The Aon Benfield Aggregate

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Aon Benfield

Analytics | Market Analysis

The Aon Benfield

Aggregate

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Table of Contents

Global Reinsurer Capital ... 3

Executive Summary ... 4 ABA Capital ... 5 Capital Development ... 5 Capital Management ... 6 Premium Income ... 8 Earnings ... 12 Underwriting Performance ... 13 Investment Results ... 15 Net Income ... 16 Return on Equity ... 17

ABA Business Model Evolution ... 19

Who Are The New Investors? ... 19

How Is New Money Being Deployed? ... 19

Implications for ‘Traditional’ Reinsurers ... 19

How Are The ABA Companies Responding? ... 19

Mergers & Acquisitions ... 21

ABA Valuation ... 22

Financial Strength Ratings ... 23

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Global Reinsurer Capital

Aon Benfield estimates that global reinsurer capital totaled USD575 billion at the end of

2014, an increase of 6% over the course of the year. This calculation is a broad measure

of capital available for insurers to trade risk with and includes both traditional and

alternative forms of reinsurer capital.

Exhibit 1: Global Reinsurer Capital

Source: Company reports, Aon Benfield Analytics

Traditional capital rose by 4% to USD511 billion. Major insurers and reinsurers generally maintained their solid operating performance during 2014, aided by below average insured catastrophe losses, economic recovery in the United States, exposure growth in emerging markets and relatively stable capital market conditions. Retained earnings were bolstered by unrealized gains on bond portfolios, driven in particular by lower yields in the eurozone, providing a boost to reported capital positions. Alternative capital continued its strong growth, rising by 28% to USD64 billion in 2014. This was reflected in record levels of catastrophe bond issuance, expansion of fully collateralized placements, the establishment of new sidecar vehicles and the exploration of alternative business models by hedge fund managers.

Evolution of the ABA

Aon Benfield Aggregate (ABA) reports are produced on a half-yearly basis and cover the reported results of 31 major reinsurers worldwide, with the aim of identifying current trends in the P&C reinsurance marketplace. The study comprises 29 publicly-listed holding companies (‘the listed ABA’) and two US-domiciled subsidiaries of Berkshire Hathaway, namely National Indemnity Company (NICO) and General Reinsurance Corporation (Gen Re).

NICO’s 2014 results were significanty impacted by intra-group transactions involving GEICO. To provide a more meaningful picture of the sector’s underlying performance, many of the charts and ratios used in this report focus on the listed ABA.

Platinum was acquired by RenaissanceRe effective March 2, 2015 and therefore will not feature in future editions. 17 22 19 22 24 28 39 50 64 368 388 ₃₂₁ 378 447 428 466 490 511 6% _-17% _18% 18% -3% 11% 7% 6% 385 410 340 400 470 ₄₅₅ 505 540 575 0 100 200 300 400 500 600 700 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 U SD ( b illio ns ) Traditional Capital Alternative Capital Global Reinsurer Capital

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Executive Summary

Reinsurance industry capital continues to build, with material alternative capital growth.

Aon Benfield estimates that global reinsurer capital rose by 6% to USD575 billion in 2014, including a 28% increase in alternative capital to USD64 billion.

The shareholders' funds of the 31 ABA companies rose by 2% to USD346 billion, driven by net income of USD38.5 billion and unrealized gains of USD8.1 billion.

Alternative capital has driven catastrophe risk transfer costs down.

Reinsurers are incorporating material alternative capital (through ILS, sidecars, and asset management mandates) to lower their cost of underwriting capital.

Dividends and share buybacks rose by 18% to USD18.3 billion in 2014. This was equivalent to 8.0% of opening capital, up from 6.4% in 2013.

Premium growth is being achieved, despite difficult market conditions.

Property and casualty (P&C) premiums written by the 29 listed ABA companies rose by 2% to USD198 billion in 2014. Reinsurance volume was unchanged at USD89 billion, despite the industry’s pricing pressure.

Underwriting performance remains strong, given low global catastrophe losses.

The combined ratio of the listed ABA improved by 0.3 percentage points to 89.9% in 2014. P&C underwriting profit rose by 6% to USD16.8 billion.

The attritional loss and expense ratios were impacted by weakening pricing and increased volumes of longer tail proportional business.

Investment returns have been resilient, despite the impact of low interest rates.

The listed ABA reported a 2% increase in ordinary investment income to USD26.5 billion in 2014, driven by underlying asset growth and portfolio repositioning.

Headline return on equity has been stable at around 11% for the last three years.

Across the listed ABA, net income attributable to common shareholders rose by 4% to USD25.5 billion in 2014. Sector consolidation is underway as companies look to achieve the advantages of scale and diversification.

Three recently announced M&A transactions between ABA companies will reduce the number of entities in the study.

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ABA Capital

The reported shareholders’ funds of the 31 ABA companies stood at USD346 billion at

December 31, 2014, an increase of 2% or USD9 billion over the course of the year. The

total for the listed ABA was USD240 billion, an increase of 5% or USD11 billion.

Exhibit 2: ABA Shareholders’ Funds

Source: Company reports, Aon Benfield Market Analysis

Capital Development

The drivers of ABA capital growth were net income of USD38.5 billion and unrealized investment gains of USD8.1 billion. These positive factors were partly offset by dividends of USD13.8 billion, share buybacks of USD8.5 billion, foreign exchange losses of USD8.2 billion and a net reduction in issued capital of USD5.2 billion. The latter was driven by a USD7.1 billion transfer of subsidiary interests from NICO to Berkshire Hathaway.

Exhibit 3: ABA Shareholders’ Funds Development

157 180 151 193 200 204 227 229 240 44 45 ₃₇ 48 78 79 90 109 106 12% _-17% 29% 15% 2% 12% 6% 2% 201 226 ₁₈₇ 242 278 283 317 337 346 0 100 200 300 400 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 U SD ( b illio ns )

NICO & Gen Re Listed ABA Total ABA

337.4 -5.2 38.5 -8.2 8.1 -8.5 -13.8 -2.8 _345.5 300 325 350 375 FY 2013 SHF Additional capital Net income FX Investment gains Share buybacks Dividends Other FY 2014 SHF U SD ( b illio ns )

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Between them, NICO and Gen Re reported USD106 billion of shareholders’ funds at December 31, 2014, representing 31% of the ABA total. On a combined basis, Munich Re, Swiss Re and ACE contributed USD102 billion or 30%. More than half of the ABA companies reported shareholders’ funds in excess of USD5 billion, while five remained below USD2 billion.

Exhibit 4: Shareholders’ Funds at December 31, 2014

All but five ABA companies reported capital growth in 2014, mainly driven by retained earnings. Unrealized gains taken directly to equity impacted outcomes at Hannover Re (USD0.8 billion), Mapfre (USD0.9 billion), Munich Re (USD3.5 billion), Swiss Re (USD3.8 billion) and XL (USD1.2 billion). NICO’s capital fell by 3% to USD94 billion, driven by a USD7.1 billion upstreaming of subsidiary interests and USD3.9 billion of unrealized losses on equities. Reductions in shareholders’ funds at Lancashire, Validus, RenaissanceRe and Platinum were driven by active capital management. Exhibit 5: Growth in Shareholders’ Funds

Capital Management

Surplus equity is being returned to investors in growing amounts, partly reflecting increased interaction with third party capital structures. Capital repatriation by the listed ABA rose by 28% to USD18.3 billion in 2014. This was equivalent to 8.0% of opening shareholders’ funds, up from 6.4% in the prior year period. Public dividends rose by 6% to USD9.9 billion, while share buybacks climbed by 68% to USD8.5 billion. 0 10 20 30 40 50 60 70 80 90 100 0 10 20 30 40 U SD ( b illio ns ) -10% 0% 10% 20% 30%

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Exhibit 6: Dividends & Share Buybacks as a Percentage of Opening Capital

The first few months of 2015 have provided further evidence of the quickening pace of capital repatriation. Most ABA companies increased their final dividends alongside the release of their full-year results. In addition, Amlin, Beazley, Catlin, Hannover Re, Hiscox, Lancashire, Platinum and Swiss Re announced special dividends. New share buyback authorizations were announced at ACE (USD1.5 billion), Aspen (USD0.5 billion), Munich Re (EUR1.5 billion), Swiss Re (CHF1.0 billion) and Validus (USD0.75 billion). 0% 5% 10% 15% 20% 25% Dividends Share buybacks

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Premium Income

Total premiums written by the ABA rose by 9% to USD311 billion in 2014. The portion

related to P&C business rose by 12% to USD226 billion, but was up by only 2% to

USD198 billion excluding NICO and Gen Re.

