Market Segment Report: European Insurers' Focus on Profitability

BEST’S MARKET SEGMENT REPORT

August 28, 2018 European Insurers’ Focus on Profitability Overrides Desire to Grow Top-Line Growth remains important to European insurers, although their primary focus tends to A common be on delivering returns to their shareholders and attracting good quality business. As a consequence, companies are increasingly concentrating on high margin lines and cost challenge efficiencies in order to meet return on equity (ROE) targets. faced by A.M. Best notes that insurers are closely examining their portfolios, looking to use capital all non-life more efficiently and ceasing to underwrite or sell underperforming – albeit not necessarily European unprofitable – classes. For some insurers, merger and acquisition (M&A) activity represent a means of optimising their portfolios and they are examining purchases where they can attain insurers is the greater market presence and scale. ability to grow Analysis shows that non-life European insurers rated by A.M. Best have generally enjoyed a period of relative stability (see Exhibit 1). Issuer Credit Ratings (ICR) demonstrate that companies are well capitalised, and all have a rating of “bbb-” or above. The vast majority of ICRs as of August 21, 2018 were in the “a” category.

Monetary policy has helped stimulate economic growth rates in the region, with increasing domestic demand due to growing consumer and business confidence, lower unemployment rates, and credit growth. Gross domestic product (GDP) growth for the EU was 2.7% in 2017, and is expected to decelerate slightly in 2018 to 2.5%. The European Central Bank (ECB) will end

Exhibit 1 Europe – Non-Life and Life – Distribution – A.M. Best-rated Insurers Distribution by Issuer Credit Rating (ICR) as of Aug. 21, 2018. (%)

31% 29%

18% Analytical Contact: Tim Prince, London Tel: +44 20 7397 0320 9% [email protected] 8% Editorial Managers: Yvette Essen, London 2% Tel: +44 20 7397 0322 1% 1% 1% [email protected] aa+ aa aa- a+ a a- bbb+ bbb bbb- Richard Hayes, London Tel: +44 20 7397 0326 Notes: [email protected] Percentages adjusted to account for rounding to 100%. 2018-122 Sources: Best's Statement File – Global, A.M. Best data & research

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its three-year EUR 2.4 trillion quantitative easing programme by the end of 2018, although it has indicated that any rise in interest rates before September 2019 is unlikely.

Profitability Varies, Reflecting Competitive Environment European insurance markets are extremely varied with regards to profitability. In some countries such as Spain, participants are producing exceptionally strong combined ratios. Meanwhile, in the UK and France, these can be marginal, reflecting competition.

A handful of market participants continue to dominate, highlighting concentration across the continent. However, with each individual market having significantly different attributes, this concentration is not necessarily a negative factor where consumers are concerned. In reality, A.M. Best notes in most European countries the insurance sector is experiencing a relatively strong level of competition. Furthermore, each market has its own peculiarities, with products core to some markets but absent from others and with distribution channel mix dictated by the history and culture of each particular country.

Generally speaking, over recent years, the most competitive conditions have been felt in the reinsurance sector, and in global specialty lines such as marine and aviation. Although there may be some exceptions, global reinsurance markets encountered strong rate pressure in both 2016 and 2017, particularly in property lines of business and especially in the US. Retail lines in certain markets are also very competitive, for example in the UK and France, motor combined operating ratios can run at about 100%.

A number of companies had a significant exposure to the US hurricanes, either through their reinsurance or US commercial business, however, they continued to report robust earnings. The most significant insured losses in Europe in 2017 were related to droughts in Southern Europe in the summer and autumn. Central Europe was impacted by severe weather in June and extratropical cyclone Herwart in October, which struck Austria and Germany, and Denmark to a lesser extent. Meanwhile, Portugal suffered from a wildfire in October.

Additional challenges facing European insurers include elevated levels of geo-political and financial system risks, coupled with the uncertainty and instability caused by the ongoing negotiations to set the terms of the UK’s relationship with the EU following its formal withdrawal from the bloc (Brexit).

M&A Remains Firmly on the Agenda A number of factors are influencing M&A activity. Companies engaging in M&A deals may be exploring expansion strategies, or improvements in their ROE levels and pursuing M&A can be a route to achieving that. Another motivation behind making an acquisition can be a company’s desire to improve its client offering, which more recently has included insurance companies purchasing service-related businesses, or technology that allows them to improve their client relationships.

In A.M. Best’s opinion, Solvency II has also encouraged acquisition to a certain extent, as some companies receive diversification benefits in their capital calculations under the regulatory regime. Purchasing a different book of business can reduce companies’ overall capital needs – without necessarily adding to the bottom line. The motivation could also be the very opposite, with companies looking to offload capital inefficient businesses.

Significant M&A transactions over the last few years have included the acquisition of The Chubb Corporation by ACE Limited (later renamed Chubb Limited) in 2016. With the recent

2 Market Segment Report European Non-Life

announcement that AXA will acquire XL Group Limited, the European market is likely to face further concentration. Meanwhile, there have been a number of sales of savings books, which have high capital consumption.

Capital is currently cheap and in high abundance, enabling the financing of deals and increasing the level of competition in certain (re)insurance markets. Consequently, particularly in the reinsurance sector, there has been a perception that scale and relevance are increasingly important, and there has been consolidation in that market in recent years.

Outlook for European Insurers Generally Positive Analysis of all European insurers rated by A.M. Best shows 88% of ICR outlooks are stable, 5% positive, 5% negative and the remainder developing (see Exhibit 2).

France, Germany, Italy, Spain and the UK are the leading markets in Europe by gross Exhibit 2 written premium (GWP), and economic Europe – Non-Life and Life – conditions within each individual country Outlook – A.M. Best-rated Insurers have an impact on local insurance demand. Issuer Credit Rating (ICR) as of Aug. 21, 2018. A.M. Best has stable outlooks on the non- life insurance markets of all these European countries, with the exception of the UK,

which is negative. Stable Positive 88% 5% The UK’s outlook reflects the persistent competitive market conditions, uncertainty Negative 5% related to legislative changes and the potential impact of Brexit on the UK economy, which creates an overall difficult operating Developing 2% environment. The implications surrounding Brexit are wide reaching and have potential to cause severe disruption affecting various Notes: Percentages adjusted to account for rounding to 100%. macro-economic statistics including Source: Best's Statement File ‐ Global, A.M. Best data and research. unemployment rates and economic growth.

