Global Marine Insurance Report 2007

Astrid Seltmann, Facts & Figures Committee

Analyst/Actuary, CEFOR, Norway

Thanks also to Pamela Frood and Cédric Charpentier

 Report on marine insurance
premiums 2005 and 2006

• By end of August 2007, 45 of 53 (ex 47 of 54)

members reported their country’s marine premium
figures for accounting years 2005 and 2006.

• Reported figures represent approx. 97% of the total

marine premium written by all IUMI members in
2005 and 2006.

• Total premium for 2006 is therefore estimated to

reach approx. USD 20.3 billion*.
(excluding P&I from mutual P&I Clubs).
* Strong exchange rate effects on premium volume, see explanations in
presentation.
 World Merchant Fleet and Global
Marine Hull & Liability Premium
Index of evolution, vessels > 100 GT, 1995 = 100%

175%

150%
No. Ships
125%
Gross tonnage
100%
Global Marine Hull &
75% Liab. Premium
Average insured vessel
50% value (CEFOR)

25%
1995

2000

2003

2005
1996
1997
1998
1999

2001
2002

2004

2006

Sources: Indicators for World Fleet from ISL Bremen, Vessel value index: CEFOR
 World Seaborne Trade Volume and
Trade Values, Global Cargo Premium
Index of evolution, 1995 = 100%

250%

200% Total World Trade

Volume
150% Global Cargo
Premium
100% Total World Trade
Values
50%
1995
1996
1997
1998
1999

2001
2002

2006
2000

2003
2004
2005

A major part of the increase 2001-04 and 06

and decrease 2004-2005 is due to
change in exchange rate against USD!
Source: Indicators for World Trade Volume from ISL Bremen (Cargo mostly written in local currency)
 Index of evolution of Exchange rates
between US$ and selected currencies
(as of December each year)

140%
st er
r ro k
130% a ke ng ea
we er w
120% D
US
EUR
110% GBP
100% JPY

90% NOK

80%
70%
60%
1999 2000 2001 2002 2003 2004 2005 2006

Source: Norges Bank Exchange Rates Statistics

 Exchange rates against US$

(as of December each year for selected currencies)

Currency 1999 2000 2001 2002 2003 2004 2005 2006

against USD:
USD 1 1 1 1 1 1 1 1
EUR 0.9894 1.1147 1.1205 0.9826 0.814 0.7462 0.8435 0.7569
GBP 0.6197 0.6837 0.6945 0.6309 0.5716 0.5184 0.5729 0.5092
JPY 102.5736 112.0751 127.2118 122.0127 107.8086 103.7914 118.5521 117.1756
NOK 8.011 9.0662 8.9552 7.168 6.7085 6.1321 6.7257 6.1741

Source: Norges Bank Exchange Rates Statistics

 Global premiums reported
2002 to 2006 (accounting years)

2006
Global Hull
2005
Transport / Cargo 2004
2003
Marine Liability 2002

Offshore / Energy

Total

0 5000 10000 15000 20000

USD (millions)

Increase 01-04 and 05-06 partly due to weakening of USD against major European and Asian
currencies.
Stagnation 05 due to strengthening of USD against major European and Asian currencies.
 Report on marine insurance premiums
Global premiums 2004-2006
(USD billions, as reported per end of August 2007)

Global Hull Transport/Cargo Marine Liability Offshore/Energy Total

2006 5.102 9.962 1.461 2.758 19.648
2005 4.629 9.268 1.267 1.734 17.266
2004 4.646 9.959 1.177 1.563 17.383

Index 2004-2005* 1.5% -7.0% 6.2% 8.5% -0.6%

Index 2005-2006* 9.6% 9.3% 16.9% 68.2% 15.5%

*Index based on figures from Associations who have reported in both years.
The index reflects changes in country activity, exchange rates in addition to
premium increases and is thus not a renewal index!

As some countries only report total marine premium without splitting into classes, the
sum of these classes might in some cases be slightly less than the ”total” sum.
 Market Shares 2006

Europe
2.0%
11.7% Asia/Pacific
North America
Rest of World

Europe : Albania, Austria, Belgium, Bulgaria,

Croatia, Cyprus, Czech Republic, Denmark,
22.4% Finland, France, Germany, Greece, Hungary,
Ireland, Italy, Netherlands, Norway, Poland,
Portugal, Romania, Russia, Slovenia, Spain,
Sweden, Switzerland, Turkey, Ukraine, United
Kingdom (IUA + Lloyds)
Asia/Pacific : Australia, Chinese Taipei, Hong
Kong, India, Japan, North Korea, South Korea,
Malaysia, New Zealand, Singapore
North America : Bermuda, Canada, USA
63.9% Rest of the World : Congo, Egypt, Israel, Kenya,
Lebanon, Mexico, Morocco, Nigeria, South
Africa,Tunisia, United Arab Emirates

Countries in italics did not report in 2007

 Report on marine insurance premiums
by economic areas
(USD Millions)

Europe, Asia: Exchange rate effects due to weakening/strengthening of USD

14000
Europe
12000
10000
Asia/Pacific
8000
6000
North
4000 America
2000
0 Rest of the
World
2000 2001 2002 2003 2004 2005 2006
Accounting Year
 Report on marine insurance premiums
by economic areas
(USD 1,000)

Region Premiums Premiums Premiums Variation Variation Market share Market share Market share
2006 2005 2004 2005-2006 2004-2005 2006 2005 2004

Europe 12,546,677 10,809,543 10,929,108 16.07% -1.09% 63.86% 62.61% 62.87%

Asia/Pacific 4,397,644 3,963,480 4,261,875 10.95% -7.00% 22.38% 22.96% 24.52%
North America 2,303,427 2,137,171 1,848,314 7.78% 15.63% 11.72% 12.38% 10.63%
Rest of the world 400,236 355,866 343,252 12.47% 3.67% 2.04% 2.06% 1.97%

Europe :
Albania, Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Finland, France,
Germany, Greece, Hungary, Ireland, Italy, Netherlands, Norway, Poland, Portugal, Romania,
Russia, Slovenia, Spain, Sweden, Switzerland, Turkey, Ukraine, United Kingdom (IUA + Lloyds)
Asia/Pacific :
Australia, China, Hong Kong, India, Japan, North Korea, South Korea, Malaysia,
New Zealand, Singapore
North America:
Bermuda, Canada, USA
Rest of the World :
Congo, Egypt, Israel, Kenya, Lebanon, Mexico, Morocco, Nigeria, South Africa, Tunisia,
United Arab Emirates

Countries in italics did not report in 2007.

 Global Marine Premium 2000 - 2006
(USD Million), as reported

25,000

20,000 Total

15,000

10,000 Cargo

Hull
5,000
Energy
Liability
0
2000 2001 2002 2003 2004 2005 2006
Accounting Year
 Global Hull Premium
Major Markets, 2000 - 2006 (USD Million)

800
France
700 Italy
600 J apan
500 Norway
400 Spain
300 UK (ILU/IUA)
200 UK (Lloyd's)
100 USA
0
2000 2001 2002 2003 2004 2005 2006
Accounting Year

From 2004 building risk is officially included in figures.

 Global Cargo Premium
Major Markets, 2000 - 2006 (USD Million)

2000 Belgium
Chinese Taipei
France
1500
Germany
Italy
1000 J apan
Netherlands
Spain
500
Sweden
UK (ILU/IUA)
0 UK (Lloyd's)
2000 2001 2002 2003 2004 2005 2006 USA

Accounting Year

Europe/Asia: exchange rate effects.

