The New Landscape: Building Competitive Advantage in the Entrepreneurial Insurance Symposium

1. 2010 Entrepreneurial Insurance SymposiumThe New Landscape; Building Competitive Advantage Text Goes Here 00/00/00 Tuesday, September 14, 2010 Kevin H. Kelley Chief Executive Officer Ironshore, Inc.

2. Uncertainty Is The Hallmark OfThe First Decades Of This Century • September 11, 2001 • Hurricane Katrina • Credit Crisis • British Petroleum – Deepwater Horizon • Unchartered Waters

3. Uncertainty Will Drive Behavior;Increase Risk Premium • Drive Syndication / Diversification • Counter-Party Concerns • Many Examples: British Petroleum, Lehman Brothers, AIG, etc.

4. Challenge Of Regulation • Regulation Will Deal With The Past, Creating A Different Future • Managing Size Will Be A Supreme Challenge • Opportunity Cost Of Compliance Could Be Fatal

5. So What? • The Big Will Be Smaller • Markets Will Be Less Concentrated “Basic Change Is The Result Of A Confluence Of Forces, Rarely Just One Force. Always Ask Yourself If There Are Enough Different Forces Pushing In The Same Direction Before You Make A Judgment.” - John Naisbitt Source: Capitalism 4.0 The Birth Of A New Economy In The Aftermath Of Crisis - By Anatole Kaletsky

6. Market Dynamics Are Shifting Financial crisis caused instability at many top insurers...creating significant opportunity to capture business and hire talented professionals Top Other Liability (Claims Made) Writers Top Excess & Surplus Lines Writers Source: SNL Statutory Information. Source: A.M. Best.

7. Creative Disruption • Creative Disruption Versus Destruction • Opportunity Or Threat

8. Traits Needed To Succeed • Agility And Nimbleness = Pace • Flexible Operating Strategies • Innovation • Efficient Delivery Of Increased Expectations • Instinct Versus Models • Economic Models That Match Reward And Risk

9. Building Competitive AdvantageWithin This New Normal; The Alpha • Distribution – Defining The Objective • Cost – Control • Product Leadership Ambition • People – Getting, Developing And Keeping – Culture

10. The Entrepreneurial Class IsAmerica’s Competitive Advantage • Entrepreneurialism Changes Lives • Risk And Reward • Concepts That Support; The Business Judgment Rule

11. Building An Entrepreneurial Culture • Performance Based • Individual Accountability – Small Units • Ownership

12. Opportunity • See It • Seize It • Create Value From It