CLASS REVIEW August 2012 Find out more about Lloyds position in the US, Brazil, Mexico & Turkey >

CLASS REVIEW

August 2012

Find out more about Lloyd’s position in the US, Brazil, Mexico & Turkey

> www.lloyds.com/classreview

> We have developed Class Review to help you do this effectively

Have you ever wanted to compare Lloyd’s business profile with that of competitors?

In this presentation we want to:

1. Help you understand what is Class Review

3. Explain how we have created Class Review

2. Explain what you can find in Class Review

4. Present examples of how you can use Class Review

AGENDA

CHOOSE SURGERY SESSION Turkey

> US Surplus Lines Market Brazil Mexico

CLASS REVIEW

May 2012

Find out more about Lloyd’s position in the US

> www.lloyds.com/classreview > Back to Agenda

WHAT IS CLASS REVIEW? Class of Business Analysis by Territory

Comparison of Lloyd’s vs. Competitors

Market Share Analysis

Downloadable Triangulations

BENEFITS

US Pilot: Top 4 States + Total US

Compares Lloyd’s with its core competitors

Mapping of Lloyd’s specialty classes

Data reviewed by market participants

Insights on relevant business information: premiums, market shares & incurred loss ratios

>www.lloyds.com/classreview

Managing Agent, Broker and Coverholder Versions available on

http://www.lloyds.com/classreview

What can you find in the Broker & Coverholder Version of Class Review?

BROKER & COVERHOLDER VERSION

Brokers & Coverholders have access to the following documents:

US Lloyd’s Coverholder Map (PDF)

Market Reports (PDF)

1

1

> Pilots for Top 4 US states and for the Total US

Total US

California

Florida

New York

Texas

2

2

2

2

2

2


What sections are available in the Market Report?

> The Market Report contains 3 sections.

MARKET REPORT

Aggregateoverview and benchmark

analysis

(Lloyd’s vs. the market)

Premium trends

Key Competitors

Premium by class of business

Incurred loss ratios

Major business classes

benchmark analysis


Premium trends by class of

business

Key competitors by

class of business

Incurred loss ratios by class of business

Specialty classes

in depth analysis

Premium trends & incurred loss

ratios* by specialty

class of business

Market Intelligence Team

How have we created Class Review?

1 Finding the best market information with a class of business breakdown with the help of…

Regulator Associations

Third Party Information Providers

Lloyd’s Country Manager

Market Practitioners / LMA Feedback

2 Mapping market classes of business… …with Lloyd’s classes of business

Finding commonly used class of business descriptions, which can be used to benchmark Lloyd’s with the market

MARKET MARKET MARKET MARKET MARKET

Comparing Lloyd’s with the rest of the market at a class of business level

3

METHODOLOGY

BENEFITS


Mapping of Lloyd’s specialty classes of business



*Incurred loss ratios and underlying data are only available for Managing Agents*Incurred loss ratios and underlying data are only available for Managing Agents

California E&S Class Review

Lloyd’s business represented approximately 18% of the E&S market in California in 2010.

Premiums present a declining trend. However, this decline is less dramatic for the Lloyd’s market.

BENCHMARKING TOOL

Illustrates Lloyd’s footprint in a specific market.

HOW DOES THIS BENEFIT ME?

Class Review illustrates the importance of the Lloyd’s market in a particular territory…

How has Lloyd’s market share evolved over the past 5 years?


Lloyd’s underwrote a larger proportion of Property business than the market average in California during 2010.

BENCHMARKING TOOL


Class Review exposes particularities of the Lloyd’s market in a specific territory at a high level…

Which classes of business does Lloyd’s specialise in?

Illustrates the market versus Lloyd’s class of business breakdown.


Lloyd’s has maintained its 24% market share in the Californian Property market during the past 5 years.

BENCHMARKING TOOL

Compares Market premiums versus Lloyd’s premiums by class.


Class Review illustrates the participation of Lloyd’s in a specific business class.

Is a certain business class growing or declining?

How is Lloyd’s participation in a particular business class evolving?

Note: Market business classes from NAIC have been classified to match Lloyd’s business classes.


In 2010, Lloyd’s was the second biggest player in the Property market in California.

Lexington is the market leader with a 27% market share.

BENCHMARKING TOOL

Compares Lloyd’s with its core competitors.


Class Review reveals Lloyd’s core competitors.

Who are the key players in a specific business class and how are they performing?

BENEFITS






Texas E&S Class Review

Pecuniary Loss is a growing class of business both for Lloyd’s and the rest of the market.

General liability is a declining class of business for the market. Lloyd’s has started to decline in 2010.

Insights on relevant business information.

RELEVANT INFORMATION


This describes and compares different business classes in a particular territory in terms of premium growth, profitability and competition.

Which is the expected premium growth for a class of business based on historical data?

Which classes of business present better loss trends? Are these in normal ranges?

Which markets are more competitive?

BENEFITS



Insights on relevant business information: premiums, market shares & incurred loss ratios*



© Lloyd’s16

This document is intended for general information purposes only. Whilst all care has been taken to ensure the accuracy of the information Lloyd's does not accept any responsibility for any errors or omissions. Lloyd's does not accept any responsibility or liability for any loss to any person acting or refraining from action as a result of, but not limited to, any statement, fact, figure, expression of opinion or belief obtained in this document.

Disclaimer

© Lloyd’s17

CLASS REVIEW

May 2011

Find out more about Lloyd’s position in Brazil



Comparison of Lloyd’s vs. Competitors



BENEFITS

Brazil Pilot

Compares Lloyd’s performance

by business class with local market

Mapping and English translation of SUSEP classes of business


Data reviewed by market practitioners



1

CLASS REVIEW 2010 Br azil Dir ect vs. Ll oyd’s Total DECEMBER 2011

www.lloyds.com/classreview

© Lloyd’s12

2008 – 2010 Brazil Direct Market Premiums (US$ m)(Non-Life Insurance Premiums on a calendar year basis, gross of RI and acquisition fees)

9906.1

12519.2

15256.2

19238.017895.9

23364.8

0

5000

10000

15000

20000

25000

2005 2006 2007 2008 2009 2010

-100%-80%-60%-40%-20%0%20%40%60%80%100%

Premium 9906.1 12519.2 15256.2 19238.0 17895.9 23364.8

Growth ∆ % 26% 22% 26% -7% 31%

2005 2006 2007 2008 2009 2010

Overview

Source: Market Intelligence analysis based on SUSEP

Source: Lloyd’s Market Intelligence calculations based on Xchanging, country of origin basis

2008 – 2010 Lloyd’s Brazil Gross Signed Premiums (GSP) (US$ m) (Gross Signed Premium on a calendar year basis by country of origin, gross of RI and acquisition fees)

164.7193.9

256.1

0

50

100

150

200

250

300

2008 2009 2010

-100%-80%-60%-40%-20%0%20%40%60%80%100%

Premium 164.7 193.9 256.1

Growth ∆ % 18% 32%

2008 2009 2010

Premium Trends (Calendar Year)

© Lloyd’s15

Overview

2010 Brazil Direct Market Top 10 Players (US$ m)(Direct Insurance Premiums on a calendar year basis, gross of RI and acquisition fees)


Rank CompanyPaid Claims

US$ mGWP US$ m Market Share %

Paid Loss Ratio in %

1 Itau 1354.3 3140.2 13% 43%

2 Bradesco 1480.7 2581.8 11% 57%

3 Porto Seguros 1124.6 2276.9 10% 49%

4 Mapfre 921.4 1972.9 8% 47%

5 Banco do Brasil 670.9 1530.4 7% 44%

6 Sul America 849.5 1488.9 6% 57%

7 Allianz 533.6 1172.3 5% 46%

8 HDI Seguros 527.0 827.3 4% 64%

9 Liberty 460.3 819.0 4% 56%

10 Tokio Marina 365.3 778.5 3% 47%

Brazil Total Non-Life

Competitor Ranking (By Premiums)



