Lloyd's Update - Aon Benfield

Aon Benfield Analytics | Market Analysis

Lloyd’s Update October 2014

Risk. Reinsurance. Human Resources.

Table of Contents Executive Summary ..........................................................................................................3 2014 Interim Results ........................................................................................................4 Premium Income ................................................................................................................ 4 Underwriting Performance ................................................................................................. 5 Investment Return .............................................................................................................. 5 Pre-Tax Results ................................................................................................................... 6 Balance Sheet at June 30, 2014 ........................................................................................7 Investments ....................................................................................................................... 7 Capital ............................................................................................................................... 8 Technical Reserves ............................................................................................................. 9 Looking Ahead to 2015 ..................................................................................................10 2015 Capacity .................................................................................................................. 10 Syndicate News................................................................................................................ 10 Vision 2025 ...................................................................................................................... 10 Financial Strength Ratings ................................................................................................ 10 Appendix 1: Active Syndicate Listing ..............................................................................11

2

Lloyd’s Update – October 2014

Executive Summary  Lloyd’s reported its strongest interim result since 2007, despite challenging market conditions. Pretax profit rose by 21% to GBP1.7 billion in the first half of 2014, representing an annualized return on capital employed of 16.5%.  Gross premiums written totaled GBP14.9 billion, down 4.1% on a reported basis, but up 0.8% at constant exchange rates. In the aggregate, risk-adjusted rates fell by 3.3%, mainly driven by competitive pressures in property treaty and energy business.  Underwriting profit of GBP1.1 billion (1H 2013: GBP1.3 billion) equated to a combined ratio of 88.2% (86.9%). The deterioration was driven by adverse foreign exchange movements and costs associated with Solvency II implementation.  Major losses totaled GBP134 million, representing only around a quarter of the long-term average. These occurred predominantly in the Aviation sector, with the loss of Malaysian Airlines flight MH370 costing an estimated GBP75 million net.  For the tenth successive year, Lloyd’s reported an overall surplus on prior year reserves. This was broadly in line with last year at GBP760 million, providing 8.0pp of benefit to the combined ratio.  Lloyd’s investments produced a total return of GBP642 million or 1.3% in the first half of 2014, more than double the GBP247 million or 0.5% achieved in the prior year period. The improvement was driven by unrealized gains on bond portfolios.  Lloyd’s balance sheet strength has been recognized by the leading rating agencies. Investment allocation remains relatively conservative, capital resources remain close to all-time highs and legacy issues appear contained.  Overall net resources (capital, reserves and subordinated loan notes) fell by 2% to GBP20.7 billion over the six months to June 30, 2014, reflecting the distribution of profit to capital providers.  In September 2014, the Chinese Government granted approval for Lloyd’s to establish a licensed branch in Beijing, further expanding the market’s footprint in China.  A.M. Best affirmed their ‘A’ rating of the Lloyd’s market on July 24, 2014 and maintained the positive outlook assigned a year earlier. Standard & Poor’s affirmed their ‘A+’ rating on October 13, 2014 and revised the outlook from positive to stable.  Additional capital flows from non-traditional sources continue to fuel increased competition in the market. The limited disclosure from managing agents to date suggests more reductions in capacity than increases going into 2015.


3

2014 Interim Results Lloyd’s reported its strongest interim result since 2007, despite challenging market conditions, with a pre-tax profit of GBP1.7 billion representing an annualized return on capital employed of 16.5%. Weakening underwriting performance relative to the prior year was out-weighed by improvement in the investment return. Exhibit 1: Lloyd’s Pro-Forma Results Income Statement GBP (millions)

