CEFOR - The 2004 NoMIS Report Norwegian Marine Insurance Statistics Underwriting Years 1995–2004, as of 31 December 2004

2004 CEFOR Norwegian Marine Insurance Statistics – Part 1 As of 31 December 2004 Part 1 – Introduction Contents NoMIS Explanations Part 2 – NoMIS position in the Global insurance market Global Marine Hull Insurance Market 2003 Norwegian Marine Hull Insurance Market 2004 Average gross share written in the NoMIS market Part 3 – NoMIS portfolio Key figures, underwriting years Number of vessels Development of total insured values, DWT and premium Average age Average standard deductible Loss Ratio (including IBNR), Premiums and claims (including IBNR) per vessel Number and cost of claims by type Claim frequency Claim per vessel Claim per Sum Insured Key figures (table)

2004 CEFOR Norwegian Marine Insurance Statistics – Part 1 As of 31 December 2004 Part 4 – Key figures by age group Distribution of number of vessels Claim frequency Claim per vessel Claim per Sum Insured Claim per DWT Loss Ratio Part 5 – Key figures by vessel type group Distribution of number of vessels Claims frequency Claim per vessel Claim per Sum Insured Claim per DWT Loss Ratio Legal disclaimer CEFOR provides the statistics material in this presentation for general information purposes only. All key figures are derived from the CEFOR portfolio, which reflects a minor part of the world fleet, the selection of ships being biased by Norwegian underwriting preferences. Therefore CEFOR can accept no responsibility and shall not be liable for any loss which may arise from reliance upon the information provided.

2004 CEFOR Norwegian Marine Insurance Statistics – Part 1 As of 31 December 2004 Part 6 – Key figures by size group Distribution of number of vessels Claims frequency Claim per vessel Claim per Sum Insured Claim per DWT Loss Ratio Part 7 – Distribution by flag and classification society Distribution of number of vessels by flag, 15 largest Distribution by black, grey, white flags (Paris MOU classification 2003) Distribution of number of vessels by classification society, 6 largest Part 8 – Premium indices Premium per vessel – Premium per sum insured – Cash Renewal Index Evolution of premium per sum insured, 12 months rolling Part 9 – Exposure curves (partial claims only) All vessels Sum Insured bands ( 100 Mio USD) Explanations

2004 CEFOR Norwegian Marine Insurance Statistics – Part 1 As of 31 December 2004 Introduction The Norwegian Marine Insurance Statistics (NoMIS) is a joint database project of CEFOR members active on the Hull & Machinery market to compile insurance data and vessel characteristics for statistical purposes. The database is administered by CEFOR. Since its foundation in 1985 until 1997 the data was compiled by appointing CEFOR a compulsory facultative reinsurer to which the members of the Norwegian Hull Agreement ceded 0.1% of their Hull & Machinery insurance. Premium and claims information was exchanged via Borderaux, the lead insurer providing details of each claim. When the Hull Agreement was discontinued in December 1996, the statistics cooperation continued. In 1998 steps were taken to update the NoMIS’ database electronically. All necessary routines were in place by December 1999, enabling CEFOR to produce up-to-date hull figures on a monthly basis and extending the database substantially by including non-lead business from underwriting year In 2000, a further step was taken to restructure the database by extending the updates to include also non-lead business back to underwriting year In 2003, data from a major new member was integrated, also dating back to underwriting year In 2004, the database was extended by data from two new members and reached an all-time high of nearly 8,000 registered vessels for underwriting year By 31st December 2004, in all 83,650 vessels and 25,500 claims are registered for the underwriting years 1985 through 2004.