Germany’s outlook is driven by the country’s robust economy, which continues to drive growth in the non-life insurance market. Technical profitability is solid and is expected to remain so, underpinned by good underwriting discipline and sustainable rate adjustments. Economic growth in Germany has been driven by increasing domestic demand, favourable credit conditions, higher wage growth, increased investment, and improved business and consumer confidence.

In France, non-life insurers have demonstrated robust business models with generally well- diversified profiles in the face of significant competition, pressure on technical margins and persistent low interest rates. However, headwinds for France include rising trade tensions due to increasing trade protectionist policies and ageing demographics.

Spain is undergoing political change, with power transferred to new Prime Minister Pedro Sanchez in June 2018 and instability and uncertainty coming from Catalonia following the vote in October 2017 to separate from Spain with 90% of the voters backing the secession. However, A.M. Best’s stable outlook on Spain’s non-life segment is underpinned by the market’s robust credit fundamentals, primarily stemming from a consistently solid technical profitability that is among the strongest in Europe.

3 Market Segment Report European Non-Life

A good record of technical profitability is also a trait of the Italian non-life market, which A.M. Best expects to be maintained in the medium term. However, GDP growth is not forecast to rise above 1.0% from 2020-2023 and economic growth has been constrained by political instability, labour inflexibility, low wage growth, and financial market volatility.

A common challenge faced by all non-life European insurers is the ability to grow, given the maturity of domestic markets. Insurers are therefore exploring diverse ways to expand, which include engaging in M&A, strengthening distribution channels and customer service propositions, and entering new markets.

Digitalisation and innovation are buzz words within the industry and it will be interesting to see whether the developments that companies are making will translate into either growth or improved profitability. A.M. Best anticipates they could potentially create advantages for larger companies which are able to embed efficiencies and realise economies of scale. Innovation could also benefit first movers and those agile enough to realise improvements and change more quickly.

Exhibit 3 Europe – Non-Life and Life – A.M. Best-Rated Companies Ratings as of Aug. 21, 2018. Best's Long- Best's Term Issuer Financial Best's ICR Rating Credit Rating Strength Best's ICR & FSR & FSR Effective AMB # Company Name Domicile (ICR) Rating (FSR) Action Outlook Date 95277 Abarca - Companhia de Seguros S.A. Portugal bbb- B+ Assigned Stable 31-Jan-18

78652 Aetna Insurance Company Limited United Kingdom a- u A- u Under Review Negative 6-Dec-17 87416 AIG Europe Limited United Kingdom a A Affirmed Stable 28-Jun-18

85449 Allianz SE Germany aa A+ Upgraded1 Stable 3-Aug-17 84806 Aspen Insurance UK Limited United Kingdom a A Affirmed Stable 15-Dec-17

85071 Assicurazioni Generali S.p.A. Italy a A Affirmed Positive2 13-Dec-17 83565 Atradius Crédito y Caución S.A. de Spain a A Affirmed Stable 28-Sep-17 Seguros y Reaseguros 78773 Aviva Insurance Limited United Kingdom a+ A Affirmed Stable 5-Jul-18 83186 Axéria Prévoyance France a- A- Affirmed Stable 10-Nov-17 90190 Axeria Re Limited Malta a- A- Affirmed Stable 10-Nov-17 94889 Barents Reinsurance S.A. Luxembourg a A Affirmed Stable 6-Apr-18

85437 Delvag Versicherungs-AG Germany a A Affirmed Stable 9-Aug-18 87327 EC Insurance Company Limited United Kingdom a+ A Upgraded Stable 31-May-18 86286 Ecclesiastical Insurance Office plc United Kingdom a 4 A Affirmed Stable 20-Apr-18 94069 Enel Insurance N.V. Netherlands a- A- Affirmed Stable 12-Jul-18 87809 ERIKA Försäkringsaktiebolag (publ) Sweden a- A- Assigned Stable 22-Jun-18

77673 European Liability Insurance for the Belgium a- A- Affirmed Stable 22-Nov-17 Nuclear Industry 89416 European Mutual Association for Belgium a A Affirmed Stable 22-Nov-17 Nuclear Insurance 95193 FM Insurance Europe S.A. Luxembourg aa A+ Assigned Stable 23-Feb-18 71294 GBG Insurance Limited Guernsey bbb B++ Affirmed Stable 21-Jul-17

85070 Hannover Rück SE Germany aa A+ Upgraded1 Stable 7-Dec-17 86912 Hiscox Insurance Company Limited United Kingdom a+ A Affirmed Stable 2-Mar-18 94441 Humboldt Re Limited Guernsey a- A- Affirmed Stable 22-Nov-17 78032 Intercona Re AG Switzerland aa A+ Affirmed Stable 2-Jun-17 91476 International General Insurance United Kingdom a- A- Affirmed Positive 8-Aug-18 Company (UK) Limited 57796 Jupiter Insurance Limited Guernsey a A Affirmed Stable 27-Jul-18 Exhibit 3 Europe – Non-Life and Life – A.M. Best-Rated Companies Ratings as of Aug. 21, 2018. Best's Long- Best's Term Issuer Financial Best's ICR Rating Credit Rating Strength Best's ICR & FSR & FSR Effective AMB # Company Name Domicile (ICR) Rating (FSR) Action Outlook Date 95277 Abarca - Companhia de Seguros S.A. Portugal bbb- B+ Assigned Stable 31-Jan-18

78652 Aetna Insurance Company Limited United Kingdom a- u A- u Under Review Negative 6-Dec-17 87416 AIG Europe Limited United Kingdom a A Affirmed Stable 28-Jun-18

85449 Allianz SE Germany aa A+ Upgraded1 Stable 3-Aug-17 84806 Aspen Insurance UK Limited United Kingdom a A Affirmed Stable 15-Dec-17