Exhibit 7: ABA Total Premiums Written

Gross P&C premiums written by NICO more than tripled to USD27.0 billion in 2014, driven by a new 50% intra-group quota share reinsurance agreement with GEICO Group. Non-affiliated premiums at NICO rose by 8% to USD4.6 billion. The listed ABA reported 3% growth in P&C insurance premiums to USD109 billion in 2014, while P&C reinsurance premiums were flat at USD89 billion. Exhibit 8 shows total P&C volumes for years prior to 2013, as consistent segmental splits are not available. Exhibit 8: ABA P&C Gross Premiums Written

142 149 158 156 159 181 192 202 226 50 58 62 67 70 80 82 84 84 9% 6% 1% 3% 14% 5% 4% 9% 191 207 221 222 229 261 274 285 311 0 50 100 150 200 250 300 350 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 U SD ( b illio ns )

Other GPW P&C GPW Total GPW

89 89 106 109 135 143 151 149 153 174 183 7 6 7 7 6 8 9 7 28 142 149 158 156 159 181 192 202 226 0 50 100 150 200 250 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 U SD ( b illio ns )

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Strong P&C premium growth of 34% at Lancashire and 23% at Markel was driven by the acquisitions of Cathedral and Alterra, effective November 7, 2013 and May 1, 2013 respectively. Arch reported an increase of 15%, driven by acquisitions in the mortage segment and USD80 million of non-affiliated business written by Watford Re (which is fully consolidated).

At the other end of the spectrum, Platinum’s P&C book showed a broad-based contraction of 12%, while QBE reported a reduction of 6% on a constant currency basis, mainly due to reduced volumes in North America and Europe.

Exhibit 9: Growth in P&C Gross Premiums Written

Source: Company reports, Aon Benfield Market Analysis *P&C reinsurance segment only (as disclosed) Exhibit 10 shows the split of P&C premiums between primary insurance and assumed reinsurance across all of the ABA companies in 2014, based on our best interpretation of sometimes inconsistent company disclosure.

Exhibit 10: 2014 P&C Segmental Splits

Source: Company reports, Aon Benfield Market Analysis *Of which only USD4.6 billion was non-affiliated ** P&C insurance relates to Risk Solutions (ERGO excluded) -20% 20% 60% 100% 140% 180% 220% 260% 300% 340% 380% -20% -10% 0% 10% 20% 30% 40% 0 5 10 15 20 25 30 U SD ( b illio ns ) P&C Insurance P&C Reinsurance

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Exhibit 11 shows the growth of the primary insurance and assumed reinsurance books of the ABA companies in 2014, based on our best interpretation of sometimes inconsistent company disclosure. Absent acquisition effects at Markel and Lancashire, the most significant growth in reinsurance was seen at Everest Re (mainly property treaty and Mt Logan Re), Amlin (Zurich office and multi-year contracts) and Catlin (international diversification and multi-year contracts).

Hiscox, Beazley and Validus reported reductions of 14%, 9% and 8% in their reinsurance books, driven predominantly by lower volumes of property catastrophe business.

Exhibit 11: 2014 P&C Segmental Growth

Source: Company reports, Aon Benfield Market Analysis * P&C insurance relates to Risk Solutions (ERGO excluded) Total P&C premiums ceded to third parties by the listed ABA rose by 5% to USD29.2 billion in 2014, a cession ratio of 14.7% (2013: 14.3%). Retained premiums rose by 1% to USD169 billion. Reinsurance utilisation rose most significantly at Endurance, RenaissanceRe, XL, Everest Re and Hiscox. The biggest reductions were at Amlin, Swiss Re, Montpelier Re, Validus and ACE.

Exhibit 12: Reinsurance Cession Ratios

Source: Company reports, Aon Benfield Market Analysis *P&C reinsurance segment only (as disclosed) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% _{Reinsurance GPW} _{Insurance GPW} -20% -10% 0% 10% 20% 30% 40% 0% 5% 10% 15% 20% 25% 30% 35% FY 2014 FY 2013

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Total P&C net premiums earned by the ABA rose by 13% to USD190 billion in 2014. The listed ABA reported a 2% increase to USD166 billion, with the five largest constituents contributing USD87.6 billion, or 53% of the total.

Exhibit 13: 2014 P&C Net Premiums Earned

Source: Company reports, Aon Benfield Market Analysis *P&C reinsurance segment only (as disclosed) Exhibit 14 shows the year-on-year movements in P&C net premiums earned across the ABA in 2014. The strong growth at Lancashire, Markel and Arch was influenced by acquisitions, while the 11% increase at Aspen was driven by the continued build-out of the group’s US insurance operations. Seven companies reported reduced volumes on this basis.

Exhibit 14: Growth in P&C Net Premiums Earned

Source: Company reports, Aon Benfield Market Analysis *P&C reinsurance segment only (as disclosed) 0 5 10 15 20 25 U SD ( b illio ns ) 170% 180% 190% 200% 210% 220% 230% 240% 250% 260% 270% 280% 290% 300% 310% -10%-5% 0% 5% 10% 15% 20% 25% 30%

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Earnings

Profitability in 2014 was in line with the two prior years, but earnings are becoming

increasingly reliant on unsustainable factors such as benign catastrophe experience,

material reserve releases and capital gains. Increasing competition and low interest

rates continue to pressure underlying returns on equity.

Exhibit 15: Listed ABA Pre-Tax Profit

The listed ABA reported pre-tax profit of USD31.2 billion in 2014, an increase of 11% relative to the prior year. P&C underwriting profit rose by 6% to USD16.8 billion, with favourable prior year reserve development of USD8.0 billion contributing 48% of the total. Ordinary investment income rose by 2% to USD26.5 billion, driven by underlying asset growth and portfolio repositioning. Capital gains rose by 41% to USD7.1 billion, as declining interest rates impacted bond values.

Exhibit 16 shows the distribution of reported pre-tax profits across the 31 ABA companies. NICO’s result was heavily influenced by a USD7.1 billion intra-group dividend from GEICO.

Exhibit 16: 2014 Pre-Tax Results

Source: Company reports, Aon Benfield Market Analysis

31.3 35.4 11.6 29.2 _25.8 9.3 29.2 28.0 31.2 -30 -20 -10 0 10 20 30 40 50 60 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 U SD ( b illio ns )

Other Pure life technical result P&C underwriting result Investment income Capital gains/losses Pre-tax profit

5.0 12.0

U

SD

(b

illio

ns

)

0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 U SD ( b illio ns )

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Underwriting Performance

The combined ratio of the listed ABA improved by 0.3 percentage points to 89.9% in 2014. Reported catastrophe losses were significantly reduced relative to the prior year and well below the long-term average. Support from favourable development of prior year reserves increased for the second year in a row, notwithstanding deterioration of the New Zealand earthquake and Costa Concordia losses. Underlying trends were negative, as weakening pricing and business mix changes, particularly a shift towards longer-tail proportional contracts, impacted attritional loss and expense ratios.

Exhibit 17: Listed ABA Combined Ratio Composition

Exhibit 18 shows the distribution of reported combined ratios across the listed ABA for 2014. All of the constituents were profitable on a calendar year basis, although half of them reported weaker results relative to the prior year. On a non-weighted basis, the average result was 85.6%.

