Catastrophe Risk Tolerance Study Public Disclosures by Sector Year-End 2019 Contents

Catastrophe Risk Tolerance Study Public disclosures by sector Year-end 2019 Contents

Section 1 Overview and Key Findings Section 2 Analysis of Disclosure Data Section 3 Risk Tolerance Metrics Disclosure Section 4 Risk Tolerance Summary

Proprietary & Confidential 2 Section 1: Overview and Key Findings

3 2000 - 2019 Catastrophe Insured Losses

. Insured losses from natural disasters in 2019 reached USD71 billion and were significantly lower than the record USD157 billion in 2017 and USD100 billion in 2018 . However, despite the major reduction in 2019, payouts from public and private insurance entities were higher than both the 21st century average (USD67 billion) and median (USD59 billion) . After driving exceptional insured losses in 2017 and 2018, the wildfire peril contributed to catastrophe losses once again in 2019 – but substantially less than the previous two years

180 Other Drought Winter Weather Wildfire EU Windstorm Earthquake Flooding Severe Weather Tropical Cyclone

160

140

120

100 $ Bn (2019)

0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Source: Aon’s Analytics Division in Reinsurance Solutions

Proprietary & Confidential 4 Catastrophe Risk Tolerance Study Overview

Composition Disclosure . Includes 91 unique re(insurers) on a global basis that report Primary Source Secondary Source catastrophe loss information in their financial disclosures 100% . Percentage reporting has been relatively flat over the last few years 12% 6% 7% with a spike in 2013; most companies provide catastrophe 75% 19% 15% 14% 13% disclosures on a consistent basis . 84% of the industry disclosed some type of information relating to 50% catastrophe risk tolerance, which is higher than that of the year-end 76% 77% 2018 disclosure; the percentage of "primary" source disclosures 69% 69% 68% 69% 73% increased slightly to 77% 25%

0% 2013 2014 2015 2016 2017 2018 2019

Data Sources 2018 2019 2018 (%) 2019 (%) Primary 68 70 76% 77% 10K Reports 41 43 46% 47% Annual Reports 25 25 28% 27% Investor / Analyst Presentations 2 2 2% 2% Secondary 5 6 6% 7% A.M. Best Reports 5 6 6% 7% Not Disclosed 16 15 18% 16% Totals 89 91 100% 100%

Note: The following companies were part of the 2018 study but are not included in the 2019 study due to M&A activity: Aspen Insurance Holdings Limited, EMC Insurance Group Inc. The following companies were added to the 2019 study: NI Holdings Inc, ProSight Global Inc., Sirius International Insurance Group Ltd., Watford Holdings Ltd. Population excludes (re)insurers from Medical Professional Liability, Life & Health, Financial / Mortgage Guaranty and Title sectors

Proprietary & Confidential 5 Key Findings of Catastrophe Risk Tolerance Study

. Approximately 84% of companies disclosed risk tolerance or related information, of which approximately half of the disclosures were through PML figures (Net):

Undetermined / Disclosure Type Percentage Disclosed as Target Disclosed as Actual Not Disclosed Count PML Figure (Net) 40% 12 24 0 36 As Part of Reinsurance Discussion 32% 0 29 0 29 Other Disclosure Type 12% 1 4 6 11 Undetermined / Not Disclosed 16% 0 0 15 15 Totals 100% 13 57 21 91

. Disclosures varied by sector. More than 50% of the disclosures made by Commercial Lines and Reinsurance companies were through net PML, while reinsurance structure was the most common form of disclosure for Personal and Specialty Lines . Aon’s post-Katrina risk tolerance study indicates that a catastrophe event can range from 3 – 6% of equity for primary companies and 12 – 19% of equity for reinsurers before impacting stock price by more than 10% – The average 100yr PML risk tolerance disclosure for primary and reinsurance companies is in-line with Aon’s post-Katrina study and falls in line with 2017 Harvey, Irma & Maria (HIM) results

Proprietary & Confidential 6 “View of Risk” Poll Results (From A.M. Best’s Review Preview Session)

Aon hosted a roundtable session at AM Best’s Review & Preview Conference in March 2020 on “Developing Management View of Catastrophe Risk” The session included a discussion of risk management practices and insights on how to use traditional model output with other factors in developing management’s view of potential loss accumulation. Below are audience poll results from that session.

How does your firm obtain analysis on What catastrophe model results form When was the last time your company catastrophe exposure? “management view” of risk? re-evaluated its model selection & assumptions in determining “management view” of cat risk? Developed in-house model AIR only

License a catastrophe RMS only Within the last 2 years model Blend License multiple models 3 to 5 years ago Customized Broker or other advisor Other More than 5 years ago

0% 20% 40% 60% 0% 20% 40% 60% 0% 20% 40% 60%

What probable maximum loss (PML) Other than PML analysis, what analysis What “model miss” factors concern you return period does your company target is used to determine catastrophe the most about your firm’s catastrophe to protect to when determining reinsurance limit? exposure? catastrophe reinsurance limit?

Deterministic events Climate change 100 to 150 year Hazard & vulnerability 150 to 200 year assumptions Exposure accumulations Regulatory intervention 200 to 250 year Recast of historical event Above 250 year Social inflation

0% 20% 40% 60% 0% 20% 40% 60% 0% 20% 40% 60%

Proprietary & Confidential 7 Event Studies: Katrina and Harvey, Irma & Maria (HIM)

Typical CRO / CFO risk tolerance questions . What proportion of one year’s earnings can be lost in a single event without an adverse stock price reaction? . What proportion of GAAP equity? Post-event share price decline best predicted by reported Katrina losses alone, rather than Katrina, Rita and Wilma losses combined . Indicates a greater sensitivity to a single large loss than an aggregation of events (Re)insurers losing less than 10% of shareholder value had Katrina losses in the following ranges, which are consistent with recent PML public disclosures

Katrina - Cat Loss as % of * HIM - Cat Loss as % of * Prospective Prospective Sector Equity Consensus Earnings Equity Consensus Earnings Primary Insurers 3% to 6% 21% to 34% 3% to 6% 24% to 44% Reinsurers 12% to 19% 107% to 110% 7.5% to 10% 64% to 81%

HIM observations: . Six primary insurers had more than a 10% drop in stock price, all of which had more than a 6% hit to equity from HIM – 21 publicly traded insurers traded down more than 10% at some point – For primary insurers with less than 10% drop in shareholder value, there is an average total cat loss to equity of 3% . Five reinsurers had a loss of more than 10% to shareholder value, with an average total cat loss to equity of 10% – 11 reinsurers traded down more than 10% at some point – Reinsurers that did not lose more than 10% of shareholder value had an average total cat loss to equity of 6%

* Shown on a net post-tax basis

Proprietary & Confidential 8 Catastrophe Risk Tolerance Disclosure Trend Analysis Sample Composite PML Target Ranges Post-Tax Detail

Post-Tax Net PML as a Percent of Equity: Primary Insurers

1 in 100yr 1 in 250yr Count Median Max Count Median Max 2019 12 6% 18% 16 9% 36% 2018 13 7% 22% 16 10% 32% 2017 15 7% 19% 17 11% 23%

Post-Tax Net PML as a Percent of Equity: Reinsurers

1 in 100yr 1 in 250yr Count Median Max Count Median Max 2019 5 8% 16% 8 11% 23% 2018 5 8% 15% 8 12% 21% 2017 6 8% 15% 9 12% 21%

Note: The composite for 2019 consists of 35 companies across all sectors where definitive (100YR or 250YR) PML targets or actuals were disclosed. There were 36 companies in the 2018 composite, 33 companies in the 2017 composite, and 32 companies in the 2016 composite. Where companies reported an actual instead of a target we assumed the actual was their target. Due to a limited dataset, results should be used for informational purposes only. An assumed effective 21% tax rate for insurers and 15% for reinsurers was used by Aon as needed for level setting since some firms disclosed pre-tax and others post-tax. *The PMLs analyzed include those specified as all peril and all regions as well as specific peril by specific region

Proprietary & Confidential 9 Companies Disclosing 100yr, 200yr and 250yr net PML

PML disclosures varied by sector. The majority of Specialty Lines, Commercial lines and Reinsurance companies disclosed 250-yr net PML figures, whereas Personal lines disclosed mostly 100yr net PML figures

Personal Commercial

40% 14% 36.4% 12.4% 11.9% 11.9% 35% 12%

30% 10% 8.9% 8.5% 25% 8% 20% 17.8% 6.2% 6.0% 5.5% 6% 5.0% 15% 3.5% 3.6% 4% 3.0% 10% 6.1% 6.4% 6.8% 5.0% 2.0% 2.0% 1.4% 5% 2% 0.7% 0% 0% ALL FNHC HCI SAFT AV/ LN KINS IAG AU CINF SIGI AIG CB TRV SIGI DLG LN TLX CINF SIGI AIG TRV CB FFH HIG 1:100 Post-Tax PML/SHE 1:200 Post-Tax 1:250 Post-Tax PML/SHE 1:100 Post-Tax PML/SHE 1:200 Post-Tax PML/SHE 1:250 Post-Tax PML/SHE PML/SHE

Reinsurance Specialty

25% 22.9% 25%

19.5% 19.8% 20.2% 20% 20% 18.0% 17.4% 17.5% 17.0% 15.7% 15.9% 14.8% 15% 15% 11.9% 11.9% 9.9% 8.9% 9.1% 10% 8.1% 8.6% 8.2% 8.5% 10% 8.1% 6.7% 4.8% 5% 5% 1.6% 1.8% 0.7% 0.8% 0.7% 0% Y Y 0% RE RE SG SG AXS AXS PRE PROS AFG LRE LN HSX LN PROS AFG PLMR RLI LRE LN ACGL BEZ LN GLRE SREN WTRE

SCR.PA 1:100 Post-Tax PML/SHE 1:200 Post- 1:250 Post-Tax PML/SHE HNRI:GR HNRI:GR HNRI:GR MUV2:GY Tax Note: Assumed1:100 Post-Tax pre-tax PML/SHE PMLs for 1:200 companies Post-Tax PML/SHE that do not disclose 1:250 Post-Tax tax information PML/SHE PML/SHE

Proprietary & Confidential 10 Section 2: Analysis of Disclosure Data

11 Catastrophe Risk Tolerance Disclosure Distribution by Sector

Disclosures varied by sector, with Commercial Lines and Reinsurance companies using net PML most often, while reinsurance structure was the most common form of disclosure for Personal Lines and Specialty Lines

