July 17, 2006 International Insurance Society Frank Nutter Reinsurance Association of America A U.S. Perspective on the Global Reinsurance Market

Source: Swiss Re Premiums ceded by primary insurers (US$’bn)

Gross Premium ceded by region of ceding insurer

Global Reinsurance Premium by Country of Group Domicile in 2004 Source: S&P’s Global Reinsurance Highlights 2005 Edition

$62.0B$62.0B Cross Border Premiums US to Offshore $62.0B To affiliates $38.8B To non-affiliates $23.2B

$14.3B$14.3B Offshore to US $14.3B US to Offshore $62.0B Cross Border Premiums

Top 25 P&C Reinsurance Groups (Based on 2004 premiums) 1.MUNICH REGERMANY 2.SWISS RESWITZERLAND 3.BERKSHIRE HATHAWAY REU.S. 4.HANNOVER REGERMANY 5.GE INSURANCE SOLUTIONSU.S. 6.LLOYD’SU.K. 7.ALLIANZ REGERMANY 8.EVEREST REBERMUDA 9.XL REBERMUDA 10.PARTNER REBERMUDA 11.TRANSATLANTIC HOLDINGS INC.U.S. 12.CONVERIUMSWITZERLAND 13.TOKIO MARINE NICHIDO FIRE INS. JAPAN 14.SCORFRANCE 15.ODYSSEY REU.S. 16.SOMPO JAPAN INS. INC.JAPAN 17.MITSUI SUMITOMO INS. CO. LTD.JAPAN 18.CAISSE CENTRALE DE REASSURANCEFRANCE 19.KOREAN REKOREA 20.PLATINUM UNDERWRITERS HOLDINGS LTD.BERMUDA 21.ACE TEMPEST REBERMUDA 22.AIOI INSURANCE CO. LTD.JAPAN 23.RENAISSANCERE HOLDINGS LTD.BERMUDA 24.ALEA GROUP HOLDINGS(BERMUDA) BERMUDA 25.TOA RE CO. LTD.JAPAN

Top 10 Global Reinsurance Groups in 2004 Source: S&P’s Global Reinsurance Highlights 2005 Edition

Number of U.S. Professional Reinsurers Reporting to the RAA

Announced Insurer Capital Raising* As of June 8, 20 insurers have raised $12.1 billion in new capital; 12 Start-ups raised $7.6 billion more and SPRV’s/Sidecars raised $3.6 billion for a total of $23.3B. Existing companies will continue to find it relatively easy to raise cash. ($ Millions, as of June 8, 2006) * Existing (re)insurers. Announced amounts may differ from sums actually raised. Sources: Morgan Stanley, Lehman Brothers, Company Reports; Insurance Information Institute.

Announced Capital Raising by Insurance Start-Ups As of June 8, new Bermuda Start-ups have raised $7.6B. ($ Millions, as of June 8, 2006)

Announced Capital Raising by Special Purpose Reinsurance Vehicles/Sidecars As of June 8, SPRV’s/Sidecars have raised $3.6B. ($ Millions, as of June 8, 2006)

Berkshire Hathaway Transatlantic Holdings, Inc. Odyssey Re 100% of US Reinsurers by market share have EU domestic companies Top 25 Worldwide P&C Reinsurer Goups Cross Ownership Common

84% of EU Reinsurers by market share have US domestic companies Munich Re Hannover Re Allianz Re SCOR Lloyds* AXA* *No Sub 100% of US Reinsurers by market share have EU domestic companies Top 25 Worldwide P&C Reinsurer Goups Cross Ownership Common

89% of non-US [EU/Asia/Bermuda/Swiss] Reinsurers by market share have US domestic companies* 84% of EU Reinsurers by market share have US domestic companies Munich Re Swiss Re Hannover Re Allianz Re Everest Re XL Re Partner Re Converium Tokio Marine Nichido Fire Ins. SCOR Sompo Japan Ins. Inc. Mitsui Sumitomo Ins. Platinum Underwriters Holdings Ltd. Ace Tempest Re Aioi Insurance Co. Ltd. Alea Group Holdings(Bermuda) Toa Re Co. Ltd. * Based on 2004 data 100% of US Reinsurers by market share have EU domestic companies

Reporting reinsurers’ total capital available

Reason for P/C Insolvencies (218 Insolvencies, ) Source: A.M. Best, Insurance Information Institute Reserve deficiencies account for more than half of all p/c insurers insolvencies

Reinsurance Regulation in the U.S. and Mutual Recognition The current regulatory system has served U.S. buyers well New initiatives deserve consideration  EU Re Directive  Sovency II The Goal: sound solvency regulation and healthy competition Mutual Recognition Road Map  International accounting standards  Standards for regulation  Reconciliation within the U.S. system