Full Year 2009

Full Year 2010

Full Year 2011

Full Year 2012

Full Year 2013

Interim 2013

Interim 2014

Year-on-Year Change

Gross premiums written

21,973

22,592

23,477

25,500

26,106

15,496

14,863

-4%

Net premiums written

17,218

17,656

18,472

19,435

20,231

11,107

10,894

-2%

Net premiums earned

16,725

17,111

18,100

18,685

19,725

9,592

9,520

-1%

Underwriting result

2,320

1,143

-1,237

1,661

2,605

1,261

1,119

-11%

Investment result

1,769

1,258

955

1,311

839

247

642

160%

Pre-tax result Key Ratios Combined Ratio Investment yield Return on capital*

3,868

2,195

-516

2,771

3,205

1,379

1,667

21%

Full Year 2009

Full Year 2010

Full Year 2011

Full Year 2012

Full Year 2013

Interim 2013

Interim 2014

Year-onYear Change

86.1%

93.3%

106.8%

91.1%

86.8%

86.9%

88.2%

1.3pp

3.9%

2.6%

1.9%

2.6%

1.6%

0.5%

1.3%

0.8pp

23.9%

12.1%

-2.8%

14.8%

16.2%

14.0%

16.5%

2.5pp

Source: Lloyd’s, Aon Benfield Market Analysis

*Capital and reserves

Premium Income

Gross premiums written totaled GBP14.9 billion in the first half of 2014, down 4.1% on a reported basis, but up 0.8% at constant exchange rates. In the aggregate, risk-adjusted rates fell by 3.3%, mainly driven by property treaty and energy business. This offset modest growth in other lines and contributions from new syndicates.

4


Exhibit 2: Lloyd’s Gross Premiums Written 30

Full Year Interim

GBP (billions)

Additional capital flows from non-traditional sources continue to fuel increased competition in the market. Pricing remains under pressure and overall premium growth remains restrained while challenging market conditions continue. Given that interest rates remain low, an emphasis on underwriting discipline continues to be Lloyd’s top priority.

20

10

13.5

13.5

13.5

2009

2010

2011

14.8

15.5

14.9

2012

2013

2014

0 Source: Lloyd’s, Aon Benfield Market Analysis

Underwriting Performance Lloyd’s recorded another strong underwriting performance in the first half of 2014. Technical profit of GBP1.1 billion (1H 2013: GBP1.3 billion) equated to a combined ratio of 88.2% (86.9%).

Exhibit 3: Lloyd’s Interim Combined Ratios 130% 110%

Major Losses Expense Ratio

113.3% 98.7%

88.7%

Loss Ratio* Reserve Releases

86.9%

88.2%

90% 70% 50% 30% 10% -10% 1H 2010

1H 2011

1H 2012

1H 2013


1H 2014

*Excluding major losses

Exhibit 4 demonstrates that the results were heavily influenced by below average major claims activity and continued favourable prior year reserve development.

On an accident year basis, the underlying combined ratio rose by 2.2 percentage points (pp) to 94.8%. A marginal improvement in the attritional loss ratio was offset by a 2.7pp increase in the expense ratio, driven by adverse foreign exchange movements and costs associated with Solvency II implementation. Major losses totaled GBP134 million, representing only around a quarter of the long-term average. These occurred predominantly in the Aviation sector, with the loss of Malaysian Airlines flight MH370 costing an estimated GBP75 million net. Global weatherrelated losses in the first half have not had a material impact on the Lloyd’s market. For the tenth successive year, Lloyd’s reported an overall surplus on prior year reserves. This was broadly in line with last year at GBP760 million, providing 8.0pp of benefit to the combined ratio. Positive development in most classes was partly offset by further additions to Motor reserves, and increases in wreck removal costs within the Marine sector (Costa Concordia and MV Rena).