MARKET REPORT

AGGREGATE Overview & Benchmark

Analysis


Premium by class of

business

Key Players

Premiumtrends

© Lloyd’s12

OverviewMajor Classes of Business Breakdown

2010 Brazil Direct Market Premiums(Using SUSEP Major Classes of Business excluding life)

2010 Brazil Total Lloyd’s Premiums(Lloyd’s 10 Classes of Business; Note: no premiums for “UK Motor” and negligible premiums for “Overseas Motor”)


Source: Lloyd’s Market Intelligence calculations based on Xchanging

Property (D&F)18%

Aviation19%

Energy21%

Casualty4%

Marine22%

Casualty Treaty0.4%

Property Treaty14%

Accident & Health5%

Marine & Energy

21%

Pecuniary Loss

0.9%

Aviation0.8%

PA & Health8%

Motor

6%

General Liability1.2%

Cargo

56%

Property

5%

Professional Liability0.6%

© Lloyd’s13


9906.112519.2

15256.2

19238.017895.9

23364.8

0

5000

10000

15000

20000

25000

2005 2006 2007 2008 2009 2010

-100%-80%-60%-40%-20%0%20%40%60%80%100%

Premium 9906.1 12519.2 15256.2 19238.0 17895.9 23364.8

Growth ∆ % 26% 22% 26% -7% 31%

2005 2006 2007 2008 2009 2010

Overview




164.7193.9

256.1

0

50

100

150

200

250

300

2008 2009 2010

-100%-80%-60%-40%-20%0%20%40%60%80%100%

Premium 164.7 193.9 256.1

Growth ∆ % 18% 32%

2008 2009 2010


© Lloyd’s16

Overview







1 Itau 1354.3 3140.2 13% 43%

2 Bradesco 1480.7 2581.8 11% 57%

3 Porto Seguros 1124.6 2276.9 10% 49%

4 Mapfre 921.4 1972.9 8% 47%

5 Banco do Brasil 670.9 1530.4 7% 44%

6 Sul America 849.5 1488.9 6% 57%

7 Allianz 533.6 1172.3 5% 46%

8 HDI Seguros 527.0 827.3 4% 64%

9 Liberty 460.3 819.0 4% 56%

10 Tokio Marine 365.3 778.5 3% 47%


SUSEP MAJOR CLASS OF BUSINESSANALYSIS

Premium & Loss Ratio Trends

(Calendar Year)

Key Players

© Lloyd’s20

144.6

96.3

199.9174.8 172.2

204.8

0

50

100

150

200

250

2005 2006 2007 2008 2009 2010

-100%-80%-60%-40%-20%0%20%40%60%80%100%

Premium 144.6 96.3 199.9 174.8 172.2 204.8

Growth ∆ % -33% 108% -13% -2% 19%

2005 2006 2007 2008 2009 2010


Aviation


2005 – 2010 Brazil Direct Market Premiums (US$ m)(Insurance Premiums on a calendar year basis, gross of RI and acquisitions fees)

175.6%

122.7%

90.3%

36.2%39.2%

145.6%

0%

50%

100%

150%

200%

2005 2006 2007 2008 2009 2010

Loss Ratio 39.2% 175.6% 122.7% 145.6% 90.3% 36.2%

2005 2006 2007 2008 2009 2010

2005 – 2010 Brazil Direct Market Loss Ratio(Loss ratio calculated by dividing incurred losses by Insurance Premiums on a calendar year basis)

2005-2010 Cumulative Loss Ratio 96%

Premiums & Loss Ratios (Calendar Year)

© Lloyd’s21



Aviation




1 Mapfre 23.3 66.4 34% 35%

2 Itau 3.9 39.6 21% 10%

3 Bradesco 19.5 29.4 15% 66%

4 Allianz 10.1 23.8 12% 42%

5 Chubb 6.3 9.5 5% 66%

6 Liberty 0.0 7.2 4% 0%

7 Chartis 0.0 5.6 3% 0%

8 Fairfax 2.4 3.7 2% 66%

9 Sul America 5.0 3.0 2% 165%

10 CIA Excelcior 0.1 1.8 1% 7%

Aviation


*Incurred loss ratios are only available for Managing Agents

SUSEP SPECIALTY CLASS OF BUSINESS ANALYSIS


(Calendar Year)

Key Players

© Lloyd’s74

81.5%9.4%

-48.8%26.3%

215.3%

458.0%

-60%

40%

140%

240%

340%

440%

540%

2005 2006 2007 2008 2009 2010

Loss Ratio 458.0% 81.5% 9.4% 215.3% -48.8% 26.3%

2005 2006 2007 2008 2009 2010


Pecuniary Loss




2005 – 2010 Brazil Direct Market Loss Ratio(Loss ratio calculated by dividing incurred losses by Insurance Premium on a calendar year basis)

Financial Guarantee/Bond

1.1

3.6

4.7

3.2 3.3

4.1

0

1

2

3

4

5

2005 2006 2007 2008 2009 2010

-100%-80%-60%-40%-20%0%20%40%60%80%100%

Premium 1.1 3.6 4.7 3.2 3.3 4.1

Growth Δ % 227% 28% -31% 4% 23%

2005 2006 2007 2008 2009 2010


© Lloyd’s75


Pecuniary LossFinancial Guarantee/Bond






1 J Malucelli 0.0000 1.8054 44% 0%

2 Sul America 0.0573 0.7853 19% 7%

3 UBF Seguros 0.7263 0.4150 10% 175%

4 Fator Seguradora 0.0000 0.3577 9% 0%

5 CesceBrasil Seguros

0.0000 0.3211 8% 0%

6 Itau 0.1848 0.3019 7% 61%

7 Berkley 0.0000 0.0607 1% 0%

8 CIA Mutual de Seguros

0.0000 0.0490 1% 0%

9 Porto Seguro 0.0318 0.0159 0% 200%

10 Mitsui Sumitomo 0.0000 0.0002 0% 0%

Financial Guarantee/Bond

LLOYD’S MAJOR CLASS OF BUSINESS ANALYSIS


© Lloyd’s41


Pr emium TRENDS

Energy

56.563.0

54.8

0

15

30

45

60

75

2008 2009 2010

-100%-80%-60%-40%-20%0%20%40%60%80%100%

Premium 56.5 63.0 54.8

Growth Δ % 11% -13%

2008 2009 2010


Premiums (Calendar Year)







2 Mapping of market classes of business… …translation into English



3

METHODOLOGY

© Lloyd’s38

Pr emium TRENDS


Accident & Heal th

0.6 0.8

5.4

0

2

4

6

8

10

2008 2009 2010

-100%-80%-60%-40%-20%0%20%40%60%80%100%

Premium 0.6 0.8 5.4

Growth Δ % 38% 550%

2008 2009 2010



© Lloyd’s20

144.6

96.3

199.9174.8 172.2

204.8

0

50

100

150

200

250

2005 2006 2007 2008 2009 2010

-100%-80%-60%-40%-20%0%20%40%60%80%100%

Premium 144.6 96.3 199.9 174.8 172.2 204.8

Growth ∆ % -33% 108% -13% -2% 19%

2005 2006 2007 2008 2009 2010


Aviation



175.6%

122.7%

90.3%

36.2%39.2%

145.6%

0%

50%

100%

150%

200%

2005 2006 2007 2008 2009 2010

Loss Ratio 39.2% 175.6% 122.7% 145.6% 90.3% 36.2%

2005 2006 2007 2008 2009 2010




MARKET © Lloyd’s37

32.2

40.3

48.8

0

15

30

45

60

75

2008 2009 2010

-100%-80%-60%-40%-20%0%20%40%60%80%100%

Premium 32.2 40.3 48.8

Growth ∆ % 25% 21%

2008 2009 2010



Pr emium TRENDS

AviationPremiums (Calendar Year)

