1. The Energy Insurance Marketplace. A North American perspective.

2. The Energy Insurance Marketplace. A North American Perspective.

3. Significant Oil Company Mergers Pre-Merger BP Arco Amoco Union Texas Petroleum Exxon Mobil Total Fina Elf Aquitane Post-Merger BP Amoco Exxon Mobil Total Fina Elf

4. Significant Oil Company Mergers (cont.d) Pre-Merger Saga Statoil Repsol UPF Amerada Hess Triton Conoco Phillip Post-Merger Statoil Repsol Amerada Hess ConocoPhillips

5. Significant Oil Company Mergers (cont.d) Pre-Merger Chevron Texaco Kerr McGee ORYX Burlington Resources Canadian Hunter Pan Canadian Petroleum Alberta Energy Corp. Post-Merger Chevron Texaco Kerr McGee Burlington Resources Encana

6. Significant Oil Company Mergers (cont.d) Pre-Merger Anadarko Union Pacific Resources El Paso Coastal Shell Enterprise Dominion Energy Louis Dreyfus Natural Gas Post-Merger Anadarko El Paso Shell Dominion Energy

7. Significant Oil Company Mergers (cont.d) Pre-Merger Ocean Energy Pennzoil Devon Andex Mitchell Energy Santa Fe Snyder Post-Merger Devon

8. Offshore Energy Physical Damage: Loss Ratio Development * * * % loss Ratio NB:Loss ratio is expresses before underwriting expenses *9 months as of October 2002 Source: Lloyd’s *

9. Energy Control of Well: loss ratio development * * * % loss Ratio NB:Loss ratio is expresses before underwriting expenses *9 months as of October 2002 Source: Lloyd’s * *

10. The Energy Insurance Marketplace. A North American Perspective.

14. J. Peter Connors President and CEO Zurich Global Energy

15. $2.3bn Offshore Property Capacity 2002

16. $2.49bn Offshore Property Capacity 2003

17. $1.25bn Offshore Property Capacity in Use 2003

18. Number of Offshore Energy Insurers Worldwide 40 50 60 70 80 90 100 110 120 19961997199819992000200120022003

19. Market Trends - Capacity/Rate

20. billions 1.5bn 1.0bn 0.75bn 0.80bn Offshore Global Premium Levels 1.2bn 0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 93949596979899'00'01 1.3bn 1.2bn 0.80bn 0.81bn '02 1.5bn

21. Aggregate Losses per annum versus premium Losses xs $1m 1,435 656 653 642 778 1,119 1,670 1,179 1,235 1,401 0 200 400 600 800 1000 1200 1400 1600 1800 9293949596979899'00'01 millions 1142 '02 Premium

22. Offshore Construction Claims 1992-2002 Excess of US$1M $435 $122 $248 $263 $287 $279 $668 $479 $457 $275 $0 $100 $200 $300 $400 $500 $600 $700 Millions Amount $435$122$248$263$287$279$668$479$457$268 No of Incidents 33293039546487765350 1992199319941995199619971998199920002001 Total:US$ 3,738,000,000 Average:$6,871,323 2002 $232 36 $247

23. $0 $100 $200 $300 $400 $500 $600 $700 1994 19921993199519961997199819992000 2001 Millions $435 $122 $248 $263 $287 $279 $668 $479 $457 $275 $247 2002 Offshore Construction Claims 1992-2002 Estimated Annual Premium Volume

24. –History will repeat itself if you do nothing to prevent it. –Customers do not want to do business with losers. –Capital is King…Too much is a waste of resources and too little will limit opportunities. –If the hard market stops short for P & C companies, it will end badly for some insurers. –If all you have to offer is pricing, your customers will soon be mine. “GOOD LUCK” CONCLUSIONS

26. Commonwealth Insurance Company HOUSTON MARINE INSURANCE SEMINAR State of the Energy Market - A “Domestic” View Monday, September 22, 2003 Presented by Robert R. Smith Sr. Vice President, Energy & International

28. Commonwealth Insurance Company HOUSTON MARINE INSURANCE SEMINAR State of the Energy Market - A “Domestic” View Monday, September 22, 2003 Presented by Robert R. Smith Sr. Vice President, Energy & International

29. Corporate Information Commonwealth Insurance Company was incorporated by an act of the Canadian Parliament on July 17, 1947 and has operated as a federally registered insurer since April, 1950. In April of this year, the ownership of Commonwealth and three sister, Canadian insurance companies was transferred to Northbridge Financial Corporation, a Canadian holding company. An Initial Public Offering of Northbridge shares was completed in June. At year-end 2002, the Northbridge Companies had Written Premiums of $1.78 billion. The group’s Shareholders’ Equity stands at $686 million.

30. Approx.. US $182 Million Capital and Surplus (CDN$255 Million); 89.45% Combined Ratio in 2002; 89.3% Combined Ratio in 1st half 2003; The company is eligible to write insurance on an excess and surplus lines basis in 44 U.S. states plus the District of Columbia. Corporate Information cont...

31. Commonwealth Capital & Surplus 255 mm 160 mm 104 mm 76 mm 40 mm 10 mm <1 mm TODAY 5 Years Ago 10 Years Ago 15 Years Ago 20 Years Ago 25 Years Ago 30 Years Ago

32. Composition E&I Offshore/Marine Book Premium Income: 50 million

33. Location

34. Commonwealth Insurance Company 595 Burrard Street, Suite 1500 Box 49115, Bentall Tower Three Vancouver, B.C., V7X 1G4 Telephone: (604) 683-5511Facsimile: (604) 683-8968 www.commonw.com Commonwealth Insurance Company 595 Burrard Street, Suite 1500 Box 49115, Bentall Tower Three Vancouver, B.C., V7X 1G4 Telephone: (604) 683-5511Facsimile: (604) 683-8968 www.commonw.com