83556 Bilbao, Compañia Anónima de Seguros Spain a+ A Upgraded1 Stable 6-Jun-18 y Reaseguros S.A. 94361 Builders Direct S.A. Luxembourg a- A- Affirmed Stable 2-Jun-17 94157 Builders Reinsurance S.A. Luxembourg a- A- Affirmed Stable 2-Jun-17 85834 Caisse Centrale de Reassurance France aa A+ Affirmed Stable 12-Jul-18 Market92592 CalpeSegment Insurance Report Company Limited Gibraltar aa- A+ Affirmed StabEuropeanle 29-Sep-17 Non-Life 86485 Chubb European Group PLC United Kingdom aa+ A++ Affirmed Stable 5-Oct-17 89527 CIGNA Europe Insurance Company Belgium a u A u Under Review Negative 13-Mar-18 ExhibitS.A. 3 - N.V. 83121Europe CIGNA – Non-Life Life Insurance and Company Life of – A.M.Belgium Best-Rateda u CompaniesA u (continued) Under Review Negative 13-Mar-18 Europe S.A.-N.V. 83113Ratings Compagnie as of Aug. Belge 21, d'Assurances 2018. Belgium a u A u Under Review Developing 26-Apr-18 Aviation S.A. (Aviabel) Best's Long- Best's 90599 Credendo - Single Risk Insurance AG Austria a-Term Issuer A-Financial Affirmed StaBest'sble ICR 27-Apr-18Rating Credit Rating Strength Best's ICR & FSR & FSR Effective 85437AMB # DelvagCompany Versicherungs-AG Name GermanyDomicile a(ICR) ARating (FSR) AffirmedAction StableOutlook 9-Aug-18Date 8732795277 ECAbarca Insurance - Companhia Company de SegurosLimited S.A. UnitedPortugal Kingdom a+bbb- AB+ UpgradedAssigned StabStablele 31-May-1831-Jan-18 86286 Ecclesiastical Insurance Office plc United Kingdom a A Affirmed Stable 20-Apr-18 78652 Aetna Insurance Company Limited United Kingdom a- u A- u Under Review Negative 6-Dec-17 94069 Enel Insurance N.V. Netherlands a- A- Affirmed Stable 12-Jul-18 87416 AIG Europe Limited United Kingdom a A Affirmed Stable 28-Jun-18 87809 ERIKA Försäkringsaktiebolag (publ) Sweden a- A- Assigned Stable 22-Jun-18 85449 Allianz SE Germany aa A+ Upgraded1 Stable 3-Aug-17 8480677673 AspenEuropean Insurance Liability UK Insurance Limited for the UnitedBelgium Kingdom aa- AA- Affirmed Stable 122-Nov-175-Dec-17 Nuclear Industry 85071 Assicurazioni Generali S.p.A. Italy a A Affirmed Positive2 13-Dec-17 89416 European Mutual Association for Belgium a A Affirmed Stable 22-Nov-17 83565 AtradiusNuclear InsuranceCrédito y Caución S.A. de Spain a A Affirmed Stable 28-Sep-17 Seguros y Reaseguros 95193 FM Insurance Europe S.A. Luxembourg aa A+ Assigned Stable 23-Feb-18 78773 Aviva Insurance Limited United Kingdom a+ A Affirmed Stable 5-Jul-18 71294 GBG Insurance Limited Guernsey bbb B++ Affirmed Stable 21-Jul-17 83186 Axéria Prévoyance France a- A- Affirmed Stable 10-Nov-17 85070 Hannover Rück SE Germany aa A+ Upgraded1 Stable 7-Dec-17 90190 Axeria Re Limited Malta a- A- Affirmed Stable 10-Nov-17 86912 Hiscox Insurance Company Limited United Kingdom a+ A Affirmed Stable 2-Mar-18 94889 Barents Reinsurance S.A. Luxembourg a A Affirmed Stable 6-Apr-18 94441 Humboldt Re Limited Guernsey a- A- Affirmed Stable 22-Nov-17 83556 Bilbao, Compañia Anónima de Seguros Spain a+ A Upgraded1 Stable 6-Jun-18 78032 Interconay Reaseguros Re AG S.A. Switzerland aa A+ Affirmed Stable 2-Jun-17 9436191476 BuildersInternational Direct General S.A. Insurance LuxembourgUnited Kingdom a- A- Affirmed StablePositive 2-Jun-178-Aug-18 94157 BuildersCompany Reinsurance (UK) Limited S.A. Luxembourg a- A- Affirmed Stable 2-Jun-17 57796 Jupiter Insurance Limited Guernsey a A Affirmed Stable 27-Jul-18 85834 Caisse Centrale de Reassurance France aa A+ Affirmed Stable 12-Jul-18 93711 Kelvin Re Limited Guernsey a- A- Affirmed Stable 22-Nov-17 92592 Calpe Insurance Company Limited Gibraltar aa- A+ Affirmed Stable 29-Sep-17 84279 Legal and General Assurance Society United Kingdom aa- A+ Affirmed Stable 10-Nov-17 86485 Chubb European Group PLC United Kingdom aa+ A++ Affirmed Stable 5-Oct-17 Limited 8952785202 CIGNALloyd's Europe Insurance Company UnitedBelgium Kingdom a+a u A u Affirmed Under Review NegativeStable 13-Mar-1812-Jul-18 S.A. - N.V. 48337 Lloyd's Syndicate 2001 (MS Amlin United Kingdom a+ A s Downgraded Stable 12-Apr-17 83121 CIGNA Life Insurance Company of Belgium a u A u Under Review Negative 13-Mar-18 Underwriting Limited) Europe S.A.-N.V. 48339 Lloyd's Syndicate 2003 (Catlin United Kingdom a+ u A u Under Review Developing 6-Mar-18 83113 Compagnie Belge d'Assurances Belgium a u A u Under Review Developing 26-Apr-18 Underwriting Agencies Limited) Aviation S.A. (Aviabel) 85429 LocalTapiola General Mutual Insurance Finland a A Affirmed Positive2 1-Mar-18 90599 Credendo - Single Risk Insurance AG Austria a- A- Affirmed Stable 27-Apr-18 Company 87438 London General Insurance Company United Kingdom a A Upgraded Stable 2-Aug-18 85437 Delvag Versicherungs-AG Germany a A Affirmed Stable 9-Aug-18 Limited 8732784203 ECLondon Insurance General Company Life Company Limited Limited United Kingdom a+a A UpgradedUpgraded StabStablele 31-May-182-Aug-18 86286 Ecclesiastical Insurance Office plc United Kingdom a A Affirmed Stable 20-Apr-18 90154 Mapfre España, Compañía de Seguros Spain a A Assigned Stable 31-Jan-18 94069 Enel Insurance N.V. Netherlands a- A- Affirmed Stable 12-Jul-18 y Reaseguros S.A. 8780986801 ERIKAMAPFRE Försäkringsaktiebolag GLOBAL RISKS, Compañía (publ) SwedenSpain a-a A-A AssignedAffirmed StablStablee 22-Jun-188-Sep-17 Internacional de Seguros y Reaseguros 77673 EuropeanS.A. Liability Insurance for the Belgium a- A- Affirmed Stable 22-Nov-17 86277Nuclear MAPFRE Industry RE, Compañía de Spain a A Affirmed Stable 8-Sep-17 89416 EuropeanReaseguros, Mutual S.A. Association for Belgium a A Affirmed Stable 22-Nov-17 85173Nuclear Markel International Insurance Insurance United Kingdom a+ A Affirmed Stable 20-Dec-17 95193 FMCompany Insurance Limited Europe S.A. Luxembourg aa A+ Assigned Stable 23-Feb-18 7129478117 GBGMS Amlin Insurance AG Limited GuernseySwitzerland bbba+ B++A Affirmed Stable 21-Jul-110-May-187

