10/15/2012

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2012 NAPSLOA T L A N T A , G A

Catastrophe Underwriting Specialist

OVERVIEW

AmRisc Update

Market Conditions/Forecast

Elite Producer Statistics

www.amrisc.com

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Update

• Overall Stats• Capacity Providers• Product Development

www.amrisc.com

Overall Stats

www.amrisc.com

As the largest CAT-focused MGU in the United States, AmRisc is YOUR market for catastrophe-exposed risks.

Insuring over $100 Billion TIV with over 6,000 middle-market policies in-force.Loss Ratio has outperformed E&S market by over 50%.

E&S Occupancies Covered E&S TIV by State

Apartments34.1%

Real Estate20.9%

Munis & Schools

13.5%

Condos13.6%

Industrial & Manufacturing

12.8%

Florida43.1%

Texas27.7%

Georgia, NC, SC

8.7%

Alabama, Louisiana, Mississippi

16.1%

Other 4.4%Other 5.1%

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Overall Stats

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2005 2006 2007 2008 2009 2010 2011 2012

E&S ACIC Projected E&S Projected ACIC

$587.6MYTD

Sept. 2012

www.amrisc.com

Written Premium

Total E&S ACIC

Wholesale 85% 95% 70%

Retail 15% 5% 30%

Premium Source

Capacity Providers

www.amrisc.com

AM Best A

Manage over $2.5 Billion PML capacity from top-rated Catastrophe markets

AM Best A+AM Best A

Demotech A’ Unsurpassed AM Best A

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Product Development

More PML capacity ($150M added)

Additional carriers

Re-launched GL product

Cal EQ

DIC Flood/EQ

AmRisc Online (roll-out 2013)

www.amrisc.com

Target Business and Capacity

Occupancy Target TIV Coverage Available

Coastal Commercial PropertyReal estate, apartments, condo associations, retail, offices, lessor’s risks, self-storage warehouses, HPR, hotels, restaurants and other general property classes

Up to $2.5 billion per account Full-value up to $100 million per riskLead primary or lead quota-share participation – up to $100 million Cat capacity – per risk

Coastal Public Entity $5 million to $2.5 billion per account Lead primary or lead quota-share participation – up to $100 million Cat capacity – per risk

Coastal Builder’s Riskcommercial, residential, and public buildings up to 24 months

$5 million to $100 million 24-month term; $50 million per risk, except $25 million per risk wind capacity

TECH – Industrial and Manufacturingplastics, wood, metal, food, textile, electrical, oil and gas, chemical warehousing

$5 million to $500 million Full-value up to $100 million per risk

Admitted Product for Florida Condo Associations – American Coastalgarden style, mid-rise, or high-rise

Condos $1 million to $100 million

Full limits on ISO form-based policy

Force Placed Foreclosed Program for Banks and Financial Institutionscommercial, residential, and vacant risks on monthly reporting form

Mid-size community and regional banks

$10 million per location$1 million occurrence/$2 million CGL (REO only)

Flood: DIC-Flood Excess of NFIP and Primary Flood CBRA Zones

Single-location accounts up to $100 millionTargets high-valued dwellings

$10 million per location; higher limits available for condos excess of NFIP RCBAP

General Liability Written with Property or stand-alone real estate, habitational, lessor’s risk, offices and retail

Follows property risk target General Agg $2M/ $1M Occurrence on ISO form-based policy

California EarthquakeReal estate, apartments, condo associations, retail, offices, lessor’s risks, self-storage warehouses, and other general property classes

Up to $2.5 billion per account Primary, quota-share or first excess – up to$25 million Cat capacity per risk

www.amrisc.com

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Market Conditions/Forecast

• 2011• 2012• Forecast

www.amrisc.com

2011 – CAT Losses

www.amrisc.com

Global Extraordinary number of severe catastrophes: earthquakes,

tsunami, floods, and tornadoes

$105B insured losses

2011 losses were 2.5 times 2010 insured losses

U.S. $35.9B insured losses arising from 171 CAT events

5th highest year on record

Represents 51% increase over the $23.8B total in 2010

Source: Munich Re; Insurance Information Institute

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2011 – Market Conditions

www.amrisc.com

Capital/capacity Fell only 1.6% in 2011 due to CATs

Limited excess capital in reinsurance markets – costs increased

RMS11 constrained capacity and increased capital needs in some areas

Underwriting Commercial lines pricing trended higher due to CAT model

changes and tight reinsurance market

Reserve releases continued and marginally improved ROEs

Source: Barclays Capital; Insurance Information Institute

January - July 2012 – CAT Losses

www.amrisc.com

Lower CAT losses YTD Insured losses are well below first-half 2011 and 10-year average and are on par with 30-year average

Globally - $12B insured loss

U.S. - $9.3B insured loss

Hurricane Isaac losses are estimated up to $2B and are not included in total above

$8.8B of total is from thunderstorm (tornado & hail) activity

No significant earthquakes worldwide

Minor tropical activity overall

Source: Munich Re; Insurance Information Institute

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2013 – Market Predictions

www.amrisc.com

Capacity Negligible change in availability

Higher scrutiny on use of capital

Cost of capital remains high

Underwriting discipline Growth in sophisticated price monitoring and U/W tools

Pricing trends slightly up

Meager investment returns will require strong U/W profit

Elite Producer Statistics

Company Name

www.amrisc.com

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www.amrisc.com

Houston, TX

20405 SH 249, Ste 430Houston, TX 77070281.257.5100Toll Free 888.919.8142

Morehead City, NC

3710-A John Platt DriveMorehead City, NC 28557252.247.8760Toll Free 877.284.4900

Birmingham, AL

One Metroplex Drive, Suite 230Birmingham, AL 35209205.414.2361

Stamford, CT

4 Landmark Square Ste, 301Stamford, CT 06901203.658.9150

Davie, FL

351 SW 136 Ave, Ste 201Davie, FL 33325954.889.3384

Atlanta, GA

2500 Northwinds Pkwy, Ste 225Atlanta, GA 30009770.557.0037