© Lloyd’s24


PA & Heal th

659.6800.3

1086.5

1421.1 1448.2

1898.0

0

500

1000

1500

2000

2005 2006 2007 2008 2009 2010

-100%-80%-60%-40%-20%0%20%40%60%80%100%

Premium 659.6 800.3 1086.5 1421.1 1448.2 1898.0

Growth ∆ % 21% 36% 31% 2% 31%

2005 2006 2007 2008 2009 2010


95.8%

21.7% 17.9% 15.3%

28.1%18.4%

0%

20%

40%

60%

80%

100%

2005 2006 2007 2008 2009 2010

Loss Ratio 28.1% 95.8% 21.7% 18.4% 17.9% 15.3%

2005 2006 2007 2008 2009 2010





MARKET

© Lloyd’s105

Source: Mapping based on translations and categorisation by Lloyd’s Market Intelligence & Lloyd’s Office Brazil

SUSEP Class

SUSEP Class

(English)

Major Classes (Portuguese)

Major ClassesDetailed Classes

(Portuguese)Detailed Classes

(English)

Transportes Cargo / TransitRC Amador - RC Transp. Aquaviario

Carga - RCA-C Shipowner liability renamed to

Waterway carrier liabilityTransportes Cargo / Transit RC Desvio de Carga - RCF-DC - Third Party liability of cargo deviation

Transportes Cargo / TransitRC do Operador de Transp.

Multimodal - RCOTM-C

Third Party Liability of the Operator of Intermodal Transport also known as

NVOCC or cargo agent (incorporating previous 0627)

Transportes Cargo / TransitRC Facultativa Veiculos RCFV

OnibusFacultative Third Party Liability -

Buses

Transportes Cargo / TransitRC Trasp. Ferroviario Carga -RCTF-

CThird Party liability of rail cargo

carrier

Transportes Cargo / TransitRC Transp. Viagem Intern. Carga -

RCTR-VI-CThird Party Liability of Internactional

Cargo Carrier

Transportes Cargo / TransitRC Trasnportsador Rodov Carga -

RCTR-CThird Party liability of Road cargo

carrier

Transportes Cargo / Transit RC Transp. Aereo Carga - RCTA-C Third Party liability of Air cargo carrier

Transportes Cargo / Transit RC Transporte IntermodalThird Party Liability of the Intermodal

Carrier (RUN OFF)

Transportes Cargo / Transit RC Trasnp. RodoviarioMandatory Third Party Liability Inland and Internactional Transport - Buses

Transportes Cargo / Transit RC Transporte Viagem Third Party Liability of carrier in

international trip (carring pax or not)

Transportes Cargo / Transit Transporte Internacional International cargo Transportes Cargo / Transit Transporte Nacional Domestic Cargo

Major Detailed

Car

go

Tra

nspo

rtes

MappingSUSEP Classes of Business

SUSEP Class

SUSEP Class

(English)

Major Classes (Portuguese)

Major ClassesDetailed Classes

(Portuguese)Detailed Classes

(English)

Aeronauticos Aviation (NEW) Aeronauticos (Casco) Aviation Hulls

Aeronauticos Aviation (NEW)Resp. Civil Facultativa para

Aeronaves - RCFFacultative Aircraft liability

Aeronauticos Aviation (NEW) Resp. Civil Hangar Hangarkeeper Liability

Aeronauticos Aviation (NEW)Resp. do Explorador ou

Transportador Aereo - RETAMandatory Aviation Third party

liability

Cascos Hull Aeronautico Aviation Hull (RUN OFF)

Cascos Hull Aeronautico Bilhetes Aircraft - Simplified Policy (RUN OFF)

Cascos Hull RC Hangar Hangar Liability (RUN OFF)

Riscos Especiais Special Risks Satelites Sattelites risks

Major Detailed

Aer

onau

ticos

Avi

atio

n

© Lloyd’s112

Source: Mapping based on translations and categorisation by Lloyd’s Market Intelligence & Lloyd’s Office Brazil

Lloyds COB Major Class Detailed Class

Aviation 2010 Lloyd's Airline

Aviation 2010 Lloyd's Airline/ General Aviation

Aviation 2010 Lloyd's Aviation Products/ Airport Liabilities

Aviation 2010 Lloyd's Aviation XL

Aviation 2010 Lloyd's General Aviation

Aviation 2010 Lloyd's Space

Lloyds Classes of Business

Avi

atio

n

Lloyds COB Major Class Detailed Class

Energy 2010 Lloyd's Energy Offshore Liability

Energy 2010 Lloyd's Energy Offshore Property

Energy 2010 Lloyd's Energy Onshore Liability

Energy 2010 Lloyd's Energy Onshore Property

Lloyds Classes of Business

En

erg

y

MappingLloyd’s Classes of Business

BENEFITS

Compares Lloyd’s performance by business class with local market




*Incurred loss ratios and underlying data are only available for Managing Agents

Brazil Overview

Lloyd’s underwrote a much larger proportion of Marine & Energy business than the local direct market average in Brazil during 2010.

BENCHMARKING TOOL

Illustrates the market versus Lloyd’s class of business breakdown.


Class Review exposes particularities of the Lloyd’s market in a specific territory…


© Lloyd’s11

2Overview

of the

Brazil ian Market

1. Major Classes of Business Breakdown2. Premium Trends3. Loss Ratio Trends4. Competitor Ranking

IN THIS SECTION

© Lloyd’s12


2010 Brazil Direct Market Premiums(Using SUSEP Major Classes of Business excluding life)

2010 Brazil Total Lloyd’s Premiums(Lloyd’s 10 Classes of Business; Note: no premiums for “UK Motor” and negligible premiums for “Overseas Motor”)


Source: Lloyd’s Market Intelligence calculations based on Xchanging

Property (D&F)18%

Aviation19%

Energy21%

Casualty4%

Marine22%

Casualty Treaty0.4%

Property Treaty14%

Accident & Health5%

Marine & Energy

21%

Pecuniary Loss

0.9%

Aviation0.8%

PA & Health8%

Motor

6%

General Liability1.2%

Cargo

56%

Property

5%

Professional Liability0.6%

© Lloyd’s13


9906.112519.2

15256.2

19238.017895.9

23364.8

0

5000

10000

15000

20000

25000

2005 2006 2007 2008 2009 2010

-100%-80%-60%-40%-20%0%20%40%60%80%100%

Premium 9906.1 12519.2 15256.2 19238.0 17895.9 23364.8

Growth ∆ % 26% 22% 26% -7% 31%

2005 2006 2007 2008 2009 2010

Overview




164.7193.9

256.1

0

50

100

150

200

250

300

2008 2009 2010

-100%-80%-60%-40%-20%0%20%40%60%80%100%

Premium 164.7 193.9 256.1

Growth ∆ % 18% 32%

2008 2009 2010


Brazil Overview

Lloyd’s business in Brazil has been growing significantly over the past 3 years.

BENCHMARKING TOOL

Compares Market premium trends with that of Lloyd’s.


Class Review illustrates the importance of the Lloyd’s market in a particular territory…

How has Lloyd’s market participation evolved over the past 3 years?

© Lloyd’s11

2Overview

of the

Brazil ian Market


IN THIS SECTION

Brazil Overview

The profitability trend of the Brazilian direct market has been stable.

