New Members Presentation June/July 2013 Hampden Agencies Ltd

Hampden Agencies Limited Lloyd’s Market overview The Trade The Syndicate Years of Account The Underwriting Vehicle Questions INTRODUCTION

Hampden Agencies Limited LLOYD’S MARKET OVERVIEW Source: HUR and Lloyd’s 3 LLOYD’S 55 Managing Agents 89 Syndicates £ 24bn Income A M Best: A S&P: A+ Fitch: A+ CLIENTS Reinsureds Commercial Personal Lloyd’s Brokers CAPITAL Corporate Groups Individual Members (13.8%) Intermediaries Members’ Agents – HAL BUSINESS FLOWCAPITAL PROVISION

2013 PREMIUM INCOME SPLIT Hampden Agencies Limited Split of Hampden’s aggregate advised portfolio Source: HAL & 2013 Syndicate Business Forecasts, risk codes mappings based on stats relating to Lloyd’s Classes. Casualty has been split between US Dollar premium and non US Dollar.

Hampden Agencies Limited Underwriters on behalf of the Managing Agent accepts the risk from the broker and receives an agreed premium. This is booked as being “on-risk” and the premium is banked. The acceptance of the risk accords with the approved business plan and the Syndicate/Managing Agents risk profile. This process continues up to the approved level of business that can be accepted by each Syndicate (capacity). THE TRADE

Hampden Agencies Limited The business plan is risk assessed by Lloyd’s, monitored and a capital requirement is determined. Capital is lodged “in trust” with Lloyd’s to the calculated level, some of which is via third party support. THE TRADE

Hampden Agencies Limited Syndicates receive their premium income throughout the year of account Business is written in different currencies Syndicates generally underwrite 12 months’ duration policies Property and catastrophe business is usually off risk by month 18 of an account Claims on some liability classes can take some years to be notified and settled There are different renewal dates for business in each year, depending on: –The class of business –The geographical location of the business THE SYNDICATE

Hampden Agencies Limited THE SYNDICATE Date of RenewalClass of business 1 JanuaryEnergy reinsurance, aviation reinsurance, UK reinsurance and international property and reinsurance 14 FebruaryInternational P&I Club reinsurance 1 AprilJapanese and Asian property and reinsurance 1 JuneUS property and reinsurance 1 JulyUS property and reinsurance, NZ, South American and Caribbean reinsurance October, November and DecemberMajor Aviation renewals MAJOR BUSINESS RENEWAL DATES

Hampden Agencies Limited YEARS OF ACCOUNT Each year of account runs for 36 months –Business is written in the first twelve months –Policies will have run to term at 24 months –Late claims and settlements to closure at 36 months Each year of account closes into the next one by means of the reinsurance to close (RITC) process –On occasion individual syndicate years remain open Profits are paid out (or losses are collected) at month 41

Hampden Agencies Limited The contributing factors to a profit/loss are: –The “PURE” underwriting result –Investment income –Release/increase of reserves –Syndicate expenses –Currency exchange UNDERWRITING RESULTS

Hampden Agencies Limited HAL RETURNS: Notes 1. Figures shown above are rounded to 1.d.p to 2010: Results at 36 months calculated from Hampden Members’ aggregate returns excluding any movement on run-off years & 2012: Unaudited estimates calculated from Syndicate Monitoring Returns’ mid-point estimates at 31 March 2013 (2011 Quarter 9 & Quarter 5) 4. Premium limit is the total amount underwritten by the Member. 5. Funds at Lloyd’s (FAL) is the amount of capital shown by the Member to back their underwriting premium limit. 6. FAL are assumed to be 40% of Premium Limit in the years 2001 to 2007, 45% for 2008 to 2011 and 50% for 2012 onwards 7. All returns include standard personal expenses, but are shown before Members’ Agents charges. 8. Past Performance is not necessarily a guide to future performance. Source: HUR Year of account Return on premium limit Return on Funds at Lloyd’s 2001(12.4%)(31.1%) %34.3% %52.9% %26.2% %13.9% %65.5% %45.9% %22.3% %42.5% % 6.9% 2011 (e) 4.7% 10.4% 2012 (e) 4.5% 9.1%