Exhibit 18: 2014 Calendar Year Combined Ratios

Source: Company reports, Aon Benfield Market Analysis *P&C reinsurance segment only (as disclosed) **Excluding funds withheld

-0.7% _-2.7% _-4.6% -3.4% -4.2% -5.1% -4.4% -4.6% -4.8% 27.7% 28.8% 28.7% 29.3% 29.9% 29.9% 30.2% 30.8% 31.4% 59.4% 59.7% 62.0% 60.9% 58.7% 59.8% 58.7% 58.5% 59.5% 2.8% 3.7% 8.4% 3.2% 9.8% 20.3% 8.2% _5.6% _3.8% 89.2% 89.5% 94.5% 89.9% 94.2% 104.9% 92.6% 90.2% 89.9% FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 Total catastrophe losses Attritional loss ratio Expense ratio Prior year reserve adjustment 89.9% 0% 20% 40% 60% 80% 100% 120%

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Exhibit 19 shows the P&C underwriting results reported by the listed ABA companies. On a combined basis, Swiss Re, ACE and Munich Re contributed USD6.2 billion, or 37% of the total.

Exhibit 19: 2014 P&C Underwriting Results

Source: Company reports, Aon Benfield Market Analysis *P&C reinsurance segment only (as disclosed) **Excluding funds withheld Exhibit 20 shows prior year reserve development as a percentage of P&C net premiums earned by the listed ABA constituents in the last two years. Half of the companies reported lower releases in 2014. Exhibit 20: Prior Year Loss Reserve Adjustments

Source: Company reports, Aon Benfield Market Analysis *P&C reinsurance segment only (as disclosed) 0.0 0.5 1.0 1.5 2.0 2.5 3.0 U SD ( b illio ns ) -5% 0% 5% 10% 15% 20% 25% 30% FY 2014 FY 2013

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Exhibit 21 shows the reported accident year combined ratios (excluding prior year reserve

movements) of the listed ABA companies. Only Markel and PartnerRe were unprofitable on this basis. Exhibit 21: 2014 Accident Year Combined Ratios

Source: Company reports, Aon Benfield Market Analysis *P&C reinsurance segment only (as disclosed) **Excluding funds withheld

Investment Results

The listed ABA reported cash and investments of USD899 billion at December 31, 2014, split fixed-income 66%, cash/short-term 9%, loans 8%, deposits with cedants 6%, equities 5% and other 6%. The underlying and total investment yields reported through income statements since 2006 are captured in Exhibit 22. The former has fallen by a third since 2007, reflecting the impact of the low interest rate environment.

Exhibit 22: Listed ABA Investment Yield

Source: Company reports, Aon Benfield Market Analysis *Reported through income statements, excluding unit-linked and with-profit business 94.7% 0% 20% 40% 60% 80% 100% 120% Listed ABA 4.9% _4.8% 1.9% 3.9% 4.2% _3.7% 3.9% 3.4% 3.7% 4.1% 4.3% _3.9% 3.7% 3.3% 3.4% 3.0% _2.9% _2.9% 1% 2% 3% 4% 5% 6% FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Total investment yield (incl. capital gains/losses)* Ordinary investment yield*

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Exhibit 23 shows the underlying and total investment yields reported by the ABA companies through their income statements in 2014 (excluding the impact of derivatives where separately disclosed). Investment classification varies and result comparison can therefore be misleading. Unrealized gains and losses are recognized in the income statements of some companies (e.g. PartnerRe, Fairfax and White Mountains), but in other cases are taken directly to equity.

Exhibit 23: 2014 Investment Yields

Source: Company reports, Aon Benfield Market Analysis *Reported through income statements, excluding unit-linked and with-profit business

Net Income

The ABA reported net income attributable to common shareholders of USD38.1 billion in 2014, an increase of 12% relative to 2013. Net income across the listed ABA rose by 4% to USD25.5 billion. Exhibit 24: ABA Net Income Attributable to Common Shareholders

Source: Company reports, Aon Benfield Market Analysis 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10%

Ordinary investment yield* Total investment yield*

23.8 26.6 5.7 23.0 _20.2 8.5 23.4 24.7 25.5 7.4 4.8 1.4 2.8 _6.6 6.2 5.9 9.3 12.5 31.2 31.3 7.1 25.8 26.8 14.7 29.3 34.0 38.1 0 5 10 15 20 25 30 35 40 45 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 U SD ( b illio ns )

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Exhibit 25 shows the distribution of net income by ABA constituent. The combined results of NICO, Munich Re, Swiss Re and ACE rose by 7% to USD22.5 billion, representing 59% of the total. Exhibit 25: 2014 Net Income Attributable to Common Shareholders

Return on Equity

Exhibit 26 shows the development of net income attributable to common shareholders relative to average common shareholders’ funds across the ABA since 2006. Return on equity over this period (which encompasses both the financial crisis and the record year for insured catastrophe losses) averaged 11.2% for the listed ABA and 10.8% for the ABA as a whole.

Exhibit 26: ABA Common Net Income ROE

Source: Company reports, Aon Benfield Market Analysis 0 2 4 6 8 10 12 U SD ( b illio ns ) 0 1 2 3 4 5 U SD ( b illio ns ) 17.6% 16.6% 3.7% 14.1% 10.8% 4.4% 11.4% 11.1% 11.1% 17.7% 15.3% 3.6% 12.5% 10.7% _5.4% _10.1% 10.6% 11.3% 0% 5% 10% 15% 20% FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 Listed ABA ABA

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Exhibit 27 shows return on equity by ABA constituent, based on reported net income in 2014. Only 12 companies reported improved performance on this measure in 2014 (see data in Appendix 1). The result at XL was impacted by a one-off charge associated with the sale of the group’s discontinued life reinsurance operations.

Exhibit 27: 2014 Common Net Income ROE

11.1% 0% 5% 10% 15% 20% 25% Listed ABA

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ABA Business Model Evolution

A structural shift in the way capital is raised and

deployed to mitigate insurance risk is underway. The

pool of potential investors is broadening and new

money is flowing towards structures offering access to

quality business at relatively low cost. These changes

have forced the ABA companies to re-evaluate their

business models.

Who Are The New Investors?

Reinsurance as an asset class has performed relatively well in an environment of low interest rates and is viewed as having limited correlation with broader capital market movements. These attributes have attracted new investors such as pension funds, high net worth individuals and sovereign wealth funds, who typically:

• only enter the sector after extensive due diligence;

• invest a small percentage of the substantial assets at their disposal as a diversifying strategy;

• seek lower, more stable returns over longer timeframes than has historically been the case.

How Is New Money Being Deployed?

Much of the new capital is being channelled to specialist fund managers, who then deploy it into the insurance-linked securities (ILS) sector via catastrophe bonds or other ‘alternative’ structures such as industry loss warranties, sidecars and collateralized reinsurance. The current focus is property catastrophe and retrocession business, particularly in the US market where exposures tend to be best understood, although diversification into other lines and territories is underway.

Implications For ‘Traditional’ Reinsurers

New vehicles operating at a lower cost of capital are making in-roads into higher-margin areas that remain a key driver of profits for ‘traditional’ reinsurers. These dynamics are forcing many ABA constituents to rethink their business models in the pursuit of differentiation and relevance in the market. In the catastrophe reinsurance space, this increasingly means being able to offer larger line sizes, a full product suite including collateralized limits and enhanced claims service. Companies that are successful in attracting and deploying third party capital will potentially be able to advance their client offering, reduce earnings volatility through fee income, lower their own risk transfer costs and manage their capital bases more effectively.

How Are The ABA Companies Responding?

Most ABA constituents are now moving strongly to incorporate alternative capital into their business models (see Exhibit 28 for a summary of recent activity). Many are now actively involved in raising and managing third party capital. Others have invested in strategic partnerships with established independent specialist fund managers. Sidecar structures that allow sponsors to grow their footprint in the market without assuming additional balance sheet risk continue to be in vogue.

