1. Proprietary and Confidential | © General Reinsurance Corporation Practical ERM: PAMIC Molly Corbett Gen Re

2. Proprietary and Confidential | © General Reinsurance Corporation Goals Practical ERM: PAMIC | Molly Corbett | April, 2016 2 ERM What is it? ORSA Moving Beyond a Regulatory Requirement Gen Re Our Approach

3. Proprietary and Confidential | © General Reinsurance Corporation Enterprise Risk Management Practical ERM: PAMIC | Molly Corbett | April, 2016 Capital Risk Business Plan Balance Sheet AssetsLiabilities 3 3 Creating Value: Balancing Risk and Return

4. Proprietary and Confidential | © General Reinsurance Corporation Enterprise Risk Management Practical ERM: PAMIC | Molly Corbett | April, 2016 4 Everyone’s Responsibility Across the Organization Monitoring & Oversight Forum for Discussion What is ERM?

5. Proprietary and Confidential | © General Reinsurance Corporation Enterprise Risk Management Practical ERM: PAMIC | Molly Corbett | April, 2016 5 Prioritize Resources Identify Gaps Identify Opportunities Create Value What Should ERM Help You Accomplish?

6. Proprietary and Confidential | © General Reinsurance Corporation ORSA: Own Risk and Solvency Assessment 6 Practical ERM: PAMIC | Molly Corbett | April, 2016 Presenting Gen Re’s Story

7. Proprietary and Confidential | © General Reinsurance Corporation NAIC ORSA: Three Areas of Focus Three Areas of Focus Practical ERM: PAMIC | Molly Corbett | April, 2016 7 A high-level summary of the company’s risk management framework SECTION 1 Description of Risk Management Framework Detail showing the company’s process for assessing risks, including stress tests SECTION 2 Assessment of Risk Exposures (Quantitative and Qualitative) Demonstration that current and future capital is sufficient to support risks identified SECTION 3 Group Risk Capital and Prospective Solvency Assessment

8. Proprietary and Confidential | © General Reinsurance Corporation ORSA Section 1: Risk Management Framework THREE LINES OF DEFENSE Gen Re’s Enterprise Risk Management Framework Practical ERM: PAMIC | Molly Corbett | April, 2016 8 3 R Risk 1111222

9. Proprietary and Confidential | © General Reinsurance Corporation ORSA Section 1: Risk Management Framework THREE LINES OF DEFENSE The First Line of Defense Practical ERM: PAMIC | Molly Corbett | April, 2016 9 3 R Risk 1111222 THE BUSINESSES and INVESTING Actively take on risk as part of the business plan Apply internal control structure Execute controls Escalate issues

10. Proprietary and Confidential | © General Reinsurance Corporation ORSA Section 1: Risk Management Framework THREE LINES OF DEFENSE The Second Line of Defense Practical ERM: PAMIC | Molly Corbett | April, 2016 10 3 R Risk 1111222 OVERSIGHT FUNCTIONS Provide guidance and advice in the effective delivery of the risk framework Establishes internal control structure Independent from management and personnel that “take” the exposures Escalate issues

11. Proprietary and Confidential | © General Reinsurance Corporation ORSA Section 1: Risk Management Framework THREE LINES OF DEFENSE The Third Line of Defense Practical ERM: PAMIC | Molly Corbett | April, 2016 11 3 R Risk 1111222 INTERNAL AUDIT Independent from Businesses & Oversight Functions Provide objective assurance on design, performance & effectiveness of system of internal controls Tests effectiveness of risk management & internal controls Escalates issues

12. Proprietary and Confidential | © General Reinsurance Corporation ORSA Section 1: Risk Management Framework THREE LINES OF DEFENSE Role of the Board of Directors Practical ERM: PAMIC | Molly Corbett | April, 2016 12 BOARD OF DIRECTORS Governance Sets business and risk management strategy Risk Appetite and Tolerance

13. Proprietary and Confidential | © General Reinsurance Corporation ORSA Section 1: Risk Management Framework Matrix Business Unit Reporting Practical ERM: PAMIC | Molly Corbett | April, 2016 13