 MARINE MUTUAL MARKET SECTOR

Gross Calls (Premium) – Operational location

Per accounting year – USD Million

1800
1600 J apan

1400
1200 Norway
1000
800 Sweden
600
400 UK
200
0 US
2000 2001 2002 2003 2004 2005 2006
Accounting Year

Source: Standard & Poors Marine Mutual Report 2007

 MARINE MUTUAL MARKET SECTOR
Gross Calls (Premium) – Operational location

Per accounting year - USD 1000

Ranking

Average
Annual
variation
Difference over period
Operational 2006 2005 2004 2003 2002 06-02 02-06 2006 2002
Japan 135,362 136,432 126,585 107,539 97,027 38,335 27.90% 4 3
Norway 444,386 432,929 390,665 317,723 304,613 139,773 29.18% 2 2
Sweden 117,549 110,057 82,618 84,472 61,317 56,232 38.34% 5 4
UK 1,614,769 1,562,123 1,448,285 1,285,050 1,190,162 424,607 27.14% 1 1
US 162,257 139,602 118,959 63,749 53,004 109,253 61.22% 3 5
Total 2,474,323 2,381,143 2,167,112 1,858,533 1,706,123 768,200 29.01%

Source: Standard & Poors Marine Mutual Report 2007

 Report on marine insurance premiums
Accounting year 2005 (in USD 1000)

Name of association Global Hull Transp./ Marine Offshore/ Total

Cargo Liability Energy

Albania (Albanian Ass. of Marine Insurers) 0 102 123 0 225

Australia (Insurance Council of Australia Ltd.) 73,165 143,017 21,198 2,779 240,159
Austria (Verband der Versicherungsunternehmen Oesterreichs) 0 141,830 0 0 141,830
Belgium (ABAM_/BVT Belgian Association of Marine Insurers) 21,322 245,208 0 0 266,530
Bermuda (Bermuda Institute of Marine Underwriters) 0 not rep.
Bulgaria (BULSTRAD Insurance and Reinsurance PLC) 6,311 9,168 891 0 16,369
Canada (The Canadian Board of Marine Underwriters) 118,530 116,322 0 0 234,852
Chinese Taipei (The Non-Life Ins. Ass. of the Republic of China) 42,993 160,130 0 0 203,123
Congo (Société Nationale d'Assurances SONAS) 0 not rep.
Croatia (Croatian Insurance Bureau) 16,500 7,500 1,500 5,000 30,500
Cyprus (Insurance Association of Cyprus) 454 6,407 7 0 6,869
Czech Republic (Ceska Pojistovna AS) 290 21,880 610 0 22,780
Denmark (Foreningen af Danske Soeassurandoerer) 80,689 67,681 0 0 148,370
Egypt (Insurance Federation of Egypt) 11,981 33,776 407 41,297 87,460
Finland (Finnish Marine Underwriters' Association) NA NA NA NA 73,700
France (FFSA-Féd.Francaise des Sociétés d'Ass.Transports) 374,201 701,332 0 0 1,075,532
Germany (Gesamtverband der Deutschen Versicherungswirtschaft e.V.) 135,547 1,291,656 0 0 1,427,203
Greece (Greece Association of Insurance Companies-Greece) 23,135 45,714 6,393 0 75,242
Hong Kong (The Hong Kong Federation of Insurers) 91,296 125,318 incl. in hull 0 216,614
Hungary (Association of Hungarian Insurance Companies) NA NA NA NA 15,700

Comments: NA = split not available, not rep. = country did not report
 Report on marine insurance premiums
Accounting year 2005 (in USD 1000)

Name of association Global Hull Transp./ Marine Offshore/ Total

Cargo Liability Energy

India (Tariff Advisory Committee) 47,603 145,122 1,828 55,783 250,337

Ireland (The Irish Institute of Marine Underwriters) 7,245 29,510 1,335 0 38,090
Israel (Israel Insurance Association) 7,900 32,500 0 0 40,400
Italy (ANIA-Associazione Nazionale fra le Imprese Assicuratrici) 309,320 643,376 25,752 41,425 1,019,874
Japan (The Marine and Fire Insurance Association of Japan, Inc. 436,726 1,584,723 30,419 67,742 2,119,610
Kenya (The Association of Kenya Insurers) 0 not rep.
Korea, (Korea Foreign Ins. Co.) 0 not rep.
Korea, (Korea Non-life Ins. Assocn.) 213,847 217,856 20,981 8,001 460,685
Lebanon (Lebanese Ins. Comp. Ass.) NA NA NA NA 14,500
Malaysia (General Ins. Association of Malaysia) 38,290 103,734 0 78,819 220,843
Mexico (Zurich) 3,681 28,538 3,153 2,454 37,826
Morocco (Comité des Assureurs Maritime du Maroc CAMM ) 23,073 39,042 0 0 62,115
Netherlands (Association of Insurers) 117,000 398,000 46,000 0 561,000
New Zealand (Insurance Council of New Zealand) 25,906 38,547 1,555 0 66,008
Nigeria (Nigerian Insurers Association) 133 19,431 0 0 19,564
Norway (The Central Union of Marine Underwriters) 614,200 63,100 0 NA 677,300

Comments: NA = split not available, not rep. = country did not report
 Report on marine insurance premiums -
Accounting year 2005 (in USD 1000)

Name of association Global Hull Transp./ Marine Offshore/ Total

Cargo Liability Energy

Poland ("WARTA" Insurance & Reinsurance Company Ltd.) 32,044 63,718 2,193 929 98,884
Portugal (Associacão Portuguesa de Seguradores) 20,309 43,981 948 0 65,238
Romania (National Union - Insurance and Reinsurance Comp.) 6,477 6,999 2,402 0 15,878
Russia (Russia Ingosstrakh Insurance Company Ltd.) 30,680 119,600 26,200 NA 176,480
Singapore (General Insurance Association of Singapore) 77,800 108,300 incl. in hull 0 186,100
Slovenia (Slovenian Insurance Association) 1,427 7,477 877 0 9,781
South Africa (Association of Marine Underwriters in South Africa) 9,000 85,000 0 0 94,000
Spain (Comité de Transportes de UNESPA) 232,084 331,599 0 0 563,682
Sweden (Sjöassuradörernas Förening) 127,985 125,713 1,251 0 254,949
Switzerland (Swiss Association of Marine Underwriters) NA NA NA NA 263,300
Tunisia (Fédération Tunisienne des Sociétés) 0 not rep.
Turkey (Ass. of the Ins. and Reins. Companies of Türkiye) 39,706 168,020 0 0 207,725
Ukraine(Marine Insurance Bureau of Ukraine) 4,000 NA 3,800 NA 7,800
United Arab Emirates ( Emirates Insurance Association) 0 not rep.
United Kingdom (Int'l Underwriting Association of London - IUA) 271,641 238,448 31,280 86,375 627,745
United Kingdom (Lloyd's Underwriters' Association.) 637,563 739,473 447,871 1,096,058 2,920,965
U S A (American Institute of Marine Underwriters) 296,843 769,620 588,319 247,537 1,902,319
Total sum 4,628,900 9,268,468 1,267,294 1,734,198 17,266,059

UK Lloyd’s: Projected ultimate underwriting year premium, after deduction of acquisition costs, but including proportional and facultative reinsurance.
Acquisition cost ratio is estimated to be ca. 20-25% for most years. Marine Liability includes P&I premium via International Group’s reinsurance programme,
which is estimated to be about 65% of the reported liability premium. All historical figures revised in 2007.