Commercial Lines Sector Personal Lines Sector

6% 7% 11% 25%

28% Net PML Net PML Reinsurance Structure 50% Reinsurance Structure Other Other None None

17% 57%

Specialty Lines Sector Reinsurance Sector

19%

31% 31% Net PML Net PML

Reinsurance Structure 13% Reinsurance Structure Other Other 3% None 69% None

34%

Proprietary & Confidential 12 Risk Metrics Disclosures

Actual vs. Target PML Aggregate vs. Occurrence

12 25

10 3 20 5 8 2 3 15 6 12 4 10 3 2 4 8 15 # Companies

7 # Companies 6 6 2 5 7 3 6 4 0 0 2 2 Commercial Personal Specialty Reinsurance Commercial Personal Specialty Reinsurance

Actual Target Aggregate Occurrence Both

All Peril vs. Regional PML Note: Includes companies reporting reinsurance structure

25 . Commercial, Specialty and Reinsurance lines carriers are more 20 inclined towards Actual PML 6 . All company composites predominantly report on an Occurrence 15 basis 10 . Actual PMLs are more concentrated towards Specific Peril Regional

# Companies 15 disclosures while Target PMLs are featured in more All Peril All 5 5 1 Regions disclosures 3 4 0 2 All Perils All Perils Specific Peril Specific Peril Regional All Regions Regional All Regions Actual Target

Proprietary & Confidential 13 Section 3: Risk Tolerance Disclosures

14 Catastrophe Risk Tolerance Public Disclosure

P&C Commercial Lines Sector

Metric Disclosures Risk Quantification Aggregate/ Company 100yr 200yr 250yr Other RPs (List) Metric Pre- or Post-Tax Actual/ Target Occurrence Allianz Group Other American International Group, Inc.  Net PML Pre-Tax Actual Aggregate Chubb Limited 10yr Net PML Pre-Tax Actual Both Cincinnati Financial Corporation 50yr, 500yr Net PML Post-Tax Actual Occurrence CNA Financial Corporation Reinsurance Structure Actual Occurrence Direct Line Insurance Group Plc  Net PML Pre-Tax Actual Occurrence Fairfax Financial Holdings Limited  Net PML Pre-Tax Target Aggregate Liberty Mutual Holding Company Inc. Reinsurance Structure Actual Both MS&AD Insurance Group Holdings, Inc. Other Actual Old Republic International Corporation None 25yr, 50yr, 150yr, Selective Insurance Group, Inc.  Net PML Post-Tax Actual Occurrence 500yr Sompo Japan Nipponkoa Holdings, Inc. Other Actual Talanx AG  Net PML Pre-Tax Actual Occurrence The Hartford Financial Services Group,  Net PML Pre-Tax Target Occurrence Inc. Tokio Marine Holdings, Inc. Other Actual Travelers Companies, Inc. 50yr, 1000yr Net PML Post-Tax Actual Occurrence Zurich Insurance Group Ltd. Reinsurance Structure Actual Both

Proprietary & Confidential 15 Catastrophe Risk Tolerance Public Disclosure

P&C Personal Lines Sector (1 of 2)

Metric Disclosures Risk Quantification Aggregate/ Company 100yr 200yr 250yr Other RPs (List) Metric Pre- or Post-Tax Actual/Target Occurrence The Allstate Corporation  Net PML Pre-Tax Target Aggregate Assicurazioni Generali SpA Other Aviva Plc  Net PML Pre-Tax Target Both AXA SA None Donegal Group Inc. Reinsurance Structure Actual Aggregate Echelon Financial Holdings Inc. Reinsurance Structure Actual Occurrence Erie Indemnity Company Reinsurance Structure Actual Aggregate Federated National Holding Company  Net PML Pre-Tax Actual Occurrence Hanover Insurance Group, Inc. Reinsurance Structure Actual Both HCI Group Inc.  50yr, 282yr, 323yr Net PML Pre-Tax Actual Occurrence Heritage Insurance Holdings, Inc.  Reinsurance Structure Actual Both Hilltop Holdings Inc. Reinsurance Structure Actual Both Horace Mann Educators Corporation Reinsurance Structure Actual Occurrence Insurance Australia Group Limited  1000yr Net PML Pre-Tax Target Aggregate

Proprietary & Confidential 16 Catastrophe Risk Tolerance Public Disclosure

P&C Personal Lines Sector (2 of 2)

Metric Disclosures Aggregate/ Company 100yr 200yr 250yr Other RPs (List) Risk Quantification Metric Pre- or Post-Tax Actual/ Target Occurrence Intact Financial Corporation 500yr Other Actual Aggregate Kemper Corporation Reinsurance Structure Actual Both Kingstone Insurance Company  Net PML Pre-Tax Target Occurrence MAPFRE SA None Mercury General Corporation Reinsurance Structure Actual Occurrence National General Holdings Corporation Reinsurance Structure Actual NI Holdings, Inc Reinsurance Structure Actual Occurrence Progressive Corporation Reinsurance Structure Actual Occurrence Royal & Sun Alliance Insurance Plc  Other Safety Insurance Group, Inc.  Net PML Post-Tax Actual Occurrence State Auto Financial Corporation Reinsurance Structure Actual Occurrence United Insurance Holdings Corp. Reinsurance Structure Both Aggregate Universal Insurance Holdings, Inc.  Reinsurance Structure Actual Occurrence Vienna Insurance Group AG Reinsurance Structure Actual Occurrence

Proprietary & Confidential 17 Catastrophe Risk Tolerance Public Disclosure

P&C Specialty Lines Sector (1 of 2)

Metric Disclosures Aggregate/ Company 100yr 200yr 250yr Other RPs (List) Risk Quantification Metric Pre- or Post-Tax Actual/ Target Occurrence American Financial Group, Inc. 500yr Net PML Pre-Tax Actual Occurrence Amerisafe, Inc. Reinsurance Structure Actual ARCH Capital Group, Ltd.  Net PML Pre-Tax Target Occurrence Argo Group International Holdings, Ltd. None Assurant, Inc. Reinsurance Structure Actual Occurrence Baldwin & Lyons, Inc. None Beazley Plc  Net PML Pre-Tax Actual Occurrence CV Starr None Employers Holdings, Inc. Reinsurance Structure Actual Occurrence First Acceptance Corporation None Global Indemnity Plc Reinsurance Structure Actual Occurrence Hallmark Financial Services, Inc. None Hiscox Limited  Net PML Pre-Tax Target Occurrence James River Group Holdings, Ltd. 1000yr Net PML Pre-Tax Target

Proprietary & Confidential 18 Catastrophe Risk Tolerance Public Disclosure

P&C Specialty Lines Sector (2 of 2)

Metric Disclosures Aggregate/ Company 100yr 200yr 250yr Other RPs (List) Risk Quantification Metric Pre- or Post-Tax Actual/ Target Occurrence Kingsway Financial Services Inc. None Lancashire Holdings Limited  Net PML Pre-Tax Actual Occurrence Markel Corporation None Navigators Group, Inc. Other Palomar Holdings, Inc.  Net PML Pre-Tax Actual Occurrence ProSight Global, Inc.  Net PML Pre-Tax Actual Aggregate RLI Corp.  Net PML Pre-Tax Actual Occurrence Sampo Plc Reinsurance Structure Actual Occurrence State National Companies Inc. None Suncorp Group Limited Reinsurance Structure Actual Occurrence Topdanmark A/S Reinsurance Structure Actual Occurrence Unico American Corporation Reinsurance Structure Actual Aggregate United Fire Group, Inc. Reinsurance Structure Actual Occurrence W. R. Berkley Corporation Reinsurance Structure Actual Occurrence White Mountains Insurance Group, Ltd. None

Proprietary & Confidential 19 Catastrophe Risk Tolerance Public Disclosure

P&C Reinsurance Sector

Metric Disclosures Aggregate/ Company 100yr 200yr 250yr Other RPs (List) Risk Quantification Metric Pre- or Post-Tax Actual/ Target Occurrence Alleghany Corporation  Net PML Post-Tax Actual Occurrence AXIS Capital Holdings Limited 50yr Net PML Pre-Tax Actual Both Berkshire Hathaway Inc. Other Pre-Tax Target Aggregate China Reinsurance (Group) Corporation Other 20yr, 50yr, Everest Re Group, Ltd.  Net PML Pre-Tax Target Occurrence 500yr, 1000yr Greenlight Capital Re, Ltd.  Net PML Pre-Tax Actual Aggregate Hannover Rück SE  Net PML Pre-Tax Target Aggregate Maiden Holdings, Ltd. None Münchener Rückversicherungs-Gesellschaft AG  Net PML Pre-Tax Actual Occurrence Partner Re  500yr Net PML Pre-Tax Actual Occurrence RenaissanceRe Holdings Ltd. None SCOR SE  Net PML Pre-Tax Target Occurrence Sirius International Insurance Group, Ltd.  Net PML Post-Tax Actual Aggregate Swiss Re Limited  Net PML Pre-Tax Actual Occurrence Third Point Reinsurance Ltd. None Watford Holdings Ltd.  Net PML Pre-Tax Actual Both

Proprietary & Confidential 20 Section 4: Risk Tolerance Summary

21 Catastrophe Risk Tolerance Public Disclosure

P&C Commercial Lines Sector

Disclosed Risk Tolerance Company Actual/ Target 1:100 1:200 1:250 Summary Source Date Allianz Group N/A - - - In 2019, Allianz SE’s natural catastrophe slightly increased by € 32 mn. The top five Allianz Group 2019 Annual 12/31/2019 scenarios contributing to the natural catastrophe risk of Allianz SE as of 31 Report, Risk Management December 2019 were a windstorm in Europe, a tropical cyclone in Japan, a tropical Section, Page29 cyclone in Australia, an earthquake in Italy, and an earthquake in Australia. The non- catastrophe and terror premium risk of Allianz SE slightly decreased by € 19 mn in 2019.

American International Group, Actual 2.6% - 7.6% For 100-year return period scenario, Occurrence Exceedance Probability (OEP) American International 12/31/2019 Inc. losses are $1.74B (net of 2019 reinsurance,pre tax) for US Hurricane and $0.564B Group 2019 10-K Filing, for Japanese Wind. For 250-year return period scenario, Occurrence Exceedance Natural Catastrophe Risk Probability (OEP) losses are $5.119B (net of 2019 reinsurance, pretax) for World- section, Page 161 wide all peril, $1.411B (net of 2019 reinsurance, pre tax) for US Earthquake and $0.632B for Japanese Earthquake. Total Shreholders equity as of 12/31/2019 is $67.42bn.