14. Proprietary and Confidential | © General Reinsurance Corporation GRN DE - NAIC GRC DE - NAIC GRAG Germany - BaFin GRSA South Africa - FSB GRLA Australia - APRA GRL CT - NAIC GRA Australia - APRA GSI DE - NAIC GIC CT - NAIC GSN DE - NAIC FUL U.K. - PRA GR-NEAM DE GRI NY USAU NY ORSA Section 1: Risk Management Framework Gen Re Legal Entity Organization = 13 ORSAs Practical ERM: PAMIC | Molly Corbett | April, 2016 14 GRC Canada Branches OSFI GRAG Singapore Branch MAS BRK NE - NAIC GRAG Shanghai Branch CIRC GRAG Taiwan Branch FSC GRAG Japan Branch FSA

15. Proprietary and Confidential | © General Reinsurance Corporation ORSA Section 1: Risk Management Framework KEY CONTROLS Practical ERM: PAMIC | Molly Corbett | April, 2016 15 Boards of Directors Audit Committees Complex Transactions Committee Risk Committees Code of Business Conduct Compliance Training Conflict of Interest Questionnaire Employee Handbook Compensation Policy Berkshire Hathaway Code of Conduct and Ethics Berkshire Hathaway Ethics and Compliance Hotline Operational Policies and Procedures Referral Process Underwriting Guidelines and Authority Limits Willing to Risk Limits Risk Transfer Protocols / Pre-Qualifications Target Combined Ratios Actuarial Pricing Investment Policies and Guidelines Investment Management Agreements Training and Development Business Continuity Management Internal Audit Reporting Internal Control Testing Internal Audit Plan Internal Audit Policies and Procedures Quality Assurance Review Assessment of the Internal Audit Function Segregation of Duties – Reserving Function Actuarial Day Quarterly Reviews by Senior Management Underwriting Feedback Mechanisms Underwriting and Claims Peer Reviews Accumulation Modeling and Aggregate Management Complex Transactions Committee IT Advisory Team Asset Stress Testing Scenario Testing Capital Modeling Governance Elements First Line of Defense Second Line of Defense Third Line of Defense

16. Proprietary and Confidential | © General Reinsurance Corporation ORSA Section 2: Assessment of Risk Exposures Six Steps to a Good Risk Assessment Practical ERM: PAMIC | Molly Corbett | April, 2016 16

17. Proprietary and Confidential | © General Reinsurance Corporation ORSA Section 2: Assessment of Risk Exposures GROUP RISK LIBRARY – 2015 Practical ERM: PAMIC | Molly Corbett | April, 2016 17 Natural Catastrophe Pricing and Underwriting (Non- Nat Cat) Pandemic Terrorism War Reserving Credit Spread Liquidity Equity Interest Rate Currency Counterparty Default Concentration Insurance Risk Category Market Operational Strategic Risk Reputational Strategy Emerging Risk Group Risk Legal and Regulatory Compliance Tax Compliance Transaction and Data Processing IT Risk Business Interruption / Disaster Recovery Service Provider / Outsourcing Project / Change Management Personnel Risk Name

18. Proprietary and Confidential | © General Reinsurance Corporation Increasing Risk Impact (example: >1M-$5M, >$5M-$10M, >$10M-$50M, >$50M-$100M, etc.) > 90% > 50% - 90% > 10% - 50% Data Security & Data Privacy > 5% - 10% Legal and Regulatory Tax Compliance Terrorism Personnel > 1% - 5% Business Interruption / Disaster Recovery Transaction / Data Processing GroupEmerging Risk > 0.5% - 1% Counterparty Default Credit Spread < 0.5% Service Provider / Outsourcing War Natural Catastrophe Pricing & Underwriting (Non-Nat Cat) Pandemic Reserving Interest Rate Liquidity Equity Currency ORSA Section 2: Assessment of Risk Exposures RISK REPORTING: HEAT MAP & MAJOR RISKS Practical ERM: PAMIC | Molly Corbett | April, 2016 18

