FTSE COMPANY REPORT Share price analysis relative to sector and index performance

Data as at: 03 August 2015 BRIT BRIT Nonlife — GBP 2.8025 at close 03 August 2015

Absolute Relative to FTSE UK All-Share Sector Relative to FTSE UK All-Share Index PERFORMANCE 03-Aug-2015 03-Aug-2015 03-Aug-2015

3.1 120 125 1D WTD MTD YTD

3 Absolute 0.0 0.0 0.0 3.6 115 120 Rel.Sector -0.8 -0.8 -0.8 -14.2 2.9 Rel.Market 0.1 0.1 0.1 0.3

2.8 110 115 VALUATION 2.7

(local currency) (local 105 110 2.6 Trailing Relative Price Relative Price

2.5 100 105 PE - Absolute Price Price Absolute EV/EBITDA 5.9 2.4 95 100 PB - 2.3 PCF - 2.2 90 95 Div Yield - Aug-2014 Nov-2014 Feb-2015 May-2015 Aug-2015 Aug-2014 Nov-2014 Feb-2015 May-2015 Aug-2015 Aug-2014 Nov-2014 Feb-2015 May-2015 Aug-2015 Price/Sales - Absolute Price 4-wk mov.avg. 13-wk mov.avg. Relative Price 4-wk mov.avg. 13-wk mov.avg. Relative Price 4-wk mov.avg. 13-wk mov.avg. Net Debt/Equity -

100 90 90 Div Payout - 90 80 80 ROE - 80 70 70 70 60 60 60 DESCRIPTION 50 50 50 The company is a market-leading global specialty 40 40 40 RSI (Absolute) RSI insurer and reinsurer, focused on underwriting 30 30 30 complex risks. We have a major presence in Lloyd's 20 of , the world's specialist insurance market 10 20 20 provider, and a significant US and international reach. RSI (Relative to FTSE UK All-Share Index) UK All-Share to FTSE (Relative RSI RSI (Relative to FTSE UK All-Share Sector) UK All-Share to FTSE (Relative RSI 0 10 10 Aug-2014 Nov-2014 Feb-2015 May-2015 Aug-2015 Aug-2014 Nov-2014 Feb-2015 May-2015 Aug-2015 Aug-2014 Nov-2014 Feb-2015 May-2015 Aug-2015

See final page and http://www.londonstockexchange.com/prices-and-markets/stocks/services-stock/ftse-note.htm for further details.

Past performance is no guarantee of future results. Please see the final page for important legal disclosures. 1 of 4 FTSE COMPANY REPORT: BRIT 03 August 2015

Valuation Metrics

Price to Earnings (PE) EV to EBITDA Price to Book (PB)

30-Jun-2015 30-Jun-2015 30-Jun-2015 12 7 1.8 11.5 6.5 1.7 11 +1SD 6 10.5 1.6 +1SD +1SD 10 5.5 Avg 1.5 9.5 5 Avg Avg 9 1.4 -1SD 4.5 8.5 -1SD 1.3 8 4 -1SD 7.5 3.5 1.2 Jul-2010 Jul-2011 Jul-2012 Jul-2013 Jul-2014 Jul-2010 Jul-2011 Jul-2012 Jul-2013 Jul-2014 Jul-2010 Jul-2011 Jul-2012 Jul-2013 Jul-2014

RSA Insurance Group 67.2 Group 11.6 Jardine Lloyd Thompson Group 7.9 Jardine Lloyd Thompson Group 21.7 Admiral Group 9.3 Admiral Group 6.8 Nonlife Insurance 14.0 RSA Insurance Group 9.3 Esure Group 3.8 Admiral Group 13.6 Jardine Lloyd Thompson Group 8.2 Beazley 1.8 Esure Group 12.8 Amlin 8.1 Nonlife Insurance 1.8 Direct Line Insurance Group 12.4 Nonlife Insurance 7.8 Direct Line Insurance Group 1.6 Beazley 11.6 Direct Line Insurance Group 7.5 1.6 Hiscox 11.0 Lancashire Holdings 7.2 Lancashire Holdings 1.4 Amlin 10.1 Hiscox 7.1 Novae Group 1.4 Novae Group 9.1 BRIT 5.9 Amlin 1.3 Lancashire Holdings 8.4 Novae Group 1.7 RSA Insurance Group 1.3 0 1020304050607080 02468101214 0123456789

Price to Cash Flow (PCF) Dividend Yield % Price to Sales (PS)

30-Jun-2015 30-Jun-2015 30-Jun-2015 12 7 1.25 1.2 10 6 1.15 Avg 5 +1SD 8 1.1 +1SD 4 1.05 6 1 Avg -1SD 3 4 0.95 2 Avg -1SD 0.9 2 1 0.85 0 ǁǁ 0 0.8 Jul-2010 Jul-2011 Jul-2012 Jul-2013 Jul-2014 Jul-2010 Jul-2011 Jul-2012 Jul-2013 Jul-2014 Jul-2010 Jul-2011 Jul-2012 Jul-2013 Jul-2014