2004 CEFOR Norwegian Marine Insurance Statistics – Part 1 As of 31 December 2004 All amounts are presented in USD. Rate of exchange applicable to convert the figures from the original currencies into USD: Premiums: average monthly rate of exchange of the month of transaction Paid claims:average monthly rate of exchange of the month of transaction Outstanding claims:average monthly rate of exchange of December 2004 All premiums are net of all rebates and commissions. All claims are net of any deductibles applicable. Total Claims = Paid claims + Outstanding claims TLO (or Total Losses) = claims in excess of 75% of the Sum Insured Partial Losses = all losses <= 75% of the Sum Insured Loss Ratio = Total claims / Net premium Underwriting year = year in which the insurance attaches

2004 CEFOR Norwegian Marine Insurance Statistics – Part 1 As of 31 December 2004 Types of vessels specified Vessel Type groupVessels Types includedLloyds Conf. Index Code BULKBulk, Ore, CementBBU, BCB, BCE, BOR, BWC CAR/ROROCar Carrier, RoRoMVE, URC, URR CARGODry Cargo, General Cargo, Reefers, GCT, GGC, GPC, GRF, MLV Pallett Vessels, Animal Transport Vessels CONTAINERContainerUCC, UCR CHEM./PRODUCTChemical Carriers, Product / Acid / Edible Oil / TAC, TCH, TCO, TEO, TFJ, TFO Fish Oil / Fruit Juice / Wine / Molasses /TMO, TPD, TWA, TWN, TWT Waste/ Water Tankers LNG/LPGGas Carriers LNG, LPG, LNG/LPG LNG, LPG, LNP OBOCombined Vessels Bulk, Ore, OilCOO, CBO OTHERall other ships and floating units all other codes not specifically defined otherwise, like Fishing vessels, Barges, Cranes, Floating Storage, Floating Production, Pollution Control Vessels, Mud boat, Research vessels, Cable, Seismic Search vessel, Flo/Flo, etc.

2004 CEFOR Norwegian Marine Insurance Statistics – Part 1 As of 31 December 2004 Types of vessels specified contd. Vessel Type groupVessels includedLloyds Conf. Index Code PASSENGERAll types of passenger vessels and ferries, MPR, OFY, OHF, OHS, PRR Passenger/Roro, Highspeed Craft SUPPL/OFFSupply, Anchorhandling, Standby, Drilling OBS, OBT, ODS, OIB, OIF, OIS, Vessel, General Service Vessel, OIT, OLT, OMN, OMT, OOS, OPP, Supply (Tug, Anchor), Tug/Icebreaker ORP, OSU, OSY, OSZ, OWO, XAA, XAF, XAG, XAH, XAT, XCT, XFF, XFS, XPT, XTG, XTI, XTP, XTR, XTS, XTT, XTX TANKTanker, Sludge Vessel, Crude Oil TankerOSC, OTC, TAS, TBK, TCR, Asphalt Carriers, Bunkering Tanker, FloatingTNA, TTA Production, Floating Storage, Naval Auxiliary

2004 CEFOR Norwegian Marine Insurance Statistics – Part 2 Distribution of Global Marine Hull Premium 2003 World Norway

2004 CEFOR Norwegian Marine Insurance Statistics – Part 2 Distribution of Norwegian Marine Hull Premium 2004 (Norwegian and International business) Bluewater 15% Codan 3% Gard 32% Gerling 11% NEMI 8% Norwegian Hull Club 31% Vesta 0.2% Ocean & Coastal Hull Ocean Hull only Bluewater 12% Coastal Marine Clubs 7% Codan 2% Gard 26% Gerling 9% Gjensidige NOR 4% Norwegian Hull Club 29% Vesta 1% If 3% NEMI 7% Industriforsikring 0.1%

2004 CEFOR Norwegian Marine Insurance Statistics – Part 2 As of 31 December 2004 Share = sum of members premiums according to their written share / sum of premiums for 100% of the risk

2004 CEFOR Norwegian Marine Insurance Statistics – Part 3 As of 31 December 2004 Comments: a)Decline in portfolio from 1997 to 2000 due to members concentrating on target business b)Decline from 2001 to 2002 partly due to two NoMIS members withdrawing from underwriting. c)Increase 2002->2004 due to real portfolio extension. Two new members start underwriting and join the datapool.