BENCHMARKING TOOL

Shows market performance trends.


These charts illustrate local market loss trends, giving a proxy for profitability.

© Lloyd’s11

2Overview

of the

Brazil ian Market


IN THIS SECTION

© Lloyd’s13

49.3% 47.3% 48.0% 45.9%51.3% 46.5%

0%

25%

50%

75%

100%

2005 2006 2007 2008 2009 2010

Loss Ratio 51.3% 49.3% 47.3% 46.5% 48.0% 45.9%

2005 2006 2007 2008 2009 2010

Overview

2005 – 2010 Brazil Direct Market Loss Ratio(Loss ratio calculated by dividing incurred losses by Insurance Premiums on calendar year basis excluding life)

Loss Ratio Trends (Calendar Year)


Brazil Overview

The two biggest non-life groups writing direct business in Brazil are Itau-Porto Seguro and Mapfre-Banco do Brasil.

BENCHMARKING TOOL

Ranks core competitors.


Class Review reveals the biggest players in the direct local market.

With whom do the potential reinsurance opportunities lie?

© Lloyd’s11

2Overview

of the

Brazil ian Market


IN THIS SECTION

© Lloyd’s16

Overview







1 Itau 1354.3 3140.2 13% 43%

2 Bradesco 1480.7 2581.8 11% 57%

3 Porto Seguros 1124.6 2276.9 10% 49%

4 Mapfre 921.4 1972.9 8% 47%

5 Banco do Brasil 670.9 1530.4 7% 44%

6 Sul America 849.5 1488.9 6% 57%

7 Allianz 533.6 1172.3 5% 46%

8 HDI Seguros 527.0 827.3 4% 64%

9 Liberty 460.3 819.0 4% 56%

10 Tokio Marine 365.3 778.5 3% 47%


SUSEP Major Classes

While premiums have remained fairly stable, the incurred loss ratios for Aviation have been spiky due to a Gol airplane crash in 2006 and a Tam crash in 2007.

ANALYSIS TOOL

Illustrates market premium trends and performance by class.


Class Review illustrates the premium development and loss ratio trends of a particular class of business in Brazil.

How has the direct market performed over a 6-year trend?

© Lloyd’s20

144.6

96.3

199.9174.8 172.2

204.8

0

50

100

150

200

250

2005 2006 2007 2008 2009 2010

-100%-80%-60%-40%-20%0%20%40%60%80%100%

Premium 144.6 96.3 199.9 174.8 172.2 204.8

Growth ∆ % -33% 108% -13% -2% 19%

2005 2006 2007 2008 2009 2010


Aviation



175.6%

122.7%

90.3%

36.2%39.2%

145.6%

0%

50%

100%

150%

200%

2005 2006 2007 2008 2009 2010

Loss Ratio 39.2% 175.6% 122.7% 145.6% 90.3% 36.2%

2005 2006 2007 2008 2009 2010




© Lloyd’s17

3Brazil (SUSEP)

Major Class of

Business Analysis

1. Property2. Aviation3. General Liability4. PA & Health5. Professional Liability6. Cargo7. Pecuniary Loss8. Marine & Energy9. Motor10. Life

IN THIS SECTION

SUSEP Major Classes

Many of the 2010 market leaders in the Aviation line are insurers with which Lloyd’s already has strong business relationships.

ANALYSIS TOOL

Ranks core competitors by class.


Class Review reveals the biggest players in the direct market in a particular class of business.

Which players could Lloyd’s target to do business with in specialty classes like Aviation?

© Lloyd’s21



Aviation




1 Mapfre 23.3 66.4 34% 35%

2 Itau 3.9 39.6 21% 10%

3 Bradesco 19.5 29.4 15% 66%

4 Allianz 10.1 23.8 12% 42%

5 Chubb 6.3 9.5 5% 66%

6 Liberty 0.0 7.2 4% 0%

7 Chartis 0.0 5.6 3% 0%

8 Fairfax 2.4 3.7 2% 66%

9 Sul America 5.0 3.0 2% 165%

10 CIA Excelcior 0.1 1.8 1% 7%

Aviation


© Lloyd’s17

3Brazil (SUSEP)

Major Class of

Business Analysis

1. Property2. Aviation3. General Liability4. PA & Health5. Professional Liability6. Cargo7. Pecuniary Loss8. Marine & Energy9. Motor10. Life

IN THIS SECTION

Lloyd’s Major Classes

Lloyd’s business in Energy account for approximately 20% of total premiums.

ANALYSIS TOOL

Illustrates Lloyd’s premium in major classes.


Class Review illustrates the growth of Lloyd’s business in 8 major classes.

© Lloyd’s38

4Lloyd’s Brazil

Major Class of

Business Analysis

1. Aviation2. Accident & Health3. PA & Health4. Casualty5. Casualty Treaty6. Energy7. Marine8. Property D&F9. Property Treaty

IN THIS SECTION

© Lloyd’s41


Pr emium TRENDS

Energy

56.563.0

54.8

0

15

30

45

60

75

2008 2009 2010

-100%-80%-60%-40%-20%0%20%40%60%80%100%

Premium 56.5 63.0 54.8

Growth ? % 11% -13%

2008 2009 2010



SUSEP Major Classes

Premium growth was substantial in the past 6 years and profitability remained stable. With the forthcoming World Cup and Olympic Games this is likely to increase.

ANALYSIS TOOL



Class Review illustrates the premium development and loss ratio trends of a particular class of business in Brazil.


© Lloyd’s88

17.0%

31.1%22.7% 22.0%

30.9%23.0%

0%

20%

40%

60%

80%

100%

2005 2006 2007 2008 2009 2010

Loss Ratio 30.9% 17.0% 31.1% 23.0% 22.7% 22.0%

2005 2006 2007 2008 2009 2010


Property





Engineering Risks


88.9

122.1152.8

217.8

267.7 262.8

0

50

100

150

200

250

300

2005 2006 2007 2008 2009 2010

-100%-80%-60%-40%-20%0%20%40%60%80%100%

Premium 88.9 122.1 152.8 217.8 267.7 262.8

Growth Δ % 37% 25% 43% 23% -2%

2005 2006 2007 2008 2009 2010

© Lloyd’s55

5Brazil (SUSEP)

Special ist Class of Business Analysis

1. Aviation Hull & Liability2. Hangar Liability3. Third Party Liability of Cargo Deviation4. Third Party Liability of Road Cargo Carrier5. International Cargo6. Domestic Cargo

7. Marine Hull

8. Oil Risks

9. Guarantee Insurance Private Obligations

10. Financial guarantee/Bond

11. Legal or Judiciary Guarantee

12. Guarantee Insurance Public Obligations

13. Guarantee insurance Public Concessions

14. Loss of Profit

15. Theft or Burglary

16. Commercial Multiple Perils

17. Engineering Risks

18. Named Risks (Specific Risks) and Operational Risks (All risks)

19. Multiple Risks including Riots, Fidelity and Glass

20. Personal Accident Group

21. Professional Liability Specialist

22. Liability D&O

IN THIS SECTION

SUSEP Major Classes

Many of the 2010 market leaders in the Engineering line are insurers with which Lloyd’s already has strong business relationships.

ANALYSIS TOOL




Which players could Lloyd’s target to do business with in specialty classes like Aviation?