Chubb Limited Actual 6.9% - 11.3% Their modeled annual aggregate pre-tax probable maximum loss (PML), net of Chubb limited 2019 10-K 12/31/2019 reinsurance, for 100-year return period for U.S. hurricane and California earthquake Filing, Catastrophe at December 31, 2019 is 4.9% and 2.4% of the total shareholders' equity, Management Section, Page respectively and for 250-year return period for U.S. hurricane and California 84 earthquake, PML is 8.5% and 2.7% of the total shareholders' equity, respectively.

Cincinnati Financial Actual 1.4% - 3.6% We use the Risk Management Solutions (RMS) and Applied Insurance Research Cincinnati Financial Corp 12/31/2019 Corporation (AIR) models to evaluate exposures to a once-in-a-100-year and a once-in-a-250- 2019 10-K Filing, year event to help determine appropriate reinsurance coverage programs. In Reinsurance Programs conjunction with these activities, we also continue to evaluate information provided section, Page 123 by our reinsurance broker. (Net PML for 1:50 Year, 1:100 Year, 1:250 Year and 1:500 based upon RMS is 1.3%,1.4%, 3.6% and 6.6% of total equity and based upon AIR is 1.3%, 1.4%, 2.7% and 5.3% of total equity). Shareholders Equity as of 12/31/2019: $9.86 bn). Net losses are net of reinsurance and income tax.

CNA Financial Corporation Actual - - - We purchased corporate catastrophe excess-of-loss treaty reinsurance covering our CNA Financial Corporation , 12/31/2019 U.S. states and territories and Canadian property exposures underwritten in our 2019 10 K Filing, North American and European companies. Exposures underwritten through Hardy Catastrophe and are excluded. The treaty has a term of January 1, 2019 to May 1, 2020. The 2019 Reinsurance Section, Page treaty provides coverage for the accumulation of losses from catastrophe 32 occurrences above our per occurrence retention of $250 million up to $1.0 billion. Losses stemming from terrorism events are covered unless they are due to a nuclear, biological or chemical attack. All layers of the treaty provide for one full reinstatement. (Shareholders Equity as of 12/31/2019 is $12.2bn)

Direct Line Insurance Group Actual - 4.4% - Catastrophe reinsurance to protect against an accumulation of claims arising from a Direct Line Insurance Group 12/31/2019 Plc natural perils event. The retained deductible is 15.6% of gross earned premium Plc 2019 Annual report , (£132.5 million at 31 December 2019) and cover is placed annually on 1 July up to a Reinsurance section, Page modelled 1-in-200 year loss event of 133.6% of gross earned premium (£1,132.5 40 million at 31 December 2019).(Shareholders Equity as of 12/31/2019 is £2,990.1 million)

Information in red is disclosed on a post-tax basis

Proprietary & Confidential 22 Catastrophe Risk Tolerance Public Disclosure

P&C Commercial Lines Sector

Disclosed Risk Tolerance

Actual/ Company Target 1:100 1:200 1:250 Summary Source Date Fairfax Financial Holdings Limited Target - - 15.0% The company’s objective is to limit its company-wide catastrophe loss exposure such Fairfax Financial 2019 12/31/2019 that one year’s aggregate pre-tax net catastrophe losses would not exceed one Annual Report, year’s normalized net earnings before income taxes. The company takes a long term Catastrophe Risk section, view and generally considers a 15% return on common shareholders’ equity, Page 108 adjusted to a pre-tax basis, to be representative of one year’s normalized net earnings. The modeled probability of aggregate catastrophe losses in any one year exceeding this amount is generally more than once in every 250 years.

Liberty Mutual Holding Company Actual - - - The Company has reinsurance coverage for its domestic business and certain Liberty Mutual Holding 12/31/2019 Inc. specialty operations including: 1) hurricanes and earthquake reinsurance covering a Company Inc. Q4 - 2019 substantial portion of $3.1 billion of loss in excess of $500 million of retained loss in Management’s Discussion the United States, Canada and the Caribbean, excluding certain reinsurance & Analysis - Page: 49 exposures; 2) aggregate 50 excess of loss programs; 3) quota share reinsurance programs; and 4) regional or country specific catastrophe reinsurance programs. These programs are structured to meet the Company’s established tolerances under its Enterprise Risk Management Program

MS&AD Insurance Group Actual - - - As of 3/31/2020, MS has catastrophe reserves of JPY 550 (USD 5.1 B ) and AD has MS&AD 2019 Supplement 3/31/2020 Holdings, Inc. catastrophe reserves of JPY 299B (USD 2.8 B). MS has catastrophe risk of JPY Report, page 23,27 3/31/2020 131B (USD 1.2 B) and AD has catastrophe risk of JPY 87B (USD 810.4 M) . MS&AD: FY2019 Second As of 03/31/2020, MS&AD's risk amounted to JPY2.4Tn (USD 22.25 B ) calculated Information Meeting, page as 99.5% VaR. [Stockholders Equity as of 03/31/2020 is JPY2,494.04 bn (USD 68 23.17 B)]

Old Republic International N/A - - - No risk tolerance metrics indicated N/A N/A Corporation

QBE Insurance Group Limited N/A - - - In 2019, we reset the Group’s reinsurance program which warranted a higher QBE Insurance Group 12/31/2019 allowance for large individual risk and catastrophe claims. 2019 Annual Report, General Overview Section, Page 16

Selective Insurance Group, Inc. Actual 2.0% 3.0% 5.0% Our current catastrophe reinsurance program exhausts at approximately 1 in 217 Selective Insurance 12/31/2019 year return period, or events with 0.5% probability, based on a multi-model view of Group 2019 10-K Filing, hurricane risk. 2.0% of equity after tax for 1:100 year event (OEP: 1%); 3% of equity page 53 after tax for 1:200 year event (OPE: 0.5%); 5% of equity after-tax for 1:250 year event (OEP: 0.4%) Shareholders Equity as of 12/31/2019: $2.19 bn

Sompo Japan Nipponkoa Actual - - - As of 3/31/2020, SOMPO Holdings has catastrophe reserves of JPY 463.6 B (USD Summary of Consolidated 3/31/2020 Holdings, Inc. 4.29 B ) and major catastrophe risk of JPY 149.95B (USD 1.39B) Financial Results for the As of 3/31/2020, SOMPO Holdings's risk amounted to JPY 1.2 Tn (USD11.12B ) fiscal year ended March calculated as 99.5% VaR. [Stockholders Equity as of 03/31/2020 is JPY1,612.6 bn 31, 2020 page 12, (USD14.99 B )] Highlights of FY2019 Results_Sompo Holdings, Inc. - page 44

Information in red is disclosed on a post-tax basis

Proprietary & Confidential 23 Catastrophe Risk Tolerance Public Disclosure

P&C Commercial Lines Sector

Disclosed Risk Tolerance

Company Actual/ Target 1:100 1:200 1:250 Summary Source Date Talanx AG Actual - 15.7% - The estimates for the 200-year net loss burdens for the Group are as follows: Talanx Group 2019 Annual 12/31/2019 Atlantic HU - EUR 2,605M; US EQ - EUR 2,350M; EU WS - EUR 1,151M; Asia Report, Reserving Risk - Pacific EQ (Japan also included) - EUR 1,692M; Central and South-American EQ - Concentration risk Section, Page EUR 1,600; EU EQ- EUR 1,226M; EU flood- EUR 811.(Total Shareholders Equity 113 as of 12/31/2019 is EUR 16,610M).

The Hartford Financial Target - - 15.0% The estimated pre-tax loss for a 1 in 250 single event net of reinsurance is less Hartford 2019 10-K Filing, Natural 12/31/2019 Services Group, Inc. than 15% of statutory surplus of the P&C operations. The estimated 250 year pre- catastrophe risk section , Page 85 tax probable maximum loss from earthquake events is estimated to be $1.1 Billion before reinsurance and $408 net of reinsurance. The estimated 250 year pre-tax probable maximum losses from hurricane events are estimated to be $1.8 billion before reinsurance and $906 net of reinsurance. (Stockholders Equity as of 12/31/2019 is $16,270 mn)

Tokio Marine Holdings, Inc. Actual - - - As of 3/31/2020, Tokio Marine & Nichido Fire has catastrophe reserve of JPY Tokio Marine Information about 3/31/2020 913.5Bn (USD8.47B ), Nisshin Fire & Marine Insurance has major catastrophe major subsidiaries 2020, page reserve of JPY 58Bn (USD550M) and Tokio Marine & Nichido Fire has catastrophe 11,17 risk of JPY 151.0 Bn (USD1.42B), Nisshin Fire & Marine Insurance has major Tokio Marine Group FY2019 catastrophe risk of JPY 7.6Bn (USD70.45 M) Results and FY2020 Profits, page As of 03/31/2020, Tokio Marine Group's risk amounted to JPY 2.7 Tn (USD25B) 29 calculated as 99.95% VaR. [Stockholders Equity as of 03/31/2020 is JPY 3426.7 bn (USD 31.84 B)]

Travelers Companies, Inc. Actual 6.2% - 8.5% Net, after-tax single U.S. hurricane 1:100 is6.2% and 1:250 is 8.5% while Net, after Travelers 2019 10-K Filing, 12/31/2019 tax single U.S. and Canadian EQ 1:100 is 2.7% and 1:250 is 4.6% (Total Catastrophe Modeling Section, Shareholders Equity as at 12/31/2019: $25.9 bn) Page 87

Zurich Insurance Group Ltd. Actual - - - All natural catastrophe losses in excess of the franchise deductible of USD 25 Zurich Financial Services 2019 12/31/2019 million. The Group uses traditional and collateralized reinsurance markets and Annual Report, Risk Review other alternatives to protect itself against extreme single events, multiple event Section, Page 144 occurrences across regions, or increased frequency of events. Specifically, to protect the Group against man-made and natural catastrophe scenarios. The Group participates in the underlying risks through its retention and through its co- participation in excess layers. The contracts are on a loss-occurrence basis except the Global Aggregate Catastrophe cover, which operates on an annual aggregate basis. The current catastrophe covers are placed annually with the exception of the USD 1 billion Global Catastrophe treaty, which is a three-year treaty expiring in 2021. In addition to these covers, the Group has some local catastrophe covers, a bilateral risk swap, and various line of business-specific risk treaties in place. These covers are reviewed continuously and are subject to change going forward.

