1. Directors & Officers Liability Survey 2000 Results and Historical Trends Casualty Actuaries of Greater New York November 28, 2001 Lisa Gattel Chanzit, FCAS, MAAA, ARM

2. 2 Directors & Officers Liability Survey Background Formerly conducted by Watson Wyatt. Conducted by Tillinghast as of 1998 Survey. Self-selecting nonprobability sample of claim and insurance purchasing patterns. Responses submitted primarily in second half of calendar year. Not every participant answers every question, even though there is substantial follow-up. Over 2,050 usable responses in 2000 Survey, including Canadian responses.

3. 3 Directors & Officers Liability Survey Changes for 2000 Other nonprofits reintroduced, after Health Services in 1998 and Education in 1999. Biotechnology & Pharmaceuticals industry group. More high technology firms (again). More small firms (again). More detailed analysis of coverage features and claims experience.

4. 4 Directors & Officers Liability Survey Participation by Business Class

5. 5 Directors & Officers Liability Survey Claim Topics Claim Frequency Claimants Claim Severity Indemnification Insurance Coverage Disclosure Claims and other Shareholder Claims

6. 6 Directors & Officers Liability Survey Claim Frequency by Business Class

7. 7 Directors & Officers Liability Survey Claim Frequency by Asset Size - For-Profit

8. 8 Directors & Officers Liability Survey Claim Frequency by Ownership

9. 9 Directors & Officers Liability Survey Claim Frequency by Merger/Acq./Div. - For-Profit

10. 10 Directors & Officers Liability Survey Claim Frequency by After-Tax Losses - For-Profit

11. 11 Directors & Officers Liability Survey Claimant Distribution - For-Profit * Adjusted

12. 12 Directors & Officers Liability Survey Claimant Distribution Source: 2000 D&O Liability Survey

13. 13 Directors & Officers Liability Survey Average Severity for Closed Claims - For-Profit Note: Excludes claims closed w/o payment.

14. 14 Directors & Officers Liability Survey Average Indemnity Severity by Business Class Note: Excludes claims closed w/o payment.

15. 15 Directors & Officers Liability Survey Average Defense Severity by Business Class Note: Excludes claims closed w/o payment.

16. 16 Directors & Officers Liability Survey Average Indemnity Severity by Asset Size Note: For-profit only. Excludes claims closed w/o payment.

17. 17 Directors & Officers Liability Survey Average Defense Severity by Asset Size Note: For-profit only. Excludes claims closed w/o payment.

18. 18 Directors & Officers Liability Survey Average Indemnity Severity by Claimant Note: Excludes claims closed w/o payment

19. 19 Directors & Officers Liability Survey Average Defense Severity by Claimant Note: Excludes claims closed w/o payment

20. 20 Directors & Officers Liability Survey Indemnification by Firm for D&O Claims Source: 2000 D&O Liability Survey Note: Excludes claims where the entity is the only defendant

21. 21 Directors & Officers Liability Survey Insurance Coverage of D&O Claims - Closed Note: Excludes uncertain responses

22. 22 Directors & Officers Liability Survey Disclosure Claim Incidence

23. 23 Directors & Officers Liability Survey Shareholder Claim “Win” Ratios

24. 24 Directors & Officers Liability Survey Prevalence by Business Class

25. 25 Directors & Officers Liability Survey Prevalence by Asset Size - For-Profit

26. 26 Directors & Officers Liability Survey Prevalence by Full-Time Employees

27. 27 Directors & Officers Liability Survey Prevalence by Ownership - For-Profit

28. 28 Directors & Officers Liability Survey Entity Coverage Prevalence by Asset Size

29. 29 Directors & Officers Liability Survey Main Reason for Not Purchasing D&O Insurance

30. 30 Directors & Officers Liability Survey D&O Premium Index - U.S., For-Profit Only

31. 31 Directors & Officers Liability Survey Full D&O Limits Capacity (Millions)

32. 32 Directors & Officers Liability Survey Average Total Limit by Asset Size - For-Profit

33. 33 Directors & Officers Liability Survey Average Deductible by Asset Size - For-Profit