The availability of lower cost capital has allowed most ABA companies to drive down their own risk transfer costs. Retrocession pricing has reduced and in some cases additional protection has been purchased, with consequent impact on disclosed modeled exposures. In addition, a number of

catastrophe bond transactions have recently been brought to the market by ABA sponsors.

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Exhibit 28: Recent Incorporation of Alternative Capital

Company Cat Bonds Third Party Capital Vehicles Other

ACE

The Altair Re reinsurance sidecar series provides collateralized support for ACE Tempest Re. Committed capital stood at $95m in 2013 and 2014. ACE is currently working with BlackRock to form Bermuda-based reinsurer ABR Re.

A new global cat program at Jul 1, 2014 reduced the modelled peak 1-in-250-year PML from 10.3% to 8.1% of shareholders’ equity. Approximately 20% of the coverage was placed on a fully collateralized basis.

Alleghany

TransRe ownership of Pillar Capital increased to 50% in Jun 2014. TransRe operates the Pangaea Re reinsurance sidecar series and is reported to be working in partnership with Providence on a reinsurance captive.

Ongoing investment partnership with Ares Management. Investments in Pillar Capital and its managed funds contributed a return of $22m in 2014 and totaled $235m at the year-end.

Allied World

Allied World has a minority interest in Aeolus Capital and contributed $350m of funds for investment during 2014. Reported to have worked with Pine River Capital in trying to establish a new hedge fund reinsurer in 2H 2014.

Retro programs were purchased on a fully collateralized basis in 2013 and 2014. A collateralized property cat quota share reinsurance contract with Aeolus Re generated $87m of assumed premium in 2014.

Amlin

Tramline Re (Dec 2011, Jun 2013, Dec 2014)

Amlin raised its ownership of Leadenhall Capital from 40% to 75% in Oct 2014. AuM totalled $1.9bn at year-end, including £64m from Amlin. SPS 6106 (2009-2013).

Syndicate 2001 and Amlin AG fronted £25m of business for Leadenhall in 2014. From 2015, Amlin purchased a single retro program and cut its tolerance for RDSs by £50m to £300m net.

Arch

Arch co-sponsored Watford Re with Highbridge Capital, investing $100m for an 11% interest (Mar 2014). Watford Re takes 10% of Arch’s property cat book and wrote $80m of open market business in 2014.

Increased retro purchases reduced Arch's largest 250-year PML for a single event (North-East US wind) to a record low of 9% of common shareholders' equity at Jan 1, 2015.

Argo Loma Re (Jun 2011,

Dec 2011, Dec 2013)

The Harambee Re sidecar series provides Argo with fully collateralised

reinsurance support. Formed ILS fronting partnership with Horseshoe Re (Mar 2014).

Aspen

The Silverton Re sidecar series writes a collateralized quota share of Aspen Bermuda's property cat book. Committed capital rose from $65m in 2014 to $85m in 2015.

Aspen Capital Markets (est Mar 2013) now has $185m of third party AuM and is being used to help manage net cat exposure. ACM contributed $13m to Aspen's results in 2014.

Axis Northshore Re

(Aug 2013)

Formed AXIS Ventures with $50m of third party capital (Nov 2013). Class 3A insurer AXIS Ventures Reinsurance Ltd provides AXIS with fully collateralized reinsurance support.

AXIS Ventures completed 8 transactions and contributed $3m towards group earnings in 2014. AXIS Ventures Re had total assets of $97m at the end of 2014.

Beazley SPS 6107 (since 2010).

Catlin Galileo Re _{(Oct 2013, Feb 2015)}

Catlin has operated SPSs since 2012, providing whole account quota share support to Syndicate 2003. From 2014, a ‘Portfolio Participation Vehicle’ provides similar collateralised protection to Catlin’s non-Lloyd’s entities.

Commissions and fees recognised by Catlin from third-party capital providers totalled $66m in 2014. The group is writing ~15% of its business against almost $350m of third party capital in 2015.

Endurance

Additional retro was purchased in 2014 and at Jan 1, 2015. The peak 1-in-100 year PML reduced to 10.3% of shareholders' equity at Dec 31, 2014, from 11.0% a year earlier.

Everest Re Kilimanjaro Re _{(Apr 2014, Nov 2014)}

The Mt. Logan Re sidecar series writes worldwide cat on a fully collateralized basis. Third party AuM totalled $690m at the end of 2014, all of which was deployed in the January renewals. Mt. Logan Re generated $28m of fees for Everest Re in 2014.

Everest Re is growing its property cat book, but has kept its net risk appetite stable by transferring risk to Mt.Logan Re, sourcing $950m of retro capacity from cat bonds and purchasing ILWs to hold its Florida PML steady. Hannover

Re Eurus (Sep 2012)

The K-Cessions sidecar series provides fully collateralized quota share retro support. Capacity rose by 25% to $400m for 2015.

Hannover Re is active as a rated fronting market for collateralized reinsurance vehicles and opened its internal ILS fund to third parties via Leine Investment from Jan 2013.

Hiscox The Kiskadee Re sidecar series has provided collateralized reinsurance support _{since Jun 2013. SPS 6104 (since 2008).}

Kiskadee Investment Managers (est Jun 2013) expects to have $500m of committed capital by mid-2015. Hiscox currently manages $4bn of cat quota share capacity for investors.

Lancashire

Kinesis Re I Ltd (est. Jun 2013) writes multi-class reinsurance business on a fully-collateralized basis, deploying around $340m of limit in 2014. Previous vehicles include Saltire Re (aggregate covers) and the Accordian Re series (property retro).

Bermuda-based third party capital manager Kinesis Capital Management was formed in Jun 2013. Lancashire's peak 1-in-250 year PMLs have been reduced via the purchase of additional retro. Most of the cover is reinstateable in 2015.

Markel The New Point Re sidecar series underwrites property retro business on a fully _{collateralized basis.} Erik Manning joined as Managing Director of Alternative Solutions at Markel _{Re in Jun 2014.}

Montpelier Re

Collateralized property cat reinsurance is written via Blue Water Re and Blue Capital Re.

Blue Capital Management was launched in Dec 2012 to offer a range of property cat-linked investment products to institutional and retail investors. AuM totalled $790m in Jan 2015.

Munich Re Multiple sponsor Reinsurance sidecars Eden Re I and Eden Re II provide a combined $365m of _{property cat XL capacity in 2015.} Munich Re has operated an internal ILS fund for 6+ years. Increased retro _{purchases have reduced peak PMLs.}

PartnerRe

Sidecar Lorenz Re formed with $75m of third party capital to provide additional capacity for a diversified portfolio of cat reinsurance treaties over a multi-year period on a fully collateralized basis (Mar 2013).

Lorenz Re had total assets of $101m at the end of 2014.

Platinum PMLs have been reduced through the purchase of additional retro _protection.

QBE VenTerra Re _{(Dec 2013)}

RenRe Mona Lisa Re _{(Jul 2013)}

RenRe operated Upsilon Re (Jan 2013, Jan 2014) and Timicuan Re (Jun 2009, Jun 2012) sidecars. In Nov 2014, the Upsilon platform was converted into perpetual funds, writing fully collateralized reinsurance and retro and investing in ILS.

Managed property cat-oriented joint ventures include DaVinci, Top Layer Re, Medici, Upsilon RFO and Upsilon Fund. Third-party capital spread across these vehicles totalled $1.1bn at the end of 2014.

SCOR Multiple sponsor Sidecar Atlas X ($55m of capital) provides 3 years of collateralized quota share _{capacity to SCOR Global P&C’s property cat book (Jan 2014).} SCOR Global Investments has operated the Atropos ILS funds since Aug _{2011. AuM totalled $460m in mid 2014.}

Swiss Re Multiple sponsor Sector Re sidecar series. No plans to open internal ILS fund to third parties.