8507085011 HannoverMunich Reinsurance Rück SE Company Germany aa A+ AffirmedUpgraded 1 Stable 13-Jul7-Dec-17-18 8691294290 HiscoxMutuelle Insurance Générale Company de l'Education Limited UnitedFrance Kingdom a+a A Affirmed Stable 1-Aug-182-Mar-18 Nationale 94441 Humboldt Re Limited Guernsey a- A- Affirmed Stable 22-Nov-17 77135 N.V. Univé Her Netherlands a A Affirmed Stable 8-Jun-18 78032 Intercona Re AG Switzerland aa A+ Affirmed Stable 2-Jun-17 85481 Nacional de Reaseguros, S.A. Spain a A Upgraded Stable 29-Sep-17 91476 International General Insurance United Kingdom a- A- Affirmed Positive 8-Aug-18 86910 NationalCompany Grid (UK) Insurance Limited Company (Isle Isle Of Man a A Affirmed Stable 10-May-18 of Man) Limited 57796 Jupiter Insurance Limited Guernsey a A Affirmed Stable 27-Jul-18 88277 Navigators International Insurance United Kingdom a+ A Affirmed Stable 18-May-18 Company Ltd. 5 85060 New Reinsurance Company Ltd. Switzerland aa A+ Affirmed Stable 13-Jul-18 91466 Nova Casiopea Re S.A. Luxembourg a- A- Affirmed Stable 21-Dec-17 85823 Ocaso, S.A. Seguros y Reaseguros Spain a+ A Affirmed Stable 13-Jul-18

86543 Plus Ultra Seguros Generales y Vida, Spain a+ A Upgraded1 Stable 6-Jun-18 S.A. de Seguros y Reaseguros

89013 Polskie Towarzystwo Reasekuracji S.A. Poland a- A- Affirmed Stable 10-Aug-17

83847 Pozavarovalnica Sava d.d. Slovenia a- A- Affirmed Stable 30-Oct-17 88765 Pozavarovalnica Triglav Re, d.d. Slovenia a A Affirmed Stable 30-Oct-17 91925 Protector Forsikring ASA Norway bbb+ B++ Assigned Stable 19-Oct-17 86126 QBE Insurance (Europe) Limited United Kingdom a+ A Affirmed Stable 13-Jun-18 85516 QBE Re (Europe) Limited United Kingdom a+ A Affirmed Stable 13-Jun-18 91214 Samsung Fire & Marine Insurance United Kingdom a A Affirmed Stable 7-Jun-18 Company of Europe, Limited 86803 Santa Lucía S.A. Compañía de Spain a- A- Affirmed Positive 8-Dec-17 Seguros y Reaseguros 85027 SCOR SE France aa- A+ Upgraded Stable 1-Sep-17