Exhibit 4: Composition of Lloyd’s Combined Ratio 100% 80% 60% 40% 20%

92.6%

2.4%

-8.1%

1.4%

94.8%

86.9%

-8.0%

88.2%

Expense Ratio 39.1%

Expense Ratio 36.3%

1H 2013

Attritional Loss Ratio 56.3%

1H 2014

Attritional Loss Ratio 55.7%

0% Accident year*

Major losses

Reserve releases

Accident year*

Calendar year

Major losses

Reserve releases


Calendar year *Excluding major losses

Investment Return

The three components of the result are shown in Exhibit 5. The return on centrally-held mutual assets was GBP42 million, the notional return on the capital supporting members’ underwriting was GBP120 million and the return on syndicate-level assets was GBP480 million. The central assets portfolio achieved the highest yield, owing to a higher allocation to equities.

Exhibit 5: Lloyd’s Investment Return Investment return on Society assets (GBP) Notional return on Funds at Lloyd's (GBP) Syndicate investment return (GBP) Investment return (%)

2.5 3.9%

2.0

GBP (billions)

Lloyd’s investments produced a total return of GBP642 million or 1.3% in the first half of 2014, more than double the GBP247 million or 0.5% achieved in the prior year period. The improvement was driven by unrealized gains on bond portfolios.

1.5

2.6%

2.6% 1.9%

1.0

5% 4% 3%

1.6%

0.5

1.3% 0.5%

2% 1% 0%

0.0 FY FY FY FY FY 2009 2010 2011 2012 2013

1H 1H 2013 2014



5

Pre-Tax Results Lloyd’s reported a 21% increase in pre-tax profit to GBP1,667 million for the first half of 2014. Favourable development of prior year reserves represented 68% of underwriting profit and 46% of the pre-tax result.

The annualized return on capital employed was 16.5% in the first half of 2014, compared with 14.0% in the prior year.

Exhibit 6: Lloyd’s Pre-Tax Result Composition

Exhibit 7: Lloyd’s Return on Capital* (Annualized)

5

Underwriting result* Investment result Pre-tax result

3.9

4

GBP (billions)

2.8

3

Reserve releases Other

Interim

20%

Full year

3.2

2.2 1.4

2

1.7

10%

1 0

0%

-1

-0.5

-2 -3 FY 2009

FY 2010

FY 2011


6


FY 2012

FY 2013

1H 2013

1H 2014

*Accident year

-10% 2010

2011


2012

2013

2014 *Capital and reserves

Balance Sheet at June 30, 2014 Lloyd’s balance sheet strength has been recognized by the leading rating agencies. Overall investment allocation remains relatively conservative, capital resources remain close to all-time highs and legacy issues appear contained. Exhibit 8: Summary Lloyd’s Balance Sheet Balance Sheet GBP (millions)

Full Year 2009

Full Year 2010

Full Year 2011

Full Year 2012

Full Year 2013

Interim 2014

Year-to-Date Change

Cash and investments

46,254

48,483

51,415

51,767

51,494

50,154

-3%

Gross technical provisions

43,544

46,428

51,918

51,517

49,821

51,274

3%

9,931

10,237

12,153

12,439

11,466

12,120

6%

Net technical provisions

33,613

36,191

39,765

39,078

38,355

39,154

2%

Net resources*

19,121

19,121

19,114

20,193

21,107

20,719

-2%

Reinsurers’ share


*Capital, reserves, subordinated loan notes and securities

Investments Cash and investments totaled GBP50.2 billion at June 30, 2014, down 2.6% from the end of 2013. The bond portfolio has seen an increased weighting towards corporates, with government bonds falling to 24% (FY 2013: 27%). The credit rating profile of the GBP20.1 billion corporate bond portfolio, was ‘AAA’ 25% (27%), ‘AA’ 26% (26%), ‘A’ 35% (35%) and lower/unrated 14% (12%). Equities increased from 6% to 7% of the total portfolio.

A slight increase in risk appetite was also evident within the central fund asset portfolio. Bonds fell to 55%, from 67% at the end of 2013, with a higher weighting towards corporates. Cash increased from 2% to 11%, emerging equity increased from 4% to 6%, and hedge funds increased from 5% to 6%. Senior secured loans emerged as a new asset class, replacing a 2% allocation to commodities.