Information in red is disclosed on a post-tax basis

Proprietary & Confidential 24 Catastrophe Risk Tolerance Public Disclosure

P&C Personal Lines Sector

Disclosed Risk Tolerance

Company Actual/ Target 1:100 1:200 1:250 Summary Source Date The Allstate Corporation Target 7.7% - - Our current catastrophe reinsurance program supports our risk tolerance Allstate Corp 2019 10-K 12/31/2019 framework that targets less than a 1% likelihood of annual aggregate Filing, Allstate Protection catastrophe losses from hurricanes and earthquakes, net of reinsurance, pricing and risk exceeding $2 billion. The use of different assumptions and updates to industry management strategies, models and to our risk transfer program could materially change the projected Page 12 loss. Growth strategies include areas where we believe diversification can be enhanced and an appropriate return can be earned for the risk. As a result, our modeled exposure may increase, but in aggregate remain lower than $2 billion as noted above. In addition, we have exposure to other severe weather events and wildfires, which impact catastrophe losses. Shareholders Equity as of 12/31/2019 $25.99bn

Assicurazioni Generali SpA N/A - - - In order to assess its catastrophe exposure and cover needs, Generali uses an Assicurazioni Generali 12/18/2019 internal model together with third-party independent models, such as RMS, S.P.A. AM Best Report CoreLogic and AIR. The largest catastrophe exposure of the group is an A.M. Best # 085124 earthquake in Italy; the other major cat exposures include a European windstorm, a European flood, and a flood in Italy.

Aviva Plc Target - 0.9% - The Group purchases a Group-wide catastrophe reinsurance programme to Aviva PLC 2019 Annual 12/31/2019 protect against catastrophe losses exceeding a 1 in 200 year return period. Report, Risk Management The total Group potential retained loss from its most concentrated catastrophe Section, Page 14 exposure peril (Northern Europe Windstorm) is approximately £150 million on a per occurrence basis and £175 million on an annual aggregate basis. Any losses above these levels are covered by the group-wide catastrophe reinsurance programme to a level in excess of a 1 in 200 year return period. (Shareholders Equity as of 12/31/2019 is £18,685 million)

AXA SA N/A - - - No risk tolerance metrics indicated N/A N/A

Donegal Group Inc. Actual - - - catastrophe reinsurance, under which Donegal Mutual and our insurance Donegal Insurance Group 12/31/2019 subsidiaries recovered, through a series of reinsurance agreements, 100% of 2019 10-K Filing, an accumulation of many losses resulting from a single event, including natural Reinsurance - Unaffiliated disasters, over a set retention of $10.0 million and after exceeding an annual Reinsurer Section, Page aggregate deductible of $1.2 million up to aggregate losses of $190.0 million 84 per occurrence.

Echelon Financial Holdings Actual - - - During 2019, the Company followed the policy of underwriting and reinsuring 2019 Consolidated 12/31/2019 Inc. contracts of insurance, which limits the net exposure of the Company to a Financial Statements, maximum amount on any one loss to $1,000 (2018 – $500) for auto and Echelon Financial liability and $500 (2018-$500) for property. In addition, the Company obtained Holgings, Underwriting catastrophe reinsurance which limits the loss from a series of claims arising Policy & Reinsurance from a single occurrence to $1,000 (2018 – $500), to a maximum coverage of Ceded section, Page 30 $29,000 (2018 – $99,500).

Information in red is disclosed on a post-tax basis

Proprietary & Confidential 25 Catastrophe Risk Tolerance Public Disclosure

P&C Personal Lines Sector

Disclosed Risk Tolerance

Actual/ Company Target 1:100 1:200 1:250 Summary Source Date Erie Indemnity Company Actual - - - For casualty risks, the maximum net retention per risk is $12.0 million, which includes A.M. Best Credit 6/25/2019 underlying and umbrella policies. Facultative reinsurance is purchased for any umbrella Report Page 9 policy with limits in excess of $12.0 million. For property risks, the maximum net retention per risk is $25.0 million. Facultative reinsurance is purchased for any property exposure greater than $25.0 million per risk. Property catastrophe reinsurance provides total coverage in four layers of $510 million excess of $400 million retention. The first layer provides coverage of 35% of $100 million excess of $400 million retention; the second layer provides coverage of 100% of $300 million excess of $500 million; the third layer provides coverage of 50% of $300 million excess of $800 million and the fourth layer provides coverage of 100% of $25 million excess $1.1 billion.

Federated National Holding Actual 8.0% - - 2018-2019 Excess of Loss Reinsurance Programs, with the February 21, 2018 acquisition Federated National 12/31/2019 Company of the minority interests of MNIC, the Company combined both FNIC and MNIC under a Holdings Company single program allowing the Company to capitalize on efficiencies and scale. FNIC and 2019 10-K Filing, MNIC’s combined 2018-2019 reinsurance program cost $148.8 million. This amount Reinsurance Programs included $102.7 million for the private reinsurance for the Company’s exposure, including Section, Page 74,75, prepaid automatic premium reinstatement protection, along with $46.1 million payable to FedNat Holding the FHCF. The combination of private and FHCF reinsurance treaties affords FNIC and Company - 4Q19- MNIC $1.8 billion of aggregate coverage with a maximum single event coverage totaling Investor-Deck - Page 9 $1.3 billion, exclusive of retentions. Both FNIC and MNIC maintained their FHCF participation at 75% for the 2018 hurricane season. FNIC’s 1-in-100 year single event pre-tax retention for a catastrophic event in Florida is $20.0 million. The combined reinsurance treaties provide approximately $1.3 billion of single-event reinsurance coverage in excess of a $27 million retention for catastrophic losses on the first event (and $15 million on the second and third events), including hurricanes, and aggregate coverage of $1.9 billion, at an approximate total cost of $224.1 million, of which FNIC's and MNIC's share of the cost is estimated to total $179.3 million. (Stockholders Equity as of 12/31/2019 is $248.693 mn)

Hanover Insurance Group, Inc. Actual - - - The property catastrophe occurrence program provides coverage, on an occurrence Hanover Insurance 12/31/2019 basis, up to $1.175 billion countrywide, less a $200 million retention, with no co- Group 2019 10-K participation, for all defined perils. Additionally, there is an aggregate feature, effective Filing, page 12 July 1, 2019 through June 30, 2020, which provides for up to $75 million of coverage in excess of $300 million in aggregate catastrophe losses. The catastrophe losses subject to the aggregate feature are limited only to those events that exceed $7.5 million of incurred losses per event.

HCI Group Inc. Actual 8.6% - - 2019-2020 Reinsurance Program provides 1st event cover for RMS v18 Long-Term HCI Group Inc. 3/5/2020 Hurricane, with Loss Amplification, excluding Storm Surge, without Secondary Uncertainty Investor Presentation with $16M Retention, exhaustion of $959M and limit of $943M ($959-$16M). They also March 2020, 2019- have limits for different events of 1 in 323 year event ($959M), 1 in 282 year event 2020 Reinsurance ($901M), 1 in 100 year event ($459M), 1 in 50 year event ($268M). They provide 2nd Program Section, event cover for Florida Hurricane Catastrophe Fund (FHCF). (Stockholders Equity as of Page 14 12/31/2019 is $185.5 mn)

Information in red is disclosed on a post-tax basis

Proprietary & Confidential 26 Catastrophe Risk Tolerance Public Disclosure

P&C Personal Lines Sector

Disclosed Risk Tolerance Actual/ Company Target 1:100 1:200 1:250 Summary Source Date Heritage Insurance Actual - - - Effective June 1, 2019, we entered into catastrophe excess of loss reinsurance Heritage Insurance Holdings 12/31/2019 Holdings, Inc. agreements covering Heritage Property & Casualty Insurance Company (“Heritage Inc. 2019 10-K Filing, P&C”), Zephyr Insurance Company (“Zephyr”) and Narragansett Bay Insurance Products and distribution Company (“NBIC”). The catastrophe reinsurance programs are allocated amongst Section, Page 15, 110 traditional reinsurers, catastrophe bonds issued by Citrus Re Ltd., a Bermuda special purpose insurer formed in 2014 (“Citrus Re”), the Florida Hurricane Catastrophe Fund (“FHCF”) and Osprey Re Ltd, our captive reinsurer. The 2019-2020 reinsurance program provides first event coverage up to $1.5 billion for Heritage P&C, first event coverage up to $708.0 million for Zephyr, and first event coverage up to $936.0 million for NBIC. Our first event retention for each insurance company subsidiary follows: Heritage P&C - $20.0 million; Zephyr - $20.0 million; NBIC – $13.8 million. The Company's estimated net cost for the 2019-2020 catastrophe reinsurance programs is approximately $249.2 million.

Hilltop Holdings Inc. Actual - - - Effective July 1, 2019, NLC renewed its catastrophic excess of loss reinsurance Hilltop Holdings Inc. 2019 12/31/2019 coverage for a one year-period. At December 31, 2019, NLC had catastrophic 10-K Filing, Page No 359 excess of loss reinsurance coverage of losses per event in excess of $8 million retention by NLIC and $2 million retention by ASIC. ASIC maintained an underlying layer of coverage, providing $6 million of reinsurance coverage in excess of its $2 million retention to bridge to the primary program. The reinsurance for NLIC and ASIC in excess of $8 million is comprised of three layers of protection: $12 million in excess of $8 million retention and/or loss; $25 million in excess of $20 million loss; and $50 million in excess of $45 million loss. NLIC and ASIC retain no participation in any of the layers, beyond the first $8 million and $2 million, respectively. At December 31, 2019, total retention for any one catastrophe that affects both NLIC and ASIC was limited to $8 million in the aggregate. NLC did not renew its underlying excess of loss contract that provides $10.0 million aggregate coverage in excess of NLC’s per event retention of $ 1.0 million and aggregate retention of $15.0 million for sub-catastrophic events through December 31, 2019. During 2019, NLC retained 37.5% participation in this coverage. Horace Mann Educators Actual - - - The Company maintains catastrophe excess of loss reinsurance coverage. For Horace Mann 2019 10-K 12/31/2019 Corporation 2019, the Company's catastrophe excess of loss coverage consisted of one contract Filing, Property & Casualty in addition to a minimal amount of coverage by the Florida Hurricane Catastrophe Reinsurance Section, page Fund. The catastrophe excess of loss contract provided 95% coverage for 8 catastrophe losses above a $25.0 million retention per occurrence up to $175.0 million per occurrence. This contract consisted of three layers, each of which provided for one mandatory reinstatement. The layers were $25.0 million excess of $25.0 million, $40.0 million excess of $50.0 million and $85.0 million excess of $90.0 million. The Company's 2020 catastrophe excess of loss coverage is unchanged from 2019. Information in red is disclosed on a post-tax basis