© Lloyd’s89


PropertyEngineering Risks






1 Itau 21.0 51.7 20% 41%

2 Allianz 1.2 39.9 15% 3%

3 Zurich 5.8 25.7 10% 22%

4 Mapfre 1.6 25.0 10% 6%

5 Tokio Marine 4.5 19.6 7% 23%

6 Ace 2.7 17.7 7% 15%

7 Caixa 1.4 13.1 5% 11%

8 Sul America 1.5 10.8 4% 14%

9 Royal & Sunalliance

9.8 10.5 4% 93%

10 Berkley 0.1 9.3 4% 1%

Engineering Risks© Lloyd’s55

5Brazil (SUSEP)

Special ist Class of Business Analysis

1. Aviation Hull & Liability2. Hangar Liability3. Third Party Liability of Cargo Deviation4. Third Party Liability of Road Cargo Carrier5. International Cargo6. Domestic Cargo

7. Marine Hull

8. Oil Risks

9. Guarantee Insurance Private Obligations

10. Financial guarantee/Bond

11. Legal or Judiciary Guarantee

12. Guarantee Insurance Public Obligations

13. Guarantee insurance Public Concessions

14. Loss of Profit

15. Theft or Burglary

16. Commercial Multiple Perils

17. Engineering Risks

18. Named Risks (Specific Risks) and Operational Risks (All risks)

19. Multiple Risks including Riots, Fidelity and Glass

20. Personal Accident Group

21. Professional Liability Specialist

22. Liability D&O

IN THIS SECTION

© Lloyd’s32


Disclaimer

© Lloyd’s33

CLASS REVIEW

May 2012

Find out more about Lloyd’s position in Mexico



Comparison of Lloyd’s vs. Market



BENEFITS

Mexico Pilot



Data reviewed by market practitioners




2

CLASS REVIEW 2010 Mexico vs. Ll oyd’s February 2012

www.lloyds.com/classreview

© Lloyd’s

Reinsurance66%

Retained Premium

48%

Treaty XL2%

CeededPremium

68%

15

Source: Market Intelligence analysis based on CNSF

Prof.& Civil Liabil ity

2005 – 2010 Mexico Direct Premiums (US$ m)(Direct Insurance Premiums on a calendar year basis)


2010 Mexico Direct Insurance Premium Breakdown(Premium on a calendar year basis)

Direct Premiums (Calendar Year)

2005 2006 2007 2008 2009 2010

Premium 372.4 356.1 384.1 382.0 391.1 397.1

Growth ? % -4% 8% -1% 2% 2%

372.4 356.1384.1 382.0 391.1 397.1

0

100

200

300

400

500

2010 TotalDirect

US$ 397.1 m

© Lloyd’s

2005 2006 2007 2008 2009 2010

Gross Premium 278.3 357.1 270.6 267.7 268.3 262.1

Net Premium 237.1 288.8 221.5 216.8 223.5 217.6

Growth ? % 28% -24% -1% 0% -2%

Commission % 15% 19% 18% 19% 17% 17%

278.3

357.1

270.6 267.7 268.3 262.1

0

50

100

150

200

250

300

350

400

2005 2006 2007 2008 2009 2010

Gross Loss Ratio 23.4% 3.5% 26.6% 15.2% 21.9% 15.4%

Net Loss Ratio 27% 4% 32% 19% 26% 19%

0%

20%

40%

60%

80%

100%

16



2005 – 2010 Mexico Reinsurance Premiums (US$ m)(Reinsurance Premiums on a calendar year basis)


2005 – 2010 Mexico Reinsurance Incurred Loss Ratio(Loss ratio calculated by dividing incurred losses by Premium on a calendar year basis)

2005-2010 Cumulative Gross Loss Ratio 17%

Reinsurance Premiums & Loss Ratios (Calendar Year)



BROKER & COVERHOLDER


Mexico Class Review Report (PDF)

> 2010 Brazil Direct vs Lloyd’s Total report

BROKER & COVERHOLDER

1

1


MARKET REPORT

CNSF MAJOR CLASS OF BUSINESSANALYSIS

Key Players

© Lloyd’s

2005 2006 2007 2008 2009 2010

Gross Premium 372.4 356.1 384.1 382.0 391.1 397.1

Growth Δ % 2% 12% 89% -9% 21%

372.4 356.1384.1 382.0 391.1 397.1

0

50

100

150

200

250

300

350

400

450

Reinsurance66%

Retained Premium

32%

Treaty XL2%

Other68%

18


2005 – 2010 Mexico Direct Premiums (US$ m)(Direct Insurance Premiums on a calendar year basis)





2010 TotalDirect

US$ 397.1m

© Lloyd’s

2005 2006 2007 2008 2009 2010

Gross Loss Ratio 23.4% 3.5% 26.6% 15.2% 21.9% 15.4%

Net Loss Ratio 27% 4% 32% 19% 26% 19%

0%

20%

40%

60%

80%

100%

19








2005 2006 2007 2008 2009 2010

Gross Premium 278.3 357.1 270.6 267.7 268.3 262.1

Net Premium 237.1 288.8 221.5 216.8 223.5 217.6

Growth Δ % 28% -24% -1% 0% -2%

Commission % 15% 19% 18% 19% 17% 17%

278.3

357.1

270.6 267.7 268.3 262.1

0

50

100

150

200

250

300

350

400

© Lloyd’s20




2005 – 2010 Mexico Reinsurance Incurred Loss Ratio(Loss ratio calculated by dividing incurred losses by Insurance Premium on a calendar year basis)


Treaty XL Premiums & Loss Ratios (Calendar Year)


2005 2006 2007 2008 2009 2010

Loss Ratio 174.8% 4218.1% 47.5% 171.9% 112.1% 50.1%

174.8%

4218.1%

47.5% 171.9% 112.1% 50.1%0%

500%1000%1500%2000%2500%3000%3500%4000%4500%

2005 2006 2007 2008 2009 2010

Gross Premium 4.6 4.1 6.9 6.4 8.0 9.8

Growth Δ % 23% -76% -12% 20% 61%

4.6 4.1

6.9 6.4

8.0

9.8

0

3

5

8

10

13

15

© Lloyd’s27


2010 Brazil Direct Market Top 10 Players (US$ m)(Direct Written Premiums on a calendar year basis, gross of RI and acquisition fees)

Prof. Liabil ity




1 Zurich 1.3 29.6 21% 4%

2 Itau 23.3 26.2 19% 89%

3 ACE 3.5 24.5 17% 14%

4 Chartis 0.1 13.2 9% 1%

5 Allianz -0.2 8.6 6% -3%

6 Chubb 6.3 8.4 6% 75%

7 Mapfre 1.7 5.7 4% 30%

8 Tokio Marine 2.3 5.5 4% 42%

9 Nobre 3.3 4.5 3% 74%

10 HDI 0.0 4.5 3% 0%

Professional Liability


Direct Premium

trends

Reinsurance Premium & Loss

Ratio Trends (Calendar Year)

Treaty XL Premium & Loss

Ratio Trends (Calendar Year)

AGGREGATE

Overview and Benchmark Analysis (Lloyd’s vs. the market)

Direct Premium

trends

Mexico Reinsurance & Lloyd’s Loss

Ratio(Calendar Year)

© Lloyd’s

Reinsurance26%

Retained Premium

72%

Treaty XL2%

Other28%

13

2005 – 2010 Mexico Insurance Premiums (US$ m)(Reinsurance Premium on a Calendar Year basis)

Overview




2010 TotalDirect

US$ 10.2bn

Major Classes of Business Breakdown

2005 2006 2007 2008 2009 2010

Gross Premium 7448.3 8158.9 9598.2 10236.2 9651.9 10224.8

Growth Δ % 10% 18% 7% -6% 6%

7448.38158.9

9598.210236.2

9651.910224.8

0

2000

4000

6000

8000

10000

12000

© Lloyd’s14

2005 – 2010 Mexico Reinsurance Premiums (US$ m)(Reinsurance Premium on a Calendar Year basis)