Exhibit 9: Investment Allocation at June 30, 2014 Total Invested Assets: GBP50.2 billion

Central Assets: GBP2.5 billion

Alternative investments Equities 2% 7%

5%

Fixed income - corporate

6%

Fixed income - government* Corporate bonds 40%

Cash and LOCs 27%

Cash

3%

2%

31%

6%

Global equity Emerging equity

12%

Property equity Hedge funds

11% 24%

Emerging markets & high yield bonds Government bonds* 24% Source: Lloyd’s, Aon Benfield Market Analysis

Senior secured loans

*Includes supra nationals and government agencies


7

Capital Lloyd’s is a partially mutualized market and does not hold conventional equity. The components of the capital base are shown in Exhibit 10. Both Funds at Lloyd’s (FAL) and members’ balances operate on a several liability basis. Overall net resources (capital, reserves and subordinated loan notes) fell by 2% to GBP20.7 billion over the six months to June 30, 2014, reflecting the distribution of profit to capital providers. Assets admissible for solvency purposes were estimated to exceed solvency deficits by GBP3.2 billion.

Exhibit 10: Lloyd’s Capital Base Funds at Lloyd's Central assets Solvency surplus

25 19.1

19.1

19.1

20.2

21.1

3. Central resources: Society of Lloyd’s net assets of GBP1.8 billion, plus subordinated debt of GBP0.7 billion. If the first link needs additional funds, the second link ensures members have resources available. In the rare event that both are insufficient, central resources can be made available at the discretion of the Council of Lloyd’s to ensure valid claims are paid.

20.7

15

Exhibit 11: Lloyd’s Chain of Security at June 30, 2014 Subordinated Debt GBP712 million

Members' Central Assets Assets

GBP (billions)

20

Members' balances Subordinated liabilities

2. Members’ assets: FAL of GBP14.8 billion. Each member, whether corporate or individual, must provide sufficient capital to support their underwriting at Lloyd’s. The capital is held in trust for the benefit of policyholders, but is not available to support the liabilities of other members. Assets supporting FAL requirements must be liquid but may include LOCs and bank guarantees.

10 5 0

Central Fund GBP1,604 million Corporation Assets GBP159 million

Callable Layer (=3%) GBP778 million

Funds at Lloyd's (underlying capital set by Lloyd's) GBP14,814 million

FAL represents capital lodged and held in trust to support members’ underwriting commitments. The total fell by GBP274 million to GBP14.8 billion at June 30, 2014, of which 49% was held in the form of letters of credit (LOCs) and bank guarantees. Members’ balances represent the net profit/(loss) to be distributed/(collected) by syndicates to/(from) capital providers. The total fell by GBP205 million to GBP3.4 billion over the six months to June 30, 2014. Central assets increased by 4% to GBP2.5 billion, including GBP712 million of subordinated debt. Mutual assets stood at GBP1.8 billion, including the Central Fund at GBP1.6 billion. The Chain of Security The resources available to pay claims at Lloyd’s are linked together in a ‘Chain of Security’ as follows: 1. Syndicate assets: Premium Trust Funds (PTFs) of GBP42.6 billion. All premiums received by syndicates are held in trust as the first resource for paying policyholders’ claims. Until all liabilities have been provided for, no profits can be released. Every year, each syndicate’s reserves for future liabilities are independently audited and receive an actuarial review.

8


Syndicate Assets

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 1H 2014 Source: Lloyd’s, Aon Benfield Market Analysis

Premium Trust Funds GBP42,584 million

Several assets

Mutual assets

Contingent

Source: Lloyd’s

Capital Setting at Lloyd’s Since January 2013, managing agents have been required to prepare an Individual Capital Assessment (ICA) for each syndicate, in accordance with the provisions of Solvency II. This is the level of capital required to cover underlying business risks at a 99.5% confidence level. Lloyd’s reviews all ICAs to assess the adequacy of the proposed capital level. When agreed, each ICA is then ‘uplifted’ by 35% to ensure there is sufficient capital to support the market’s ratings and financial strength. This uplifted ICA is known as the syndicate’s Economic Capital Assessment (ECA) and drives members’ capital levels. Central assets are currently managed to a minimum of 250% of the ICA prepared centrally for the market as a whole. The Corporation regularly runs detailed analyses aiming to balance the need for financial security with the need for cost-effective mutuality of capital. Members’ contributions to the Central Fund remain at 0.5% of gross premiums written for 2014.