84142 Seguros Catalana Occidente, S.A. de Spain a+ A Upgraded1 Stable 6-Jun-18 Seguros y Reaseguros 85618 SIAT - Società Italiana Assicurazioni e Italy a- A- Affirmed Stable 21-Jun-18 Riassicurazioni p.A. 95043 Sigurd Rück AG Switzerland a- A- Affirmed Stable 6-Dec-17 86396 Sirius International Insurance Sweden a u A u Under Review Negative 29-Jun-18 Corporation (publ) 93711 Kelvin Re Limited Guernsey a- A- Affirmed Stable 22-Nov-17 84279 Legal and General Assurance Society United Kingdom aa- A+ Affirmed Stable 10-Nov-17 Limited 85202 Lloyd's United Kingdom a+ A Affirmed Stable 12-Jul-18 48337 Lloyd's Syndicate 2001 (MS Amlin United Kingdom a+ A s Downgraded Stable 12-Apr-17 Underwriting Limited) 48339 Lloyd's Syndicate 2003 (Catlin United Kingdom a+ u A u Under Review Developing 6-Mar-18 Underwriting Agencies Limited) 85429 LocalTapiola General Mutual Insurance Finland a A Affirmed Positive2 1-Mar-18 Company 87438 London General Insurance Company United Kingdom a A Upgraded Stable 2-Aug-18 Limited 84203 London General Life Company Limited United Kingdom a A Upgraded Stable 2-Aug-18 78968 Société Hospitalière d’Assurances France a- A- Affirmed Stable 8-Dec-17 90154 Mapfre España, Compañía de Seguros Spain a A Assigned Stable 31-Jan-18 Mutuelles y Reaseguros S.A. 56958 Solen Versicherungen AG Switzerland a+ A Affirmed Stable 22-Jun-18 86801 MAPFRE GLOBAL RISKS, Compañía Spain a A Affirmed Stable 8-Sep-17 Internacional de Seguros y Reaseguros 94943 Starr International (Europe) Limited United Kingdom a A Affirmed Stable 13-Sep-17 S.A. 88986 StarStone Insurance SE Liechtenstein a- A- Affirmed Stable 15-Sep-17 86277 MAPFRE RE, Compañía de Spain a A Affirmed Stable 8-Sep-17 85009 Swiss Reinsurance Company Ltd Switzerland aa A+ Upgraded1 Stable 7-Dec-17 Reaseguros, S.A. Market85173 MarkelSegment International Report Insurance United Kingdom a+ A Affirmed StableEuropean 20-Dec-17 Non-Life 85716 The Swedish Club Sweden a- A- Affirmed Stable 25-Jan-18 Company Limited 72513 The United Kingdom Mutual War Risks United Kingdom a- A- Affirmed Stable 4-May-18 78117 MS Amlin AG Switzerland a+ A Affirmed Stable 10-May-18 Association Ltd. 85011Exhibit Munich 3 Reinsurance Company Germany aa A+ Affirmed Stable 13-Jul-18 93227 TransRe London Limited United Kingdom aa- A+ Affirmed Stable 29-Sep-17 94290Europe Mutuelle – Non-Life Générale de and l'Education Life – A.M.France Best-Rateda CompaniesA (continued)Affirmed Stable 1-Aug-18 94303 Trust International Insurance & Cyprus a- u A- u Under Review Negative 8-Aug-18 Reinsurance Company B.S.C. (closed) RatingsNationale as of Aug. 21, 2018. Trust Re (Cyprus Branch) 77135 N.V. Univé Her Netherlands a A Affirmed Stable 8-Jun-18 Best's Long- Best's 83936 Tryggingamidstodin hf. Iceland bbb+ B++ Affirmed Stable 20-Jun-18 85481 Nacional de Reaseguros, S.A. Spain aTerm Issuer AFinancial Upgraded StableBest's ICR 29-Sep-1Rating 7 84975 TT Club Mutual Insurance Limited United Kingdom a- A- Affirmed Stable 24-May-18 86910 National Grid Insurance Company (Isle Isle Of ManCredit a Rating StrengthA Best'sAffirmed ICR & FSR &Stable FSR 10-May-18Effective AMB # Companyof Man) Limited Name Domicile (ICR) Rating (FSR) Action Outlook Date 85194 UnipolSai Assicurazioni S.p.A. Italy a- A- Affirmed Stable 21-Jun-18 9527788277 AbarcaNavigators - Companhia International de SegurosInsurance S.A. PortugalUnited Kingdom bbb-a+ B+A AssignedAffirmed SStabletable 18-May-1831-Jan-18 83829 W. R. Berkley Insurance (Europe), SE United Kingdom aa- A+ Affirmed Stable 24-May-18 Company Ltd. 8506078652 NewAetna Reinsurance Insurance Company Company Limited Ltd. SwitzerlandUnited Kingdom aaa- u A+A- uAffirmed Under Review Stable Negative 6-Dec-1713-Jul-18 92224 Zavarovalnica TriglavMarket d.d. Slovenia Segment a A ReportAffirmed Stable 30-Oct-17 8741691466 AIGNova Europe Casiopea Limited Re S.A. UnitedLuxembourg Kingdom aa- AA- Affirmed Stable 28-Jun-1821-Dec-17 85095 Zurich Insurance Company Limited Switzerland aa- A+ Affirmed Stable 8-Dec-17 8544985823 AllianzOcaso, SES.A. Seguros y ReasegurosGermany Spain aaa+ A+A AffirmedUpgraded 1 Stable 3-Aug-1713-Jul-18 85661 Zurich Insurance plc Ireland aa- A+ Affirmed Stable 8-Dec-17 1 8480686543 AspenPlus Ultra Insurance Seguros UK Generales Limited y Vida, UnitedSpain Kingdom aa+ A AffirmedUpgraded Stable 16-Jun-185-Dec-17 Notes: S.A. de Seguros y Reaseguros 2 85071 Assicurazioni Generali S.p.A. Italy a A Affirmed Positive 13-Dec-17 1: ICR Upgraded, FSR Affirmed. 83565 Atradius Crédito y Caución S.A. de Spain a A Affirmed Stable 28-Sep-17 89013 Polskie Towarzystwo Reasekuracji S.A. Poland a- A- Affirmed Stable 10-Aug-17 2: ICR Outlook Positive, FSR Outlook Stable. Seguros y Reaseguros Source: Best's Statement File - Global 78773 Aviva Insurance Limited United Kingdom a+ A Affirmed Stable 5-Jul-18 83847 Pozavarovalnica Sava d.d. Slovenia a- A- Affirmed Stable 30-Oct-17 83186 Axéria Prévoyance France a- A- Affirmed Stable 10-Nov-17 88765 Pozavarovalnica Triglav Re, d.d. Slovenia a A Affirmed Stable 30-Oct-17 90190 Axeria Re Limited Malta a- A- Affirmed Stable 10-Nov-17 91925 Protector Forsikring ASA Norway bbb+ B++ Assigned Stable 19-Oct-17 94889 Barents Reinsurance S.A. Luxembourg a A Affirmed Stable 6-Apr-18 86126 QBE Insurance (Europe) Limited United Kingdom a+ A Affirmed Stable 13-Jun-18 83556 Bilbao, Compañia Anónima de Seguros Spain a+ A 1 Stable 6-Jun-18 85516 QBE Re (Europe) Limited United Kingdom a+ A AffirmedUpgraded Stable 13-Jun-18 y Reaseguros S.A. Published by A.M. Best Best’s Financial Strength Rating (FSR): an independent opinion of an 9436191214 BuildersSamsung Direct Fire &S.A. Marine Insurance LuxembourgUnited Kingdom a-a A-A Affirmed Stable 2-Jun-177-Jun-18 insurer’s financial strength and ability to meet its ongoing insurance policy Company of Europe, Limited and contract obligations. An FSR is not assigned to specific insurance 94157 Builders Reinsurance S.A. Luxembourg a- A- Affirmed Stable 2-Jun-17 MARKET SEGMENT REPORT 86803 Santa Lucía S.A. Compañía de Spain a- A- Affirmed Positive 8-Dec-17 policies or contracts. A.M. Best Company, Inc. 85834 CaisseSeguros Centrale y Reaseguros de Reassurance France aa A+ Affirmed Stable 12-Jul-18 Oldwick, NJ Best’s Issuer Credit Rating (ICR): an independent opinion of an entity’s ability to meet its ongoing financial obligations and can be issued on either a 9259285027 CalpeSCOR Insurance SE Company Limited GibraltarFrance aa- A+ AffirmedUpgraded StabStablele 29-Sep-171-Sep-17 CHAIRMAN & PRESIDENT Arthur Snyder III long- or short-term basis. 