19. Proprietary and Confidential | © General Reinsurance Corporation ORSA Section 2: Assessment of Risk Exposures PROBABILISTIC HURRICANE STORM TRACKS 250 Year Return Period Practical ERM: PAMIC | Molly Corbett | April, 2016 19

20. Proprietary and Confidential | © General Reinsurance Corporation 500 Year Return Period Practical ERM: PAMIC | Molly Corbett | April, 2016 20 ORSA Section 2: Assessment of Risk Exposures PROBABILISTIC HURRICANE STORM TRACKS

21. Proprietary and Confidential | © General Reinsurance Corporation ORSA Section 2: Assessment of Risk Exposures Practical ERM: PAMIC | Molly Corbett | April, 2016 21 Global Chief Underwriter, P/C Business Unit Leaders and Chief Underwriters, Global Aggregate Manager Assuming Natural Catastrophe risk is core to our business model. We actively seek profitable natural catastrophe risk but manage accumulations conservatively. We limit our gross aggregate exposures across the Group to less than 20% of GAAP capital in the greater of: (1) a 1:250 windstorm occurrence or, (2) 1:500 EQ occurrence as measured by TVaR. Risk limits are applied at the business unit and legal entity level. Risk Owner(s) Risk Appetite Risk Tolerance Risk Limits Natural Catastrophe Risk *Figures included are for presentation purposes only

22. Proprietary and Confidential | © General Reinsurance Corporation ORSA Section 2: Assessment of Risk Exposures Practical ERM: PAMIC | Molly Corbett | April, 2016 22 Underwriting Guidelines, Aggregate Modeling, Referral Process, Reinsurance and Retrocessional Purchases, Target Combined Ratios, Underwriting Peer Reviews Gross AAL = $30M per occurrence Net AAL = $25M per occurrence Risk Mitigation / Key Controls Expected Result / Normal Conditions Stressed Conditions Natural Catastrophe Risk *Figures included are for presentation purposes only

23. Proprietary and Confidential | © General Reinsurance Corporation Practical ERM: PAMIC | Molly Corbett | April, 2016 23 Legal Entity Pre-Stress Scenario RBC (12/31/2014) Post Stress Scenario RBC Scenario 1Scenario 2Scenario 3Scenario 4Scenario 5 Entity #1390% Above Threshold Entity #2540%NM Above Threshold NM Above Threshold Post Stress Scenario Capital AdequacyNAIC RBC Above ThresholdRBC > 325% Early Warning ThresholdRBC > 300% and ≤ 325% Below ThresholdRBC ≤ 300% RBC Stress Scenarios ORSA Section 3: Group Risk Capital & Solvency Assessment *Figures included are for presentation purposes only

24. Proprietary and Confidential | © General Reinsurance Corporation Practical ERM: PAMIC | Molly Corbett | April, 2016 24 2014 2015 Gen Re Group U.S. GAAP Forward-Look Model ORSA Section 3: Group Risk Capital & Solvency Assessment

25. Proprietary and Confidential | © General Reinsurance Corporation ORSA Confidentiality Practical ERM: PAMIC | Molly Corbett | April, 2016 25 Internal and External Reports

26. Proprietary and Confidential | © General Reinsurance Corporation Key Takeaways About ORSA Reports Tone at the Top Forum to Tell Our Story Opportunity to Get “Credit” for the Work that We Do Speak Simply and With One Voice Straightforward Analysis Streamline Document Risk Management vs. Project Management Practical ERM: PAMIC | Molly Corbett | April, 2016 26

27. Proprietary and Confidential | © General Reinsurance Corporation Proprietary Notice The material contained in this presentation has been prepared solely for informational purposes by Gen Re. The material is based on sources believed to be reliable and/or from proprietary data developed by Gen Re, but we do not represent as to its accuracy or its completeness. The content of this presentation is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances. Practical ERM: PAMIC | Molly Corbett | April, 2016 27

28. Proprietary and Confidential | © General Reinsurance Corporation Visit genre.com for more info. Thank You Molly Corbett ERM Analyst, Vice President