Comments: NA = split not available, not rep. = country did not report
 Report on marine insurance premiums -
Accounting year 2006 (in USD 1000)

Name of association Global Hull Transp./ Marine Offshore/ Total

Cargo Liability Energy

Albania (Albanian Ass. of Marine Insurers) 0 102 123 0 225 estimated

Australia (Insurance Council of Australia Ltd.) 96,280 199,200 33,200 33,200 361,880
Austria (Verband der Versicherungsunternehmen Oesterreichs) 0 124,180 0 0 124,180
Belgium (ABAM_/BVT Belgian Association of Marine Insurers) 27,798 291,719 0 0 319,517
Bermuda (Bermuda Institute of Marine Underwriters) 0 not rep.
Bulgaria (BULSTRAD Insurance and Reinsurance PLC) 12,342 11,934 1,482 0 25,758
Canada (The Canadian Board of Marine Underwriters) 127,848 112,698 0 0 240,546
Chinese Taipei (The Non-Life Ins. Ass. of the Republic of China) 48,383 166,591 0 0 214,974
Congo (Société Nationale d'Assurances SONAS) 0 not rep.
Croatia (Croatian Insurance Bureau) 16,600 7,800 1,500 5,300 31,200
Cyprus (Insurance Association of Cyprus) 478 7,623 6 0 8,106
Czech Republic (Ceska Pojistovna AS) 470 34,420 770 0 35,660
Denmark (Foreningen af Danske Soeassurandoerer) 96,666 72,343 0 0 169,009
Egypt (Insurance Federation of Egypt) 13,483 34,343 387 48,809 97,023
Finland (Finnish Marine Underwriters' Association) NA NA NA NA 65,430
France (FFSA-Féd.Francaise des Sociétés d'Ass.Transports) 389,174 782,166 0 0 1,171,340
Germany (Gesamtverband der Deutschen Versicherungswirtschaft e.V.) 156,154 1,431,021 0 0 1,587,175
Greece (Greece Association of Insurance Companies-Greece) 29,049 52,756 8,084 0 89,890
Hong Kong (The Hong Kong Federation of Insurers) 112,917 126,187 incl. in hull 0 239,104
Hungary (Association of Hungarian Insurance Companies) NA NA NA NA 16,900

Comments: NA = split not available, not rep. = country did not report
 Report on marine insurance premiums
Accounting year 2006 (in USD 1000)

Name of association Global Hull Transp./ Marine Offshore/ Total

Cargo Liability Energy

India (Tariff Advisory Committee) 40,050 142,771 1,643 75,504 259,969

Ireland (The Irish Institute of Marine Underwriters) 7,390 26,560 1,268 0 35,218
Israel (Israel Insurance Association) 9,000 36,000 0 0 45,000
Italy (ANIA-Associazione Nazionale fra le Imprese Assicuratrici) 325,384 611,979 25,066 98,775 1,061,204
Japan (The Marine and Fire Insurance Association of Japan, Inc. 458,829 1,647,074 32,712 83,773 2,222,388
Kenya (The Association of Kenya Insurers) 0 not rep.
Korea, (Korea Foreign Ins. Co.) 0 not rep.
Korea, (Korea Non-life Ins. Assocn.) 273,687 238,008 28,336 9,367 549,398
Lebanon (Lebanese Ins. Comp. Ass.) NA NA NA NA 18,000
Malaysia (General Ins. Association of Malaysia) 63,157 108,543 0 114,496 286,195
Mexico (Zurich) 9,889 29,667 4,944 4,944 49,444
Morocco (Comité des Assureurs Maritime du Maroc CAMM ) 24,366 43,447 0 0 67,813
Netherlands (Association of Insurers) 146,000 421,000 49,000 0 616,000
New Zealand (Insurance Council of New Zealand) 23,288 34,651 1,397 0 59,336
Nigeria (Nigerian Insurers Association) 168 24,289 0 0 24,457
Norway (The Central Union of Marine Underwriters) 715,100 58,100 0 NA 773,200

Comments: NA = split not available, not rep. = country did not report
 Report on marine insurance premiums
Accounting year 2006 (in USD 1000)

Name of association Global Hull Transp./ Marine Offshore/ Total

Cargo Liability Energy

Poland ("WARTA" Insurance & Reinsurance Company Ltd.) 39,710 66,529 2,712 1,069 110,020
Portugal (Associacão Portuguesa de Seguradores) 22,835 40,717 1,092 0 64,644
Romania (National Union - Insurance and Reinsurance Comp.) 8,057 7,699 2,149 0 17,905
Russia (Russia Ingosstrakh Insurance Company Ltd.) 38,500 128,100 26,500 NA 193,100
Singapore (General Insurance Association of Singapore) 94,300 110,100 incl. in hull 0 204,400
Slovenia (Slovenian Insurance Association) 1,903 15,724 1,116 0 18,742
South Africa (Association of Marine Underwriters in South Africa) 8,500 90,000 0 0 98,500
Spain (Comité de Transportes de UNESPA) 207,686 356,789 0 0 564,475
Sweden (Sjöassuradörernas Förening) 116,218 162,673 1 0 278,892
Switzerland (Swiss Association of Marine Underwriters) NA NA NA NA 264,100
Tunisia (Fédération Tunisienne des Sociétés) 0 not rep.
Turkey (Ass. of the Ins. and Reins. Companies of Türkiye) 44,782 191,092 0 0 235,875
Ukraine(Marine Insurance Bureau of Ukraine) 4,000 NA 3,800 NA 7,800 estimated
United Arab Emirates ( Emirates Insurance Association) 0 not rep.
United Kingdom (Int'l Underwriting Association of London - IUA) 288,531 271,208 44,480 112,198 716,417
United Kingdom (Lloyd's Underwriters' Association.) 700,960 834,162 516,323 1,893,250 3,944,695
U S A (American Institute of Marine Underwriters) 302,105 810,194 673,104 277,477 2,062,881
Total sum 5,102,035 9,962,161 1,461,197 2,758,163 19,647,985

UK Lloyd’s: Projected ultimate underwriting year premium, after deduction of acquisition costs, but including proportional and facultative reinsurance.
Acquisition cost ratio is estimated to be ca. 20-25% for most years. Marine Liability includes P&I premium via International Group’s reinsurance programme,
which is estimated to be about 65% of the reported liability premium. All historical figures revised in 2007.