THE UNDERWRITING VEHICLE Hampden Agencies Limited The Limited Liability Vehicle (LLV) is generally capitalised (known as Funds at Lloyd’s – FAL) at circa 50% of the amount it chooses to underwrite (known as Premium Income Limit – PIL) in any given year at inception. The FAL requirement can change each year, relevant to Market conditions. There are 2 coming into line exercises conducted each year. In November to confirm the level of Underwriting for the following year and in June for the mid-year position/release of any Profit. MAPA: Members’ Agents Pooling Arrangements

HAL recommends Members should underwrite on a diversified portfolio of different syndicates. Choice between MAPA, bespoke or combination. The new LLV purchases a portfolio of syndicate capacity at the September and October capacity auctions. Current estimate of cost of new portfolio/MAPA is approximately 30p per £1 of syndicate capacity. Existing LLV’s may trade in the auctions but will likely do so on individual syndicates. Syndicate capacity is subject to pre-emption and de-emption. Leasehold capacity may be available. Hampden Agencies Limited THE UNDERWRITING VEHICLE

Partner of an LLP Lead Partner appointed as main contact Actively involved Required to sign Resolutions Provide own funds at Lloyd’s Buy Capacity Shareholder of a Nameco Lead Shareholder appointed as main contact Can be a Director Not required to be present at Board Meetings – Nomina appointed as director Notify of any changes in Control Hampden Agencies Limited THE UNDERWRITING VEHICLE

Questions Hampden Agencies Ltd

Hampden Agencies Limited This presentation has been issued and approved for the purposes of section 21 of the Financial Services and Markets Act 2000 by Hampden Agencies Limited ("HAL"), which is authorised and regulated by the Financial Conduct Authority. HAL is a registered Lloyd's Members Agent/Adviser of 85 Gracechurch Street, London EC3V 0AA. Telephone: Facsimile: HAL is a subsidiary of Hampden Capital Plc, whose parent company is Hampden Holdings Limited. Calls to and from HAL may be recorded. HAL has taken reasonable care to ensure that the information contained in this presentation is true and accurate in all material respects at the date of publication, but this may change over time. HAL has also taken reasonable care to ensure that there are no other material facts the omission of which would make any statement in the presentation misleading. No representation or warranty, express or implied, is made or given by or on behalf of HAL or its directors or any other person as to the accuracy, completeness or fairness of the information or opinions contained in this presentation and no responsibility or liability is accepted for any such information or opinions. This presentation provides information of a general nature and it is not, and does not purport to be, a complete account of all matters that are or may be material to a decision as to any investment. Nothing in this presentation shall be construed as the giving of investment, tax, legal or other advice by HAL or any other person and if you are in any doubt as to whether to invest in the securities described in this presentation, you should consult an independent financial adviser who is qualified to advise on investments of this nature. The communication of information and services set out in this presentation is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to local law or regulation. In particular, the contents and/or subject matter of the presentation do not constitute an offer of information, products or services to US persons or in the United States, or in any other jurisdictions where such an offer may be unlawful. Furthermore, this presentation does not represent a prospectus or invitation in connection with any solicitation of capital. Nor does it constitute an offer of services, an offer to sell securities or insurance, a solicitation of an offer to buy securities or insurance, or a distribution of securities in the United States or to a US person, or in any other jurisdiction where it is contrary to local law. Such persons should inform themselves about and observe any applicable local legal requirements and it is the responsibility of prospective investors to satisfy themselves as to full compliance with the relevant laws and regulations of any territory in connection with any application to invest in a Nameco and provide Funds at Lloyd's, including obtaining any requisite governmental or other consent and adhering to any other formality prescribed in such territory. © Hampden Agencies Limited (June 2013) DISCLAIMER