Kumamoto Earthquake Gc Briefing

GC BRIEFING An Update from GC Analytics®

May 2016 KUMAMOTO EARTHQUAKE

In April of 2016, at mid-month, the world was once again reminded of the potential power of seismic activity by a series of earthquakes that hit Kumamoto prefecture on the southernmost island of Japan, as well as by the large shake that occurred half way around the world in Ecuador. In this briefing we summarize the basic facts regarding the 2016 Kumamoto Earthquake, including a description of the event itself and the basic seismic background of the area. We also outline the major earthquake coverages provided by Japanese insurers, report on possible loss amounts and list some of the major affected facilities.

1 F-4 | DEPTH OF THE RYUKYU TRENCH AND DEPTH OF HISTORICAL EARTHQUAKES T-1 | EARTHQUAKE EVENTS IN JAPAN STANDARD F-5 | INDUSTRIAL PARKS AND CORPORATIONS IN KUMATOMO PREFECTURE F-1 | EVENTS OF MOMENT MAGNITUDE 6.0 AND LARGER UTC+09 Moment Depth in Epicenter F-3 | EARTHQUAKE INTENSITY BY LOCATION USING MODIFIED MERCALLI INTENSITY UTC+09 Moment Depth in Epicenter Intensity 7.5 Date Time Magnitudekilometers Latitude Longitude Date Time MagnitudekilometersLatitudeLongitude April 14, 2016 21:26:36 (UTC+09) Magnitude 6.2 April 16, 2016 01:25:06 (UTC+09) Magnitude 7.0 32.849oN 130.635oE Depth 10 kilometers 32.782oN 130.726oE Depth 10 kilometers Intensity 8.0 Apr-14 21:26 6.2 10.0 32.849 130.635 Apr-16 01:445.3 10.0 32.695 130.735 D Intensity 7.0 Apr-14 21:424.8 10.0 32.578 130.636 Apr-16 01:455.7 10.0 32.881 130.846 Intensity 8.5 Apr-14 22:075.4 10.0 32.788 130.835 Apr-16 02:044.6 11.7 32.757 130.742 Apr-14 22:224.8 10.0 32.683 130.646 Apr-16 02:494.5 12.2 33.203 131.321 M Apr-14 22:384.8 10.0 32.685 130.711 Apr-16 03:035.4 4.9 32.926 131.043 L Apr-14 22:434.5 10.0 32.704 130.696 Apr-16 03:164.6 18.6 33.086 130.836 J K B Apr-14 23:284.5 10.0 32.785 130.745 Apr-16 03:204.5 19.4 33.101 130.997 I Apr-14 23:294.6 10.0 32.752 130.726 Apr-16 03:264.5 10.0 32.870 130.918 A Aisin Kyushu Co. F Apr-14 23:434.9 10.0 32.783 130.758 Apr-16 03:555.5 13.8 32.980 131.136 B Renesas Semiconductor Package & Testing Apr-15 00:03 6.0 6.0 32.693 130.732 Apr-16 04:184.4 10.6 32.937 130.950 G C Aisin Kyushu Casting Co. D AT Kyushu Co. Apr-15 00:065.3 10.0 32.707 130.701 Apr-16 04:514.7 3.4 32.698 130.734 E NEC Semiconductors Kyushu Yamaguchi Co. H F Kumamoto Technology and Research Park Apr-15 00:344.7 10.0 32.698 130.759 Apr-16 05:344.5 10.0 32.569 130.509 E G Iseki Co. Apr-15 00:504.5 10.0 32.742 130.727 Apr-16 06:314.3 11.0 32.867 131.137 