Admiral Group 21.9 Esure Group 6.0 Admiral Group 4.4 RSA Insurance Group 17.3 Amlin 5.7 Lancashire Holdings 2.5 Jardine Lloyd Thompson Group 11.9 Direct Line Insurance Group 4.3 Jardine Lloyd Thompson Group 2.1 Beazley 11.9 Novae Group 3.5 Esure Group 1.9 Nonlife Insurance 9.8 Admiral Group 3.3 Hiscox 1.7 Lancashire Holdings 7.7 Beazley 3.2 Beazley 1.4 Amlin 7.3 Nonlife Insurance 3.1 Direct Line Insurance Group 1.4 Hiscox 7.0 Jardine Lloyd Thompson Group 2.8 Nonlife Insurance 1.1 Novae Group 6.6 Hiscox 2.7 Amlin 1.0 Direct Line Insurance Group 6.5 Lancashire Holdings 1.5 Novae Group 0.9 Esure Group -25.8 RSA Insurance Group 0.5 RSA Insurance Group 0.5 -30 -20 -10 0 10 20 30 01234567 0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 Note: bar chart reflects the top and bottom five current values for the valuation ratio in question for FTSE All Shares stocks in the same sector as the stock concerned. All valuation metrics are trailing.

2 of 4 FTSE COMPANY REPORT: BRIT 03 August 2015

Valuation Metrics

Net Debt to Equity Dividend Payout (DP) Return on Equity (RoE)

30-Jun-2015 30-Jun-2015 30-Jun-2015 0.28 100 ǁǁ 20 0.26 18 +1SD 80 0.24 16 +1SD 0.22 60 14 Avg 0.2 12 40 +1SD Avg 0.18 10 -1SD 20 -1SD 0.16 Avg 8 0.14 0 6 Jul-2010 Jul-2011 Jul-2012 Jul-2013 Jul-2014 Jul-2010 Jul-2011 Jul-2012 Jul-2013 Jul-2014 Jul-2010 Jul-2011 Jul-2012 Jul-2013 Jul-2014

Jardine Lloyd Thompson Group 2.1 Lancashire Holdings 100.0 Admiral Group 50.0 RSA Insurance Group 0.5 Direct Line Insurance Group 100.0 Jardine Lloyd Thompson Group 33.4 Esure Group 0.4 Admiral Group 95.0 Esure Group 29.6 Admiral Group 0.4 Amlin 88.7 Lancashire Holdings 16.3 Nonlife Insurance 0.3 Esure Group 85.0 Beazley 15.8 Lancashire Holdings 0.2 Nonlife Insurance 76.4 Novae Group 15.5 Novae Group 0.2 Jardine Lloyd Thompson Group 60.3 Hiscox 15.1 Direct Line Insurance Group 0.2 Novae Group 54.8 Amlin 13.7 Beazley 0.2 Hiscox 21.1 Direct Line Insurance Group 13.3 Amlin 0.1 RSA Insurance Group 0.0 Nonlife Insurance 13.2 Hiscox 0.0 Beazley 0.0 RSA Insurance Group 2.1 00.511.522.5 0 20 40 60 80 100 120 0 102030405060

ROE vs. PB — sector Du Pont Analysis

Regression 5 16 8.0 JLT 7.5 4.5 14 7.0 ADM 4 6.5 12 6.0 3.5 10 5.5 3 5.0 2.5 8 PB 4.5 2 4.0 6 ESUR 3.5 1.5 4 3.0 1 2.5 2 0.5 2.0 Nonlife BEZInsuranc DLG HSX 0 0 1.5 LRE RSA AML NVA 2011 2012 2013 2014 2015 1.0 0 5 10 15 20 25 30 35 40 45 50 Net Margin Asset Turnover Gearing ROE (rhs) ǁ ROE Note: bar chart reflects the top and bottom five current values for the valuation ratio in question for FTSE All Shares stocks in the same sector as the stock concerned. All valuation metrics are trailing.