2004 CEFOR Norwegian Marine Insurance Statistics – Part 3 As of 31 December 2004

Claims by Claims type

2004 CEFOR Norwegian Marine Insurance Statistics – Part 3 As of 31 December 2004 Claims by Claims type

2004 CEFOR Norwegian Marine Insurance Statistics – Part 3 As of 31 December 2004 Comment: Claims < USD account for about half of all claims. Registration of these may vary over time and in each company and will thus influence the registered frequency. In addition any increase/decrease of insurance deductibles will have impact on the registered frequency

2004 CEFOR Norwegian Marine Insurance Statistics – Part 3 As of 31 December 2004

2004 CEFOR Norwegian Marine Insurance Statistics – Part 4 As of 31 December 2004 Number of vessels per age group Total number of vessels : 32, : 7,815

2004 CEFOR Norwegian Marine Insurance Statistics – Part 4 As of 31 December 2004 Comment: Claims < USD account for about half of all claims. Registration of these may vary over time and in each company and will thus influence the registered frequency. In addition any increase/decrease of insurance deductibles will have impact on the registered frequency

2004 CEFOR Norwegian Marine Insurance Statistics – Part 4 As of 31 December 2004

2004 CEFOR Norwegian Marine Insurance Statistics – Part 5 As of 31 December 2004 Number of vessels per vessel type Total number of vessels : 32, : 7,815 Comment: The increase in Chem./Prod and decrease in Tank vessels is mainly due to more differentiated coding of vessel types in Lloyd’s Confidential Index (LMIU) from 2002, rather than to portfolio changes.

2004 CEFOR Norwegian Marine Insurance Statistics – Part 5 As of 31 December 2004 Comment: Claims < USD account for about half of all claims. Registration of these may vary over time and in each company and will thus influence the registered frequency. In addition any increase/decrease of insurance deductibles will have impact on the registered frequency

2004 CEFOR Norwegian Marine Insurance Statistics – Part 5 As of 31 December 2004

2004 CEFOR Norwegian Marine Insurance Statistics – Part 6 As of 31 December 2004 Number of vessels per Size Group Total number of vessels : 32, : 7,815

2004 CEFOR Norwegian Marine Insurance Statistics – Part 6 As of 31 December 2004 Comment: Claims < USD account for about half of all claims. Registration of these may vary over time and in each company and will thus influence the registered frequency. In addition any increase/decrease of insurance deductibles will have impact on the registered frequency

2004 CEFOR Norwegian Marine Insurance Statistics – Part 6 As of 31 December 2004

2004 CEFOR Norwegian Marine Insurance Statistics – Part 7 As of 31 December 2004 Number of vessels per flag, 15 largest Total number of vessels : 32, : 7,815

2004 CEFOR Norwegian Marine Insurance Statistics – Part 7 As of 31 December 2004

Number of vessels per classification society Total number of vessels : 32, : 7,815

2004 CEFOR Norwegian Marine Insurance Statistics – Part 8 As of 31 December 2004

2004 CEFOR Norwegian Marine Insurance Statistics – Part 9 As of 31 December 2004 PA claims in % of all claims : 0-5 Mio USD: 62% 5-20 Mio USD: 73% Mio USD: 74% > 75 Mio USD: 100% Sum Insured

2004 CEFOR Norwegian Marine Insurance Statistics – Part 9 As of 31 December 2004 Exposure Curves Exposure curves are used by reinsurers to price excess of loss reinsurance. The curves indicate the ceding company's retained share of PA claims after ceding claims in excess of a given percentage of a vessel’s sum insured. The curves should be applied on individual vessels or groups of vessels with similar values and written shares. The curves are calculated for 100% values. In applications the choice of curve should thus also be based on 100% values. Exposure Curves technicalities The curves are based on H&M covers only. The curves are based on the underwriting years (13,000 claims) The curves are calculated as follows: x = percentage retained C = Individual partial claims V = Vessel value f(x) = Σ min[C, V*x]/ Σ C

2004 CEFOR Norwegian Marine Insurance Statistics – Part 9 As of 31 December 2004 Links to other statistics related presentations: 1)CEFOR Annual Report 2004 (page 16-21): ual%20Report% pdf 2) Presentations at the Facts&Figures Committee Workshop at the 2004 IUMI Conference in Singapore: