1. ©Towers Perrin September 13, 2004 Joseph R. Lebens, FCAS, MAAA WTC – Three Years Later CARe Special Interest Seminar

2. ©Towers Perrin 2 Initial estimates of insured losses from 9/11 ranged from $30B to over $70B

3. ©Towers Perrin 3 Generally speaking, the early estimates appear to be conservative Current estimate is $30 - $35B 1 1 Source: Insurance Information Institute

4. ©Towers Perrin 4 Early estimates appear to be too high partly due to a misread of the amount of liability claims n Victim Compensation Fund n Over 98% of eligible families submitted claims n The average deceased victims award after offsets was approximately $2.1m n Difficultly in quantifying Business Interruption claims n Available information immediately following 9/11 proved to be inaccurate n Number of injuries n Number of deaths  Original estimates – 5,000 plus  Actual was approximately 2,800

5. ©Towers Perrin 5 The north tower of the WTC was attacked first at 8:46 am

6. ©Towers Perrin 6 Sixteen minutes later the south tower was also attacked

7. ©Towers Perrin 7 For nearly an hour after the second plane attacked, the two towers burned

8. ©Towers Perrin 8 At 9:59 am, the south tower, the second one attacked, was the first to collapse

9. ©Towers Perrin 9 Thirty minutes later the north tower also collapsed

10. ©Towers Perrin 10 Nearly 2,800 people lost their lives

11. ©Towers Perrin 11 Chronology of September 11 North tower hit at 8:46 South tower hit at 9:02 South tower collapses at 9:59 North tower collapses at 10:28 :16 :56 1:12 :29 1:41

12. ©Towers Perrin 12 Impact zones of aircraft on September 11

13. ©Towers Perrin 13 Virtually all workers/visitors at or above the impact were killed; most of those below survived North Tower South Tower 84 th 78 th 98 th 93 rd 1,360 deaths 72 deaths 595 deaths 4 deaths

14. ©Towers Perrin 14 There were a number of mitigating factors n The building had been attacked before; evacuation procedures were better known n The attack occurred before many had arrived at work n The emergency stairwells were wider than required by code n The buildings remained standing for over an hour n Most people in the south tower began evacuating shortly after the north tower was attacked and before the south tower was attacked n New York Workers Compensation benefits are lower than other states

15. ©Towers Perrin 15 The workers compensation gross losses were approximately $1.8 billion, $0.9B net n Initial estimates pegged the workers compensation losses at $3 - $5 billion n The number of deaths was approximately ½ of the that which was initially estimated n Approximately 480 (15%) of the deaths were self- insured n NYFD n NYPD n Approximately 600 of the deaths involved single individuals (lump-sum $50,000 payment per person) n Some of the deaths were not eligible for workers compensation (e. g., visitors to the towers)