3 of 4 FTSE COMPANY REPORT: BRIT 03 August 2015

Brief description Brief description

Price to Earnings Price to Earnings (PE) is price over earnings per share. Earnings are based on the latest Gearing Gearing is Total Assets divided by Common Equity. Total Assets and Common Equity are (PE) available fiscal year earnings. each averaged over two years, that is, t and (t-1). Price to Sales Price to Sales (PS) is price divided by sales per share. It is based on sales from continuing Asset Turnover Asset turnover is Sales divided by Total Assets. Total Assets is averaged over two years, that (PS) operations for the fiscal year. is, t and (t-1). Price to Book Price to Book (PB) is price at the indicated date divided by common equity per Dupont Return on Equity (RoE) = Net Margin * Gearing * Asset Turnover (PB) share. Common/ordinary equity is generally as reported at the most recent fiscal year-end but Breakdown is adjusted to exclude minority interest, preferred stock and selected items as appropriate. Analysis Price to Cash Price to Cash Flow (PCF) is price at the indicated date divided by cash flow per share. RoE vs PB Plot of RoE versus PB at last month end for all FTSE UK All Share stocks in the sector relative Flow (PCF) to the stock in question. Data may be limited to the stock in question if there are currently Net Debt Equity Net Debt Equity is Net Debt as a percentage of common equity. Not calculated if no stocks in the corresponding FTSE UK All Share sector. denominator is negative Absolute Absolute graphs reflect performance for the stock in question for up to 366 days adjusted for EV to EBITDA EV to EBITDA is Enterprise Value divided by EBITDA (Earnings before Interest and Taxes, intervening corporate actions. depreciation and amortisation). EV is full company Market Capitalisation at the data date plus Relative Relative charts reflect the performance for the stock in question relative to the corresponding last annual net debt and Preferred Stock. Net Debt is total financial debt less cash and short- sector of the FTSE All Share Index for up to 366 days, rebased to the start date. Note that term investments. EBITDA is operating income plus depreciation and amortisation. the stock itself may not be a FTSE All share constituent. Dividend Yield % Dividend Yield reflects the dividend declared per share and/or paid for the security in RSI Relative Strength Index. Calculated as 100 minus (100 dividend by (1+ratio of positive question for the most recent fiscal year, divided by the share price. versus negative time weighted returns)). Reflects 14 day average gains/losses Return on Equity Return on Equity is net income over average common equity. Not calculated if denominator Valuation History ∥ denotes valuation data falls outside display truncation limits. (RoE) is negative Charts Dividend Payout Total dividends divided by Net Income expressed as a percentage. Top/Bottom Reflect data for up to five top and five bottom performers for the valuation metric in Net Margin Net Margin is Net Income divided by sales. Valuation Bar questions. Note data may be limited to the stock in question if there are currently no stocks Charts in the corresponding FTSE UK All Share sector.

A guide to the report is available at http://www.londonstockexchange.com/prices-and-markets/stocks/services-stock/ftse-note.htm.

BRIT 03 August 2015 For further information visit www.ftse.com, email [email protected] or call your local FTSE office:

Beijing +86 10 5833 2202 London +44 (0) 20 7866 1810 Rio de Janeiro +55 (21) 3736 3726 Tokyo +81 (3) 3581 2811 Boston +1 888 747 FTSE (3873) Milan +39 02 3604 6953 San Francisco +1 888 747 FTSE (3873) Toronto +1 416 572 7979 Chicago +1 888 747 FTSE (3873) Mumbai +91 22 6649 4180 Seattle +1 888 747 FTSE (3873) Dubai +971 4 375 1868 New York +1 888 747 FTSE (3873) Shanghai +86 21 6058 9131 Hong Kong +852 2164 3333 Paris +33 (0)1 53 76 82 89 Sydney +61 (0)2 9293 2864

© 2015 Group companies. London Stock Exchange Group companies includes FTSE International Limited (“FTSE”), Frank Russell Company (“Russell”), MTS Next Limited (“MTS”), and FTSE TMX Global Debt Capital Markets Inc (“FTSE TMX”). All rights reserved. “FTSE®”, “Russell®”, “MTS®”, “FTSE TMX®” and “FTSE Russell” and other service marks and trademarks related to the FTSE or Russell indexes are trade marks of the London Stock Exchange Group companies and are used by FTSE, MTS, FTSE TMX and Russell under licence. All information is provided for information purposes only. Every effort is made to ensure that all information given in this publication is accurate, but no responsibility or liability can be accepted by the London Stock Exchange Group companies nor its licensors for any errors or for any loss from use of this publication. Neither the London Stock Exchange Group companies nor any of their licensors make any claim, prediction, warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the index/indexes referred to above or the fitness or suitability of the index/indexes for any particular purpose to which it/they might be put. The London Stock Exchange Group companies do not provide investment advice and nothing in this publication should be taken as constituting financial or investment advice. The London Stock Exchange Group companies make no representation regarding the advisability of investing in any asset. A decision to invest in any such asset should not be made in reliance on any information herein. Indexes cannot be invested in directly. Inclusion of an asset in an index is not a recommendation to buy, sell or hold that asset. The general information contained in this publication should not be acted upon without obtaining specific legal, tax, and investment advice from a licensed professional. No part of this information may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior written permission of the London Stock Exchange Group companies. Distribution of the London Stock Exchange Group companies’ index values and the use of their indexes to create financial products require a licence with FTSE, FTSE TMX, MTS and/or Russell and/or its licensors. The Industry Classification Benchmark (“ICB”) is owned by FTSE. FTSE does not accept any liability to any person for any loss or damage arising out of any error or omission in the ICB. Past performance is no guarantee of future results. Charts and graphs are provided for illustrative purposes only. Index returns shown may not represent the results of the actual trading of investable assets. Certain returns shown may reflect back-tested performance. All performance presented prior to the index inception date is back-tested performance. Back-tested performance is not actual performance, but is hypothetical. The back-test calculations are based on the same methodology that was in effect when the index was officially launched. However, back- tested data may reflect the application of the index methodology with the benefit of hindsight, and the historic calculations of an index may change from month to month based on revisions to the underlying economic data used in the calculation of the index.

4 of 4