1 SENIOR VICE PRESIDENTS Alessandra L. Czarnecki, Thomas J. Plummer 8648584142 ChubbSeguros European Catalana Group Occidente, PLC S.A. de UnitedSpain Kingdom aa+a+ A++A AffirmedUpgraded StablStablee 6-Jun-185-Oct-17 Best’s Issue Credit Rating (IR): an independent opinion of credit quality Seguros y Reaseguros A.M. Best Rating Services, Inc. 89527 CIGNA Europe Insurance Company Belgium a u A u Under Review Negative 13-Mar-18 assigned to issues that gauges the ability to meet the terms of the obligation 85618 SIAT - Società Italiana Assicurazioni e Italy a- A- Affirmed Stable 21-Jun-18 Oldwick, NJ S.A. - N.V. and can be issued on a long- or short-term basis (obligations with original Riassicurazioni p.A. CHAIRMAN & PRESIDENT Larry G. Mayewski maturities generally less than one year). 83121 CIGNA Life Insurance Company of Belgium a u A u Under Review Negative 13-Mar-18 EXECUTIVE VICE PRESIDENT Matthew C. Mosher 95043 Sigurd Rück AG Switzerland a- A- Affirmed Stable 6-Dec-17 Europe S.A.-N.V. SENIOR MANAGING DIRECTORS Douglas A. Collett, Edward H. Easop, Rating Disclosure: Use and Limitations Stefan W. Holzberger, Andrea Keenan, James F. Snee 8311386396 CompagnieSirius International Belge d'Assurances Insurance BelgiumSweden a u A u Under Review DevelopingNegative 26-Apr-1829-Jun-18 A Best’s Credit Rating (BCR) is a forward-looking independent and objective Corporation (publ) opinion regarding an insurer’s, issuer’s or financial obligation’s relative Aviation S.A. (Aviabel) WORLD HEADQUARTERS creditworthiness. The opinion represents a comprehensive analysis consisting 1 Ambest Road, Oldwick, NJ 08858 9059978968 CredendoSociété Hospitalière - Single Risk d’Assurances Insurance AG AustriaFrance a- A- Affirmed StaStableble 27-Apr-188-Dec-17 Phone: +1 908 439 2200 of a quantitative and qualitative evaluation of balance sheet strength, operating Mutuelles performance, business profile, and enterprise risk management or, where NEWS BUREAU – WASHINGTON, DC OFFICE appropriate, the specific nature and details of a security. Because a BCR is a 8543756958 DelvagSolen Versicherungen Versicherungs-AG AG GermanySwitzerland aa+ A Affirmed Stable 9-Aug-1822-Jun-18 830 National Press Building, 529 14th Street N.W., Washington, DC 20045 forward-looking opinion as of the date it is released, it cannot be considered as 8732794943 ECStarr Insurance International Company (Europe) Limited Limited United Kingdom a+a A UpgradedAffirmed StabStablele 31-May-1813-Sep-17 Phone: +1 202 347 3090 a fact or guarantee of future credit quality and therefore cannot be described as accurate or inaccurate. A BCR is a relative measure of risk that implies credit 8628688986 EcclesiasticalStarStone Insurance Insurance SE Office plc UnitedLiechtenstein Kingdom aa- AA- AffirmeAffirmedd Stable 15-S20-Apr-18ep-17 LATAM REGION – MEXICO CITY OFFICE Paseo de la Reforma 412, Piso 23, Mexico City, Mexico quality and is assigned using a scale with a defined population of categories and 9406985009 EnelSwiss Insurance Reinsurance N.V. Company Ltd SwitzerlandNetherlands aaa- A-A+ Affirmed 1 Stable 12-Jul-187-Dec-17 Phone: +52 55 1102 2720 notches. Entities or obligations assigned the same BCR symbol developed using Upgraded the same scale, should not be viewed as completely identical in terms of credit 8780985716 ERIKAThe Swedish Försäkringsaktiebolag Club (publ) Sweden a- A- AssignedAffirmed StablStablee 25-Jan-1822-Jun-18 EMEA REGION – LONDON OFFICE quality. Alternatively, they are alike in category (or notches within a category), 12 Arthur Street, 6th Floor, London, UK EC4R 9AB but given there is a prescribed progression of categories (and notches) used in 72513 The United Kingdom Mutual War Risks United Kingdom a- A- Affirmed Stable 4-May-18 Phone: +44 20 7626 6264 77673 European Liability Insurance for the Belgium a- A- Affirmed Stable 22-Nov-17 assigning the ratings of a much larger population of entities or obligations, the Association Ltd. categories (notches) cannot mirror the precise subtleties of risk that are inherent Nuclear Industry MENA REGION – DUBAI OFFICE* 93227 TransRe London Limited United Kingdom aa- A+ Affirmed Stable 29-Sep-17 Office 102, Tower 2, Currency House, DIFC within similarly rated entities or obligations. While a BCR reflects the opinion of 89416 European Mutual Association for Belgium a A Affirmed Stable 22-Nov-17 P.O. Box 506617, Dubai, UAE A.M. Best Rating Services, Inc. (A.M. Best) of relative creditworthiness, it is not an 94303 TrustNuclear International Insurance Insurance & Cyprus a- u A- u Under Review Negative 8-Aug-18 Phone: +971 4375 2780 indicator or predictor of defined impairment or default probability with respect to 95193 FMReinsurance Insurance Company Europe S.A. B.S.C. (closed) Luxembourg aa A+ Assigned Stable 23-Feb-18 *Regulated by the DFSA as a Representative Office any specific insurer, issuer or financial obligation. A BCR is not investment advice, Trust Re (Cyprus Branch) APAC REGION – HONG KONG OFFICE nor should it be construed as a consulting or advisory service, as such; it is not 71294 GBG Insurance Limited Guernsey bbb B++ Affirmed Stable 21-Jul-17 intended to be utilized as a recommendation to purchase, hold or terminate any 83936 Tryggingamidstodin hf. Iceland bbb+ B++ Affirmed Stable 20-Jun-18 Unit 4004 Central Plaza, 18 Harbour Road, Wanchai, Hong Kong Phone: +852 2827 3400 insurance policy, contract, security or any other financial obligation, nor does it 85070 Hannover Rück SE Germany aa A+ 1 Stable 7-Dec-17 84975 TT Club Mutual Insurance Limited United Kingdom a- A- AffirmedUpgraded Stable 24-May-18 address the suitability of any particular policy or contract for a specific purpose or APAC REGION – SINGAPORE OFFICE 86912 Hiscox Insurance Company Limited United Kingdom a+ A Affirmed Stable 2-Mar-18 purchaser. Users of a BCR should not rely on it in making any investment decision; 85194 UnipolSai Assicurazioni S.p.A. Italy a- A- Affirmed Stable 21-Jun-18 6 Battery Road, #39-04, Singapore however, if used, the BCR must be considered as only one factor. Users must Phone: +65 6303 5000 94441 Humboldt Re Limited Guernsey a- A- Affirmed Stable 22-Nov-17 make their own evaluation of each investment decision. A BCR opinion is provided 83829 W. R. Berkley Insurance (Europe), SE United Kingdom aa- A+ Affirmed Stable 24-May-18 on an “as is” basis without any expressed or implied warranty. In addition, a BCR 78032 Intercona Re AG Switzerland aa A+ Affirmed Stable 2-Jun-17 may be changed, suspended or withdrawn at any time for any reason at the sole 9222491476 ZavarovalnicaInternational General Triglav Insuranced.d. SloveniaUnited Kingdom aa- AA- Affirmed StablePositive 30-Oct-8-Aug-1817 discretion of A.M. Best. Version 021518 85095 ZurichCompany Insurance (UK) Limited Company Limited Switzerland aa- A+ Affirmed Stable 8-Dec-17 57796 Jupiter Insurance Limited Guernsey a A Affirmed Stable 27-Jul-18 85661 Zurich Insurance plc Ireland aa- A+ Affirmed Stable 8-Dec-17 6 Notes:

1: ICR Upgraded, FSR Affirmed.

2: ICR Outlook Positive, FSR Outlook Stable. Source: Best's Statement File - Global 78968 Société Hospitalière d’Assurances France a- A- Affirmed Stable 8-Dec-17 Mutuelles 56958 Solen Versicherungen AG Switzerland a+ A Affirmed Stable 22-Jun-18 94943 Starr International (Europe) Limited United Kingdom a A Affirmed Stable 13-Sep-17 88986 StarStone Insurance SE Liechtenstein a- A- Affirmed Stable 15-Sep-17

85009 Swiss Reinsurance Company Ltd Switzerland aa A+ Upgraded1 Stable 7-Dec-17 Market85716 Segment The Swedish Report Club Sweden a- A- Affirmed EuropeanStable Non-Life 25-Jan-18 72513 The United Kingdom Mutual War Risks United Kingdom a- A- Affirmed Stable 4-May-18 Association Ltd. 93227Exhibit TransRe 3 London Limited United Kingdom aa- A+ Affirmed Stable 29-Sep-17 94303Europe Trust – InternationalNon-Life Insurance and Life & – A.M.Cyprus Best-Rateda- u CompaniesA- u(continued) Under Review Negative 8-Aug-18 Reinsurance Company B.S.C. (closed) Ratings as of Aug. 21, 2018. Trust Re (Cyprus Branch) 83936 Tryggingamidstodin hf. Iceland bbb+Best's Long- B++Best's Affirmed Stable 20-Jun-18 Term Issuer Financial Best's ICR Rating 84975 TT Club Mutual Insurance Limited United Kingdom a- A- Affirmed Stable 24-May-18 Credit Rating Strength Best's ICR & FSR & FSR Effective 85194AMB # UnipolSaiCompany Assicurazioni Name S.p.A. ItalyDomicile a-(ICR) A-Rating (FSR) AffirmedAction StableOutlook 21-JDateun-18 8382995277 W.Abarca R. Berkley - Companhia Insurance de Seguros(Europe), S.A. SE PortugalUnited Kingdom bbb-aa- A+B+ AffAssignedirmed SStabletable 24-May-1831-Jan-18 9222478652 ZavarovalnicaAetna Insurance Triglav CompanyMarket d.d. LimitedSlovenia United Segment Kingdom aa- u AA- uReportAffirmed Under Review Stable Negative 30-Oct-6-Dec-1717 8509587416 ZurichAIG Europe Insurance Limited Company Limited SwitzerlandUnited Kingdom aa-a A+A Affirmed SStabletable 28-Jun-188-Dec-17 8544985661 AllianzZurich InsuranceSE plc GermanyIreland aaaa- A+ AffirmedUpgraded 1 Stable 3-Aug-178-Dec-17

Notes:84806 Aspen Insurance UK Limited United Kingdom a A Affirmed Stable 15-Dec-17 2 1:85071 ICR Upgraded, Assicurazioni FSR Affirmed. Generali S.p.A. Italy a A Affirmed Positive 13-Dec-17

2:83565 ICR Outlook Atradius Positive, Crédito FSR yOutlook Caución Stable. S.A. de Spain a A Affirmed Stable 28-Sep-17 Seguros y Reaseguros Source: Best's Statement File - Global 78773 Aviva Insurance Limited United Kingdom a+ A Affirmed Stable 5-Jul-18 83186 Axéria Prévoyance France a- A- Affirmed Stable 10-Nov-17 90190 Axeria Re Limited Malta a- A- Affirmed Stable 10-Nov-17 94889 Barents Reinsurance S.A. Luxembourg a A Affirmed Stable 6-Apr-18