Comments: NA = split not available, not rep. = country did not report
 Marine Hull –
Evolution of Paid Claims, Gross Premiums
as reported, U/W Year 1999 to 2006 (USD)

3000 3000 3000 3000

USD 1999 underwriting year USD 2000

2000 underwriting year USD 2001 underwriting year USD 2002 underwriting year
2500 2500 2500 2500

2000 2000 2000 2000

1500 1500 1500 1500

1000 1000 1000 1000

500 500 500 500

0 0 0 0
end of 1999 2000 2001 2002 2003 2004 2005 2006 2007 ult end of 2000 2001 2002 2003 2004 2005 2006 2007 2008 ult end of 2001 2002 2002 2004 2005 2006 2007 2008 2009 ult end of 2002 2003 2004 2005 2006 2007 2008 2009 2010 ult

3000 3000 3000 3000

USD 2003 underwriting year USD 2004 underwriting year USD

2005 underwriting year USD 2006 underwriting year
2500 2500 2500 2500

2000 2000 2000 2000

1500 1500 1500 1500

1000 1000 1000 1000

500 500 500 500

0 0 0 0
end of 2003 2004 2005 2006 2007 2008 2009 2010 2011 ult end of 2004 2005 2006 2007 2008 2009 2010 2011 2012 ult end of 2005 2006 2007 2008 2009 2010 2011 2012 2013 ult end of 2006 2007 2008 2009 2010 2011 2012 2013 2014 ult

Blue line = Gross Premium; Red line = Paid Claims

Totals of 9 IUMI members –

Belgium, France, Germany, Italy, Netherlands, Norway, Spain, UK Lloyds, UK IUA
 Marine Hull – Ladder Table I. (USD)
Totals of 9 IUMI members – Belgium, France, Germany, Italy, Netherlands,
Norway, Spain, UK Lloyds, UK IUA (not necessarily 100% of market income)
Underwriting year 1) months2)2)
months
12 24 36 48 60 72 84 96 108 120 132
3)
1996 Gross premiums 1,786,669,887 2,253,734,298 2,320,503,492 2,297,730,123 2,269,155,127 2,269,190,355 2,284,060,987 2,312,884,742 2,327,411,527 2,297,514,202 2,326,122,013
4)
Paid claims 232,988,445 920,874,168 1,303,048,114 1,488,982,359 1,564,246,056 1,603,199,459 1,629,996,568 1,676,923,627 1,696,385,003 1,674,239,989 1,700,779,028
6)
Loss ratio paid 13.04% 40.86% 56.15% 64.80% 68.94% 70.65% 71.36% 72.50% 72.89% 72.87% 73.12%
7)
Total loss ratio 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

1997 Gross premiums 1,453,341,048 1,909,292,982 1,948,834,617 1,928,790,266 1,928,171,008 1,938,395,219 1,966,894,238 1,979,651,632 1,951,031,385 1,974,525,686
Paid claims 254,091,494 980,136,541 1,398,845,705 1,565,152,695 1,640,405,792 1,698,584,946 1,728,064,249 1,744,846,069 1,686,058,174 1,751,011,667
Loss ratio paid 17.48% 51.34% 71.78% 81.15% 85.08% 87.63% 87.86% 88.14% 86.42% 88.68%
Total loss ratio 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

1998 Gross premiums 1,260,552,592 1,688,124,737 1,736,646,364 1,735,425,226 1,750,981,976 1,788,967,514 1,807,655,711 1,779,653,206 1,809,148,498
Paid claims 292,142,741 1,156,300,294 1,686,534,497 1,870,449,757 1,954,884,435 2,021,312,544 2,053,914,095 2,041,796,260 2,043,426,839
Loss ratio paid 23.18% 68.50% 97.11% 107.78% 111.65% 112.99% 113.62% 114.73% 112.95%
Total loss ratio 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

1999 Gross premiums 1,182,461,895 1,583,966,979 1,665,509,437 1,682,619,937 1,710,977,706 1,723,238,639 1,695,337,888 1,719,680,606
Paid claims 264,916,144 1,126,701,842 1,649,521,368 1,860,988,518 1,995,597,858 2,054,069,945 2,047,508,629 2,100,173,115
Loss ratio paid 22.40% 71.13% 99.04% 110.60% 116.63% 119.20% 120.77% 122.13%
Total loss ratio 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

2000 Gross premiums 1,147,954,069 1,562,396,556 1,655,572,772 1,680,945,471 1,691,257,483 1,669,526,583 1,692,894,801
Paid claims 246,018,883 959,267,966 1,413,578,345 1,601,177,456 1,679,120,954 1,700,801,693 1,744,086,301
Loss ratio paid 21.43% 61.40% 85.38% 95.25% 99.28% 101.87% 103.02%
Total loss ratio 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

2001 Gross premiums 1,304,817,076 1,720,577,831 1,817,345,854 1,834,772,314 1,812,951,149 1,847,552,814

Paid claims 201,383,872 838,750,566 1,230,888,927 1,358,339,595 1,423,739,262 1,470,335,271
Loss ratio paid 15.43% 48.75% 67.73% 74.03% 78.53% 79.58%
Total loss ratio 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

2002 Gross premiums 1,538,272,404 1,948,261,912 1,987,221,100 1,953,967,640 1,993,839,922

Paid claims 245,816,531 992,356,100 1,396,475,351 1,608,390,051 1,736,023,872
Loss ratio paid 15.98% 50.94% 70.27% 82.31% 87.07%
Total loss ratio 0.00% 0.00% 0.00% 0.00% 0.00%

2003 Gross premiums 1,856,061,608 2,340,919,214 2,359,147,628 2,377,082,207

Paid claims 293,514,346 902,481,455 1,254,819,224 1,421,403,549
Loss ratio paid 15.81% 38.55% 53.19% 59.80%
Total loss ratio 0.00% 0.00% 0.00% 0.00%

2004 Gross premiums 2,077,691,824 2,572,862,514 2,669,964,759

Paid claims 279,855,929 1,108,806,716 1,503,916,146
Loss ratio paid 13.47% 43.10% 56.33%
Total loss ratio 0.00% 0.00% 0.00%

2005 Gross premiums 2,206,674,612 2,728,327,280

Paid claims 258,456,989 1,096,503,729
Loss ratio paid 11.71% 40.19%
Total loss ratio 0.00% 0.00%

2006 Gross premiums 2,382,465,992

Paid claims 242,723,402
Loss ratio paid 10.19%
Total loss ratio 0.00%
 Marine Hull – Evolution of
Paid and Total Claims, Gross Premiums
as reported, U/W Year 1999 to 2006 (USD)

3000 3000 3000 3000

USD 1999 underwriting year USD 2000 underwriting year

year USD 2001 underwriting year USD 2002 underwriting year
2500 2500 2500 2500

2000 2000 2000 2000

1500 1500 1500 1500

1000 1000 1000 1000

500 500 500 500

0 0 0 0
end of 1999 2000 2001 2002 2003 2004 2005 2006 2007 end of 2000 2001 2002 2003 2004 2005 2006 2007 2008 end of 2001 2002 2002 2004 2005 2006 2007 2008 2009 end of 2002 2003 2004 2005 2006 2007 2008 2009 2010

3000 3000 3000 3000

USD 2003 underwriting year USD 2004 underwriting year USD 2005 underwriting year USD 2006 underwriting year
2500 2500 2500 2500

2000 2000 2000 2000

1500 1500 1500 1500

1000 1000 1000 1000

500 500 500 500

0 0 0 0
end of 2003 2004 2005 2006 2007 2008 2009 2010 2011 end of 2004 2005 2006 2007 2008 2009 2010 2011 2012 end of 2005 2006 2007 2008 2009 2010 2011 2012 2013 end of 2006 2007 2008 2009 2010 2011 2012 2013 2014

Blue line = Gross Premium; Red line = Paid Claims, Yellow line = Paid+Outstanding claims