C H NEC Semiconductors Kyushu Yamaguchi Co. Apr-15 01:534.6 11.8 32.696 130.767 Apr-16 06:404.5 10.0 32.945 130.917 A I Fuji Film Kyushu Co. N J Semicon Techno Park Apr-15 02:144.5 10.0 32.713 130.671 Apr-16 07:115.1 10.0 33.256 131.370 K Honda Motor Co. Apr-15 05:104.7 10.0 32.754 130.694 Apr-16 07:234.6 10.0 32.754 130.744 L Kumamoto Core M Miraiaru Co. Source: USGS Apr-15 07:294.6 10.0 32.843 130.791 Apr-16 07:424.1 10.0 32.788 130.645 N Sanwa Kagaku Kenkyusho Apr-15 07:464.5 10.0 32.804 130.729 Apr-16 08:204.5 10.0 32.645 130.667 Source: USGS Apr-16 01:25 7.0 10.0 32.782 130.726 Apr-16 09:164.3 10.0 32.559 130.583 Source: Guy Carpenter Apr-16 09:485.2 9.1 32.848 130.777 T-3 | NUMBER OF DWELLINGS AND THE PERCENTAGE INSURED WITH THE JER Source: Guy Carpenter Apr-16 10:384.3 10.0 32.486 130.465 T-2 | MODIFIED MERCALLI INTENSITY SCALE AND THE POPULATION BY OBSERVED INTENSITY Apr-16 11:024.9 10.0 32.729 130.670 Number of Number of Number of Homes Takeup Number of Homes Takeup Prefecture Zone Prefecture Zone Apr-16 14:034.6 10.7 33.003 131.118 Homes Insured with Rate Homes Insured with Rate Instrumental Intensity I II-III IV V VI VII VIII IX X+ EVENT DESCRIPTION Apr-16 14:274.6 1.3 32.660 130.639 the JER the JER Hokkaido 12,727,000 619,000 22.7%Hyogo 82,460,000 616,000 25.0% On April 14, 2016 at 9:26 p.m., local time, a moment magnitude 6.2 earthquake occurred approximately 12 kilometers Apr-16 16:025.3 16.2 32.747 130.668 Perceived Shaking Not felt Weak LightModerateStrongVery Strong Severe ViolentExtreme Akita2425,000 82,00019.3% Kyoto81,176,000 325,000 27.6% (7.5 miles) west-northwest of Kumamoto city, which is situated in Kyushu, the southernmost main island of Japan. Two Apr-16 17:404.6 3.3 32.766 130.555 Peak Accelerage (%g) <.17 .17-1.41.4-3.9 3.9-9.29.2-1818-34 34-65 65-124>124 Aomori 2 585,000114,000 19.5%Nara8577,000 158,000 27.4% hours and 37 minutes later, a moment magnitude 6.0 earthquake occurred approximately 10 kilometers (6.2 miles) south Apr-16 21:054.6 12.7 32.728 130.750 Niigata2 874,000179,000 20.5%Osaka 84,117,000 1,258,000 30.6% of Kumamoto city. Peak Velocity (cm/s) <0.10.1-1.1 1.1-3.43.4-8.1 8.1-16 16-3131-60 60-116>116 F-2 | EARTHQUAKE SHOCKS FROM APRIL 14TH THROUGH APRIL 17TH, UTC Apr-17 00:144.7 10.0 32.933 130.941 Yamagata 2 407,000 79,00019.4% Shiga8548,000 142,000 25.9% Resistant On April 16 at 1:25 a.m., local time, 28 hours after the first foreshock, an event of moment magnitude 7.0 occurred Apr-17 03:304.3 16.0 33.016 131.050 None None None Very light LightModerateMod./HeavyHeavy Very Heavy