policy holder in the UK insuring a holiday home in France would be classified as a UK risk by “Country Of Origin”, but “French” for regulatory reporting purposes. Similarly a risk incepting on 1st December 2007 would be classified at 2007 “Underwriting Year of Account” but may not be processed by Xchanging until 2008 and so be allocated to the 2008 “processing year”. Disclaimer “This document is intended for general information purposes only. Whilst all care has been taken to ensure the accuracy of the information Lloyd's does not accept any responsibility for any errors or omissions. Lloyd's does not accept any responsibility or liability for any loss to any person acting or refraining from action as a result of, but not limited to, any statement, fact, figure, expression of opinion or belief contained in this document".

40. © Lloyd’sQUICK TOUR (About Lloyd's)40