1. Casualty Actuarial Society Reinsuring Small Regional Companies May 7-8, 2007 Tim Madden Business Leader – Swiss Reinsurance

2. Slide 2 Agenda Definition of Regional Company Profile of Regional Company Marketplace Segment Appeal to Reinsurers Underwriting Challenges Expert Services Summary

3. Slide 3 Regional Company Definition Limited Geographic Focus Traditional Product Offerings Independent Agency or Exclusive Sales Force Mutual or Stock Company Profile Outwards Reinsurance Consistency

4. Slide 4 Regional Company Marketplace 2005 Data DWP - $107 Billion Ceded Premium - $12.9 Billion Number of Ceding Companies - 506 Ceded Premium < $10 Million - 308 Companies - Aggregate Ceded Premium - $900 Million Ceded Premium > $10 Million - $25 Million - 88 Companies - Aggregate Ceded Premium - $1.5 Billion

5. Slide 5 Segment Appeal to Reinsurers Consistent Buying Philosophy Traditional Lines in Well-Defined Market Consistent Business Plan Execution Stable Operating Results Business Partnership

6. Slide 6 Underwriting Challenges Data Limitations Concentration - Product Offerings - Geographic Attitude Towards Change Constraints - Rating Agency - Regulatory - Capital

7. Slide 7 Expert Services Strong Reinsurer Ratings are Critical Commitment to Provide Technical Support - Underwriting, Claims, Actuarial, Regulatory, Legal, IT, Risk Management, etc. Value-Added Intellectual Property - Publications, Webinars, Client Forums, Education Platform, Market Research Risk Management Solutions - Customized for Regional Segment Needs High Touch Point, Expensive to Service

8. Slide 8 Conclusion “Small” Companies Represent - Approximately 80% of Company Count - Approximately 20% of Ceded Premium Stable Segment of Industry Relationship Oriented Reinsurance Needs - Need to Differentiate Data Quality Issues Commitment to Expert Service Delivery Reputation as a Market for Regional Business – Consistency is Key!