Totals of 8 IUMI members – Belgium, France, Germany, Italy, Netherlands, Norway, Spain, UK Lloyds
 Marine Hull – Ladder Table II. (USD)
Totals of 8 IUMI members – Belgium, France, Germany, Italy, Netherlands,
1)
Norway, Spain, UK Lloyds (not necessarily 100% of market income) 2) 2)
Underwriting year months
months
12 24 36 48 60 72 84 96 108 120 132
3)
1996 Gross premiums 1,360,761,296 1,658,404,745 1,702,509,677 1,677,043,525 1,645,050,041 1,650,262,575 1,667,420,079 1,699,691,386 1,715,966,904 1,687,296,303 1,715,904,113
4)
Paid claims 178,528,245 691,867,068 967,863,214 1,087,779,159 1,133,025,099 1,161,931,905 1,183,406,714 1,216,228,972 1,233,158,325 1,211,086,838 1,237,625,878
5)
Total claims incl. outstanding 697,577,220 1,122,416,910 1,243,493,925 1,243,208,696 1,221,218,194 1,227,952,540 1,243,004,964 1,270,971,632 1,285,000,009 1,255,186,695 1,279,293,644
6)
Loss ratio paid 13.12% 41.72% 56.85% 64.86% 68.87% 70.41% 70.97% 71.56% 71.86% 71.78% 72.13%
7)
Total loss ratio 51.26% 67.68% 73.04% 74.13% 74.24% 74.41% 74.55% 74.78% 74.88% 74.39% 74.56%

1997 Gross premiums 1,168,803,591 1,472,613,257 1,490,837,022 1,465,972,589 1,469,005,419 1,482,725,015 1,515,168,962 1,530,125,376 1,502,895,520 1,529,443,887
Paid claims 197,672,294 769,739,941 1,083,446,705 1,196,666,754 1,252,400,969 1,301,509,995 1,334,434,384 1,347,730,074 1,286,590,915 1,349,875,339
Total claims incl. outstanding 671,351,201 1,263,290,083 1,383,663,548 1,387,363,615 1,380,783,386 1,383,913,731 1,401,885,371 1,406,990,019 1,332,715,851 1,394,116,819
Loss ratio paid 16.91% 52.27% 72.67% 81.63% 85.26% 87.78% 88.07% 88.08% 85.61% 88.26%
Total loss ratio 57.44% 85.79% 92.81% 94.64% 93.99% 93.34% 92.52% 91.95% 88.68% 91.15%

1998 Gross premiums 1,050,291,080 1,340,306,868 1,361,597,722 1,365,399,069 1,386,565,785 1,426,176,653 1,446,463,800 1,419,713,958 1,449,309,076
Paid claims 246,498,041 916,518,694 1,301,563,571 1,436,824,484 1,500,539,763 1,556,158,761 1,582,964,865 1,567,354,385 1,580,552,832
Total claims incl. outstanding 733,000,827 1,419,672,676 1,596,302,030 1,618,475,652 1,630,791,268 1,667,185,065 1,661,957,976 1,629,379,296 1,635,712,531
Loss ratio paid 23.47% 68.38% 95.59% 105.23% 108.22% 109.11% 109.44% 110.40% 109.06%
Total loss ratio 69.79% 105.92% 117.24% 118.53% 117.61% 116.90% 114.90% 114.77% 112.86%

1999 Gross premiums 991,498,665 1,279,803,618 1,358,072,736 1,383,454,600 1,416,317,373 1,429,887,185 1,402,667,087 1,427,851,668
Paid claims 216,724,744 916,922,327 1,364,058,288 1,543,684,246 1,655,419,360 1,707,594,603 1,693,453,101 1,744,822,048
Total claims incl. outstanding 801,719,826 1,511,838,159 1,730,824,567 1,787,989,381 1,841,422,379 1,850,448,801 1,805,052,428 1,849,499,676
Loss ratio paid 21.86% 71.65% 100.44% 111.58% 116.88% 119.42% 120.73% 122.20%
Total loss ratio 80.86% 118.13% 127.45% 129.24% 130.01% 129.41% 128.69% 129.53%

2000 Gross premiums 998,452,973 1,312,374,363 1,394,705,766 1,424,301,840 1,434,843,554 1,414,594,894 1,438,557,077
Paid claims 207,291,412 810,712,875 1,187,771,904 1,338,542,499 1,401,541,151 1,415,620,213 1,452,342,242
Total claims incl. outstanding 713,749,914 1,328,960,095 1,538,549,024 1,577,786,627 1,573,105,367 1,533,489,737 1,550,928,049
Loss ratio paid 20.76% 61.77% 85.16% 93.98% 97.68% 100.07% 100.96%
Total loss ratio 71.49% 101.26% 110.31% 110.78% 109.64% 108.40% 107.81%

2001 Gross premiums 1,107,805,020 1,433,738,783 1,524,724,114 1,542,719,691 1,520,876,611 1,556,728,901

Paid claims 183,407,116 734,403,481 1,064,702,091 1,172,569,392 1,228,244,101 1,270,726,835
Total claims incl. outstanding 702,327,510 1,216,497,841 1,380,622,986 1,365,969,181 1,336,231,839 1,353,623,022
Loss ratio paid 16.56% 51.22% 69.83% 76.01% 80.76% 81.63%
Total loss ratio 63.40% 84.85% 90.55% 88.54% 87.86% 86.95%

2002 Gross premiums 1,349,239,186 1,693,021,967 1,731,305,508 1,703,345,138 1,744,986,935

Paid claims 216,307,783 898,016,799 1,254,437,905 1,428,892,968 1,545,007,412
Total claims incl. outstanding 867,567,987 1,526,838,385 1,665,165,384 1,638,646,083 1,689,750,093
Loss ratio paid 16.03% 53.04% 72.46% 83.89% 88.54%
Total loss ratio 64.30% 90.18% 96.18% 96.20% 96.83%

2003 Gross premiums 1,622,953,395 2,033,355,274 2,050,276,860 2,070,950,805

Paid claims 272,991,163 828,418,459 1,145,607,025 1,293,380,202
Total claims incl. outstanding 776,193,382 1,338,267,802 1,422,442,967 1,474,055,943
Loss ratio paid 16.82% 40.74% 55.88% 62.45%
Total loss ratio 47.83% 65.82% 69.38% 71.18%

2004 Gross premiums 1,830,197,350 2,242,763,409 2,345,823,649

Paid claims 250,400,145 975,692,155 1,316,830,498
Total claims incl. outstanding 930,092,414 1,594,766,854 1,673,626,887
Loss ratio paid 13.68% 43.50% 56.14%
Total loss ratio 50.82% 71.11% 71.34%

2005 Gross premiums 1,855,403,247 2,277,506,052

Paid claims 221,380,929 894,423,070
Total claims incl. outstanding 811,811,100 1,529,827,688
Loss ratio paid 11.93% 39.27%
Total loss ratio 43.75% 67.17%

2006 Gross premiums 2,070,899,720

Paid claims 226,038,599
Total claims incl. outstanding 964,549,661
Loss ratio paid 10.91%
Total loss ratio 46.58%
 Actual and estimated towards ultimate
U/W Year 1996 to 2005

140%

1999
120% 1998

Technical break 2000

even is achieved
1996
when the gross
loss ratio does not
100% 2002
exceed 1997
1997
100% minus the 1998
expense ratio 2001
(between 20% 80% 2004/05/1996
1999
and 30%,
acquisition costs, 2000
capital costs and 2003
management 2001
expenses) 60%
2002
2003
40% 2004
2005

20%

0%

e
12

24

36

48

60

72

84

96

lti 2
at
10

12

13
m
U

Ultimate calculation based on figures of 9 IUMI members:

Belgium, France, Germany, Italy, Netherlands, Norway, Spain, UK Lloyds, UK IUA
 Transport/Cargo –
Evolution of Paid Claims, Gross Premiums
as reported, U/W Year 1999 to 2006 (USD)

5000 5000 5000 5000

USD 1999 underwriting year USD
4500
2000 underwriting year USD
4500
2001 underwriting
2001 underwriting year
year USD
4500
2002 underwriting year
4500