Validus The AlphaCat sidecar series writes collateralized property cat and retro. Top _{layer cat is written via PaCRe (owned 10% by Validus).} At the end of 2014, AlphaCat had $1.5bn of third party AuM ($289m in the _{AlphaCat sidecars, $786m in the AlphaCat ILS funds and $459m in PaCRe).} White

Mountains

Class 3 Bermudian insurer Alstead Re was formed to write collateralized reinsurance and retro business from Jan 2014.

During 4Q, the strategic direction of Sirius Capital Markets (launched in May 2013) was reviewed and entities that were formed for this initiative are being dissolved or redeployed.

XL Vector Re writes global property cat business on a collateralized basis from Jan _2014.

XL and Stone Point established New Ocean Capital Management in Nov 2013. The net assets of the New Ocean Cat Fund and Vector Re were $94m and $47m at Dec 31.

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Mergers & Acquisitions

Four high profile M&A deals involving ABA companies have been announced in recent

months. RenaissanceRe’s acquisition of Platinum completed on March 2, 2015.

Proposed transactions between XL and Catlin, Axis and PartnerRe and Fairfax and Brit

remain subject to regulatory and/or shareholder approvals.

Exhibit 29 provides an indication of the scale the combined entities would achieve in capital terms, were all of the transactions to complete, albeit based only on the aggregation of reported figures at the end of 2014.

Exhibit 29: Shareholders’ Funds at December 31, 2014

Exhibit 30 provides an indication of the scale the combined entities would achieve in terms of P&C gross premiums written, were all of the transactions to complete, albeit based only on the aggregation of 2014 volumes.

Exhibit 30: 2014 P&C Gross Premiums Written

Source: Company reports, Aon Benfield Market Analysis *P&C reinsurance segment only (as disclosed) 50 55 60 65 70 75 80 85 90 95 U SD b n

Combined entities on a pro forma basis

0 5 10 15 20 25 30 35 40 U SD ( b illio ns ) 0 5 10 15 20 25 30 U SD ( b illio ns )

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ABA Valuation

The overall market capitalization of the ABA companies was relatively stable during 2014, but has increased by 6%

since the beginning of 2015. The trailing price-to-book ratio began 2014 at 1.14x and dipped briefly below 1.0x in

October, but has since rebounded to 1.16x.

Exhibit 31: ABA Market Capitalization

Source: Bloomberg Note: As of March 27, 2015, excluding Berkshire Hathaway Exhibit 32 shows the share price development of individual ABA companies since the beginning of 2014.

Exhibit 32: Share Price Development Since Jan 1, 2014

Source: Bloomberg Note: As of March 27, 2015

Exhibit 33: ABA Trailing Price-to-Book Ratio

Source: Bloomberg Note: As of March 27, 2015, excluding Berkshire Hathaway

Exhibit 34 shows the evolution of the trailing price-to-book values of individual ABA companies since the beginning of 2014.

Exhibit 34: Trailing Price-to-Book Ratios

Source: Bloomberg 40 60 80 100 120 140

Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15

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

Lancashire RenaissanceReValidus Arch MapfreACE Allied WorldAxis PartnerRe EnduranceHiscox Everest ReQBE Amlin Aspen White MountainsXL Argo SCOR Beazley AlleghanyCatlin Munich RePlatinum Swiss Re Montpelier ReMarkel Hannover ReFairfax 0.7 0.8 0.9 1.0 1.1 1.2 1.3

Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15

0.0 0.5 1.0 1.5 2.0 Argo PartnerReSwiss Re XL PlatinumValidus Axis Aspen White MountainsAllied World EnduranceAlleghany Everest ReSCOR Montpelier Re RenaissanceReCatlin Munich ReMapfre QBEACE LancashireArch MarkelFairfax Hannover ReAmlin BeazleyHiscox March 27, 2015 January 1, 2014

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Financial Strength Ratings

Several ABA companies have benefited from positive rating actions since the beginning of 2014, as shown in Exhibit

35. Recently announced M&A transactions have provoked a cautious response, pending further discussion with

senior management teams.

Exhibit 35: Financial Strength Ratings

Main Operating Company A.M. Best Standard & Poor’s

ACE Tempest Reinsurance Ltd A++ Stable AA Stable

Allied World Assurance Co Ltd A Stable A Stable

Amlin AG A Stable A Stable

Arch Reinsurance Ltd A+ Stable A+ Stable

Argo Re Ltd A Stable - -

Aspen Bermuda Ltd A Stable A Stable

AXIS Specialty Ltd A+ Review Negative A+ Stable

Beazley Insurance Company, Inc A Stable - -

Catlin Insurance Company Ltd A Review Positive A Stable

Endurance Specialty Insurance Ltd A Stable A Stable

Everest Reinsurance (Bermuda) Ltd A+ Stable A+ Stable

General Reinsurance Corporation A++ Stable AA+ Stable

Hannover Rück SE A+ Stable AA- Stable

Hiscox Insurance Company (Bermuda) Ltd A Stable - -

Lancashire Insurance Company Ltd A Stable A- Stable

MAPFRE Re, Compania de Reaseguros SA A Stable A Stable

Markel Bermuda Ltd A Stable A Stable

Montpelier Reinsurance Ltd A Stable A- Stable

Munich Reinsurance Co A+ Stable AA- Stable

National Indemnity Company A++ Stable AA+ Stable

Odyssey Reinsurance Company A Stable A- Negative

Partner Reinsurance Co Ltd A+ Review Negative A+ Stable

Platinum Underwriters Bermuda Ltd A Review Developing A- CreditWatch Positive

QBE Re (Europe) Ltd A Stable A+ Negative

Renaissance Reinsurance Ltd A+ Review Negative AA- Stable

SCOR Global P&C SE A Stable A+ Positive

Sirius International Insurance Corp A Stable A- Stable

Swiss Reinsurance Co A+ Stable AA- Stable

Transatlantic Reinsurance Co A Positive A+ Stable

Validus Reinsurance Ltd A Stable A Stable

XL Re Ltd A Review Negative A+ Stable

Source: A.M. Best, Standard & Poor’s Upgrade / outlook raised since January 1, 2014

Downgrade / outlook lowered since January 1, 2014

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Appendix 1: ABA Data

Exhibit 36: Results for the year ended December 31, 2014

Company Reporting Currency (millions) P&C Gross Premiums Written FY 2013 P&C Gross Premiums Written FY 2014 Change P&C Net Premiums Earned FY 2013 P&C Net Premiums Earned FY 2014 Change Listed Groups ACE USD _20,752 _21,261 _2% _14,708 _15,464 _5% Alleghany USD _4,886 _5,097 _4% _4,239 _4,411 _4%

Allied World USD _2,739 _2,935 _7% _2,006 _2,183 _9%

Amlin GBP _2,467 _2,564 _4% _2,095 _2,201 _5% Arch USD _4,197 _4,841 _15% _3,146 _3,594 _14% Argo USD _1,888 _1,905 _1% _1,304 _1,338 _3% Aspen USD _2,647 _2,903 _10% _2,172 _2,405 _11% Axis USD _4,697 _4,712 _0% _3,707 _3,871 _4% Beazley USD _1,970 _2,022 _3% _1,591 _1,659 _4% Catlin USD _5,309 _5,966 _12% _3,948 _4,160 _5% Endurance USD _2,665 _2,894 _9% _2,016 _1,864 _-8% Everest Re USD _5,219 _5,749 _10% _4,754 _5,169 _9% Fairfax USD _7,227 _7,460 _3% _5,994 _5,985 _0% Hannover Re EUR _7,818 _7,903 _1% _6,866 _7,011 _2% Hiscox GBP _1,699 _1,756 _3% _1,283 _1,316 _3% Lancashire USD ₆₈₀ ₉₀₈ _34% ₅₆₈ ₇₁₆ _26% Mapfre EUR _16,278 _16,409 _1% _13,229 _13,227 _0% Markel USD _3,920 _4,806 _23% _3,232 _3,841 _19% Montpelier Re USD ₇₀₆ ₇₄₀ _5% ₆₀₀ ₆₄₅ _8% Munich Re1 _EUR 17,013 16,730 -2% 16,237 16,150 -1% PartnerRe USD _4,590 _4,667 _2% _4,235 _4,387 _4% Platinum USD ₅₈₀ ₅₀₉ _-12% ₅₅₃ ₅₀₇ _-8% QBE USD _17,975 _16,332 _-9% _15,396 _14,084 _-9% RenaissanceRe USD _1,605 _1,551 _-3% _1,115 _1,062 _-5% SCOR EUR _4,848 _4,935 _2% _4,256 _4,287 _1% Swiss Re USD _20,670 _20,288 _-2% _17,464 _19,042 _9% Validus USD _2,401 _2,363 _-2% _2,102 _2,002 _-5%