Technical Reserves 50

Net claims provision

41 36

34

40

40

38

30 180%

199%

37

21

20

19

216%

10

19

190%

19

20

Net resources

21

178%

Reinsurers' share of claims provision

178%

Unearned premium reserves increased by 21% to GBP14.4 billion over the six months to June 30, 2014, but were down by 3% relative to June 30, 2013. Reinsurers’ share rose by 70% to GBP3.2 billion, but declined by 8% relative to June 30, 2013.

Exhibit 12: Lloyd’s Claims Reserve Leverage

GBP (billions)

Gross provisions for outstanding claims fell by 3% or GBP1.1 billion to GBP36.9 billion over the six months to June 30, 2014. Reinsurers’ share fell by 7% or GBP679 million to GBP8.9 billion. The ratio of claims reserves to overall net resources stood at 178% on a gross basis and 135% net of reinsurance.

0 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 1H 2014 Source: Lloyd’s, Aon Benfield Market Analysis


9

Looking Ahead to 2015 2015 Capacity The limited disclosure from managing agents to date suggests more reductions in capacity than increases going into 2015. The indicative figures summarised below are still subject to change.



In September, Faraday announced a restructuring (subject to necessary approvals) of its London market business, whereby Faraday Re’s insurance business will be renewed into Syndicate 0435 from January 1, 2015 and treaty business will be renewed into the syndicate on or before January 1, 2016.



In September, Novae announced its intention (subject to necessary approvals) to establish a new Bermuda-based operation which will act as a coverholder for and group reinsurer of Lloyd’s Syndicate 2007.



In October, Ascot and AIG announced a new Bermuda-based reinsurance platform ‘AIG-Ascot Re’ to complement Ascot’s Lloyd’s Syndicate 1414 from January 1, 2015.

Exhibit 13: 2015 Syndicate Capacity Indications 2014 Capacity GBPmn 1,000

2015* Capacity GBPmn 1,000

Change 0%

Syndicate 0033

Managing Agent Hiscox

0218

ERS

438

350

-20%

0386

QBE

413

353

-15%

0623

Beazley

243

226

-7%

0779

ANV

22

22

0%

0958

Canopius

175

185

6%

Vision 2025

1969

ANV

140

160

14%

1991

R&Q

150

119

-20%

2010

Cathedral

350

306

-13%

2014

Pembroke

75

100

33%

2791

MAP

453

400

-12%

5820

ANV

131

131

0%

6104

Hiscox

72

72

0%

Lloyd’s continues to implement ‘Vision 2025’, a long-term strategic plan aimed at ensuring that the market grows beyond the English-speaking world to become the true global hub for specialist insurance and reinsurance business. CEO Inga Beale has reiterated that Lloyd’s intends to expand in underinsured markets, with the aim of increasing premium income in the ten largest high-growth economies at a rate that tracks or exceeds non-life premium growth.


*Unofficial and subject to change

Syndicate News 

Financial Strength Ratings A.M. Best affirmed their ‘A’ rating of the Lloyd’s market on July 24, 2014 and maintained the positive outlook assigned a year earlier. Standard & Poor’s affirmed their ‘A+’ rating on October 13, 2014 and revised the outlook from positive to stable.



Oversight of Syndicate 2526 is expected to be transferred from Asta Managing Agency Ltd to AmTrust at Lloyd’s during 2015 (subject to necessary approvals), in conjunction with an increase in ownership.