Fukushima3 760,000209,000 27.5%Wakayama8 437,000 105,000 24.0% Structures approximately one kilometer (0.62 miles) west-southwest of Kumamoto city1. The events were shallow earthquakes with Apr-17 04:464.6 10.0 32.725 130.680 Potential Iwate3515,000108,000 21.0%Hiroshima 91,273,000 364,000 28.6% Damage Vulnerable None None None LightModerateMod./HeavyHeavy Very HeavyVery Heavy reported depth of 10 kilometers (6.2 miles), according to the U.S. Geological Survey (USGS). The shallow depth of these Apr-17 19:234.7 5.1 32.733 130.564 Structures Miyagi 3 950,000493,000 51.9%Okayama 9817,000 172,000 21.1% events indicated that they occurred on crustal faults, the USGS said. Population Exposed in Gunma4 808,000159,000 19.7%Shimane 9284,000 42,000 14.8% Apr-18 08:354.6 10.0 32.867 130.695 -8,510,000 1,757,000592,000 892,000 00 Damage Prone Areas Ibaraki41,187,000 328,000 27.6%Tottori 9232,000 51,000 22.0% There were a series of foreshocks and aftershocks, shown in maps below, for the four day period that began with the first Apr-18 20:425.3 10.7 33.013 131.092 Source: Guy Carpenter Saitama43,085,000 948,000 30.7%Yamaguchi 9656,000 149,000 22.7% event of April 14. Apr-19 06:204.3 10.0 33.014 131.003 Tochigi4 793,000206,000 26.0%Ehime 10 645,000 148,000 22.9% Apr-19 17:525.1 3.2 32.512 130.567 Chiba52,704,000 897,000 33.2%Kagawa10427,000 126,000 29.5% April 14, 2016 April 15, 2016 April 16, 2016 April 17, 2016 Apr-19 20:474.8 10.0 32.600 130.542 Kanagawa 54,114,000 1,418,000 34.5%Kochi 10 353,000 87,000 24.6% (UTC) (UTC) (UTC) (UTC) Apr-20 03:384.1 5.0 32.480 130.656 Tokyo56,699,000 2,446,000 36.5%Tokushima 10 329,000 89,000 27.1% Apr-21 05:164.5 8.0 33.250 131.433 Aichi63,096,000 1,261,000 40.7%Fukuoka 11 2,296,000 751,000 32.7% Gifu 6 792,000266,000 33.6%Kagoshima 11 802,000 194,000 24.2% Source: Guy Carpenter Source: USGS 1 The source of the moment magnitudes are the USGS. Mie6768,000213,000 27.7% Kumamoto 11 757,000 219,000 28.9% 2 Nagano 6 846,000156,000 18.4%Miyazaki11515,000 123,000 23.9% Shizuoka 61,518,000 453,000 29.8%Nagasaki11626,000 86,000 13.7% Yamanashi6 350,000103,000 29.4%Oita11525,000 118,000 22.5% Fukui7284,000 70,00024.6% Saga 11 321,000 59,000 18.4% Ishikawa 7 466,000111,000 23.8%Okinawa 12 600,000 86,000 14.3% Toyama 7 405,000 81,00020.0% Total 55,931,00016,467,000 29.4% Source: http://www.nihonjishin.co.jp/disclosure/2015/a_05.pdf F-4 | DEPTH OF THE RYUKYU TRENCH AND DEPTH OF HISTORICAL EARTHQUAKES T-1 | EARTHQUAKE EVENTS IN JAPAN STANDARD F-5 | INDUSTRIAL PARKS AND CORPORATIONS IN KUMATOMO PREFECTURE F-1 | EVENTS OF MOMENT MAGNITUDE 6.0 AND LARGER UTC+09 Moment Depth in Epicenter F-3 | EARTHQUAKE INTENSITY BY LOCATION USING MODIFIED MERCALLI INTENSITY UTC+09 Moment Depth in Epicenter Intensity 7.5 Date Time Magnitudekilometers Latitude Longitude Date Time MagnitudekilometersLatitudeLongitude April 14, 2016 21:26:36 (UTC+09) Magnitude 6.2 April 16, 2016 01:25:06 (UTC+09) Magnitude 7.0 32.849oN 130.635oE Depth 10 kilometers 32.782oN 130.726oE Depth 10 kilometers Intensity 8.0 Apr-14 21:26 6.2 10.0 32.849 130.635 Apr-16 01:445.3 10.0 32.695 130.735 D Intensity 7.0 Apr-14 21:424.8 10.0 32.578 130.636 Apr-16 01:455.7 10.0 32.881 130.846 Intensity 8.5 Apr-14 22:075.4 10.0 32.788 130.835 Apr-16 02:044.6 11.7 32.757 130.742 Apr-14 22:224.8 10.0 32.683 130.646 Apr-16 02:494.5 12.2 33.203 131.321 M Apr-14 22:384.8 10.0 32.685 130.711 Apr-16 03:035.4 4.9 32.926 131.043 L Apr-14 22:434.5 10.0 32.704 130.696 Apr-16 03:164.6 18.6 33.086 130.836 J K B Apr-14 23:284.5 10.0 32.785 130.745 Apr-16 03:204.5 19.4 33.101 130.997 I Apr-14 23:294.6 10.0 32.752 130.726 Apr-16 03:264.5 10.0 32.870 130.918 A Aisin Kyushu Co. F Apr-14 23:434.9 10.0 32.783 130.758 Apr-16 03:555.5 13.8 32.980 131.136 B Renesas Semiconductor Package & Testing Apr-15 00:03 6.0 6.0 32.693 130.732 Apr-16 04:184.4 10.6 32.937 130.950 G C Aisin Kyushu Casting Co. D AT Kyushu Co. Apr-15 00:065.3 10.0 32.707 130.701 Apr-16 04:514.7 3.4 32.698 130.734 E NEC Semiconductors Kyushu Yamaguchi Co. H F Kumamoto Technology and Research Park Apr-15 00:344.7 10.0 32.698 130.759 Apr-16 05:344.5 10.0 32.569 130.509 E G Iseki Co. Apr-15 00:504.5 10.0 32.742 130.727 Apr-16 06:314.3 11.0 32.867 131.137 C H NEC Semiconductors Kyushu Yamaguchi Co. Apr-15 01:534.6 11.8 32.696 130.767 Apr-16 06:404.5 10.0 32.945 130.917 A I Fuji Film Kyushu Co. N J Semicon Techno Park Apr-15 02:144.5 10.0 32.713 130.671 Apr-16 07:115.1 10.0 33.256 131.370 K Honda Motor Co. Apr-15 05:104.7 10.0 32.754 130.694 Apr-16 07:234.6 10.0 32.754 130.744 L Kumamoto Core M Miraiaru Co. Source: USGS Apr-15 07:294.6 10.0 32.843 130.791 Apr-16 07:424.1 10.0 32.788 130.645 N Sanwa Kagaku Kenkyusho Apr-15 07:464.5 10.0 32.804 130.729 Apr-16 08:204.5 10.0 32.645 130.667 Source: USGS Apr-16 01:25 7.0 10.0 32.782 130.726 Apr-16 09:164.3 10.0 32.559 130.583 Source: Guy Carpenter Apr-16 09:485.2 9.1 32.848 130.777 T-3 | NUMBER OF DWELLINGS AND THE PERCENTAGE INSURED WITH THE JER Source: Guy Carpenter Apr-16 10:384.3 10.0 32.486 130.465 T-2 | MODIFIED MERCALLI INTENSITY SCALE AND THE POPULATION BY OBSERVED INTENSITY Apr-16 11:024.9 10.0 