White Mountains USD _2,297 _2,499 _9% _1,987 _2,059 _4%

XL USD 7,417 7,761 5% 6,014 5,717 -5%

ABA (Listed Sector) USD _194,606 _198,367 _2% _162,054 _165,997 _2%

Gen Re USD _1,073 _1,165 _9% ₅₅₄ ₅₆₄ _2%

NICO USD _5,964 _26,957 _352% _5,884 _23,680 _302%

ABA (Total) USD _201,643 _226,490 _12% _168,492 _190,240 _13%

Figures in reporting currencies, but converted to USD (millions) for ABA lines

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Exhibit 36: Results for the year ended December 31, 2014 (cont’d) Calendar Year Company Loss Ratio FY 2013 Loss Ratio FY 2014 Expense Ratio FY 2013 Expense Ratio FY 2014 Combined Ratio FY 2013 Combined Ratio FY 2014 Change Listed Groups ACE _59.6% _58.3% _28.3% _29.5% _88.0% _87.7% _-0.2pp Alleghany _58.5% _56.6% _31.6% _32.2% _90.1% _88.8% _-1.3pp Allied World _56.0% _54.9% _30.2% _30.3% _86.2% _85.2% _-0.9pp Amlin _52.2% _55.6% _33.5% _33.0% _85.7% _88.5% _2.9pp Arch _53.4% _53.4% _32.5% _33.8% _85.9% _87.2% _1.3pp Argo _57.8% _55.9% _39.7% _40.3% _97.5% _96.2% _-1.3pp Aspen _56.3% _54.4% _36.3% _37.3% _92.6% _91.7% _-0.9pp Axis _57.6% _56.5% _33.4% _35.1% _91.0% _91.6% _0.6pp Beazley _45.0% _49.0% _39.0% _40.0% _84.0% _89.0% _5.0pp Catlin _52.3% _52.5% _33.3% _34.3% _85.6% _86.8% _1.3pp Endurance _60.5% _52.1% _29.7% _33.9% _90.2% _86.0% _-4.2pp Everest Re _58.9% _56.2% _25.6% _26.6% _84.5% _82.8% _-1.6pp Fairfax _61.6% _59.0% _31.1% _31.8% _92.7% _90.8% _-1.9pp Hannover Re1 70.2% 68.9% 24.9% 26.1% 95.1% 95.0% -0.1pp Hiscox3 40.5% 40.4% 42.6% 43.5% 83.0% 83.9% 0.9pp Lancashire _33.1% _31.7% _37.1% _37.0% _70.2% _68.6% _-1.6pp Mapfre _67.0% _68.0% _29.1% _27.7% _96.1% _95.7% _-0.4pp Markel _56.2% _57.3% _40.6% _38.0% _96.8% _95.4% _-1.4pp Montpelier Re _21.1% _29.4% _35.0% _36.3% _56.1% _65.6% _9.6pp Munich Re2 61.7% 60.2% 30.4% 32.5% 92.1% 92.7% 0.6pp PartnerRe _56.7% _56.1% _28.6% _30.0% _85.3% _86.2% _0.9pp Platinum _30.3% _36.2% _32.4% _33.2% _62.7% _69.4% _6.7pp QBE _64.5% _63.2% _33.3% _32.9% _97.8% _96.1% _-1.7pp RenaissanceRe _15.4% _18.6% _28.4% _31.5% _43.8% _50.2% _6.4pp SCOR _64.1% _61.1% _29.7% _30.3% _93.9% _91.4% _-2.5pp Swiss Re _55.3% _55.4% _30.0% _30.0% _85.3% _85.4% _0.1pp Validus _37.8% _38.6% _33.5% _35.1% _71.2% _73.7% _2.5pp White Mountains _52.4% _56.8% _35.6% _34.4% _88.0% _91.2% _3.2pp XL _62.0% _57.0% _30.5% _31.2% _92.5% _88.2% _-4.3pp

ABA (Listed Sector) _59.4% _58.5% _30.8% _31.4% _90.2% _89.9% _-0.4pp

Gen Re3

30.7% 41.7% 44.2% 47.1% 75.0% 88.9% 13.9pp

NICO3

49.2% 79.3% 25.3% 14.8% 74.5% 94.1% 19.7pp

ABA (Total) _59.0% _61.0% _30.7% _29.4% _89.6% _90.4% _0.7pp

Source: Company reports, Aon Benfield Market Analysis 1_{Excluding funds withheld}

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Exhibit 36: Results for the year ended December 31, 2014 (cont’d) Accident Year Company Prior Year Reserve Adjustment FY 2013 Prior Year Reserve Adjustment FY 2014 Prior Year Reserve Adjustment as % of NPE FY 2013 Prior Year Reserve Adjustment as % of NPE FY 2014 Accident Year Combined Ratio FY 2013 Accident Year Combined Ratio FY 2014 Change Listed Groups ACE _-530 _-527 _3.6% _3.4% _91.6% _91.1% _-0.4pp Alleghany _-203 _-215 _4.8% _4.9% _94.9% _93.7% _-1.2pp Allied World _-180 _-213 _9.0% _9.7% _95.1% _95.0% _-0.2pp Amlin _-134 _-90 _6.4% _4.1% _92.0% _92.6% _0.6pp Arch _-264 _-327 _8.4% _9.1% _94.3% _96.3% _2.0pp Argo _-34 _-38 _2.6% _2.8% _100.0% _99.0% _-1.1pp Aspen _-108 _-104 _5.0% _4.3% _97.6% _96.0% _-1.6pp Axis _-219 _-259 _5.9% _6.7% _96.9% _98.3% _1.4pp Beazley _-218 _-158 _13.7% _9.5% _97.8% _98.6% _0.8pp Catlin _-167 _-120 _4.2% _2.9% _89.8% _89.7% _-0.1pp Endurance _-222 _-234 _11.0% _12.5% _101.2% _98.6% _-2.7pp Everest Re _-18 _-40 _0.4% _0.8% _84.8% _83.6% _-1.2pp Fairfax _-440 _-446 _7.3% _7.4% _100.0% _98.2% _-1.8pp Hannover Re1 -424 -276 6.2% 3.9% 101.3% 98.9% -2.4pp Hiscox _-140 _-172 _10.9% _13.1% _94.0% _97.0% _3.0pp Lancashire _-16 _-34 _2.8% _4.8% _73.0% _73.4% _0.4pp Mapfre _-87 _-443 _0.7% _3.3% _96.8% _99.1% _2.3pp Markel _-411 _-436 _12.7% _11.3% _109.5% _106.7% _-2.8pp Montpelier Re _-144 _-152 _24.1% _23.5% _80.2% _89.2% _9.0pp Munich Re2 -759 -900 4.7% 5.6% 96.8% 98.3% 1.5pp PartnerRe _-721 _-660 _17.0% _15.1% _102.3% _101.2% _-1.1pp Platinum _-161 _-128 _29.0% _25.3% _91.7% _94.7% _3.0pp QBE ₅₅₂ _-1 _-3.6% _0.0% _94.2% _96.1% _1.9pp RenaissanceRe _-144 _-144 _12.9% _13.5% _56.7% _63.7% _7.0pp SCOR _-31 ₀ _0.7% _0.0% _94.6% _91.4% _-3.2pp Swiss Re _-1,137 _-673 _6.5% _3.5% _91.8% _88.9% _-2.9pp Validus _-205 _-252 _9.8% _12.6% _81.0% _86.3% _5.3pp White Mountains _-48 _-6 _2.4% _0.3% _90.4% _91.5% _1.1pp XL _-290 _-255 _4.8% _4.5% _97.3% _92.6% _-4.7pp