Canopius Motor Syndicate 0260 (formerly KGM) is expected to cease trading at the end of 2014. Renewals will be accepted into Canopius Syndicates 0958 and 4444.

Exhibit 14: Lloyd’s Market Ratings

ANV acquired Jubilee in December 2013. From 2015, the property business of Syndicates 1861 and 5820 will be written on a 50:50 split stamp basis (subject to necessary approvals).





10

China Re-backed Special Purpose Syndicate 2088, currently managed by Catlin and providing a whole account quota share reinsurance of Catlin Syndicate 2003 since 2012, has been approved in principle to convert to a standalone syndicate from January 1, 2015.

In September 2014, the Chinese Government granted approval for Lloyd’s to establish a licensed branch in Beijing, further expanding the market’s footprint in China.

In September, Hamilton Re, Bermuda, announced that they had entered into exclusive discussions with Wild Goose Holdings, Australia, regarding a potential acquisition of Sportscover Underwriting Ltd and Syndicate 3334.


Rating

Outlook

Action

A

Positive

Affirmed July 24, 2014

Fitch

AA-

Stable

Upgraded June 10, 2014

Standard & Poor’s

A+

Stable

Affirmed October 13, 2014

A.M. Best

Source: Rating agencies

Appendix 1: Active Syndicate Listing


11

Exhibit 15: Active Syndicate Listing 2013 GPW GBPmn 823

2013 Combined Ratio 75.2%

2013 Pre-Tax Result as % of NPE 26.6%

9

90.4%

-3.6%

10

406

107.7%

-5.0%

438

67

105.9%

-3.5%

70

31

94.0%

6.6%

32

Munich Re (91.2%)

149

78.9%

22.1%

235

CNA

CNA

291

91.0%

9.8%

330

QBE

QBE (69.6%)

449

94.4%

10.3%

413

Faraday

Berkshire

Berkshire

234

43.6%

59.3%

325

Munich Re

Munich Re

Munich Re

511

88.2%

12.4%

425

0510

Kiln

Tokio Marine

Tokio Marine (55.2%)

1,169

87.5%

13.3%

1,064

0557

Kiln

Tokio Marine

Hampden (52.6%)

30

57.0%

44.1%

39

0566

QBE

Operates as a trading division of Syndicate 2999

0609

Atrium

Enstar/Stone Point

Hampden (36.5%)

380

82.1%

17.9%

420

0623

Beazley

Beazley

Hampden (53.6%)

240

78.3%

20.4%

243

0626

Hiscox


0727

Meacock

Family-owned

Hampden (43.2%)

70

87.0%

16.7%

81

0779

ANV

ANV

Hampden (40.0%)

26

87.8%

12.9%

22

0780

Advent

Fairfax

Fairfax

135

103.2%

2.6%

200

0887

Amlin


0958

Canopius

Sompo

172

98.2%

4.0%

175

1036

QBE


1084

Chaucer

Hanover Ins

Hanover Ins

888

88.7%

11.9%

860

1110

Argenta

Argenta

ProSight Specialty

103

117.3%

-16.7%

150

1176

Chaucer

Hanover Ins

Hanover Ins (57.0%)

27

45.1%

56.4%

32

1183

Talbot

Validus

Validus

698

80.6%

19.8%

625

1200

Argo

Argo

Argo (68.9%)

425

93.0%

7.7%

350

1206

AmTrust

AmTrust

AmTrust

183

115.1%

-13.8%

200

1209

XL

XL

XL

307

93.5%

6.2%

300

1218

Newline

Fairfax

Fairfax

106

97.4%

20.2%

105

1221

Navigators

Navigators

Navigators

235

87.8%

11.9%

215

1225

AEGIS

AEGIS

AEGIS (93.0%)

367

87.1%

15.8%

330

1274

Antares

Qatar Ins

Qatar Ins (75.6%)