Proprietary & Confidential 27 Catastrophe Risk Tolerance Public Disclosure

P&C Personal Lines Sector

Disclosed Risk Tolerance Actual/ Company Target 1:100 1:200 1:250 Summary Source Date Insurance Australia Group Target - - 46.1% The ReMS outlines IAG's reinsurance principles, including the requirement that Insurance Australia 6/30/2019 Limited reinsurance retention for catastrophe must not exceed 4% of gross earned premium. Group 2019 Annual IAG purchases catastrophe reinsurance protection to at least the greater of: a 1-in-250 Report, Reinsurance risk year return period for earthquake loss calculated on a whole-of-portfolio basis for section, Page 69 Australia; and a 1-in-1000 year return period for earthquake loss calculated on a whole-of-portfolio basis for New Zealand. This is a more conservative view than APRA’s prescribed minimum approach of 1-in-200 year return period loss calculated on a whole-of-portfolio, all perils basis. A group catastrophe cover which is placed in line with the strategy of buying to the level of at least a 1-in-250 year earthquake event on a whole-of-portfolio basis. IAG's catastrophe reinsurance protection runs to a calendar year and operates on an excess of loss basis, with IAG retaining the first $250 million ($169 million post-quota share) of each loss. It covers all territories in which IAG operates. The limit of catastrophe cover purchased effective 1 January 2019 was $9 billion placed to 67.5%. In a very extreme loss event scenario, IAG could potentially incur a net loss greater than the retention. IAG holds capital to mitigate the impact of this possibility; (Shareholders Equity as of 6/30/2019 is AUD 6,710million) Intact Financial Corporation Actual - - - For multi-risk events and catastrophes, the Company retains participations averaging Intact Financial corp 2019 12/31/2019 5.5% as at December 31, 2019 (5.6% as at December 31, 2018) on reinsurance layers Annual Report, between the retention and coverage limit. The coverage limit prudently exceeds the Reinsurance section, Company's risk assessment of an earthquake in Western Canada at a 1-in-500-year Page 151 return period. As at January 1, 2020, the Company increased its coverage to $5,300 million and retains participations averaging 10.2% on reinsurance layers between the retention and coverage limit to increase its already conservative protection. Kemper Corporation Actual - - - Coverage for the property and casualty group's catastrophe reinsurance program is Kemper P&C Group AM 1/23/2020 provided by three multi-year excess of loss reinsurance contracts, one annual excess of Best Report #914, loss reinsurance contract, and an annual aggregate excess property catastrophe Reinsurance Section - reinsurance contract. In total, the excess of loss insurance contracts cover 95% of Page 8, 2019 10-K Filing - $225.0M in excess of $50.0M in various layers. Page 12 The second multi-year excess of loss reinsurance contract provides coverage over the three-year period of January 1, 2019 through December 31, 2021 (the “2019 Reinsurance Contract”). The 2019 Reinsurance Contract provides coverage in two layers, which together provide coverage for losses on individual catastrophes of $200 million in excess of $50 million, which is consistent with the coverage provided under the 2018 Reinsurance Contract. Under the 2019 Reinsurance Contract, the percentage of coverage is 31.66% for each year in the three-year period, and participation of each reinsurer remains the same over the entire three-year period. Accordingly, the 2019 Reinsurance Contract provides coverage for 31.66% of losses on individual catastrophes of $200 million in excess of $50 million in 2020.

Information in red is disclosed on a post-tax basis

Proprietary & Confidential 28 Catastrophe Risk Tolerance Public Disclosure

P&C Personal Lines Sector

Disclosed Risk Tolerance Company Actual/ Target 1:100 1:200 1:250 Summary Source Date Kingstone Insurance Company Target - - 6.4% The company purchased catastrophe reinsurance to provide coverage of up to Kingstone Insurances 12/31/2019 $610,000,000 for losses associated with a single event. One of the most 2019 10-K filing, commonly used catastrophe forecasting models prepared for us indicates that the Reinsurance Section, catastrophe reinsurance treaties provide coverage in excess of our estimated Page 15 probable maximum loss associated with a single more than one-in-250 year storm event. The direct retention for any single catastrophe event is $7,500,000. Effective December 15, 2019 losses on personal lines policies are subject to the 25% quota share treaty, which results in a net retention by us of $5,625,000 of exposure per catastrophe occurrence. Effective July 1, 2019, we have reinstatement premium protection on the first $292,500,000 layer of catastrophe coverage in excess of $7,500,000. This protects us from having to pay an additional premium to reinstate catastrophe coverage for an event up to this level. (Stockholders Equity as of 12/31/2019 is $88.22mn) MAPFRE SA N/A - - - No risk tolerance metrics indicated N/A N/A Mercury General Corporation Actual - - - The Company is party to a Catastrophe Reinsurance Treaty ("Treaty") covering a Mercury 2019 10-K 12/31/2019 wide range of perils that is effective through June 30, 2020. For the 12 months Filing, Reinsurance ending June 30, 2020, the Treaty provides $600 million of coverage on a per Section Page 18 occurrence basis after covered catastrophe losses exceed the $40 million Company retention limit. The Treaty specifically excludes coverage for any Florida business and for California earthquake losses on fixed property policies such as homeowners but does cover losses from fires following an earthquake. In addition, the Treaty excludes losses from wildfires on 89.5% of certain coverage layers of the Treaty. For the 12 months ended June 30, 2019, the Treaty provided $205 million of coverage on a per occurrence basis after covered catastrophe losses exceeded the $10 million Company retention limit. The Treaty specifically excluded coverage for any Florida business and for California earthquake losses on fixed property policies such as homeowners, but did cover losses from fires following an earthquake. National General Holdings Actual - - - Effective May 1, 2019, the Company’s reinsurance property catastrophe excess of National General 12/31/2019 Corporation loss program, protecting the Company against catastrophic events and other large Holdings Corp 10K, losses, provides a total of $650,000 in coverage with one reinstatement with a Page 137 Catastrophe $70,000 retention for the first event and $50,000 for the second event. As of July Reinsurance 1, 2018, the casualty program provides $35,000 in coverage in excess of a $5,000 retention. Effective October 1, 2019, the Company renewed the casualty program, for which coverage and retention will remain in effect and unchanged. The Company pays a premium as consideration for ceding the risk. Effective July 1, 2019, the Reciprocal Exchanges renewed their property catastrophe excess of loss program providing a total of $480,000 in coverage with a $20,000 retention, with one reinstatement.

Information in red is disclosed on a post-tax basis

Proprietary & Confidential 29 Catastrophe Risk Tolerance Public Disclosure

P&C Personal Lines Sector

Disclosed Risk Tolerance

Company Actual/ Target 1:100 1:200 1:250 Summary Source Date NI Holdings, Inc Actual - - - Per risk excess of loss treaties provide coverage of $4.5 million excess $500,000 A.M. Best Credit Report 3/26/2019 ; for property risks and $11.4 million excess $600,000 for casualty. Nodak also Pg 8, Zurich Financial 12/31/2019 maintains facultative reinsurance covering $20 million excess $5 million per Services 2019 Annual property. The group maintains property catastrophe reinsurance protection Report, Reinsurance covering $78.6 million excess $10 million per occurrence. Crop hail losses are Section, Page 92 reinsured through a stop loss agreement providing 50 points of cover in excess of a 100% pure loss ratio up to a maximum limit of $6.56 million. Multi peril crop reinsurance is provided through the Standard Reinsurance Agreement with the Federal Crop Insurance Corporation (FCIC) with the group retaining approximately 90% of the business. Multi-peril crop exposure retained net of the FCIC cession is protected with a stop loss agreement providing 45 points of cover in excess of a 105% pure net loss ratio up to a maximum limit of $17.75.

Progressive Corporation Actual - - - We have several multiple-layer property catastrophe reinsurance contracts with Progressive Corporation, 12/31/2019 various reinsurers with terms ranging from one to three years; the minimum 2019 10 K, Commitments commitment under these agreements at December 31, 2019, was $96.1 million. and Contingencies section, page 111

Royal & Sun Alliance Insurance Plc N/A - - - Our catastrophe reinsurance covers flood, windstorms, hurricanes, wildfires and RSA Group 2019,Key 12/31/2019 other severe weather events, with special provisions providing additional risks and mitigants protection for prolonged or greater frequency events.Our reinsurance section, page 43,49 programme significantly reduces our exposure to catastrophe risks, with historical losses being well covered by our programme. The programme is designed to cover at least 1-in-200-year events and is stress-tested for climate change scenarios.

Safety Insurance Group, Inc. Actual 17.8% - - A comprehensive catastrophe reinsurance program reduces the net after-tax Safety Group AM Best 12/31/2019 (10 k) probable maximum loss (PML) expected to arise from a 100-year All Perils event Report #18080 ; 5/5/2020 (AMB) to 17.8% of year-end 2019 reported policyholders' surplus. Reinsurance Summary - For 2020, the group has purchased four layers of excess catastrophe page 8 , ; Safety reinsurance providing $615 million of coverage for property losses in excess of Insurance Group 2019 10- $50 million up to a maximum of $665 million. The reinsurers’ co-participation is K Filing, Reinsurance 50.0% of $50 million for the 1st layer, Section, Page 29 80.0% of $50 million for the 2nd layer, 80.0% of $250 million for the 3rd layer and 80% of $265 million for the 4th layer. As a result of the changes to the models, catastrophe reinsurance in 2020 protects the company in the event of a 137-year storm.

