Renewable Energy Practice

Risk Advisory Services

Ken Caldwell October 2011

Alliant: The specialty insurance leader.

2011 Alliant Insurance Services, Inc. All rights reserved.

Agenda
Alliant Profile Risk Advisory Services Financial Partner Blackstone Group Renewable Energy Group Solar Insurance Solutions Lender Advisory Services Tribal First Program

2011 Alliant Insurance Services, Inc. All rights reserved.

Corporate Profile
Premium Volume and Revenue
$4.5 billion in premiums (2010) $436 million in revenue (2010)

Company Statistics
Founded in 1925 Headquartered in Newport Beach, California 58 offices in 23 states 1,436 employees 350 carriers represented

2011 Alliant Insurance Services, Inc. All rights reserved.

Alliant Services
Corporate and Project Risk Advisory Services Brokerage for property and casualty, workers compensation, employee benefits, surety, and financial services Benefits consulting Brokerage Underwriting for proprietary programs Claims and risk control services Human resources consulting Third-party administration

2011 Alliant Insurance Services, Inc. All rights reserved.

Overview

Financial Partner: The Blackstone Group

Relevant Blackstone financial services acquisitions ($mm)

Blackstone was founded in 1987 Blackstone currently manages private equity assets of more than $24.3 billion Currently managing its fifth general private equity fund, Blackstone Capital V L.P. partners, which represents approximately $20 billion Since inception, achieved gross IRR on private equity investments of 30.8%, representing a return of 2.6 times invested capital
2011 Alliant Insurance Services, Inc. All rights reserved.

Alliant Renewable Energy Group

The Alliant Renewable Energy Group is a dedicated practice that developed a network of dedicated renewable energy companies who are experts in the provision of risk solutions for Solar Power, Wind Power, BioEnergy and a variety of other sources of alternative energy operations Alliant draws on years of energy risk management experience and knowledge that is unique to risks associated with alternative energy companies Our Renewable Energy Group provides solutions that range from conventional property, casualty, and product coverages to non-traditional strategies to address the need of renewable energy risks
2011 Alliant Insurance Services, Inc. All rights reserved.

Renewable Energy Group Products

Insurance Products: General Liability Commercial Auto Workers Compensation Excess Liability Professional Liability Builders Risk Inland Marine / Equipment Floaters Pollution Liability Specialty Products: Solar Performance Guarantee Insurance Solar Panel Warranty Products Liability for Manufacturers Wind Power and Wind Energy Geothermal Energy

2011 Alliant Insurance Services, Inc. All rights reserved.

Options for Solar Panel Warranties

Coverage Detail
Est. Annual Production Policy Period Production

Option 1
$100,000,000 $25k per Occurence / 500,000 Policy Agg. Deductible*

Option 2
$100,000,000 2%-3% of Turnover Deductible (~$2m-$3m)

Quota Share Deductible

Policy Term Coverage Detail

10% Quota Share Deductible

25 years Coverage Effective Day 1

20% Quota Share Deductible

25 years No Coverage for first 2 years

Unplanned Degradation Defective Components Design Serial Defect Premium

Covered Covered Covered 20-25% of Limits purchased * * Policy Period and Annual Aggregate deductibles are considered. * $10,000,000 Limit cost approx $2m-$2.5m for 25 year term.

Covered Not Covered Not Covered Based on 2%-3% of Annual Production

2011 Alliant Insurance Services, Inc. All rights reserved.

Solar Project Wrap-Up Insurance

Guarantees the Output of the Solar Energy Project Policy is Non-Cancellable Policy Survives Bankruptcy and is Transferable Policy Covers Loss of Business Revenue and Tax Credits Flexible Self Insured Retention (SIR) structure Covers Costs Associated with Non-Performing or Underperforming Systems Lender Geared Policy Language written on A.M. Best A XV Paper
2011 Alliant Insurance Services, Inc. All rights reserved.

Solar Project Wrap-Up Insurance (Cont)

Product and Serial Defect in PV Modules Inverters Racking Systems Trackers Loss of Revenue PPA SRECs Design Defect Yes

Yes

Yes

Installation and Construction Defect

Power Output Installation and Construction Defect Lack of Sun
2011 Alliant Insurance Services, Inc. All rights reserved.

Yes
Yes Yes Yes*
*Lack of sun coverage applies in various cases only

2011 PowerGuard Specialty Insurance

 Debt Lenders Due Diligence Services Independent Review to protect lender investment Private Equity Insurance Due Diligence Public Private Partnership Due Diligence Energy Sector (Solar, Wind) Infrastructure Sector (Roads, Bridges, Tunnels) 50% Market Share of Due Diligence

2011 Alliant Insurance Services, Inc. All rights reserved.

10

Tribal First Program

(Potential Tribal Solar Ventures)

The Tribal First Insurance Program is uniquely crafted for the risk and exposures faced by tribal entities The program has grown to over 300 Tribal clients, representation over 125 different Native American Tribes. Tribal Insurance Programs consists of primarily General Liability, Property, and Workers Compensation insurance coverages

2011 Alliant Insurance Services, Inc. All rights reserved.

Alliant: The specialty insurance leader.

2011 Alliant Insurance Services, Inc. All rights reserved.