1. Engineering Risk Management Alternatives May 10, 2007 With The Insurance Alliance

2. Agenda Introductions Keystone Risk Partners Alternative Market Products Opportunities

3. Who is Keystone? Mega broker expertise with boutique service  Unique business model  Unique people  State of the ART corporate risk solutions Creative, Innovative, Results Oriented Union of insurance solutions with sophisticated corporate finance

4. The Keystone Business Model Corporate Client Association Agency Captive Group Captive Sponsor Consultant Broker Rent-a-captive or Captive Implementation Targeted Insurance and Reinsurance Marketing and Placement Claims and Managed Care Analysis, Benchmarking and Vendor Selection Analysis Underwriting Structuring Pricing Marketing Implementation Ongoing Review Broker MGA

5. Keystone Strategy Canvass

6. Per Occurrence Losses Frequency of Losses Alternative Risk Financing Programs Risk Transfer Retention Via Captive Loss Limit Risk Transfer Frequency Basis Risk Transfer Severity Basis Insurance Company Provides Excess

7. Alternative Market Offerings Individual Insureds

8. Relationship of Parties Corporate Insured Insured Carrier Captive Vehicle PremiumProfits Loss Fund

9. Relationship of Parties Corporate Insured Insured Carrier Captive Vehicle Premium Profits Loss Fund Beneficiary

10. Corporate Insured- Ideal Candidate Privately Held Company Minimum Loss Pick of $500,000 Financially Secure Out of the Box Thinker Estate Planning Motivations Misunderstood Class of Business

11. Benefits to Insureds  “first dollar” cash flow stability  “A” rated insurer  Unbundled & customized service package  Access to underwriting profit & investment income  Alternative to LOC’s for carrier security  Estate planning/deferred compensation  Tax deductibility for qualifying structures

12. Alternative Market Offerings Direct Policies

13. Direct Policy Insured Captive Vehicle

14. Direct Policy- Ideal Candidate Privately Held Company Uninsurable “Rainy Day” Exposure Out of the Box Thinker Financially Secure Estate Planning Motivations

15. Alternative Market Offerings Group Captives

16. A Carrier BCD Captive Vehicle ABCD

17. Group Captive- Ideal Candidate Homogenous or Heterogeneous GC Premium between $200,000 and $1,000,000 Long Term Thinker Financially Secure Top Down Commitment to Safety

18. Alternative Market Offerings Agency Captives

19. Relationship of Parties Agency Captives Agency/Third Party Carrier Captive Vehicle PremiumProfits Loss Fund ABCD

20. Tenants of a Successful Agency Captive Majority of accounts in captive should be existing customers Top down long term commitment Captive not to be used as a new business tool Distinct underwriting “hat” within agency Additional spotlight on Claims and Loss Control Risk threshold to be reviewed periodically

21. Captive “Perceived” Drawbacks Up front Capital Collateral Expensive Difficult to enter and exit Complexity of Program Structure Time Requirements

22. When to Call? Gravitating to and from guaranteed cost Company caught in reimbursement bind Insured with wealth transfer objectives Contractor looking for long term rate stability Horrific claims adjusting stories No apparent capacity for coverage in market Insured interested in writing 3 rd party business Limited/restricted/expensive LOC capacity

23. Alternative Market Offerings Opportunities