APREF PRESENTATION

1. APREF PRESENTATION September 2010 Association of reinsurance professionals in France

2. Summary • page • •APREF Organisation and Tasks 3 • •APREF Actions and 2010 Global view 21 • •Paris reinsurance market place 26 Association of reinsurance professionals in France

3. • Creation • APREF was created in 2005 by merging 3 French reinsurance organisations in France • •APREMAF (Association of reinsurance professionals in • France) • •ARF(French Reinsurance Association) • •UREF(Union of Foreign Reinsurers in France) Association of reinsurance professionals in France

4. Objectives • APREF main objectives are: • •To be a think tank on all reinsurance subjects linked to the French market activities • • To be a discussion forum on the French market reinsurance topics and to debate with the reinsurance industry players • • To monitor relations between reinsurers and Professional Associations, Public Authorities and any other market organisation • • To contribute to the developing and the appeal of the reinsurance industry within the Paris market place • • To maintain an international network of contacts and exchanges with other organisations or reinsurance markets • APREF works with all the market professionals Association of reinsurance professionals in France

5. • Actions • APREF main actions: • •Gather the French Reinsurance industry market playersto analyse the legal, financial and technical changes regarding reinsurance • • Contribute to reflexions on topics affecting reinsurancetogether with the insured, the insurers, the brokers and the public authorities • •Work at improving knowledge on risksand their modelling to better define and develop the extreme and emerging risks insurability Association of reinsurance professionals in France

6. • Actions • • Improve the French reinsurance market transparency, efficiency, security, and competitiveness • •Communicate on the expertise and on the professionals in the risk and reinsurance industries in France • •Maintain a good relation and dialogue on common topics and best practices with other market places and foreign associations APREF contributes to the market’s development Association of reinsurance professionals in France

7. Operating mode • APREF: • •Analyses the market topics with its members, within committees, commissions and working groups according to a theme distribution • • Consults the associate members in meetings with the commissions and working groups • •Exchanges with the professional organisations and the Public Authorities on current reinsurance themes • APREF activities are lead in compliance with the law on fair trading principles and regulations Association of reinsurance professionals in France

8. • Members • • Members • •Reinsurers • • May be involved in all activities • • Vote at General Assemblies • • Contribute to notes and market positions published on the Website • •Associate members • •All professionals linked to reinsurance (search on added diversity) • • May attend International and Paris market committees, non • technical and catastrophe commissions • • Kept informed on all actions but not bound by APREF positions • APREF is open to the whole reinsurance industry: reinsurers, brokers, captives, GIE, run-off, consultants … Association of reinsurance professionals in France

9. • A representative force • APREF is the representative body of: • •Around forty members and thirty associates: • •The main reinsurers operating in the French market • • Associate members, involved in the reinsurance industry and its professionals in France • •Near 95% of ceded premiums by the French market to • professional reinsurers in Life and Non Life • Comparing APREF with other reinsurance markets associations • • The highest number of reinsurers as members • •Higher diversity of associate members • •One of the highest number of publications APREF represents around 95% of the reinsurance market in France Association of reinsurance professionals in France

10. • Members ALLIANZ ALLIED WORLD AMF ARCH RE ASPEN RE AXIS RE EUROPE BERKSHIRE HATHAWAY CCR EVEREST RE GEN RE HANNOVER RE HISCOX LIBERTY SYNDICATES LLOYDS MAPFRE RE MCR MILLI RE MS FRONTIER RE MUNICH Re MUT RE NEW RE ODYSSEY RE PARIS RE PARTNERRE QBE INTERNATIONAL RGA R & V SCOR SECURA SIGNAL IDUNA RE SIRIUS INTERNATIONAL SWISS RE TOKIO MILLENIUM TRANSAMERICA RE TRANSATLANTIC RE VALIDUS XL RE EUROPE Association of reinsurance professionals in France

11. Associate Members • ALD RE (SOCIETE GENERALE) • AMS RE • AON BENFIELD • ASSURANCES ST HONORE SIACI • ASSURATOME • ASSURPOL • AXA CESSIONS • BOPS Avocats • CALYON (CREDIT AGRICOLE) • CARRAIG (SANOFI) • CEFAREA (Centre d’arbitrage France) • CHILTINGTON • DES COURTIS • DEWEY & LEBOEUF GLOBAL RE GUY CARPENTER HMN LA REASSURANCE INTERCONTINENTALE (COVEA) MDB NASCO KARAOGLAN OIRC (TOTAL) SEGS (Syndicat du run-off en France) TOWERS WATSON VERSPIEREN GLOBAL MARKETS WILLIS GRAS SAVOYE RE WINSTON Association of reinsurance professionals in France

12. Organisation BUREAU President : F. Vilnet, PartnerRe Vice President : L. Pietropoli, Odyssey Re Treasurer : O. Monmoton, Hannover Re Executive Committee General Delegate : B. Dollfus, APREF Technical Committee Financial & Legal Committee Paris Market Place & International Committees Secretary General J.M. Szmaragd, SCOR Association of reinsurance professionals in France

13. Technical Committee President : I. Hux, Swiss Re • Organisation Life Commission President : G. Thivant, SCOR Motor Commission President :J.M Houisse, SCOR Catastrophe Commission President : H. Duke, Swiss Re Construction Commission President : J. Tuccella, SCOR Credit Commission President : P. Barrault, SCOR Casualty Commission President : P. Richard, Swiss Re Agriculture Commission President : N. Chatelain, Paris Re Association of reinsurance professionals in France