32.729 130.670 Number of Number of Number of Homes Takeup Number of Homes Takeup Prefecture Zone Prefecture Zone Apr-16 14:034.6 10.7 33.003 131.118 Homes Insured with Rate Homes Insured with Rate Instrumental Intensity I II-III IV V VI VII VIII IX X+ Apr-16 14:274.6 1.3 32.660 130.639 the JER the JER Hokkaido 12,727,000 619,000 22.7%Hyogo 82,460,000 616,000 25.0% Apr-16 16:025.3 16.2 32.747 130.668 Perceived Shaking Not felt Weak LightModerateStrongVery Strong Severe ViolentExtreme Akita2425,000 82,00019.3% Kyoto81,176,000 325,000 27.6% Apr-16 17:404.6 3.3 32.766 130.555 Peak Accelerage (%g) <.17 .17-1.41.4-3.9 3.9-9.29.2-1818-34 34-65 65-124>124 Aomori 2 585,000114,000 19.5%Nara8577,000 158,000 27.4% Apr-16 21:054.6 12.7 32.728 130.750 Niigata2 874,000179,000 20.5%Osaka 84,117,000 1,258,000 30.6% Peak Velocity (cm/s) <0.10.1-1.1 1.1-3.43.4-8.1 8.1-16 16-3131-60 60-116>116 F-2 | EARTHQUAKE SHOCKS FROM APRIL 14TH THROUGH APRIL 17TH, UTC Apr-17 00:144.7 10.0 32.933 130.941 Yamagata 2 407,000 79,00019.4% Shiga8548,000 142,000 25.9% Resistant Apr-17 03:304.3 16.0 33.016 131.050 None None None Very light LightModerateMod./HeavyHeavy Very Heavy Fukushima3 760,000209,000 27.5%Wakayama8 437,000 105,000 24.0% Structures Apr-17 04:464.6 10.0 32.725 130.680 Potential Iwate3515,000108,000 21.0%Hiroshima 91,273,000 364,000 28.6% Damage Vulnerable None None None LightModerateMod./HeavyHeavy Very HeavyVery Heavy Apr-17 19:234.7 5.1 32.733 130.564 Structures Miyagi 3 950,000493,000 51.9%Okayama 9817,000 172,000 21.1% Population Exposed in Gunma4 808,000159,000 19.7%Shimane 9284,000 42,000 14.8% Apr-18 08:354.6 10.0 32.867 130.695 -8,510,000 1,757,000592,000 892,000 00 Damage Prone Areas Apr-18 20:425.3 10.7 33.013 131.092 Ibaraki41,187,000 328,000 27.6%Tottori 9232,000 51,000 22.0% Source: Guy Carpenter Saitama43,085,000 948,000 30.7%Yamaguchi 9656,000 149,000 22.7% Apr-19 06:204.3 10.0 33.014 131.003 Tochigi4 793,000206,000 26.0%Ehime 10 645,000 148,000 22.9% Apr-19 17:525.1 3.2 32.512 130.567 Chiba52,704,000 897,000 33.2%Kagawa10427,000 126,000 29.5% April 14, 2016 April 15, 2016 April 16, 2016 April 17, 2016 Apr-19 20:474.8 10.0 32.600 130.542 Kanagawa 54,114,000 1,418,000 34.5%Kochi 10 353,000 87,000 24.6% (UTC) (UTC) (UTC) (UTC) Apr-20 03:384.1 5.0 32.480 130.656 Tokyo56,699,000 2,446,000 36.5%Tokushima 10 329,000 89,000 27.1% Apr-21 05:164.5 8.0 33.250 131.433 Aichi63,096,000 1,261,000 40.7%Fukuoka 11 2,296,000 751,000 32.7% Gifu 6 792,000266,000 33.6%Kagoshima 11 802,000 194,000 24.2% Source: Guy Carpenter Source: USGS Mie6768,000213,000 