Information in red is disclosed on a post-tax basis

Proprietary & Confidential 30 Catastrophe Risk Tolerance Public Disclosure

P&C Personal Lines Sector

Disclosed Risk Tolerance

Company Actual/ Target 1:100 1:200 1:250 Summary Source Date State Auto Financial Corporation Actual - - - Property Catastrophe Treaty: Under this reinsurance agreement, we retain State Auto Financial Corp. 12/31/2019 the first $75.0 million of catastrophe loss, each occurrence, with a 5.0% co- 2019 10-K Filing, participation on the next $125.0 million of covered loss, each occurrence. Reinsurance The reinsurers are responsible for 95.0% of the catastrophe losses excess of Arrangements Section, $75.0 million up to $200.0 million, each occurrence. The State Auto Group is page 54 responsible for catastrophe losses above $200.0 million. There is also an automatic restatement of the limit, for 125% of the deposit premium. Property Per Risk Treaty: As of July 1, 2019, the State Auto Group renewed the property per risk excess of loss reinsurance agreement. This reinsurance agreement provides individual property risk coverage for the State Auto Group for losses exceeding $4.0 million. The reinsurers are responsible for 100.0% of the loss excess of the $4.0 million retention for property business up to $20.0 million of covered loss.

United Insurance Holdings Corp. Both - - - Our program includes excess of loss, aggregate excess of loss and quota United Insurance Holdings 12/31/2019 share treaties. Our excess of loss contract, in effect from June 1, 2019 Corp 2019 10-K Filing, through May 31, 2020, provides coverage for catastrophe losses from Reinsurance section, named or numbered windstorms and earthquakes up to an exhaustion point Page 88 of approximately $3,200,000,000. In addition to this contract, we have an aggregate excess of loss contract, effective January 1, 2019, which provides coverage for all catastrophe perils other than hurricanes, tropical storms, tropical depressions and earthquakes. We ceded $26,488,000 of catastrophe losses under this treaty for the year ended December 31, 2019.

Universal Insurance Holdings, Inc. Actual - - - Our 2019-2020 reinsurance program meets and provides reinsurance in Universal Insurance 12/31/2019 excess of the FLOIR’s requirements, which are based on, among other Holdings 2019 10-K Filing, things, the probable maximum loss that we would incur from an individual UPICC's Reinsurance catastrophic event estimated to occur once in every 100 years based on our Program, Page 8,30, portfolio of insured risks and a series of stress test catastrophe loss weather conditions in scenarios based on past historical events. Florida ,Page 14 UPCIC retains $43 million for First event All States and $10 million for First event Non-Florida retention. All States first event tower expanded to $3.34 billion, an increase of $170 million over the final 2018-2019 program. Assuming a first event completely exhausts the $3.34 billion tower, the second event exhaustion point would be $1.3 billion, an increase of $262 million over the final 2018-2019 program on the same assumptions. (Stockholders Equity as of 12/31/2019 is $493.901 mn)

Vienna Insurance Group AG Actual - - - It is Group-wide policy that no more than EUR 50 million for the first two VIG 2019 Annual Report, 12/31/2019 natural disaster events and EUR 20 million for each additional event can be Reinsurance Section, placed at risk on a PML (probable maximum loss) basis. The maximum Page 143 Group-wide retention per individual loss is less than EUR 15 million.

Information in red is disclosed on a post-tax basis

Proprietary & Confidential 31 Catastrophe Risk Tolerance Public Disclosure

P&C Specialty Lines Sector

Disclosed Risk Tolerance Actual/ Company Target 1:100 1:200 1:250 Summary Source Date American Financial Group, Inc. Actual 1.0% - 2.0% AFG generally seeks to reduce its exposure to catastrophes through American Financial Group 12/31/2019 individual risk selection, including minimizing coastal and known fault-line 2019 10-K Filing, Catastrophe exposures, and the purchase of reinsurance. Based on data available at losses section, page 97 December 31, 2019, AFG’s exposure to a catastrophic earthquake or windstorm that industry models indicate should statistically occur once in every 100, 250 or 500 years as a percentage of AFG’s Shareholders’ Equity are less than 1%, 2% and 6% respectively Amerisafe, Inc. Actual - - - In 2020, our first layer of reinsurance provides coverage for losses up to Amerisafe, Inc 2019 10-K, 12/31/2019 $10.0 million for each loss occurrence in excess of $2.0 million. Our second 2019 Excess of Loss layer of reinsurance (catastrophe reinsurance) provides $60.0 million in Reinsurance Treaty Program coverage for each loss occurrence in excess of $10.0 million. This layer Section, Page 26 includes coverage for terrorism including the use and/or dispersal of nuclear, biological, chemical and radiological agents with an annual aggregate limit of $60.0 million. The aggregate limit for all claims under this layer is $120.0 million. This layer provides coverage through December 31, 2020. ARCH Capital Group, Ltd. Target - - 25.0% Currently, we seek to limit our 1-in-250 year return period net probable ARCH Capital Group 2019 10- 12/31/2019 maximum loss from a severe catastrophic event in any geographic zone to K Filing, Natural Catastrophe approximately 25% of total shareholders’ equity available to Arch. We Risk section, Page 90 reserve the right to change this threshold at any time. Based on in-force exposure estimated as of January 1, 2020, our modeled peak zone catastrophe exposure is a windstorm affecting the Florida Tri-County, with a net probable maximum pre-tax loss of $612 million, followed by windstorms affecting northeastern U.S. and the Gulf of Mexico with net probable maximum pre-tax losses of $544 million and $521 million, respectively.(Shareholders Equity as of 12/31/2019 is $12,260 mn) Argo Group International Holdings, Ltd. N/A - - - No risk tolerance metrics indicated N/A N/A Assurant, Inc. Actual - - - Our reinsurance program generally incorporates a provision to allow for the Assurant 2019 10K,Page no 12/31/2019 reinstatement of coverage, which provides protection against the risk of 14 multiple catastrophes in a single year. For 2019, our property catastrophe reinsurance program includes U.S. per-occurrence catastrophe coverage providing $1.16 billion of protection in excess of $80.0 million of retention in the main reinsurance program, as well as multi-year reinsurance contracts covering approximately 35% of the reinsurance layers. All layers of the program allow for one automatic reinstatement, except the first layer which has two reinstatements and covers the first $40.0 million of losses in excess of the $80.0 million retention, and include a cascading feature that provides multi-event protection in which higher coverage layers drop down to $120.0 million as the lower layers and reinstatement limit are exhausted. The 2019 catastrophe reinsurance program also includes Caribbean catastrophe coverage providing $177.5 million of protection in excess of $17.5 million retention and Latin American catastrophe coverage providing $423.0 million of protection in excess of $4.5 million of retention. Additionally, in 2019, we placed coverage for a third event in the Caribbean, with protection of up to $27.5 million in excess of a $17.5 million retention. We placed approximately 68% of our 2020 catastrophe reinsurance program in January 2020.

Information in red is disclosed on a post-tax basis

Proprietary & Confidential 32 Catastrophe Risk Tolerance Public Disclosure

P&C Specialty Lines Sector

Disclosed Risk Tolerance Company Actual/ Target 1:100 1:200 1:250 Summary Source Date Baldwin & Lyons, Inc. N/A - - - No risk tolerance metrics indicated N/A N/A One of the largest types of event exposure relates to natural catastrophe events such as windstorm or earthquake. The group’s high level catastrophe risk appetite is set by the board and the business plans of each team are Beazley 2019 Annual determined within these parameters. The board may adjust these limits over Report, Risk Beazley Plc Actual - - 25.6% 12/31/2019 time as conditions change. In 2019 the group operated to a catastrophe risk Management Section, appetite for a probabilistic 1-in-250 years US event of $416.0m (2018: Page 160 $416.0m) net of reinsurance. This remains unchanged since 2018. (Shareholders Equity as of 12/31/2019 is $1,625.3 million) CV Starr N/A - - - No risk tolerance metrics indicated N/A N/A Employer's purchase reinsurance to protect us against the costs of severe claims and catastrophic events, including natural perils and acts of terrorism, excluding nuclear, biological, chemical, and radiological events. On July 1, 2019, we entered into a new reinsurance program that is effective through June 30, 2020. The reinsurance program consists of one treaty covering Employers Holdings excess of loss and catastrophic loss events in four layers of coverage. Our Employers Holdings, Inc. Actual - - - 2019 10-K Filing, page 12/31/2019 reinsurance coverage is $190.0 million in excess of our $10.0 million retention 31,133 on a per occurrence basis, subject to certain exclusions. The Company currently maintains reinsurance for losses from a single occurrence or catastrophic event in excess of $10.0 million and up to $200.0 million, subject to certain exclusions. This current reinsurance program is effective July 1, 2019 through June 30, 2020. First Acceptance Corporation N/A - - - No risk tolerance metrics indicated N/A N/A The Company’s current property writings create exposure to catastrophic events. To protect against these exposures, the Company purchases a property catastrophe treaty. Effective June 1, 2019, the Company purchased three layers of occurrence coverage for losses of $275 million in excess of $25 million. The first layer provides coverage of 50% of $25 million in excess of $25 million and can be reinstated twice at no additional charge. The second layer provides coverage of $50 million in excess of $50 million and is unable to Global Indemnity Plc be reinstated. The third layer provides coverage of $200 million in excess of 2019 10-K Filing, $100 million and includes one 100% paid reinstatement. The second layer also Global Indemnity Plc Actual - - - Reinsurance of 12/31/2019 includes a cascading feature. Any erosion of the first layer lowers the Underwriting Risk, Page attachment point of the second layer by the same amount. Should the second 10,11 layer of limit be exhausted and reinstated, the attachment point would be in excess of $50 million. Effective June 1, 2019, the Company renewed its agreement to cede 50% of its catastrophe losses which are above $3 million. The occurrence limit was reduced to $25 million and the aggregate limit was reduced to $75 million. This replaced the treaty which expired on May 31, 2019, which had an occurrence limit of $50 million and an aggregate limit of $150 million. Hallmark Financial Services, Inc. N/A - - - No risk tolerance metrics indicated N/A N/A

