“What’s Cooking in the Casualty Underwriter’s Kitchen?”

1. “What’s Cooking in the Casualty Underwriter’s Kitchen?” Christopher J. McKeon Division President – Commercial Risk Primary Casualty AIG Property Casualty Stephen A. Truono Vice President – Global Risk Management & Insurance Starwood Hotels & Resorts Worldwide, Inc.

2. Stephen A. Truono • Vice President – Global Risk Management & Insurance • Starwood Hotels & Resorts Worldwide, Inc. • Stephen Truono is Vice President - Global Risk Management & Insurance based in Stamford, CT. Starwood is one of the leading hotel and leisure companies in the world with almost 1200 properties in more than 100+ countries and 181,000 employees at its owned and managed properties. Mr. Truono’ s responsibilities include leading a team professionals in managing the Company’s worldwide risk management initiatives including: 1) identification, analysis and evaluation of risks to which the Company may be exposed; 2) design and implementation of programs to fund/finance/transfer risks, including placement and management of Company’s global insurance programs, and 3) mitigation and management of claims, injury and litigation management initiatives for both insured and self-insured matters, and 4) and risk control of environmental, health & safety, fire prevention, life safety, security, and crisis planning programs through collaborating with Starwood’s Crisis Management, Safety & Security and Enterprise Risk teams • Christopher J. McKeon • Division President – Commercial Risk Primary Casualty • AIG Property Casualty • Christopher J. McKeon is currently Division President of Commercial Risk based in New York City. American International Group, Inc. (AIG) is a leading international insurance organization serving customers in more than 130 countries. AIG companies serve commercial institutional, and individual customers through one of the most extensive worldwide property casualty networks of any insurer. In addition, AIG companies are leading providers of life insurance and retirement services in the United States. Mr. McKeon is responsible for managing primary casualty insurance programs for upper middle market corporations. The hallmarks of this division have been providing a broad range of program structures, and tailoring industry specific coverage and service enhancements to best reach and support our customers.

3. What to Expect • After attending this session you should: • Know the information underwriters need to prepare a primary casualty quotation • Understand the basics of the underwriting process • Recognize some of the key topics underwriters contemplate when analyzing an insurance risk

4. From the kitchen ofChristopher McKeon • Quality Quote àla AIG • Serves: 3 (insured, broker, carrier) • Prep Time: 15-30 days depending on quality of submission • Ingredients: • Description of operations (including acquisitions or divestitures) • Historical exposure (5-10 years preferred) • Projected exposure (broken out by state and class code and/or vehicle type as applicable) • Currently valued, detailed loss Information (10 years preferred, 5 years minimum with large losses identified) • Audited financials (2-3 years preferred) • Directions: • Take 1 submission, divide it into its parts then simultaneously do the following: • Send projected exposure to Policy Services Department for manual rating • Send financials to Credit Department for review • Send description of operations and loss information to the Loss Control and Claims Departments for review • Finally chop and dice description of operations. Analyze current hazards including impact of acquisitions and divestitures. Refer to other sources (A.M. Best guides, FC&S guides, loss control reports, etc.) to compare specifics of insured to industry norms. • Carefully fold in loss information - complete loss rating, identify loss trends, and review description of large losses. Pay particular attention to influence of newly acquired or divested operations on loss trends.

5. From the kitchen ofChristopher McKeon • Quality Quote àla AIG • By now loss control and claim reviews should be completed. Mix these into your hazard andloss analysis. Determine emerging loss leaders such as specific locations, types of injuries, or particular medical costs. • Sprinkle in manual rating and financial analysis to account for state trends and insured’s financial wherewithal. • Add mixture to food processor and blend on a high setting. Set mixture aside. • Determine any broker or insured allergies and taste preferences – adjust cooking time and seasoning accordingly. • Determine cooking utensils you will need – guaranteed cost, deductible, coverage enhancements, exclusions, limits, etc. • Prepare quotation pans and pre-heat oven by confirming quote date. • Set table with broker and insured by presenting findings, claims, loss control, and other service capabilities. • Retrieve mixture, review broker and insured allergies and taste preferences and season with expenses, and debits or credits. • Pour mixture into baking pan, place in oven and watch quotation letter rise and cook. • After baking, let prepared quotation cool, wipe off any spills or extra ingredients and serve. • Once tasted, ask for feedback so you can adjust recipe if necessary in the future.

6. From the kitchen ofChristopher McKeon • Quality Quote àla AIG • Chef’s Secrets: • The fresher the ingredients, the quicker the cooking time. • The more ingredients offered by the broker and/or insured the more adjustments and variations the Chef can make to enhance the insured’s taste preferences and avoid their allergies. • The Chef is most interested in trying recipes that will ultimately be enjoyed by the insured. Is there a taste preference the insured just has not been able satisfy? Is there an old recipe the insured enjoyed, but now that they have a new allergy they are looking for a new dish? Is the insured going to enjoy the Chef’s meal, or are they just going to take one bite and push the plate away? Is the insured a “food explorer?” • Chefs also want to work on recipes that match their preferences. Does the Chef prefer not to cook in a particular state? Does the chef have a taste preference for a certain industry, or like working with particular utensils? Chefs want to work with fresh ingredients and also want to avoid financial spoilage. • Sometimes ingredients are confusing to Chefs. They may ask questions. The recipe will be better if there is an open dialogue. • Hopefully the Chef will be able to make the same recipe for the insured year after year. The Chef will ask for fresh ingredients and will want to confirm the recipe is the same each year. If preferences change the Chef will be able to make a great meal again with variations and fresh ingredients.

7. Questions and Final Comments • Contact Information • Stephen A. Truono • Vice President • Starwood Hotels & Resorts Worldwide, Inc. • Email: steve.truono@starwoodhotels.com • Office: (203) 964-4664 • Christopher J. McKeon • Division President • Commercial Risk Primary Casualty • AIG Property Casualty • Email: chris.mckeon@aig.com • Office: (212) 458-3016