14. Organisation Motor Commission Methodology: human assistance assessment WG President : F. Blanchet, SCOR Impact of Environment on Motor Liability WG President : C.Studievic,Odyssey Re Annuities WG President: C. Nivarlet, Secura Association of reinsurance professionals in France

15. Organisation Association of reinsurance professionals in France

16. Organisation

17. Organisation Casualty Commission Environment Liability WG President: S. Lassa, SCOR Association of reinsurance professionals in France

18. Organisation Financial & Legal Committee President : Y. Besnard,SCOR Legal Commission President: P. Isac, Munich Re Finite WG President : X.Colonna, SCOR Portfolio transfers WG President : A. Bricard, SCOR

19. Organisation Paris Market Place & International Committees President : J.L Gourgeon, Paris Re Attractiveness Commission President : A. Pin, PartnerRe Association of reinsurance professionals in France

20. 2010 Global view • Reinsurance market: a transition period • •The crisis consequences: • • New regulation and tightening solvency rules • for insurers and reinsurers • • Common approach of insurers/reinsurers on market • patterns and systemic risks • •Solvency II with an increasing demand for • reinsurance • •APREF, a year of development on: • • Communication and initiatives on market topics • (reinsurance) • • Developing private and public websites • Industrial risks Committee project • • Search of new members and associates Association of reinsurance professionals in France

21. 2009-2010: Actions • APREF has undertaken a number of actions, in particular : • •Talks with the Treasury and politicians (Agriculture, Natural catastrophes, • Bodily Injury & Medical hearings) • • Notes on market topics such as Agriculture, Natural Catastrophes, • Construction, Credit, LT Care, Civil Liability, Terrorism, Medical Liability… • • Catastrophes Commission working on exposures in market branches • • Monitoring APREF-FFSA common position on Paris market place and • proposals (Market Place High Committee), creation of a commission on • attraction subjects • • Setting up new WGs on technical and legal subjects • • News and memos availableon : apref.org Association of reinsurance professionals in France

22. French market : post-crisisIssues Paris Market Place •Financial: development (Market Place High Committee, Paris Europlace) •Attractiveness: developing means, social and tax environment •Insurance: cooperation between insureds, insurers, brokers and reinsurers •Reinsurance: improvement (environment and the industry) •Security: a risks holistic view and improving the market place mechanisms The State key role: insurability and protection of the insured as •The last resort reinsurer (insurability and security) •Incentive to a better global cover (businesses and individuals) •A guarantee for fair treatment (all compensation schemes) •Risks monitoring and restricted liabilities (Public Private Partnerships) Association of reinsurance professionals in France

23. Post crisis Regulation • Catastrophe Risks: • •Insurers/reinsurers: global approach (Controls, Rating Agencies) • •Catastrophe Perils : better analysis and cover (terrorism, pandemic..) • Regulation/supervision • •Regulation (G20, EC, IAIS): standards, practices, models review • •Solvency II: reconsider the scenarios on market catastrophe (CEIOPS) • •Macro/micro supervision : monitoring of systemic risks (EU) • •IFRS: limit volatility linked to accounting standards • Systemic risk • •Risk considered as limited in reinsurance (G30 report, P. Volcker, 2006) • •Global surveys (The Geneva association, IAIS, FSB) • •Regulation to refine (EU, USA)

24. Reinsurance in France: facts and challenges Reinsurance market: Facts •World market, regulation and tax competition •Fragmented representation: •Worldwide(GRF - Global Reinsurance Forum) •Regional(RAB - CEA Reinsurance Advisory Board) •Local(ABER, ABIR, APREF, DIMA, RAA, RRC) French market: •Specific local characteristics •Cessions and underwriting: linked development •On average, stands up better to the crisis Challenges: •Reinsurance: profession, tool and strategic channel to develop •Local monitoring very important todevelop and improve the Market place •Aim for alocal market to be transparent, competitive, secure and efficient Association of reinsurance professionals in France

25. Paris Market Place Reinsurance : trends Professionalisation and development of the reinsurance industry •Head offices, offices and subsidiaries of major reinsurers •Reinsurance brokerage •Captives (insured and insurers) •Cessions entities •Market place tools (GIE) •Run-off businesses •Consultants Staff concentration around the Market’s major players •Reinsurers established in France • Reinsurance brokerage •In development: captives, Run-off Association of reinsurance professionals in France

26. The PARIS Market Place: Insurance/ Reinsurance • 2009 Estimation in volume of premiums • •Non Life cessions (to professional reinsurers) • ~ 3,85 Bn Euros • 5th world market (3,5%) • •Life cessions (to professional reinsurers) • ~ 1,9 Bn Euros • 4th world market (4,5%) • •Reinsurance underwriting (from France, by professional reinsurers) • ~ 5,5 Bn Euros • 6th world market (3,5%) • •Reinsurance brokerage • ~ 0,175 Bn Euros • 3rd world market (5%) Association of reinsurance professionals in France

27. Paris Market Place Reinsurance : development • Development of the Reinsurance market place • •Ensure the reinsurance expertise and the quality of supervision • •Reinforce the Market Place regulation and tax security • Adjust the reinsurance taxation • • As acts as a limitation to maintain the actual reinsurers and to attract new players to the Market Place • While taking into account the reinsurance international profile Association of reinsurance professionals in France