Crum & Forster Holdings

2. Crum & Forster Holdings

3. Gross Premium Written Mix Specialty vs. Standard 2001 GPW: $827M Jun YTD 2012 GPW: $776M 2011 GPW: $1,327M 2006 GPW: $1,353M Specialty,18% Standard,24% Standard,25% Specialty,44% Standard,56% Specialty,75% Specialty,76% Standard,82%

4. SPECIALTY GPW MIX (EST.2012)

5. Ted Camp CoverXSpecialty

7. Overview • We offer specialty commercial insurance products through 11 offices in the United States • The E&S casualty operations of Crum & Forster, Seneca, First Mercury and Valiant have been integrated into a $380+ million GPW business unit, referred to as CoverXSpecialty 2011 GPW: $386M

8. 2011 GPW by Top 10 States 1Top five classes in CA are security guards, roofing contractors, manufacturing, concrete/masonry/paving contractors and safety contractors

9. Gary Dubois Seneca

10. Existing Product Lines • Standard lines • Commercial Package/BOP • General Liability • Umbrella • Custom Property • E & S Property • Inland Marine • Surety • Bail Bonds • Contract & Commercial

12. Steve Fomchenko Custom Property & Inland Marine

13. Product Lines 2011 GWP -$47.18 M

15. Inland Marine -Countrywide Jack Moran - jmoran@senecainsurance.com Northeast- Kathleen Alicks Kalicks@senecainsurance.com Western Region - Ken McClelland Kmcclelland@senecainsurance.com Central Region – David Hansen Dhansen@senecainsurance.com Midatlantic- Tom Diaczynsky TDiaczynskysenecainsurance.com Southeast- Joe Stanton Jstanton@senecainsurance.com

16. Growth Opportunities • Continue to offer participation on Primary/100% basis • Expand product capabilities to participate excess of a primary • Increase capacity on DIC Product to $10m • Expansion into the Western Region

17. Gary Dubois MAPS

18. Product Lines - MAPS Division Middle Market Accounts – Don Fischer, SVP Management Liability • D&O/EPL/FID • Lawyers Professional • Miscellaneous E&O • Programs • Amerinst Accountants & Lawyers • Managed Insurance Services (MIS) • United Specialty Services (USS) 2011 GWP: $18.9M Large Accounts – Lori Marino, SVP • Management Liability • D&O/EPL/FID • Lawyers Professional • Accountants Professional • Miscellaneous E&O • Cyber/Technology Professional • Crime & Fidelity 2011 GWP: $15.3M 2011 TOTAL GWP: $34.2M

19. Looking Forward - MAPS Division • New head of Crime & Fidelity hired fall of 2012 to support growth potential • Cyber Liability resources in place for anticipated demand through 2013 • Considering select opportunities within the A&E marketplace • Evaluating possibilities of geographic expansion into and through 2013

20. Diana Cossetti Umbrella/Excess

21. Umbrella/Excess • Internal Goals attained and ongoing: • One set of policy forms - E&S • One set of guidelines – all • Unified file documentation/pricing model – all • Field authority - all • Looking Ahead: • Growth goals for both admitted and non-admitted • Expand our writings in our Targeted Segments area • Increase our physical presence in marketplace

22. Chris Pluchino Marine & Energy

24. Overview • Underwriting strategy • Focus on differentiating risks via an engineering informed underwriting process • Underwriting appetite reflects an expertise-based segment avoidance strategy • For example, in ocean marine – blue water hull not written owing to undervaluation of exposures/inadequate rates; in energy and production – drilling contractors avoided due to, among other things, high value of moveable assets (aggregation concerns) • Superior on-staff expertise via market leading underwriters, qualified risk engineers and claims professionals trained in maritime law • Typically focused on small to midsized clients, avoiding major corporations • Market entry for targeted classes via partnership strategy (MGU) • Look to maintain portfolio balance by keeping maximum policy limit offered within annual premium volume

25. Overview (cont.) • Catastrophe management strategy • Line setting guidance in place based on specific account criteria such as client size, maximum loss potential and cat exposure • Maintain portfolio balance – per risk and portfolio / NAT CAT capacity • NAT CAT monitored by region / segment / occupancy, set against pre-determined loss thresholds • Platforms scored based on probability of failure in major wind event • Aggregate exposures measured, deterministically as the sum of all limits and coverages, captured using industry software; Exploration and Production: Open Xposure/Static Marine: Risk Browser/RMS • PMLs, storm tracks, Lloyds Realistic Disaster Scenario run nightly and/or as needed in real time

26. Second year of operation for C&F under the leadership of individuals with a combined 27 years marine and energy underwriting experience Ocean Marine Exploration & Production 2012 GPW: $9.3M (Q1&2) 2012 GPW: $7.7M (Q1&2)

27. Mark Brown Environmental Casualty

29. Mark LeBlanc Crisis Management

30. What do we do? • recallPROTECT+ • Consumable Products (food, cosmetics) • Consumer Goods & Products (hard goods, appliances, etc.) • Supplier & Component Parts (tech and auto) • restaurantPROTECT+ • Restaurants Chains (fast food, chains, franchises) • Coverage: • First and third party recall costs (consumable, component) • First Party Business Interruption • Customer Loss of Profit • Brand Rehabilitation • Replacement Costs • Consultant Costs

31. Growth Opportunities • Restaurant Accounts: Solutions: • High per account premium Targeted Marketing • No diversity Spread the word • Consumables: • Competitive landscape Mind the gap: avoid pitfalls • Coverage Constantly evolving Flexible terms, know your competition • Mature market place There are good accounts, find them • Knowledgeable buyers There are good buyers, find them • Knowledgeable brokers Underwriter beware • Components: • Adverse Selection Determine the real need • Contract Requirements Is the coverage being used correctly? • Heavy severity, light frequency Know your exposure • Lonely landscape Know when to compete • Consumer • More frequency than severity Avoid chasing down attachments • Limited exposure Potential for balance • Limited need Manage Capacity