ABA (Listed Sector) _-7,486 _-8,003 _4.6% _4.8% _94.9% _94.7% _-0.2pp

Gen Re3

-248 -170 44.7% 30.2% 119.7% 119.1% -0.6pp

NICO3

-968 -896 16.5% 3.8% 90.9% 97.9% 7.0pp

ABA (Total) _-8,702 _-9,069 _5.2% _4.8% _94.8% _95.2% _0.3pp

Figures in reporting currencies, but converted to USD (millions) for ABA lines n.d. = not disclosed

1_{Excluding funds withheld} 2_{P&C reinsurance segment only (as disclosed)} 3_{As calculated by Aon Benfield Market Analysis}

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Exhibit 36: Results for the year ended December 31, 2014 (cont’d) Company Net Investment Income FY 2013 Net Investment Income FY 2014 Capital Gains / Losses FY 2013 Capital Gains / Losses FY 2014 Total Investment Return FY 2013 Total Investment Return FY 2014 Change Listed Groups ACE _2,144 _2,252 ₅₀₄ _-507 _2,648 _1,745 _-34% Alleghany ₄₆₆ ₄₆₀ ₁₈₈ ₂₁₁ ₆₅₄ ₆₇₁ _3% Allied World ₁₅₈ ₁₇₇ ₅₀ ₁₂₈ ₂₀₈ ₃₀₅ _47% Amlin ₃₃ ₃₆ ₁₀₁ ₁₀₁ ₁₃₄ ₁₃₇ _2% Arch ₂₆₇ ₃₀₃ ₈₅ ₄₉ ₃₅₂ ₃₅₁ _0% Argo ₁₀₀ ₈₇ ₇₁ ₉₄ ₁₇₁ ₁₈₁ _5% Aspen ₁₈₆ ₁₉₀ ₃₆ ₃₂ ₂₂₃ ₂₂₂ _0% Axis ₄₀₉ ₃₄₃ ₆₈ ₁₄₂ ₄₇₇ ₄₈₄ _2% Beazley ₅₈ ₅₇ _-15 ₂₆ ₄₃ ₈₃ _92% Catlin ₁₁₆ ₁₁₉ ₈ ₁₀₇ ₁₂₄ ₂₂₆ _82% Endurance ₁₆₆ ₁₃₂ ₁₃ ₁₃ ₁₇₉ ₁₄₅ _-19% Everest Re ₅₄₉ ₅₃₁ ₃₀₀ ₈₄ ₈₄₉ ₆₁₅ _-28% Fairfax ₄₇₄ ₅₁₀ ₁₇₈ _1,667 ₆₅₂ _2,177 _234% Hannover Re _1,314 _1,350 ₉₈ ₁₂₂ _1,412 _1,472 _4% Hiscox ₃₈ ₄₂ ₁₆ ₁₁ ₅₅ ₅₃ _-2% Lancashire ₃₆ ₃₆ ₁₃ _-6 ₄₉ ₃₀ _-38% Mapfre _1,660 _2,146 ₂₉₇ ₀ _1,956 _2,146 _10% Markel ₃₁₇ ₃₆₃ ₆₃ ₄₆ ₃₈₁ ₄₀₉ _8% Montpelier Re ₆₄ ₄₇ _-49 ₅ ₁₅ ₅₂ _253% Munich Re1 6,907 6,675 1,323 2,395 8,230 9,070 10% PartnerRe ₄₉₈ ₄₉₅ _-161 ₃₇₂ ₃₃₇ ₈₆₇ _157% Platinum ₇₂ ₆₉ ₂₂ ₂ ₉₄ ₇₁ _-24% QBE ₆₆₅ ₆₇₈ ₁₁₂ ₁₀₃ ₇₇₇ ₇₈₁ _1% RenaissanceRe ₂₃₁ ₁₅₀ ₃₅ ₄₁ ₂₆₆ ₁₉₂ _-28% SCOR ₄₄₃ ₄₇₄ ₄₈ ₁₁₂ ₄₉₁ ₅₈₆ _19% Swiss Re1 3,947 4,103 741 393 4,688 4,496 -4% Validus ₁₀₁ ₁₀₈ _-55 _-35 ₄₆ ₇₄ _61% White Mountains ₁₁₁ ₁₀₅ ₁₆₂ ₂₈₄ ₂₇₃ ₃₈₉ _43% XL _1,096 ₈₈₅ ₈₈ ₁₂₃ _1,184 _1,008 _-15%

ABA (Listed Sector) _26,057 _26,470 _4,985 _7,050 _31,042 _33,520 _8%

Gen Re ₇₀₆ ₆₄₂ ₁₉₁ _-19 ₈₉₇ ₆₂₃ _-31%

NICO _6,109 _12,567 _2,163 _2,241 _8,272 _14,808 _79%

ABA (Total) _32,872 _39,679 _7,339 _9,271 _40,210 _48,950 _22%

Figures in reporting currencies, but converted to USD (millions) for ABA lines n.m. = not meaningful

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Exhibit 36: Results for the year ended December 31, 2014 (cont’d) Company Pre-Tax Result FY 2013 Pre-Tax Result FY 2014 Change Pre-Tax Return on Equity FY 2013 Pre-Tax Return on Equity FY 2014 Change Listed Groups ACE _4,238 _3,487 _-18% _15.0% _11.9% _-3.1pp Alleghany ₈₅₅ ₉₃₂ _9% _12.8% _12.9% _0.1pp Allied World ₄₂₈ ₅₂₁ _22% _12.5% _14.3% _1.8pp Amlin ₃₂₆ ₂₅₉ _-21% _20.5% _14.9% _-5.6pp Arch ₇₄₃ ₈₄₄ _14% _13.7% _13.2% _-0.5pp Argo ₁₈₀ ₂₁₆ _20% _11.7% _13.5% _1.8pp Aspen ₃₄₃ ₃₆₈ _7% _10.1% _11.0% _0.9pp Axis ₇₃₄ ₈₃₀ _13% _12.6% _14.1% _1.5pp Beazley ₃₁₃ ₂₆₂ _-16% _24.6% _19.5% _-5.1pp Catlin ₄₃₂ ₄₈₈ _13% _11.8% _12.6% _0.7pp Endurance ₃₁₈ ₃₄₉ _10% _11.4% _11.5% _0.1pp Everest Re _1,555 _1,446 _-7% _22.5% _19.4% _-3.2pp Fairfax _-1,001 _2,338 _n.m. _-11.5% _25.7% _37.2pp Hannover Re _1,102 _1,371 _24% _16.6% _18.5% _1.9pp Hiscox ₂₄₅ ₂₃₁ _-6% _17.6% _16.1% _-1.5pp Lancashire ₂₁₈ ₂₂₇ _4% _15.3% _16.1% _0.8pp Mapfre _1,564 _1,824 _17% _15.6% _17.1% _1.5pp Markel ₃₆₂ ₄₄₀ _22% _6.7% _6.1% _-0.6pp Montpelier Re ₂₁₁ ₂₄₅ _17% _12.0% _12.9% _0.9pp Munich Re _3,441 _2,859 _-17% _12.8% _10.1% _-2.7pp PartnerRe ₇₂₂ _1,308 _81% _10.5% _18.9% _8.3pp Platinum ₂₅₈ ₁₈₂ _-29% _14.2% _10.4% _-3.7pp QBE _-448 ₉₃₁ _n.m. _-4.1% _8.7% _12.8pp RenaissanceRe ₈₄₁ ₆₈₇ _-18% _17.7% _13.7% _-4.0pp SCOR ₆₄₀ ₆₇₅ _5% _13.1% _12.6% _-0.5pp Swiss Re _4,825 _4,227 _-12% _14.4% _12.2% _-2.2pp Validus ₅₉₇ ₅₃₈ _-10% _13.7% _12.8% _-0.9pp White Mountains ₃₄₅ ₃₀₂ _-13% _8.0% _6.8% _-1.2pp XL _1,094 ₂₅₉ _-76% _9.4% _2.3% _-7.2pp