Information in red is disclosed on a post-tax basis

Proprietary & Confidential 33 Catastrophe Risk Tolerance Public Disclosure

P&C Specialty Lines Sector Disclosed Risk Tolerance Company Actual/ Target 1:100 1:200 1:250 Summary Source Date Hiscox Limited Target - 18.7% - The Board requires all underwriters to operate within an overall Group Hiscox 2019 Annual Report, 12/31/2019 appetite for individual events. This defines the maximum exposure that the Insurance risk section, Page Group is prepared to retain on its own account for any one potential 123, Casualty extreme loss catastrophe event or disaster. The Group’s underwriting risk appetite scenarios , Page 30 seeks to ensure that it should not lose more than 12.5% of core capital, defined as NAV plus subordinated debt less expected dividend less buffer capital, plus 100% of buffer capital ($135 million) with an allowance for expected investment income, as a result of a one-in-200 aggregate bad underwriting year. Property catastrophe : 1-in-200 year catastrophe event estimated losses are $410 million from US windstorm,. James River Group Holdings, Target - - - We have structured our reinsurance arrangements so that our modeled James River Group 2019 10-K 12/31/2019 Ltd. net pre-tax loss from a 1/1000 year probable maximum loss event is no Filing, Business Section, Page 7 more than $10.0 million on a group-wide basis. & Liquidity and Capital Based upon the modeling of our Excess and Surplus Lines and Specialty Resources Section, Page 156 Admitted segments, it would take an event beyond our 1 in 1000-year PML to exhaust our $45.0 million property catastrophe treaty. In the event of a catastrophe loss exhausting our $45.0 million property catastrophe treaty, we estimate our pre-tax cost at approximately $7.1 million, including reinstatement premiums and net retentions. In addition to this retention, we would retain any losses in excess of our reinsurance coverage limits. (Stockholders Equity as of 12/31/2019 is $778.6 mn). Kingsway Financial Services N/A - - - No risk tolerance metrics indicated N/A N/A Inc. Lancashire Holdings Limited Actual 10.3% - 22.8% The Group’s GOM Hurricanes net loss estimates (before income tax and Lancashire 2019 Annual 12/31/2019 net of reinstatement premiums and outwards reinsurances), as a Report, Insurance Risk section, percentage of capital (including long-term debt), for 100 year return period page 120 is ($139.7 mn) 10.3 % and for 250 year return period is ($311.0 mn) 22.8%. The Group’s Non - Gulf of Mexico - US Hurricanes net loss estimates (before income tax and net of reinstatement premiums and outwards reinsurances), as a percentage of capital (including long-term debt), for 100 year return period is ($72.8 mn) 5.3% and for 250 year return period is ($307.8 mn) 22.6%. Markel Corporation N/A - - - No risk tolerance metrics indicated N/A N/A Navigators Group, Inc. N/A - - - The company maintains catastrophe reinsurance to protect against A.M. Best Credit Report Pg 9 8/30/2019 catastrophic events within an acceptable range of expected outcomes on a PML basis. The Gulf of Mexico offshore energy windstorm exposures are currently contained within their retention. Palomar Holdings, Inc. Actual - - 2.3% As of January 1, 2020, we currently retain $5 million of risk per earthquake Palomar 2019 10-K Filing, 12/31/2019 or wind event, inclusive of any amounts retained through our Bermuda Reisnurance section page 17 reinsurance subsidiary, and our reinsurance program currently provides for coverage up to $1.2 billion for earthquake events, subject to customary exclusions, with coverage in excess of our estimated peak zone 1 in 250 year probable maximum loss (“PML”) event and in excess of our A.M. Best requirement. In addition, we maintain reinsurance coverage equivalent to or better than the 1 in 250 year PML for our other lines. As of December 31, 2019, our first event retention represented approximately 2.3% of our stockholders’ equity. (Shareholders Equity as of 12/31/2019 $218.6 mn)

Information in red is disclosed on a post-tax basis

Proprietary & Confidential 34 Catastrophe Risk Tolerance Public Disclosure

P&C Specialty Lines Sector

Disclosed Risk Tolerance

Company Actual/ Target 1:100 1:200 1:250 Summary Source Date We measure exposure to such catastrophe losses and LAE in terms of Probable Maximum Loss (“PML”), which is an estimate of the level of loss we would expect to experience in a windstorm or earthquake ProSight 2019 10-K Filing, event occurring once in every 100 or 250 yearsEffective June 15, 2019, we ProSight Global, Inc. Actual 0.9% - 0.9% Reisnurance section page 12/31/2019 purchased catastrophe reinsurance coverage of $195.0 million per event in 75 excess of our $5.0 million per event retention, which was an increase of $90.0 million of catastrophe reinsurance coverage per event from the coverage we purchased in 2018. (Shareholders Equity as of 12/31/2019 $543 mn)

Based on the CAT reinsurance treaty purchased on January 1, 2020, there is a 99.6 percent likelihood that the net loss will be less than 15.1 percent of policyholders’ statutory surplus as of December 31, 2019. The exposure levels are within our tolerances for this risk. RLI 2019 10-K Filing, The property reinsurance program consists of a per risk excess of loss treaty Property Reinsurance 12/31/2019 (10 with a $25,000,000 limit and maximum retention of $1,200,000, and a Section, page 11; AM k) RLI Corp. Actual - - 15.1% corporate catastrophe cover. For earthquake, there is a surplus share cover Best Report ; 11/07/2019 with a per risk limit of $25,000,000 and a maximum occurrence limit of #3883,Reinsurance (AMB) $154,000,000. Both the Per Risk and surplus covers are placed on a risk Section page 11 attaching basis, so a single event will access two treaty years. Marine is covered by an excess of loss treaty, with a total limit of $30,000,000 and maximum retention of $2,000,000.

Sampo plc 2019 Board of Directors' Report and A group-wide reinsurance program has been in place in IF P&C since 2003. In Financial Statements, 2019, retention levels were between MSEK 100 million (approximately EUR Sampo Plc Actual - - - Premium Risk and 12/31/2019 9.4 million) and MSEK 250 million (approximately EUR 23.6 million) per risk Catastrophe Risk and MSEK 250 million (approximately EUR 23.6 million) per event. Management and Control Section, Page 124

State National Companies Inc. N/A - - - No risk tolerance metrics indicated N/A N/A

The reinsurance program has been maintained for FY20. The program is provided by a range of reinsurers, with over 85% of protection provided by reinsurers rated ‘A+’ or better. From 1 July 2019, the upper limit on the main catastrophe program, which covers the Home, Motor and Commercial Suncorp Group Ltd. 2019 Property portfolios across Australia and New Zealand for major events, will Annual Report - Analyst remain unchanged at $7.2bn. The Group’s maximum event retention in Pack full year ended 30 Suncorp Group Limited Actual - - - Australia remains at $250m. Consistent with the FY19 program, the main 6/30/2019 June 2019, Group catastrophe program includes one prepaid reinstatement which covers losses Reinsurance Section, up to $7.2bn for a second event and two further prepaid reinstatements at the Page 21 lower layer which covers losses up to $500m for the third and fourth events. For New Zealand, the Group continues to purchase a program to reduce the first event retention to NZ $50m and the second and third event retentions to NZ $25m.

Information in red is disclosed on a post-tax basis

Proprietary & Confidential 35 Catastrophe Risk Tolerance Public Disclosure

P&C Specialty Lines Sector

Disclosed Risk Tolerance Actual/ Company Target 1:100 1:200 1:250 Summary Source Date Topdanmark A/S Actual - - - Storm and Rainstorms: Reinsurance covers storm claims of up to DKK Topdanmark A/S 2019 12/31/2019 5.1bn with a retention of DKK 100m. Snow loading, snow thawing and Annual Report, Disaster cloudburst are also covered. Reinstatement for the proportion of the risks Section, Page 63 cover used up is activated by payment of a reinstatement premium. In the event of another storm within the same year, there is cover of a further DKK 5.1bn with a retention of DKK 100m. In the event of a third and fourth storm, there is cover of up to DKK 670m with a retention of DKK 20m if the events occur within the same calendar year. To this should be added the cover not already hit twice by the first two storms. The cover of a third or fourth storm is dependent on the storm programme not having been hit previously by two individual storms each exceeding DKK 2.9bn. The storm programme is renewed on 1 July. Specific reinsurance cover of DKK 100m for cloudburst takes effect if accumulated annual cloudburst claims exceed DKK 50m. For a claim to be accumulated, the event must exceed DKK 10m. The maximum retention in the event of an extreme cloudburst is DKK 75m plus reinstatement premiums. Fire: Topdanmark has a proportional reinsurance programme for fire with a maximum retention of DKK 25m per claim on any one business. Unico American Corporation Actual - - - Crusader also has catastrophe reinsurance treaties from various highly Unico 2019 10-k, 12/31/2019 rated California authorized and California unauthorized reinsurance Reinsurance, Page 7 companies. These reinsurance treaties help protect Crusader against losses in excess of certain retentions from catastrophic events that may occur on property risks which Crusader insures. In calendar years 2019, 2018, and 2017, Crusader retained a participation in its catastrophe excess of loss reinsurance treaties of 5% in its 1st layer (reinsured losses between $1,000,000 and $10,000,000) and 0% in its 2nd layer (reinsured losses between $10,000,000 and $46,000,000). United Fire Group, Inc. Actual - - - The group also maintains catastrophe reinsurance which covers 100% United Fire & Casualty Co. 12/31/2019 of $230 million, excess of a $20 million retention, and includes one 2019 10k, Reinsurance automatic reinstatement Section, Page 96 W. R. Berkley Corporation Actual - - - The Company purchases property reinsurance to reduce its exposure W.R. Berkley 2019 10-K 12/31/2019 to large individual property losses and catastrophe events. Following is Filing, Reinsurance Section, a summary of significant property reinsurance treaties in effect as of Page 54 January 1, 2020: The Company’s property per risk reinsurance generally covers losses between $2.5 million and $60 million. The Company’s catastrophe excess of loss reinsurance program provides protection for net losses between $15 million and $395 million for the majority of business written by its U.S. Insurance segment operating units and Lloyd's Syndicate, excluding offshore energy. The Company’s catastrophe reinsurance agreements are subject to certain limits, exclusions and reinstatement premiums. White Mountains Insurance Group, Ltd. N/A - - - No risk tolerance metrics indicated N/A N/A

Information in red is disclosed on a post-tax basis

Proprietary & Confidential 36 Catastrophe Risk Tolerance Public Disclosure

P&C Reinsurance Sector

Disclosed Risk Tolerance

Actual/ Company Target 1:100 1:200 1:250 Summary Source Date Alleghany Corporation Actual 8.1% - 9.1% “Florida, Wind” and “Northeast U.S., Wind” have the highest modeled after-tax Alleghany 2019 10-K 12/31/2019 net catastrophe costs for a 100 and 250-year return period single zone Filing, Catastrophe occurrence, respectively. These costs would represent approximately 7 percent Exposure section, page and 8 percent, respectively, of stockholders’ equity attributable to Alleghany as 144 of December 31, 2019, compared with approximately 6 percent and 8 percent, respectively, for the highest modeled after-tax net catastrophe costs for a 100 and 250-year return period single zone occurrence as of December 31, 2018. There is much uncertainty and imprecision in the compilation of these estimates. Moreover, the makeup of our in-force business is constantly changing as new business is added and existing contracts terminate or expire, including contracts for reinsurance coverage purchased by us. In addition, there could be possible scenarios that are not captured in our analysis. Additionally, other risks, such as an outbreak of a pandemic disease, a major terrorist event, the bankruptcy of a major company or a marine and/or aviation disaster, could also have a material adverse effect on our business and operating results. Shareholders Equity as of 12/31/2019 $8.7bn

