Page 1 Recording of this session via any media type is strictly prohibited. Page 1 Megatrends Part 4 – The Shift in Economic Power – M&A Implications for Risk Managers RIMS 2014 April 30, 2014

Page 2 Recording of this session via any media type is strictly prohibited. John Merrigan is a Managing Director and US leader of Insurance Risk Management Solutions New York, NY John has over 35 years of risk management and insurance experience across a broad range of industry sectors. He performs and directs the performance of risk management advisory services: insurance risk management diligence, organizational and performance studies, property, casualty and management liability insurance and risk management program analysis, insurance broker and insurer services cost review, and captive insurance company analysis. About Your Presenter

Page 3 Recording of this session via any media type is strictly prohibited. Megatrends Demographic Shifts Global Economic Power Accelerating Urbanization Resource Scarcity Technological Breakthroughs

Page 4 Recording of this session via any media type is strictly prohibited. Global Economic Power Balance of Power Growth Opportunities = Cross- Border Acquisitions in Emerging Markets Risk Implications Political Enterprise Legal Societal

Page 5 Recording of this session via any media type is strictly prohibited. Diligence Informed Decision Making Diligence should equip the Buyer to make informed decisions. Focus typically on purchase price considerations - balance sheet, run-rate expense and synergies.

Page 6 Recording of this session via any media type is strictly prohibited. The Risk Manager & Diligence “Are You Experienced?” Are you involved in diligence? How often? When are you involved in the process? I. Day 1 or the week before the deal is announced? What is your role? I.Insurance Placement II.Risk Identification & Quantification of the Target’s impact on your Company’s overall risk profile? III.Evaluation of the Target’s Risk Management Operations & Processes IV.Inclusion of the Acquired Operation into your RM platform

Page 7 Recording of this session via any media type is strictly prohibited. Risk Management Diligence Reality Insurance Risk Management may not be a ‘deal driver’ Data quality, deal timing and the RM’s diligence role may inhibit robust analysis and modeling. Pre-Acquisition, the RM’s typical focus will be on: I.Insurance placement, cost and/or synergies and service providers Effectiveness – Directly correlated to the Risk Management Platform Practically Speaking – RM Diligence must continue post acquisition

Page 8 Recording of this session via any media type is strictly prohibited. Questions, Final Comments and Contact Information John Merrigan – PwC © 2014 PricewaterhouseCoopers LLP, a Delaware limited liability partnership. All rights reserved. PwC refers to the US member firm, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see for further details. This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors.

Page 9 Recording of this session via any media type is strictly prohibited. KEEP THIS SLIDE FOR EVALUATION INFORMATION/MOBILE APP ETC. Please complete the survey on the RIMS14 mobile application.