ABA (Listed Sector) _28,017 _31,172 _11% _11.9% _12.8% _0.9pp

Gen Re _1,040 ₆₈₉ _-34% _9.3% _5.9% _-3.4pp

NICO _9,041 _11,867 _31% _10.2% _12.4% _2.2pp

ABA (Total) _38,098 _43,727 _15% _11.4% _12.5% _1.1pp

*Calculated by excluding the impact of net realized and unrealized investment gains/losses reported through income statements

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Exhibit 36: Results for the year ended December 31, 2014 (cont’d) Company Common Net Income FY 2013 Common Net Income FY 2014 Change Return on Equity* FY 2013 Return on Equity* FY 2014 Change Listed Groups ACE _3,758 _2,853 _-24% _13.3% _9.8% _-3.6pp Alleghany ₆₂₈ ₆₇₉ _8% _9.4% _9.4% _0.0pp Allied World ₄₁₈ ₄₉₀ _17% _12.2% _13.4% _1.2pp Amlin ₂₉₉ ₂₃₇ _-21% _18.8% _13.7% _-5.1pp Arch ₆₈₈ ₈₁₂ _18% _13.5% _14.6% _1.1pp Argo ₁₄₃ ₁₈₃ _28% _9.3% _11.4% _2.1pp Aspen ₂₉₄ ₃₁₇ _8% _10.2% _11.3% _1.1pp Axis ₆₈₄ ₇₇₁ _13% _13.1% _14.8% _1.8pp Beazley ₂₆₄ ₂₁₈ _-18% _20.8% _16.2% _-4.5pp Catlin ₃₉₂ ₄₁₈ _7% _12.8% _12.7% _-0.1pp Endurance ₂₇₉ ₃₁₆ _13% _11.8% _12.1% _0.3pp Everest Re _1,259 _1,199 _-5% _18.4% _16.6% _-1.8pp Fairfax _-634 _1,576 _n.m. _-8.5% _20.3% _28.8pp Hannover Re ₈₉₅ ₉₈₆ _10% _15.0% _14.7% _-0.4pp Hiscox ₂₃₈ ₂₁₆ _-9% _17.1% _15.1% _-2.0pp Lancashire ₂₂₃ ₂₂₉ _3% _15.6% _16.3% _0.7pp Mapfre ₇₉₀ ₈₄₅ _7% _10.1% _10.0% _-0.2pp Markel ₂₈₁ ₃₂₁ _14% _5.3% _4.5% _-0.8pp Montpelier Re ₁₉₁ ₂₁₁ _10% _12.9% _14.1% _1.2pp Munich Re _3,304 _3,153 _-5% _12.4% _11.3% _-1.2pp PartnerRe ₅₉₇ ₉₉₈ _67% _10.0% _16.6% _6.5pp Platinum ₂₂₃ ₁₆₅ _-26% _12.3% _9.5% _-2.8pp QBE _-254 ₇₄₂ _n.m. _-2.3% _6.9% _9.3pp RenaissanceRe ₆₆₆ ₅₁₀ _-23% _20.1% _14.6% _-5.5pp SCOR ₅₄₉ ₅₁₂ _-7% _11.3% _9.6% _-1.6pp Swiss Re _4,444 _3,500 _-21% _13.3% _10.2% _-3.1pp Validus ₅₃₃ ₄₈₁ _-10% _13.8% _13.2% _-0.6pp White Mountains ₃₂₂ ₃₁₃ _-3% _8.4% _7.9% _-0.5pp XL _1,060 ₁₈₈ _-82% _10.3% _1.9% _-8.5pp

ABA (Listed Sector) _24,656 _25,539 _3.6% _11.1% _11.1% _0.0pp

Gen Re ₉₃₁ ₅₃₈ _-42% _8.4% _4.6% _-3.7pp

NICO _8,391 _12,007 _43% _9.5% _12.6% _3.1pp

ABA (Total) _33,978 _38,084 _12% _10.6% _11.3% _0.7pp

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Exhibit 36: Results for the year ended December 31, 2014 (cont’d) Company Cash and Investments FY 2013 Cash and Investments FY 2014 Change Shareholders’ Funds FY 2013 Shareholders’ Funds FY 2014 Change Listed Groups ACE _61,977 _64,063 _3% _28,825 _29,587 _3% Alleghany _19,490 _19,441 _0% _6,924 _7,473 _8% Allied World _9,026 _9,263 _3% _3,520 _3,778 _7% Amlin _4,510 _4,564 _1% _1,678 _1,783 _6% Arch _14,037 _15,842 _13% _5,647 _6,130 _9% Argo _4,237 _4,179 _-1% _1,563 _1,647 _5% Aspen _8,300 _8,654 _4% _3,300 _3,419 _4% Axis _14,768 _14,980 _1% _5,818 _5,821 _0% Beazley _4,430 _4,451 _0% _1,339 _1,343 _0% Catlin _9,209 _9,276 _1% _3,783 _3,992 _6% Endurance _6,575 _6,720 _2% _2,887 _3,185 _10% Everest Re _16,824 _17,664 _5% _6,968 _7,451 _7% Fairfax _24,893 _25,803 _4% _8,353 _9,526 _14% Hannover Re _46,149 _52,080 _13% _5,888 _7,551 _28% Hiscox _3,157 _3,490 _11% _1,409 _1,453 _3% Lancashire _2,484 _2,343 _-6% _1,460 _1,357 _-7% Mapfre _40,133 _48,673 _21% _7,834 _9,153 _17% Markel _17,612 _18,638 _6% _6,674 _7,595 _14% Montpelier Re _3,306 _3,190 _-3% _1,642 _1,648 _0% Munich Re1 203,535 219,965 8% 25,945 30,033 16% PartnerRe _18,274 _17,988 _-2% _6,710 _7,049 _5% Platinum _3,612 _3,398 _-6% _1,747 _1,738 _0% QBE _30,632 _28,597 _-7% _10,356 _11,030 _7% RenaissanceRe _7,230 _7,269 _1% _3,904 _3,866 _-1% SCOR _23,755 _25,894 _9% _4,940 _5,694 _15% Swiss Re1 143,332 137,355 -4% 32,952 35,930 9% Validus _8,110 _8,409 _4% _3,704 _3,588 _-3% White Mountains _8,003 _7,803 _-3% _3,906 _3,997 _2% XL _36,192 _30,712 _-15% _9,998 _10,034 _0%

ABA (Listed Sector) _917,805 _898,912 _-2% _228,620 _239,804 _5%

Gen Re _15,810 _15,672 _-1% _11,562 _11,707 _1%

NICO _148,939 _162,422 _9% _97,226 _93,998 _-3%

ABA (Total) _1,082,554 _1,077,006 _-1% _337,408 _345,508 _2%

Figures in reporting currencies, but converted to USD (millions) for ABA lines

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Contacts

Mike Van Slooten

Head of Market Analysis - International Aon Benfield Analytics

+44.207.7522.8106

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Jonny Eggins Analyst

Market Analysis - International Aon Benfield Analytics +44.207.7522.3898

[email protected] Marie Teissier

Analyst

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Analyst

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