4000 4000 4000 4000

3500 3500 3500 3500

3000 3000 3000 3000

2500 2500 2500 2500

2000 2000 2000 2000

1500 1500 1500 1500

1000 1000 1000 1000

500 500 500 500

0 0 0 0
end of 1999 2000 2001 2002 2003 2004 2005 2006 2007 ult end of 2000 2001 2002 2003 2004 2005 2006 2007 2008 ult end of 2001 2002 2003 2004 2005 2006 2007 2008 2009 ult end of 2002 2003 2004 2005 2006 2007 2008 2009 2010 ult

5000 5000 5000 5000

USD
4500
2003 underwriting year USD 2004 underwriting year USD 2005 underwriting year USD 2006 underwriting year
4500 4500 4500

4000 4000 4000 4000

3500 3500 3500 3500

3000 3000 3000 3000

2500 2500 2500 2500

2000 2000 2000 2000

1500 1500 1500 1500

1000 1000 1000 1000

500 500 500 500

0 0 0 0
end of 2003 2004 2005 2006 2007 2008 2009 2010 2011 ult end of 2004 2005 2006 2007 2008 2009 2010 2011 2012 ult end of 2005 2006 2007 2008 2009 2010 2011 2012 2013 ult end of 2006 2007 2008 2009 2010 2011 2012 2013 2014 ult

Blue line = Gross Premium; Red line = Paid Claims

Totals of 8 IUMI members –
Belgium, France, Germany, Italy, Netherlands, Spain, UK Lloyds, UK IUA
 Transport / Cargo – Ladder Table I. (USD)

Underwriting year 1) Totals of 8 IUMI members – Belgium, France, Germany, Italy, Netherlands, Spain,
months
months 2)2)

12 24 36 48 60 72 84 96 108 120 132

1996 Gross premiums
3) UK 2,369,741,991
1,715,336,275 Lloyds, UK IUA
2,482,419,723 (not necessarily
2,461,868,481 2,511,547,928 100%
2,514,016,974of2,548,771,096
market 2,587,549,826
income)2,606,060,723 2,572,886,928 2,600,692,514
4)
Paid claims 460,272,552 1,216,978,094 1,521,804,850 1,569,940,624 1,648,696,015 1,661,032,753 1,686,771,946 1,711,367,529 1,726,811,033 1,708,791,455 1,725,163,829
6)
Loss ratio paid 26.83% 51.35% 61.30% 63.77% 65.64% 66.07% 66.18% 66.14% 66.26% 66.42% 66.33%
7)
Total loss ratio 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

1997 Gross premiums 1,879,213,489 2,611,028,508 2,684,018,892 2,727,505,714 2,673,045,968 2,706,209,126 2,740,846,512 2,757,201,434 2,725,499,815 2,750,948,994
Paid claims 603,103,162 1,598,811,679 1,898,828,245 2,037,751,523 2,012,975,894 2,054,622,883 2,090,194,510 2,101,536,299 2,078,311,025 2,099,199,667
Loss ratio paid 32.09% 61.23% 70.75% 74.71% 75.31% 75.92% 76.26% 76.22% 76.25% 76.31%
Total loss ratio 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

1998 Gross premiums 1,860,117,319 2,626,620,449 2,716,958,474 2,655,304,920 2,697,650,830 2,746,861,326 2,768,730,681 2,732,550,884 2,761,818,434
Paid claims 599,820,066 1,612,631,175 2,026,195,983 2,070,788,705 2,151,063,048 2,207,212,193 2,226,006,992 2,204,502,895 2,229,253,880
Loss ratio paid 32.25% 61.40% 74.58% 77.99% 79.74% 80.35% 80.40% 80.68% 80.72%
Total loss ratio 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

1999 Gross premiums 1,708,561,079 2,476,906,405 2,596,416,075 2,648,948,055 2,688,599,905 2,698,496,625 2,667,494,332 2,697,126,456
Paid claims 525,552,461 1,601,676,307 1,985,824,882 2,146,246,992 2,217,365,896 2,270,929,510 2,256,346,139 2,284,410,106
Loss ratio paid 30.76% 64.66% 76.48% 81.02% 82.47% 84.16% 84.59% 84.70%
Total loss ratio 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

2000 Gross premiums 1,672,634,087 2,449,014,190 2,709,375,362 2,769,948,999 2,801,013,224 2,730,742,401 2,763,419,323
Paid claims 510,899,695 1,524,184,636 2,026,955,864 2,185,483,863 2,231,024,682 2,230,386,248 2,233,276,888
Loss ratio paid 30.54% 62.24% 74.81% 78.90% 79.65% 81.68% 80.82%
Total loss ratio 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

2001 Gross premiums 1,746,583,085 2,716,543,567 2,884,303,542 2,913,198,846 2,861,470,452 2,902,781,139

Paid claims 448,959,114 1,425,002,676 1,767,725,423 1,868,311,675 1,865,041,409 1,909,023,530
Loss ratio paid 25.70% 52.46% 61.29% 64.13% 65.18% 65.77%
Total loss ratio 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

2002 Gross premiums 2,133,298,179 3,121,781,522 3,261,656,294 3,209,625,410 3,276,857,371

Paid claims 450,248,237 1,424,868,720 1,717,855,488 1,767,074,294 1,837,466,311
Loss ratio paid 21.11% 45.64% 52.67% 55.06% 56.07%
Total loss ratio 0.00% 0.00% 0.00% 0.00% 0.00%

2003 Gross premiums 2,466,230,455 3,556,952,309 3,599,723,240 3,684,225,193

Paid claims 538,637,221 1,409,451,284 1,672,460,091 1,798,856,638
Loss ratio paid 21.84% 39.63% 46.46% 48.83%
Total loss ratio 0.00% 0.00% 0.00% 0.00%

2004 Gross premiums 2,612,525,843 3,726,970,131 3,939,872,215

Paid claims 511,018,581 1,489,154,803 1,904,056,815
Loss ratio paid 19.56% 39.96% 48.33%
Total loss ratio 0.00% 0.00% 0.00%

2005 Gross premiums 2,582,397,435 3,728,648,564

Paid claims 487,346,482 1,508,982,206
Loss ratio paid 18.87% 40.47%
Total loss ratio 0.00% 0.00%

2006 Gross premiums 2,846,670,662

Paid claims 572,278,532
Loss ratio paid 20.10%
Total loss ratio 0.00%
 Transport/Cargo –
Paid and Total Claims, Gross Premiums
as reported, U/W Year 1999 to 2006 (USD)

4500 4500 4500 4500

USD 1999 underwriting year USD 2000 underwriting year USD 2001 underwriting
2001 underwriting year
year USD 2002 underwriting year
4000 4000 4000 4000

3500 3500 3500 3500

3000 3000 3000 3000

2500 2500 2500 2500

2000 2000 2000 2000

1500 1500 1500

1500

1000 1000 1000

1000
500 500 500
500
0 0 0
end of 1999 2000 2001 2002 2003 2004 2005 2006 2007 end of 2000 2001 2002 2003 2004 2005 2006 2007 2008 end of 2001 2002 2003 2004 2005 2006 2007 2008 2009 0
end of 2002 2003 2004 2005 2006 2007 2008 2009 2010

4500 4500 4500 4500

USD 2003 underwriting year 2004 underwriting year 2005 underwriting year USD 2006 underwriting year
4000 4000 4000 4000