246

88.3%

12.7%

242

1301

Torus

Enstar/Stone Point

Torus (64.0%)

148

104.0%

-3.8%

180

1414

Ascot

AIG (20%)

AIG (97.8%)

625

80.2%

20.5%

650

1458

RenRe

RenRe

RenRe

141

95.8%

4.3%

169

1686

Asta

Tawa/Paraline/Skuld

Axis

Commenced trading January 1, 2014

1729

Asta

Tawa/Paraline/Skuld

ProAssurance (57.6%)


1861

ANV

ANV

ANV

155

1880

Kiln

Tokio Marine

Tokio Marine

237

1882

Chubb

Chubb

Chubb

81

1886

QBE


1897

Asta

Tawa/Paraline/Skuld

Skuld (66.7%)

75

110.6%

-10.6%

85

1910

Asta

Tawa/Paraline/Skuld

BTG Pactual†

204

57.9%

43.3%

174

1919

Starr

Starr International

Starr International

289

85.6%

15.5%

245

1945

Sirius

White Mountains

White Mountains

59

107.6%

-7.4%

99

1955

Barbican

Barbican

Barbican

279

95.2%

5.2%

192

1967

W.R. Berkley

W.R. Berkley

W.R. Berkley

136

94.0%

6.2%

185

1969

ANV

ANV

Argenta (79.8%)

121

97.2%

3.2%

140

1980

Liberty


1991

R&Q

R&Q

5

n.m.

n.m.

150

Syn. No. 0033

Managing Agent Hiscox

Agency Owner* Hiscox

Largest Capital Provider in 2014* Hiscox (72.5%)

0044

AmTrust

AmTrust

AmTrust

0218

ERS

Aquiline

Aquiline (66.7%)

0260

Canopius

NKSJ

Sompo (92.8%)

0308

Kiln

Tokio Marine

Tokio Marine (50.4%)

0318

Beaufort

Munich Re

0382

Hardy

0386

QBE

0435 0457

Sompo (69.0%)

Argenta (21.2%)

105.3%

2014 Capacity GBPmn 1,000

119 75 -4.8%

175

48.9%

52.6%

360

120.5%

-19.7%

85

*100% unless otherwise stated †Subject to Lloyd’s/regulatory approval Hampden and Argenta are Lloyd's members' agents acting mainly on behalf of third party capital providers

12


Exhibit 15: Active Syndicate Listing (continued) 2013 GPW GBPmn

2013 Combined Ratio

2013 Pre-Tax Result as % of NPE

2014 Capacity GBPmn

Amlin

1,472

92.1%

12.8%

1,400

Catlin

1,922

93.0%

9.9%

1,391

Novae (90.0%)

608

93.4%

8.2%

575

Lancashire

Lancashire (57.8%)

273

66.9%

34.0%

350

Arch

Arch

Arch

158

99.0%

-5.0%

200

Pembroke

Ironshore

Hampden (81.5%)

2015

Channel

SCOR

SCOR

2088

Catlin

Catlin

China Re

2121

Argenta

Argenta

Argenta (86.9%)

2232

Allied World

Allied World

Allied World

2357

Asta

Tawa/Paraline/Skuld

Nephila

2468

Marketform

American Financial

2488

ACE

2525

Asta

2526

Syn. No.

Managing Agent

Agency Owner*

Largest Capital Provider in 2014*

2001

Amlin

Amlin

2003

Catlin

Catlin

2007

Novae

Novae

2010

Cathedral

2012 2014

Formerly SPS 6110, re-launched from January 1, 2014 124

112.2%

-12.0%

75 155

49

102.0%

-0.2%

50

239

87.4%

13.6%

240

96

116.6%

-15.5%

121

9

33.6%

66.5%

73

American Financial (70.0%)

186

99.1%

5.7%

175

ACE

ACE

371

81.2%

19.7%

350

Tawa/Paraline/Skuld

Hampden (45.3%)

