Aon Benfield Canadian Rendezvous

Dominic Christian Executive Chairman, Aon Benfield International October 2013

What has changed since 1987

2

Then Now

Space Travel Men on the moon Private Space Travel

Car Travel Flying Self driving

Energy Running out Shalegas

Navigation Maps GPS

Information Yellow pages Internet

Life Expectancy 74 81

Income level per capita $16k $52k

Pensions & Healthcare Company provided Personal responsibility

Money Big Bang Quantitative easing

Canada, then and now and...

3

1987 2013

Population 26 mn 35 mn

GDP $ 430 bn $ 1,825 bn

Unemployment 8.80% 7.10%

10 year govt. bonds Canada 10% 2.8%

US 8% 2.5%

Exchange rate CAD-USD 0.85 0.99

CAD-GBP 0.44 0.63

Inflation Canada 4.4% 0.9%

US 1.5% 1.5%

Trend in mega-liability events?

D&O, E&O new; asbestos a fine insulator

BP, TEPCO $50B+ events

P&C premium $ 11 bn $ 53 bn

Impact of macro changes to risk world

Rebalancing Economic Mix Risk Mix

0

10

20

30

40

50

60

G7 GDP

E7 GDP

2000 2010 2020 2030

AVERAGE RATE CHANGE

Percentage of gross domestic premium

written

Employment growth CAGR,

% last decade

GDP PPP ($ trillion)

2.2

0.6

Knowledge- based industries

Other

4x

1997 2007 Scenario 2020

100%= 37 55 84 EUR bn

Property

General Liability 37 43 52

63 57 48

EUROPEAN EXAMPLE

Source: McKinsey Source: McKinsey Source: World Bank, PwC

EUROPEAN EXAMPLE

Aon Benfield | Proprietary&Confidential 4

2014 – ten key themes

1. Insurer price to book values and long term interest rates / bond yields

2. Excess capital strategies

3. Broader implications for insurance accounting reform

4. Unraveling of central bank balance sheets/actions and inflation

5. Risk capital and solvency development in life insurance

6. The insurability of water based (flood) perils - public to private…

7. Stimulating non-life reinsurance demand

8. The future of intermediated distribution

9. The metabolic rate in which catastrophe xl reinsurance is digested

10. Product commoditization in non-life lines

Aon Benfield | Proprietary&Confidential 5

Largest reinsurance brokers & ILS managers

Reinsurance Brokers - 2012 ILS Managers

Lockton 0.02

UIB 0.05

Miller

0.05 BMS Group

0.06

Cooper Gay 0.18

JLT 0.20

Towers Watson 0.21

Willis Re* 0.68

Guy Carp* 1.08

Aon Benfield* 1.51

USD Bn

Top 3 $ 3.3 bn 81% Top 10 $ 4.0 bn 100%

* 2012 results updated for top 3 brokers which constitutes ~80% of the industry

Annual Nat Cat Issuance – 2013 Year-to-Date

Rank Investment bank Notional Deal count % of notional % of deals

1. Aon Benfield Securities 2.1 10 42.6% 47.6%

2. Guy Carpenter 1.8 7 35.8% 33.3%

3. Goldman Sachs 1.3 5 26.0% 23.8%

4. Swiss Re 1.3 5 26.8% 23.8%

5. Deutsche Bank 0.9 3 18.9% 14.3%

6. Munich Re 0.9 3 18.1% 14.3%

7. Willis 0.2 1 3.7% 4.8%

7. BNP Paribas 0.1 1 2.5% 4.8%

Total Nat Cat Issuance – 2010 Onward

Rank Investment bank Notional Deal count

% of notional

% of deals

Total 2010 to 2013

1. Aon Benfield Securities 8.2 30 44.1% 47.0%

2. Swiss Re 5.7 24 31.4% 29.3%

3. Goldman Sachs 5.6 22 31.2% 27.2%

6 Aon Benfield | Proprietary&Confidential

Client challenges to answer and articulating value better

Product Development

& Market Selection Marketing & Distribution

Pricing & Underwriting

Policy Administr

ation Claims

Investment Mgmt. &

Reinsurance

Leadership questions:

•Are my products differentiated?

•How strong is my value proposition?

•Am I playing in profitable markets?

•How is the market changing?

•How can I win the distribution game?

•What channel partners should I select?

•Is my value proposition clear to customers and distributors?

•Am I pricing risks correctly?

•Am I leveraging company knowledge and data?

•Am I underwriting efficiently?

•Are my costs under control?

•Are my core systems and functions robust?

•Are we paying the right amount on claims?

•Are we paying claims in an efficient, low cost, expedient manner?

•Am I taking too much risk?

•Am I transferring risk efficiently?

•Is my investment portfolio optimally structured ?

Aon Benfield | Proprietary&Confidential 7

Understanding how we build value for clients Having a view on the worth of what we deliver

Helping clients understand the value we deliver Good feelings and right solutions

Confidence in the future

8

Mayors of Toronto and London

1987 2013

1998

Arthur C. Eggleton

Mel Lastman

Robert Ford

2013 Boris Johnson