3500 3500 3500 3500

3000 3000 3000 3000

2500 2500 2500 2500

2000 2000 2000 2000

1500 1500 1500 1500

1000 1000 1000 1000

500 500 500 500

0 0 0 0
end of 2003 2004 2005 2006 2007 2008 2009 2010 2011 end of 2004 2005 2006 2007 2008 2009 2010 2011 2012 end of 2005 2006 2007 2008 2009 2010 2011 2012 2013 end of 2006 2007 2008 2009 2010 2011 2012 2013 2014

Blue line = Gross Premium; Red line = Paid Claims, Yellow line = Paid+Outstanding claims
Totals of 7 IUMI members – Belgium, France, Germany, Italy, Netherlands, Spain, UK Lloyds
 Transport / Cargo – Ladder Table (USD)
Totals of 7 IUMI members – Belgium, France, Germany, Italy, Netherlands, Spain
1)
UK Lloyds (not necessarily 100% of market income) 2) 2)
Underwriting year months months
12 24 36 48 60 72 84 96 108 120 132
3)
1996 Gross premiums 1,531,345,828 2,020,107,334 2,090,373,779 2,059,983,269 2,103,866,135 2,106,113,982 2,141,039,791 2,179,655,245 2,197,677,275 2,164,987,305 2,192,980,968
4)
Paid claims 423,835,152 1,073,584,822 1,299,734,369 1,323,166,344 1,390,058,959 1,398,565,367 1,424,044,103 1,447,113,838 1,459,643,537 1,441,255,536 1,457,400,939
5)
Total claims incl. outstanding 1,162,508,586 1,503,587,930 1,540,858,169 1,459,332,657 1,487,847,963 1,487,125,614 1,499,551,860 1,518,421,612 1,527,147,253 1,504,933,533 1,519,680,090
6)
Loss ratio paid 27.68% 53.14% 62.18% 64.23% 66.07% 66.41% 66.51% 66.39% 66.42% 66.57% 66.46%
7)
Total loss ratio 75.91% 74.43% 73.71% 70.84% 70.72% 70.61% 70.04% 69.66% 69.49% 69.51% 69.30%

1997 Gross premiums 1,727,548,973 2,299,384,536 2,336,482,726 2,366,911,034 2,309,328,844 2,341,869,348 2,376,536,113 2,392,753,467 2,361,984,141 2,387,320,051
Paid claims 546,879,862 1,404,652,878 1,624,620,466 1,735,128,586 1,703,718,344 1,736,890,770 1,768,115,473 1,781,869,386 1,758,970,577 1,779,787,726
Total claims incl. outstanding 1,404,796,288 1,903,391,770 1,897,567,676 1,933,346,038 1,829,332,735 1,840,892,037 1,864,247,502 1,871,821,455 1,845,566,302 1,865,124,676
Loss ratio paid 31.66% 61.09% 69.53% 73.31% 73.78% 74.17% 74.40% 74.47% 74.47% 74.55%
Total loss ratio 81.32% 82.78% 81.21% 81.68% 79.21% 78.61% 78.44% 78.23% 78.14% 78.13%

1998 Gross premiums 1,744,667,567 2,358,698,742 2,416,742,125 2,354,289,861 2,396,571,680 2,444,150,934 2,463,786,714 2,429,474,739 2,458,558,022
Paid claims 561,227,766 1,459,154,384 1,797,962,606 1,828,792,947 1,903,753,309 1,957,343,847 1,974,912,283 1,952,550,202 1,977,230,213
Total claims incl. outstanding 1,461,163,434 1,969,546,769 2,115,610,627 2,031,217,359 2,049,026,776 2,068,236,832 2,077,048,221 2,045,208,842 2,066,239,374
Loss ratio paid 32.17% 61.86% 74.40% 77.68% 79.44% 80.08% 80.16% 80.37% 80.42%
Total loss ratio 83.75% 83.50% 87.54% 86.28% 85.50% 84.62% 84.30% 84.18% 84.04%

1999 Gross premiums 1,593,840,484 2,215,239,569 2,291,438,685 2,348,160,769 2,388,235,230 2,401,634,011 2,370,634,633 2,400,220,695
Paid claims 485,197,061 1,420,606,394 1,736,164,225 1,874,496,796 1,940,494,555 1,982,718,739 1,964,668,450 1,992,437,310
Total claims incl. outstanding 1,354,923,357 1,994,463,556 2,078,446,821 2,106,436,232 2,116,928,707 2,138,894,787 2,102,676,425 2,126,317,246
Loss ratio paid 30.44% 64.13% 75.77% 79.83% 81.25% 82.56% 82.88% 83.01%
Total loss ratio 85.01% 90.03% 90.70% 89.71% 88.64% 89.06% 88.70% 88.59%

2000 Gross premiums 1,594,128,256 2,235,277,126 2,473,957,761 2,535,475,002 2,567,547,592 2,498,690,212 2,530,863,105
Paid claims 494,248,195 1,421,974,951 1,872,415,024 2,010,836,815 2,049,774,174 2,042,698,845 2,039,912,177
Total claims incl. outstanding 1,390,309,398 2,068,681,161 2,279,264,280 2,299,274,123 2,232,195,907 2,171,852,090 2,163,402,531
Loss ratio paid 31.00% 63.62% 75.69% 79.31% 79.83% 81.75% 80.60%
Total loss ratio 87.21% 92.55% 92.13% 90.68% 86.94% 86.92% 85.48%

2001 Gross premiums 1,628,945,864 2,452,857,695 2,602,142,212 2,630,173,263 2,579,955,217 2,621,974,870

Paid claims 434,266,614 1,339,238,299 1,635,912,408 1,723,219,942 1,717,736,562 1,760,822,740
Total claims incl. outstanding 1,347,377,698 1,930,089,025 2,011,485,328 1,951,735,050 1,885,762,300 1,895,424,060
Loss ratio paid 26.66% 54.60% 62.87% 65.52% 66.58% 67.16%
Total loss ratio 82.71% 78.69% 77.30% 74.21% 73.09% 72.29%

2002 Gross premiums 1,987,109,848 2,858,468,664 2,988,753,471 2,937,072,772 3,005,166,418

Paid claims 432,362,494 1,357,932,603 1,625,942,259 1,668,477,642 1,734,364,943
Total claims incl. outstanding 1,390,041,036 2,032,876,271 1,992,736,649 1,905,359,003 1,919,815,339
Loss ratio paid 21.76% 47.51% 54.40% 56.81% 57.71%
Total loss ratio 69.95% 71.12% 66.67% 64.87% 63.88%

2003 Gross premiums 2,317,239,512 3,299,315,420 3,325,474,680 3,413,042,021

Paid claims 513,858,671 1,349,119,437 1,585,080,898 1,702,983,217
Total claims incl. outstanding 1,523,802,346 2,029,451,844 1,995,629,911 1,977,777,933
Loss ratio paid 22.18% 40.89% 47.66% 49.90%
Total loss ratio 65.76% 61.51% 60.01% 57.95%

2004 Gross premiums 2,467,609,833 3,445,455,023 3,647,189,365

Paid claims 504,786,293 1,431,623,998 1,799,987,303
Total claims incl. outstanding 1,584,324,661 2,244,532,186 2,295,277,520
Loss ratio paid 20.46% 41.55% 49.35%
Total loss ratio 64.20% 65.14% 62.93%

2005 Gross premiums 2,291,826,208 3,301,714,609

Paid claims 471,762,703 1,393,838,080
Total claims incl. outstanding 1,520,240,102 2,237,902,948
Loss ratio paid 20.58% 42.22%
Total loss ratio 66.33% 67.78%