Overview


2008 – 2010 Lloyd’s Mexico Gross Signed Premiums (GSP) (US$ m) (Gross Signed Premium on a calendar year basis by country of origin, gross of RI and acquisition fees)

2009 2010 2011

Gross Premium 326.5 325.1 395.2

Growth Δ % 0% 22%

326.5 325.1

395.2

-100%-80%-60%-40%-20%0%20%40%60%80%

0

50

100

150

200

250

300

350

400

450


2005 2006 2007 2008 2009 2010

Gross Premium 1931.2 1895.7 2570.0 2499.5 3078.2 2644.5

Net Premium 1592.9 1573.1 2206.3 2074.0 2663.0 2220.0

Growth Δ % -2% 36% -3% 23% -14%

Commission % 18% 17% 14% 17% 13% 16%

1931.2 1895.7

2570.0 2499.5

3078.2

2644.5

0

500

1000

1500

2000

2500

3000

3500


Benchmark Analysis

Market vs. Lloyd’s

Mexico Reinsurance &

Lloyd’s Premiums

(Calendar Year)

© Lloyd’s12


2010 Mexico Direct Market Premium Breakdown(Using CNSF Major Classes of Business)

2010 Total DirectUS$ 10.2bn

Personal Accident

Medical Expenses

Health

Agriculture & Cattle

Fire

Earthquake & other CAT

Motor

Marine & Transport

Civil & Professional Liability

Miscellaneous*

Credit

3.0%

25.3%

0.7%

1.3%

6.2%

8.9%

38.8%

4.4%

3.9%

7.1%

0.5%

Property

Motor

PA & Health

Miscellaneous :• Other – Billboard, Glass, Personal Belongings, House Theft, Enterprise Theft,

Fine Art and Home Assistance ( eg. Electrical faults).• Technical Branches – Construction all risks, Erection all risks, Electronic Equipment,

Boiler and Machinery, Machinery Breakdown, Contractors Equipment and RoadInsurance ( Dwellings and Erected Civil Construction).

• Cash and Values – Hole in One, Filming Interruption and Loan Guarantee ( eg. Creditcard repayment in case of unemployment).

Liability

Marine & Transport – Aviation Hull, Maritime Hull and Cargo

2010 Lloyd’s Total* Premium Breakdown(Premium on a calendar year basis, * The majority of Lloyd’s business in Mexico is reinsurance)

Accident & Health2%Aviation

8%Casualty4%

Energy5%

Marine11%

Property (D&F)62%

Property Treaty8%

2010 Lloyd’s TotalUS$ 395.2m



* Please see appendix for classes of business within Miscellaneous.

© Lloyd’s14

OverviewLoss Ratio Trends (Calendar Year)

2005 – 2010 Mexico Reinsurance Incurred Loss Ratio(Loss ratio calculated by dividing incurred losses by Premiums on calendar year basis)


2005 2006 2007 2008 2009 2010

Gross Loss Ratio 112% 40% 58% 56% 32% 54%

Net Loss Ratio 134% 48% 67% 68% 37% 65%

0%

25%

50%

75%

100%

125%

150%



© Lloyd’s62

Pr emium TRENDS

Accident & Heal thPremiums & Loss Ratios (Calendar Year)

2009 – 2011 Lloyd’s Mexico Gross Signed Premiums (GSP) (US$ m)(Gross Signed Premium on a calendar year basis by country of origin, gross of RI and acquisition fees)

2009 2010 2011Gross Premium 4.2 7.3 7.9Growth Δ % 73% 8%

4.2

7.37.9

0

2

4

6

8

10











3

METHODOLOGY

© Lloyd’s67

Pr emium TRENDS

Property D&FPremiums & Loss Ratios (Calendar Year)


2009 2010 2011

Gross Premium 197.7 201.2 252.4

Growth Δ % 19% 16%

197.7 201.2

252.4

0

50

100

150

200

250

300


© Lloyd’s66

Pr emium TRENDS

MarinePremiums & Loss Ratios (Calendar Year)


2009 2010 2011

Gross Premium 30.4 34.9 36.3

Growth Δ % 15% 4%

30.434.9 36.3

0

15

30

45

60

75


MARKET MARKET

© Lloyd’s82

Source: Mapping based on translations and categorisation by Lloyd’s Market Intelligence

MappingMexico Direct Market Classes of Business

Property:• Agriculture & Cattle• Fire• Earthquake & other Catastrophes

Motor

PA & Health:• Health• Personal Accident• Medical Expenses

Miscellaneous:• Other – Billboard, Glass, Personal Belongings, House Theft, Enterprise Theft,

Fine Art and Home Assistance (eg. Electrical faults).• Technical Branches – Construction all risks, Erection all risks, Electronic Equipment,

Boiler and Machinery, Machinery Breakdown, Contractors Equipment and RoadInsurance (Dwellings and Erected Civil Construction).

• Cash and Values – Hole in One, Filming Interruption and Loan Guarantee (eg. Creditcard repayment in case of unemployment).

Liability:• Professional & Civil Liability

Marine & Transport:• Aviation Hull• Marine Hull• Cargo

© Lloyd’s83

MappingLloyd’s Classes of Business

Lloyd's COB Major Class Detailed Class

Property Lloyd's Difference in Conditions

Property Lloyd's Engineering

Property Lloyd's Extended Warranty

Property Lloyd's Legal Expenses

Property Lloyd's Livestock & Bloodstock

Property Lloyd's Japan

Property Lloyd's Nuclear

Property Lloyd's Power Generation

Property Lloyd's Property (direct & facultative)

Property Lloyd's Property D&F (non-US binder)

Property Lloyd's Property D&F (non-US open market)

Property Lloyd's Property D&F (US binder)

Property Lloyd's Property D&F (US open market)

Property Lloyd's Terrorism

Property Lloyd's Property (D&F) Total

Lloyd’s Classes of Business

Pro

pert

y

For detailed Lloyd’s Risk Code Mapping please visit: http://www.Lloyd's.com/The-Market/Operating-at-Lloyd's/Resources/Risk_codes

BENEFITS





Download underlying data*


Mexico Overview

Lloyd’s underwrote a much larger proportion of Property business when comparing to the local market in 2010

Benchmarking tool

Illustrates the market class of business breakdown.




© Lloyd’s11

2Overview

of the Mexican Market

1. Major Classes of Business Breakdown2. Premium Trends3. Loss Ratio Trends4. Competitor Ranking TBC

IN THIS SECTION

© Lloyd’s12

OverviewMajor Class of Business Breakdown

2010 Mexico Direct Market Insurance Premium Breakdown(Using CNSF Major Classes of Business)

2010 Total DirectUS$ 10.2bn

Personal Accident

Medical Expenses

Health

Agriculture & Cattle

Fire**

Earthquake & other CAT**

Motor

Marine & Transport

Civil & Professional Liability

Miscellaneous*

Credit

3.0%

25.3%

0.7%

1.3%

6.2%

8.9%

38.8%

4.4%

3.9%

7.1%

0.5%

2010 Lloyd’s Total*** Premium Breakdown(Premium on a calendar year basis, *** The majority of Lloyd’s business in Mexico is reinsurance)

Accident & Health2%Aviation

8%Casualty4%

Energy5%

Marine11%

Property (D&F)62%

Property Treaty8%



** Please note that Fire and Earthquake & other CAT are usually sold together

* Please see appendix for classes of business within Miscellaneous.


Mexico Overview

Considering Motor and Health, Mexico retains the majority of its business as opposed to CAT lines.

BENCHMARKING TOOL

Illustrate how much of the direct premium is ceded.


Class Review illustrates the growth of a particular territory…

How has the Mexican market evolved over the past 6 years?