83556 Bilbao, Compañia Anónima de Seguros Spain a+ A Upgraded1 Stable 6-Jun-18 y ReasegurosPublished S.A. by A.M. Best Best’s Financial Strength Rating (FSR): an independent opinion of an 94361 Builders Direct S.A. Luxembourg a- insurer’s financialA- strength andAffirmed ability to meet its ongoingStable insurance 2-Jun-17 policy and contract obligations. An FSR is not assigned to specific insurance 94157MARKET Builders Reinsurance SEGMENT S.A. REPORTLuxembourg a- policies or contracts.A- Affirmed Stable 2-Jun-17 A.M. Best Company, Inc. 85834 Caisse Centrale de Reassurance France aa A+ Affirmed Stable 12-Jul-18 Oldwick, NJ Best’s Issuer Credit Rating (ICR): an independent opinion of an entity’s ability to meet its ongoing financial obligations and can be issued on either a 92592 Calpe InsuranceCHAIRMAN &Company PRESIDENT Limited Arthur Snyder III Gibraltar aa- A+ Affirmed Stable 29-Sep-17 SENIOR VICE PRESIDENTS Alessandra L. Czarnecki, Thomas J. Plummer long- or short-term basis. 86485 Chubb European Group PLC United Kingdom aa+ A++ Affirmed Stable 5-Oct-17 Best’s Issue Credit Rating (IR): an independent opinion of credit quality A.M. Best Rating Services, Inc. assigned to issues that gauges the ability to meet the terms of the obligation 89527 CIGNA Europe InsuranceOldwick, Company NJ Belgium a u A u Under Review Negative 13-Mar-18 S.A. - N.V. and can be issued on a long- or short-term basis (obligations with original CHAIRMAN & PRESIDENT Larry G. Mayewski maturities generally less than one year). 83121 CIGNAEXECUTIVE Life Insurance VICE PRESIDENT Company Matthew of C. MosherBelgium a u A u Under Review Negative 13-Mar-18 SENIOREurope MANAGING S.A.-N.V. DIRECTORS Douglas A. Collett, Edward H. Easop, Rating Disclosure: Use and Limitations Stefan W. Holzberger, Andrea Keenan, James F. Snee 83113 Compagnie Belge d'Assurances Belgium a u A Best’s CreditA u Rating (BCR) Underis a forward-looking Review independent Developing and 26-Apr-18 objective opinion regarding an insurer’s, issuer’s or financial obligation’s relative Aviation S.A. (Aviabel)WORLD HEADQUARTERS creditworthiness. The opinion represents a comprehensive analysis consisting 1 Ambest Road, Oldwick, NJ 08858 90599 Credendo - SinglePhone: Risk +1 908Insurance 439 2200 AG Austria a- of a quantitativeA- and qualitativeAffirmed evaluation of balanceSta sheetble strength, 27-Apr-18 operating performance, business profile, and enterprise risk management or, where 85437 DelvagNEWS Versicherungs-AG BUREAU – WASHINGTON, DC OFFICEGermany a appropriate, Athe specific natureAffirmed and details of a security.Stable Because 9-Aug-18a BCR is a 830 National Press Building, 529 14th Street N.W., Washington, DC 20045 forward-looking opinion as of the date it is released, it cannot be considered as 87327 EC Insurance CompanyPhone: +1 202 Limited 347 3090 United Kingdom a+ a fact or guaranteeA of future Upgradedcredit quality and thereforeStab lecannot be 31-May-18 described as accurate or inaccurate. A BCR is a relative measure of risk that implies credit 86286 EcclesiasticalLATAM Insurance REGION – MEXICO Office CITYplc OFFICE United Kingdom a A Affirmed Stable 20-Apr-18 Paseo de la Reforma 412, Piso 23, Mexico City, Mexico quality and is assigned using a scale with a defined population of categories and 94069 Enel InsurancePhone: N.V. +52 55 1102 2720 Netherlands a- notches. EntitiesA- or obligationsAffirmed assigned the same BCRStable symbol developed 12-Jul-18 using the same scale, should not be viewed as completely identical in terms of credit 87809 ERIKA FörsäkringsaktiebolagEMEA REGION – LONDON (publ) OFFICE Sweden a- quality. Alternatively,A- they areAssigned alike in category (or notchesStable within 22-Jun-18a category), 12 Arthur Street, 6th Floor, London, UK EC4R 9AB but given there is a prescribed progression of categories (and notches) used in Phone: +44 20 7626 6264 77673 European Liability Insurance for the Belgium a- assigning theA- ratings of a muchAffirmed larger population of Stableentities or obligations, 22-Nov-17 the categories (notches) cannot mirror the precise subtleties of risk that are inherent Nuclear IndustryMENA REGION – DUBAI OFFICE* Office 102, Tower 2, Currency House, DIFC within similarly rated entities or obligations. While a BCR reflects the opinion of 89416 European MutualP.O. Box Association 506617, Dubai, for UAE Belgium a A.M. Best RatingA Services, Inc.Affirmed (A.M. Best) of relative creditworthiness,Stable 22-Nov-17 it is not an Nuclear InsurancePhone: +971 4375 2780 indicator or predictor of defined impairment or default probability with respect to 95193 FM Insurance*Regulated Europe by the DFSA S.A. as a Representative OfficeLuxembourg aa any specific insurer,A+ issuer or financialAssigned obligation. A BCRStable is not investment 23-Fe advice,b-18 APAC REGION – HONG KONG OFFICE nor should it be construed as a consulting or advisory service, as such; it is not 71294Unit GBG 4004 Insurance Central Plaza, Limited 18 Harbour Road, Wanchai,Guernsey Hong Kong bbb intended to beB++ utilized as a recommendation Affirmed to purchase,Stable hold or terminate 21-Jul-1 any7 insurance policy, contract, security or any other financial obligation, nor does it Phone: +852 2827 3400 1 85070 Hannover Rück SE Germany aa address the suitabilityA+ of any particularUpgraded policy or contractStable for a specific 7-Dec-17 purpose or APAC REGION – SINGAPORE OFFICE 86912 Hiscox Insurance Company Limited United Kingdom a+ purchaser. UsersA of a BCR shouldAffirmed not rely on it in makingStable any investment 2-Mar-18 decision; 6 Battery Road, #39-04, Singapore however, if used, the BCR must be considered as only one factor. Users must Phone: +65 6303 5000 94441 Humboldt Re Limited Guernsey a- make their ownA- evaluation of eachAffirmed investment decision.Stable A BCR opinion 22-Nov-17 is provided on an “as is” basis without any expressed or implied warranty. In addition, a BCR 78032 Intercona Re AG Switzerland aa may be changed,A+ suspended Affirmedor withdrawn at any timeStable for any reason 2-Jun-17 at the sole 91476 International General Insurance United Kingdom a- discretion of A.M.A- Best. Affirmed Positive 8-Aug-18 Company (UK) Limited Version 021518 57796 Jupiter Insurance Limited Guernsey a A Affirmed Stable 27-Jul-18