AXIS Capital Holdings Limited Actual 5.6% - 20.0% At the 1-in-250-year return period, we are not willing to expose more than 20% Axis Capital Holdings 12/31/2019 of our prior quarter-end common-equity from a single event within a single zone. Ltd 2019 10-K Filing, our modeled single occurrence 1-in-100-year return period PML for a Southeast Natural peril catastrophe U.S. hurricane, net of reinsurance, is approximately $0.3 billion. According to our risk section, page 15 modeling, there is a one percent chance that on an annual basis, losses incurred from a Southeast hurricane event could be in excess of $0.3 billion. Conversely, there is a 99% chance that on an annual basis, the loss from a Southeast hurricane will fall below $0.3 billion. (Shareholders Equity as of 12/31/2019 is $5,544 mn)

Berkshire Hathaway Inc. Target - - - We employ various disciplined underwriting practices intended to mitigate Berkshire Hathaway 12/31/2019 potential losses and attempt to take into account all possible correlations and 2019 10-K Filing, Risk avoid writing groups of policies from which pre-tax losses from a single Factors Section, Page catastrophe event might aggregate above $10 billion. Currently, we estimate that 25 our aggregate exposure from a single event under outstanding policies is significantly below $10 billion. However, despite our efforts, it is possible that losses could manifest in ways that we do not anticipate and that our risk mitigation strategies are not designed to address. Additionally, various provisions of our policies, such as limitations or exclusions from coverage, negotiated to limit our risks, may not be enforceable in the manner we intend. Our tolerance for significant insurance losses may result in lower reported earnings in a future period.(Shareholders Equity as of 12/31/2019 is $428.5bn)

China Reinsurance (Group) Corporation N/A - - - In terms of catastrophe risk management, China Re has licensed systems from China Reinsurance Corp 11/22/2019 both Risk Management Solutions, Inc. (RMS), and AIR Worldwide Corporation AM Best Report (AIR), and it performs catastrophe modeling internally. The group also #090958, Reinsurance continuously monitors its zonal risk aggregation. Section 7

Information in red is disclosed on a post-tax basis

Proprietary & Confidential 37 Catastrophe Risk Tolerance Public Disclosure

P&C Reinsurance Sector

Disclosed Risk Tolerance Company Actual/ Target 1:100 1:200 1:250 Summary Source Date Everest Re Group, Ltd. Target 7.8% - 9.7% Management estimates that the projected net economic loss from its largest Everest Re 2019 10-K 12/31/2019 100-year event in a given zone represents approximately 6% of its Filing, Risk Management December 31, 2019 shareholders’ equity. Company's PML exposure, net of of Underwriting and third party reinsurance for Southeast U.S. Wind, California Earthquake, Reinsurance Texas Wind for 1-in-100 year event is, $715M, $703M, $605M, respectively Arrangements section, and for 1-in-250 year is, $850M, $881M, $884M, respectively. Net economic Page 13 losses, defined as PML exposures, net of third party reinsurance, reinstatement premiums and estimated income taxes, for Southeast U.S. Wind, California Earthquake, Texas Wind for 1-in-100 year event is, $534M, $517M, $487M, respectively and for 1-in-250 year is, $643M, $674M, $725M, respectively. (Stockholders Equity as of 12/31/2019 is $9132.9 mn) Greenlight Capital Re, Ltd. Actual - - 22.9% As of January 1, 2020, our estimated net PML exposure (net of retrocession Greenlight Re 2019 10-K 12/31/2019 and reinstatement premiums) at a 1-in-250 year return period for a single Filing, page 69 event and in aggregate was $91.9 million and $109.2 million, respectively. We categorize peak zones as: United States, Canada and the Caribbean; Europe; Japan; and the rest of the world. (Stockholders Equity as of 12/31/2019 is $477.2 mn) Hannover Rück SE Target 10.2% 18.7% 14.0% The Company's aggregate maximum annual loss for 100-year and 250-year Hannover Re 2019 Annual 12/31/2019 events for Winter storm Europe is EUR 376.3 million and EUR 602.2 million. Report, Underwriting risks Hurricance US / Caribbean is EUR 1154.9 million and EUR 1595.1 million. in property and casualty Typhoon Japan is EUR 216.1 million and EUR 302 million. Earthquake reinsurance, Page104 Japan is EUR 341.2 million and EUR 733 million. Earthquake US West Coast is EUR 602.7 million and EUR 1258.7 million. Earthquake Australia is EUR 148.9 million and EUR 474.8 million. The Company's all natural catastrophe aggregate net loss threshold and limit for 1:200 year event is EUR 1,913 million and EUR 2125 million. (Shareholders Equity as of 12/31/2019 is EUR 11,354.5 million) Maiden Holdings, Ltd. N/A - - - No risk tolerance metrics indicated N/A N/A Münchener Rückversicherungs-Gesellschaft Actual - 20.6% - Munich Re’s greatest natural hazard exposure lies in the scenarios “Atlantic Munich Re Group 2019 12/31/2019 AG Hurricane” and “Earthquake North America”. Our estimates of exposure for Annual Report, Risk the coming year to the peak scenarios for a return period of 200 years are Management Section, €6.3bn (5.0bn) for Atlantic Hurricane and €5.9bn (4.9bn) for “Earthquake Page 75 North America” (before tax, retained). (Stockholders Equity as of 12/31/2019 is €30,576 mn) Partner Re Actual - - 11.7% The PML estimates are pre-tax and net of retrocession and reinstatement Partner Re 2019 10-K 12/31/2019 premiums. The peril zones in this disclosure are major peril zones for the Filing, Natural industry. The Company has exposures in other peril zones that can Catastrophe Probable potentially generate losses greater than the PML estimates in this Maximum Loss (PML) disclosure. 1 in 250 year PML's are U.S. Southeast Hurricane $790mn, U.S. section, Page 41 Northeast Hurricane $847mn, U.S. Gulf Coast Hurricane $802mn, Caribbean Hurricane $264mn, Europe Windstorm $410mn, Japan Typhoon $301mn, California Earthquake $755mn, British Columbia Earthquake $164mn, Japan Earthquake $447mn, Australia Earthquake $289mn and New Zealand Earthquake $256mn. 1 in 500 year PML's California Earthquake $1107mn, British Columbia Earthquake $328mn,Japan Earthquake $523mn, Australia Earthquake $366mn, New Zealand Earthquake $362mn.( Shareholders equity 12/31/2019 $7270.2mn)

Information in red is disclosed on a post-tax basis

Proprietary & Confidential 38 Catastrophe Risk Tolerance Public Disclosure

P&C Reinsurance Sector

Disclosed Risk Tolerance

Company Actual/ Target 1:100 1:200 1:250 Summary Source Date RenaissanceRe Holdings Ltd. N/A - - - No risk tolerance metrics indicated N/A N/A

SCOR SE Target - 10.5% - Limits and exposures net of reinsurance and reinstatements / pre-tax for a SCOR Investor Day SCOR IP - 1-in-200-year annual probability are given for Major fraud in largest US 2019 - Risk tolerance 09/03/2019 earthquake (8.58%), North Atlantic hurricane (10.35%), EU wind (10.51%), limits, Page 118, Japan Earthquake(3.92%), Terrorist attack (3.60%). (Stockholders Equity Shreholders Equity - as of 12/31/2019 is EUR 6,374mn). SCOR AR 2019 results , Page 2

Sirius International Insurance Actual 15.7% - 22.9% Sirius Group has exposure to catastrophe losses, mostly for Global Sirus Group 10k, 12/31/2019 Group, Ltd. Property, caused by hurricanes, earthquakes, tornadoes, winter storms, Catastrophe Risk windstorms, floods, tsunamis, terrorist acts and other catastrophic events. Management section, An estimate of Sirius Group's three largest PML zones on a per Pg No 13 occurrence basis for 1-in-100 and 1- in-250 year events as of January 1, 2020 as measured by net after-tax exposure. (Shareholders Equity as of 12/31/2019 $1,640.4 mn) The estimate of Sirius Group's three largest PML zones on a per occurrence basis for 1-in-100 ; Southeast U.S. - 15.7%, West Coast U.S. - 13.0% , Europe 11.3% and 1-in-250 year events Southeast U.S. - 15.7%, West Coast U.S. - 13.0% , Europe 11.3% as of January 1, 2020 as measured by net after-tax exposure

Swiss Re Limited Actual - 20.5% - As of 12/31/2019 1:200 PML net losses for: Atlantic Hurricane is $6.4B, Swiss Re 2019 Annual 12/31/2019 California EQ is $4.4B, Europe WS is $2.4B and Japan EQ is $3.7B, Report, P&C Risk Lethal Pandemic is $3.1B (Stockholders Equity as of 12/31/2019 is Section, Page 71 $31.037 billion)

Third Point Reinsurance Ltd. N/A - - - No risk tolerance metrics indicated N/A N/A

Watford Holdings Ltd. Target - - 10.0% We seek to limit our modeled net PML for property catastrophe exposures Watford 2019 10-K, 12/31/2019 for each peak peril and peak zone from a modeled 1-in-250 year Underwriting, natural occurrence to no more than 10% of our total capital, which is less than and man-made most of our principal reinsurance competitors. As of January 1, 2020, our catastrophic events largest modeled peak peril and zone net occurrence PML was 4.2%, section , Pg 160 respectively, of our total capital. (Shareholders Equity as of 12/31/2019 $872 mn)

Information in red is disclosed on a post-tax basis

Proprietary & Confidential 39 Contact Information

Greg Heerde Patrick Matthews, CFA Head of Americas Analytics Global Head of Rating Agency Advisory +1.312.381.5364 +1.215.751.1591 [email protected] [email protected]

Dan Dick Matt DiSanto Executive Managing Director, US Capital Advisory Catastrophe Management +1.215.255.1721 +1.214.989.2167 [email protected] [email protected]

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