© Lloyd’s11

2Overview



IN THIS SECTION

© Lloyd’s

Reinsurance26%

Retained Premium

72%

Treaty XL2%

Other28%

13

2005 – 2010 Mexico Insurance Premiums (US$ m)(Reinsurance Premium on a Calendar Year basis)

Overview




2010 TotalDirect

US$ 10.2bn


2005 2006 2007 2008 2009 2010

Gross Premium 7448.3 8158.9 9598.2 10236.2 9651.9 10224.8

Growth Δ % 10% 18% 7% -6% 6%

7448.38158.9

9598.210236.2

9651.910224.8

0

2000

4000

6000

8000

10000

12000

Mexico Overview

Lloyd’s premiums in Mexico represent 12.5% of the total reinsurance premium in Mexico.

BENCHMARKING TOOL

Compares Market performance trends versus Lloyd’s.


These charts illustrate the premium growth of Reinsurance in Mexico and Lloyd’s premiums in Mexico.

How does Lloyd’s premiums compare with that of the direct local market?

© Lloyd’s11

2Overview



IN THIS SECTION

© Lloyd’s14

2005 – 2010 Mexico Reinsurance Premiums (US$ m)(Reinsurance Premium on a Calendar Year basis)

Overview


2009 2010 2011

Gross Premium 326.5 325.1 395.2Growth Δ % 0% 22%

326.5 325.1

395.2

-100%-80%-60%-40%-20%0%20%40%

60%80%

0

50

100

150

200

250

300

350

400

450


2005 2006 2007 2008 2009 2010

Gross Premium 1771.2 1545.2 2319.0 2277.3 2889.5 2440.7

Net Premium 1475.9 1269.0 1991.6 1894.4 2507.6 2045.7

Growth Δ % -13% 50% -2% 27% -16%

Commission % 17% 18% 14% 17% 13% 16%

1771.21545.2

2319.0 2277.3

2889.5

2440.7

0

500

1000

1500

2000

2500

3000

3500

2009 – 2011 Lloyd’s Total* Mexico Gross Signed Premiums (US$ m) (Gross Signed Premium on a calendar year basis by country of origin, gross of RI and acquisition fees)

* The majority of Lloyd’s business in Mexico is reinsurance


Mexico Overview

The profitability of Lloyd’s business in Mexico are in line with the local market

BENCHMARKING TOOL



These charts illustrate local market and Lloyd’s loss trends, giving a proxy for profitability.

How does Lloyd’s profitability compare with that of the direct local market?

© Lloyd’s11

2Overview



IN THIS SECTION

© Lloyd’s14


2005 – 2010 Mexico Reinsurance Incurred Loss Ratio(Loss ratio calculated by dividing incurred losses by Premiums on calendar year basis)


2005 2006 2007 2008 2009 2010

Gross Loss Ratio 112% 40% 58% 56% 32% 54%

Net Loss Ratio 134% 48% 67% 68% 37% 65%

0%

25%

50%

75%

100%

125%

150%

CNSF Major Classes

The liability line of business in Mexico is largely reinsured as only 32% of the direct premium is retained by local insurers indicating a high appetite for reinsurance from the local market.

ANALYSIS TOOL



Class Review illustrates the premium development and the percentage of retained and ceded premiums.


© Lloyd’s

Reinsurance66%

Retained Premium

32%

Treaty XL2%

Other68%

30

Prof & Civil Liabil ity

2005 – 2010 Mexico Direct Insurance Premiums (US$ m)(Direct Insurance Premiums on a calendar year basis)



2010 TotalDirect

US$ 397.1m

2005 2006 2007 2008 2009 2010

Gross Premium 372.4 356.1 384.1 382.0 391.1 397.1

Growth Δ % -4% 8% -1% 2% 2%

372.4 356.1384.1 382.0 391.1 397.1

0

50

100

150

200

250

300

350

400

450



© Lloyd’s17

3Mexico (CNSF)

Major Class of Business Analysis

1. Agriculture & Cattle2. Fire3. Earthquake & other Catastrophes4. Professional & Civil Liability5. Marine & Transport6. Credit7. Miscellaneous8. Motor9. Health10. Medical Expenses11. Personal Accident

IN THIS SECTION

CNSF Major Classes

Reinsurance premiums and loss ratio trends have remained quite stable for the past six years.

ANALYSIS TOOL



Class Review illustrates the premium development and loss ratio trends of a particular class of business in Mexico.

How has the reinsurance market performed over a 6-year trend?

© Lloyd’s17

3Mexico (CNSF)



IN THIS SECTION

© Lloyd’s31






2005 2006 2007 2008 2009 2010

Gross Premium 278.3 225.9 270.6 267.7 268.3 262.1

Net Premium 237.1 189.2 221.5 216.8 223.5 217.6

Growth Δ % -19% 20% -1% 0% -2%

Commission % 15% 16% 18% 19% 17% 17%

278.3

225.9

270.6 267.7 268.3 262.1

0

50

100

150

200

250

300

350

400



2005 2006 2007 2008 2009 2010

Gross Loss Ratio 23% 14% 27% 15% 22% 15%

Net Loss Ratio 27% 16% 32% 19% 26% 19%

0%

20%

40%

60%

80%

100%

CNSF Major Classes

Treaty XL premiums in Mexico have shown a slow but consistent growth over the past six years.

ANALYSIS TOOL



Class Review illustrates the premium development and loss ratio trends of a particular class of business in Mexico.

How has the Treaty XL market performed over a 6-year trend?

© Lloyd’s17

3Mexico (CNSF)



IN THIS SECTION

© Lloyd’s32


2005 – 2010 Mexico Reinsurance Incurred Loss Ratio(Loss ratio calculated by dividing incurred losses by Insurance Premium on a calendar year basis)


Treaty XL Premiums & Loss Ratios (Calendar Year)


2005 2006 2007 2008 2009 2010

Loss Ratio 174.8% 4218.1% 47.5% 171.9% 112.1% 50.1%

174.8%

4218.1%

47.5% 171.9% 112.1% 50.1%0%

500%1000%1500%2000%2500%3000%3500%4000%4500%

2005 2006 2007 2008 2009 2010

Gross Premium 4.6 4.1 6.9 6.4 8.0 9.8

Growth Δ % -10% 68% -7% 24% 23%

4.6 4.1

6.9 6.4

8.0

9.8

0

3

5

8

10

13

15



CNSF Major Classes

Many of the 2010 market leaders in the Liability line are ceding most of its premiums.

ANALYSIS TOOL




Which players could Lloyd’s target to do business with in specialty classes like Liability?

© Lloyd’s33

Prof & Civil Liabil ityCompetitor Ranking (By Premiums)

2010 Mexico Direct Market Top 10 Players (US$ m)(Direct Insurance Premiums on a calendar year basis, gross of acquisition fees)

Rank CompanyCeded Premium

US$ mDirect Premium

US$ mMarket Share % Ceded %

1 GMX Seguros 32.9 64.2 16% 51%

2 Chartis 33.1 41.1 10% 81%

3 AXA Seguros 9.4 36.9 9% 26%

4 Inbursa 22.5 32.7 8% 69%

5 Atlas 25.1 26.5 7% 95%

6 Zurich 24.7 26.2 7% 94%

7 G.N.P. 14.2 19.4 5% 73%

8 Mapfre Tepeyac 14.4 18.8 5% 77%

9 ACE Seguros 16.4 18.7 5% 87%

10 Afirme 15.8 17.0 4% 93%

Professional & Civil Liability Direct Insurance


© Lloyd’s17

3Mexico (CNSF)



IN THIS SECTION


Lloyd’s business in Property D&F account for approximately 62% of total premiums.