2006 Gross premiums 2,585,146,593

Paid claims 561,504,032
Total claims incl. outstanding 1,650,240,070
Loss ratio paid 21.72%
Total loss ratio 63.84%
 Transport/Cargo,
Gross Loss Ratio paid claims,
Actual and estimated towards ultimate
U/W Year 1996 to 2006
100%
90%
Technical break
even is achieved
80%
when the gross
1996
loss ratio does not
exceed
70%
100% minus the
1997
expense ratio
(between 20% 60% 2002/04/05/06 1998
and 30%, 2003 1999
acquisition costs,
capital costs and 50% 2000
management 2001
expenses)
40% 2002
2003
30% 2004
2005
20% 2006

10%
0%
12

24

36

60

84

96
48

72

U 132
0

e
10

12

at
m
lti

Ultimate calculation based on totals of 8 IUMI members –

Belgium, France, Germany, Italy, Netherlands, Spain, UK Lloyds, UK IUA
 Marine Hull and Cargo/Transport
Gross Ultimate Loss Ratio
U/W Year 1996 to 2006
Impact of major claims
140% in 2007 attaching to 2006
+ further increase in
partial claims costs in 2007
120%
Technical break
even is achieved
when the gross
loss ratio does not
exceed 100%
100% minus the
expense ratio
(acquisition costs,
capital costs and
management 80%
expenses, usually
between 20% and
Marine Hull
30%).
Cargo/Transport
60%

40%

20%

0%
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
 Examples of Major Hull claims in 2007,
attaching to Underwriting year 2006

Date Vessel Name Casualty

18.01.07 MSC Napoli Grounding

08.03.07 MSC Joanna Collision
08.03.07 W.D. Fairway Collision
08.03.07 Repubblica de Genova other
05.04.07 Sea Diamond Grounding
12.04.07 Bourbon Dolphin Capsize

Claims xs 20 MUSD occurred in 2007, but attaching to 2006,

are estimated to sum up to about 600 USD million,
adding roughly additional 18% to the 2006 hull gross loss ratio.
 Marine Hull - Quarterly evolution
Net loss ratio paid+outstanding claims
Hull & Machinery insurance
(excluding LOH, freight and hull interest, building risk)
Net loss ratio* (net of acquisition costs)

120.0%

100.0%

80.0%

60.0% 2005
2006
40.0%

20.0%

0.0%
Quarters
1 2 3 4 5 6 7 8 9 10
* =(Paid+Outstanding claims) / Net premium

Source: CEFOR, Underwriting years 2005 and 2006

Summing up
 Marine Hull
 Underwriting years 2004, 2005:
 Few major claims
 But increase in average attritional claims amount
 Underwriting year 2006:
 Increase in the number and severity of major claims
 Continuing trend towards higher attritional claims
amounts
 Quo vadis?

 Transport/Cargo
 Exposures in values increases significantly, but not
reflected in premium development
 Even so, stability in results since 2002
Explanation of terms used in this presentation (1)
Gross premium = Premium for insurance including the provision for anticipated losses (the pure premium) and for the anticipated
expenses (loading), including also commission and brokerage but excluding taxes and other contributions on insurance premiums.

Written premium = Complete premium due for insurance policies which start, i.e. “are written”, in a specific year (= the
underwriting year of the policy). Does not give any information on actual premium payments/instalments, i.e. the cash flow.

Paid claims = Amounts the insurer has paid for known and registered claims less recoveries.
Outstanding claims reserve = Claims reserve for specific reported, but not yet (fully) paid claims, of which the insurer has an
estimation of the total amount to be paid. Includes loss adjustment expenses.
= Sum of total claims estimates minus any amounts already paid for these claims.
Total claim = Paid amounts + outstanding claims reserve for specific reported claims.
IBNR = ”Incurred but not reported” = additional claims reserve on top of the outstanding claims reserve, and which for claims
incurred, but not yet known or registered in the insurer’s system. The necessary IBNR reserve is derived by statistical methods
based on historical claims ladder statistics.

Loss ratio = Claims divided by premiums. Indicator of whether premiums are calculated correctly to match claims and other
expenses.
Gross loss ratio (in this presentation) = Sum of total claims and IBNR reserves, divided by gross written premiums

Underwriting year basis = Insurance figures are registered with the calender year in which the insurance policy starts, and to
which the covered risks accordingly attach to. Example: a policy with cover period 01.07.06-30.06.07 has underwriting year 2006.
Both claims occuring in 2006 and 2007 for risks attaching to this policy are thus attributed to underwriting year 2006. The
underwriting year is not closed, so underwriting year figures change as long as there are payments related to policies with this
underwriting year.
Accident year = Claims are registered with the calendar year in which an accident happens. Claims attaching to the same policy
may thus be attributed to different accident years. Example: for the policy with cover period 01.07.06-30.06.07 a claim occuring in
2007 has accident year 2007, but underwriting year 2006. The accident year is not closed, so figures will change as long as there
are claims payments related to claims occured in that accident year, e.g. a claim payment made in 2009 for an accident which
happened in 2007 will be attributed to accident year 2007.
Accounting year (also booking year) = Insurance figures, regardless of their original source date, are booked into that year of
account which is open at the time of actually entering the figures in the books. Contrary to the underwriting and accident year, the
accounting year is closed at some point in time, usually at the end of one calendar year, such that figures do not change any more
once the accounting year is closed. These give the insurance results usually published in companies’ annual reports.
Explanation of terms used in this presentation (2)
Premium volumes shown in this report are
(as defined in the Global Premium Report Form):

Gross written premiums

- for direct marine insurance in the national market

- for the accounting years 2005 and 2006

- excluding:
- all types of reinsurance (facultative and treaty, proportional as well as non-
proportional),
with the exception of facultative reinsurance from a captive, which would not be
reported
by another member association.
- War risk premium.

- including:
- all marine premium from the national market, if possible also premium written by
insurers who are not members of the national association.

Above are the specifications of what IUMI members ideally should report.
The actually reported figures may though possibly deviate from that. If such deviations and their
impact on the figures is known to IUMI it is commented.
 Explanation of terms used in this presentation (3)
Classes of business the premium is reported for
(as defined in the Global Premium Report Form):

Global Hull =
-Ocean (blue-water) Hull Insurance
-Commercial vessels engaged in international trade under domestic or foreign flag.
-Interests included are: hull and machinery (H&M), disbursements, increased value, freight or other
ancillary interests, loss of hire (LOH), construction risks.
-Coastal/Inland Marine Hull Insurance
-Vessels not included in the above category, trading in domestic waters or inland waterways, e.g.
coasters, fishing vessels, tugs, lighters, barges, etc. Only premium relating to commercial vessels,
pleasure craft is excluded (where possible).
-Interests included are: same as for ocean hull. Marine liabilities for this type of vessel are excluded
(where possible), as these fall under “Marine Liability”.

Transport/Cargo = all types of insurance relating to cargo, including freight forwarders, CMR and carriers
liability, in transit whether on land, sea or air, domestic as well as international trade.

Marine Liability = insurance covering marine liabilities in respect of vessels classified as coastal/inland
marine and also marine liabilities covering charterers, shiprepairers, stevedores, wharfingers, terminal
operators and similar legal liability insurances. P&I insurance placed with members of the International
Group of P&I Clubs is excluded here (where possible).

Offshore/Energy = insurance of all interests relating to offshore exploration and production activities,
including both mobile and fixed units, construction risks. Figures relating to onshore (downstream) operations
are excluded (where possible).