39

67.6%

34.2%

42

Asta

Tawa/Paraline/Skuld

AmTrust (60.8%)

53

125.1%

-23.3%

64

2623

Beazley

Beazley

Beazley

1,093

78.0%

24.9%

1,107

2791

MAP

MAP (90.0%)

Hampden (38.1%)

261

69.6%

35.3%

453

2987

Brit

Brit

Brit

1,183

93.6%

9.4%

1,000

2999

QBE

QBE

QBE

1,118

80.7%

21.0%

1,060

3000

Markel

Markel

Markel

369

88.8%

16.9%

500

3002

Catlin

Catlin

Catlin

10

88.7%

11.3%

14

3010

Cathedral

Lancashire

Lancashire

27

108.8%

-8.6%

30

3210

Mitsui

MS&AD

MS&AD

343

90.3%

12.3%

340

3334

Sportscover

Sportscover

Wild Goose

88

108.9%

-8.3%

46

3622

Beazley

Beazley

Beazley

13

115.0%

-15.3%

16

3623

Beazley

Beazley

Beazley

134

105.2%

-5.3%

140

3624

Hiscox

Hiscox

Hiscox

306

100.8%

-0.4%

300

3902

Ark


4000

Pembroke

Ironshore

Ironshore

273

89.9%

11.0%

252

4020

Ark

Ark

Ark

359

86.0%

18.1%

340

4141

HCC

HCC

HCC

87

85.1%

16.2%

120

4242

Asta

Tawa/Paraline/Skuld

Paraline (15.7%)

76

89.2%

10.9%

80

4444

Canopius

Sompo

Sompo (74.0%)

704

89.8%

12.5%

700

4472

Liberty

Liberty

Liberty

1,268

94.7%

6.5%

1,175

4711

Aspen

Aspen

Aspen

279

97.4%

3.0%

365

5000

Travelers

Travelers

Travelers

331

79.9%

21.0%

300

5151

Montpelier

Montpelier

Montpelier

150

90.0%

13.0%

180

5678

Vibe

Soros/Pine Brook

Soros/Pine Brook

Commenced trading July 1, 2014

5820

ANV

ANV

ANV (51.1%)

130

83.5%

16.8%

131

6103

MAP

MAP (90.0%)

Hampden (55.1%)

21

18.6%

80.3%

30

6104

Hiscox

Hiscox

Hampden (45.9%)

43

43.0%

58.6%

72

6105

Ark

Ark

Argenta (43.3%)

13

87.4%

15.2%

60

6107

Beazley

Beazley

Hampden (49.9%)

29

61.0%

35.8%

19

6111

Catlin

Catlin

Hampden (58.0%)

108

96.0%

5.2%

106

6112

Catlin

Catlin

Everest Re

38

96.0%

5.4%

31

6113

Barbican

Barbican

Hampden (35.8%)

23

60.6%

40.1%

34

6115

Canopius

Sompo

Sompo (50.0%)

71

108.7%

-8.5%

70

6117

Asta

Tawa/Paraline/Skuld

Hampden


58

6118

Barbican

Barbican

ARIG/Labuan Re


25

6119

Catlin

Catlin

GIC


14

Source: Lloyd's, Aon Benfield Market Analysis

6

*100% unless otherwise stated †Subject to Lloyd’s/regulatory approval Hampden and Argenta are Lloyd's members' agents acting mainly on behalf of third party capital providers


13

Contacts Mike Van Slooten

Eleanore Obst

Head of Market Analysis - International Aon Benfield Analytics +44.207.7522.8106 [email protected]

Analyst Market Analysis - International Aon Benfield Analytics +44.207.7522.3823 [email protected]

Mike McClane Head of Market Analysis - Americas Aon Benfield Analytics +1.215.751.1596 [email protected]

Kathryn Moyse Analyst Market Analysis - International Aon Benfield Analytics +44.207.7522.8173 [email protected]

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