ANALYSIS TOOL

Illustrates Lloyd’s premium and loss ratio trends by class.


Class Review illustrates the growth and profitability of Lloyd’s business in 8 major classes.

How is Lloyd’s performing in its major classes of business in Mexico?

© Lloyd’s62

4Lloyd’s Mexico


1. Aviation2. Accident & Health3. Casualty4. Casualty Treaty5. Energy6. Marine7. Property D&F8. Property Treaty

IN THIS SECTION

© Lloyd’s67

Pr emium TRENDS

Property D&FPremiums & Loss Ratios (Calendar Year)


2009 2010 2011

Gross Premium 197.7 201.2 252.4

Growth Δ % 19% 16%

197.7 201.2

252.4

0

50

100

150

200

250

300


BENEFITS







CLASS REVIEW

July 2012

Find out more about Lloyd’s position in Turkey



Comparison of Lloyd’s vs. Market



BENEFITS

Turkey Pilot



Insights on relevant business information: premiums, market shares & incurred loss ratios* Download underlying data in a clear, easy to use Excel format*




© Lloyd’s12

2008 – 2010 Turkey Insurance Premiums (US$ m)(Insurance Premium on a Calendar Year basis)

Overview



2009 – 2011 Lloyd’s Total* Turkey Gross Signed Premiums (US$ m) (Gross Signed Premium on a calendar year basis by country of origin, gross of RI and acquisition fees)

* The majority of Lloyd’s business in Turkey is reinsurance

Source: Market Intelligence analysis based on TSRSB

2008 2009 2010

Direct Premium 7,901.7 6,744.4 7,929.5

Ceeded Premium 2,458.6 2,081.9 2,140.3

Ceeded % 31% 31% 27%

Direct Growth Δ % -14.6% 17.6%

7,901.7

6,744.4

7,929.5

0

2,000

4,000

6,000

8,000

10,000

2009 2010 2011

Gross Premium 124.8 144.9 123.1

Growth Δ % 16% -15%

124.8

144.9

123.1

0

25

50

75

100

125

150

175





Turkey Class Review Report (PDF)

> 2010 Turkey vs. Lloyd’s report


1

1


MARKET REPORT

Overview and Benchmark Analysis (Lloyd’s vs. the market)

TSRSB MAJOR CLASS OF BUSINESSANALYSIS


(Calendar Year)

Key Players

TSRSB DETAILED CLASS OF BUSINESS ANALYSIS


Key Players

Direct Premium

trends

Loss Ratio trends

(Calendar Year)

Key Players

Benchmark Analysis

Market vs. Lloyd’s



(Calendar Year)




Associations




3

METHODOLOGY

MARKET MARKET

BENEFITS






Turkey Overview

Lloyd’s underwrote a much larger proportion of Marine in 2011 business when comparing to the local market in 2010

Benchmarking tool

Illustrates the market class of business breakdown.




© Lloyd’s

Motor47%

Property25%

PA & Health19%

Marine/ Cargo3%

Liability3%

Pecuniary Loss1%

Aviation1%

Miscellaneous1%

Marine30%

Property (D&F)19%

Property Treaty16%

Aviation13%

Energy9%

Accident & Health

6%

Casualty5%

Casualty Treaty2%

11

OverviewMajor Class of Business Breakdown

2010 Turkey Direct Market Insurance Premium Breakdown(Using TSRSB Major Classes of Business)

2011 Lloyd’s Total*** Premium Breakdown(Premium on a calendar year basis, *** The majority of Lloyd’s business in Turkey is reinsurance)




2010 Direct TotalUS$ 7.9bn

Turkey Overview

Lloyd’s premiums in 2010 represented 6.7% of the ceded premiums in Turkey

BENCHMARKING TOOL

Illustrate how much of the direct premium is ceded.


Class Review illustrates the growth of a particular territory…

How has the Turkish market evolved over the past 3 years?

© Lloyd’s12


Overview



2009 – 2011 Lloyd’s Total* Turkey Gross Signed Premiums (US$ m) (Gross Signed Premium on a calendar year basis by country of origin, gross of RI and acquisition fees)

* The majority of Lloyd’s business in Turkey is reinsurance


2008 2009 2010

Direct Premium 7,901.7 6,744.4 7,929.5Ceeded Premium 2,458.6 2,081.9 2,140.3Ceeded % 31% 31% 27%


7,901.7

6,744.4

7,929.5

0

2,000

4,000

6,000

8,000

10,000

2009 2010 2011

Gross Premium 124.8 144.9 123.1

Growth Δ % 16% -15%

124.8

144.9

123.1

0

25

50

75

100

125

150

175

Turkey Overview

Ceded reinsurance in Turkey is profitable in comparison to the direct local market

BENCHMARKING TOOL



These charts illustrate direct and ceded business loss trends, giving a proxy for profitability.

How does Lloyd’s profitability compare with that of the direct local market?

© Lloyd’s12



2008 2009 2010

Direct Loss Ratio 65% 72% 63%Ceeded Loss Ratio 53% 69% 46%

0%

20%

40%

60%

80%

100%


TSRSB Major Classes

Insurance premiums and loss ratio trends have improved over the past three years.

ANALYSIS TOOL



Class Review illustrates the premium development and loss ratio trends of a particular class of business in Turkey.

How has the reinsurance market performed over a 3-year trend?

© Lloyd’s

2008 2009 2010

Direct Loss Ratio 70% 73% 79%Ceeded Loss Ratio 60% 97% 77%

0%

20%

40%

60%

80%

100%

20

l iabıl ıty

2008 – 2010 Turkey Reinsurance Incurred Loss Ratio(Loss ratio calculated by dividing incurred losses by Premium on a calendar year basis)

2008-2010 Cumulative Direct Loss Ratio 75%



2008 2009 2010

Direct Premium 180.7 161.7 217.3Ceeded Premium 105.0 93.6 115.4Ceeded % 58% 58% 53%


180.7 161.7

217.3

0

50

100

150

200

250



TSRSB Major Classes

AXA dominates the Liability business with a 13% market share.

ANALYSIS TOOL




Which players could Lloyd’s target to do business with in specialty classes like Liability?

© Lloyd’s

Rank Market Share%

1 13%

2 11%

3 8%

4 7%

5 6%

6 6%

7 5%

8 4%

9 4%

10 3%

Liability

Company Name Direct Premium US$ m

Axa 27.3

Anadolu 23.6

Eureko 18.2

Allianz 15.3

Yapı Kredi 12.8

Chartis 12.6

Gunes 7.5

Ergo 10.1

Groupama 8.2

Ak 8.1

21

l ıabıl ıtyCompetitor Ranking (By Premiums)

2010 Turkey Direct Market Top 10 Players (US$ m)(Direct Insurance Premiums on a calendar year basis, gross of acquisition fees)



Lloyd’s Marine business accounts for approximately 30% of total premiums.

ANALYSIS TOOL

Illustrates Lloyd’s premium and loss ratio trends by class.


Class Review illustrates the growth of Lloyd’s business in 8 major classes.

How is Lloyd’s performing in its major classes of business in Turkey?

© Lloyd’s38

Pr emium TRENDS

Marine

2009 – 2011 Lloyd’s Turkey Gross Signed Premiums (GSP) (US$ m)(Gross Signed Premium on a calendar year basis by country of origin, gross of RI and acquisition fees)


2009 2010 2011

Gross Premium 29.0 44.4 40.2

Growth Δ % 53% -10%

29.0

44.440.2

0

10

20

30

40

50


BENEFITS






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Disclaimer

© Lloyd’s64

Documents

CLASS REVIEW August 2012 Find out more about Lloyds position in the US, Brazil, Mexico & Turkey >