27.7% Kumamoto 11 757,000 219,000 28.9% Nagano 6 846,000156,000 18.4%Miyazaki11515,000 123,000 23.9% T- 1 | EARTHQUAKE EVENTS IN JAPAN STANDARD TIME Shizuoka 61,518,000 453,000 29.8%Nagasaki11626,000 86,000 13.7% Yamanashi6 350,000103,000 29.4%Oita11525,000 118,000 22.5% UTC+09 Moment Depth in Epicenter Fukui7284,000 70,00024.6% Saga 11 321,000 59,000 18.4% Date Time Magnitude kilometers Latitude Longitude Ishikawa 7 466,000111,000 23.8%Okinawa 12 600,000 86,000 14.3% Toyama 7 405,000 81,00020.0% Total 55,931,00016,467,000 29.4% Apr-14 21:26 6.2 10.0 32.849 130.635 Source: http://www.nihonjishin.co.jp/disclosure/2015/a_05.pdf Apr-14 21:42 4.8 10.0 32.578 130.636 Apr-14 22:07 5.4 10.0 32.788 130.835 Apr-14 22:22 4.8 10.0 32.683 130.646 Apr-14 22:38 4.8 10.0 32.685 130.711 Apr-14 22:43 4.5 10.0 32.704 130.696 Apr-14 23:28 4.5 10.0 32.785 130.745 Apr-14 23:29 4.6 10.0 32.752 130.726 Apr-14 23:43 4.9 10.0 32.783 130.758 Apr-15 00:03 6.0 6.0 32.693 130.732 Apr-15 00:06 5.3 10.0 32.707 130.701 Apr-15 00:34 4.7 10.0 32.698 130.759 Apr-15 00:50 4.5 10.0 32.742 130.727 Apr-15 01:53 4.6 11.8 32.696 130.767 Apr-15 02:14 4.5 10.0 32.713 130.671 Apr-15 05:10 4.7 10.0 32.754 130.694 Apr-15 07:29 4.6 10.0 32.843 130.791 Apr-15 07:46 4.5 10.0 32.804 130.729 Apr-16 01:25 7.0 10.0 32.782 130.726

3 UTC+09 Moment Depth in Epicenter Date Time Magnitude kilometers Latitude Longitude Apr-16 01:44 5.3 10.0 32.695 130.735 Apr-16 01:45 5.7 10.0 32.881 130.846 Apr-16 02:04 4.6 11.7 32.757 130.742 Apr-16 02:49 4.5 12.2 33.203 131.321 Apr-16 03:03 5.4 4.9 32.926 131.043 Apr-16 03:16 4.6 18.6 33.086 130.836 Apr-16 03:20 4.5 19.4 33.101 130.997 Apr-16 03:26 4.5 10.0 32.870 130.918 Apr-16 03:55 5.5 13.8 32.980 131.136 Apr-16 04:18 4.4 10.6 32.937 130.950 Apr-16 04:51 4.7 3.4 32.698 130.734 Apr-16 05:34 4.5 10.0 32.569 130.509 Apr-16 06:31 4.3 11.0 32.867 131.137 Apr-16 06:40 4.5 10.0 32.945 130.917 Apr-16 07:11 5.1 10.0 33.256 131.370 Apr-16 07:23 4.6 10.0 32.754 130.744 Apr-16 07:42 4.1 10.0 32.788 130.645 Apr-16 08:20 4.5 10.0 32.645 130.667 Apr-16 09:16 4.3 10.0 32.559 130.583 Apr-16 09:48 5.2 9.1 32.848 130.777 Apr-16 10:38 4.3 10.0 32.486 130.465 Apr-16 11:02 4.9 10.0 32.729 130.670 Apr-16 14:03 4.6 10.7 33.003 131.118 Apr-16 14:27 4.6 1.3 32.660 130.639 Apr-16 16:02 5.3 16.2 32.747 130.668 Apr-16 17:40 4.6 3.3 32.766 130.555 Apr-16 21:05 4.6 12.7 32.728 130.750 Apr-17 00:14 4.7 10.0 32.933 130.941 Apr-17 03:30 4.3 16.0 33.016 131.050 Apr-17 04:46 4.6 10.0 32.725 130.680 Apr-17 19:23 4.7 5.1 32.733 130.564 Apr-18 08:35 4.6 10.0 32.867 130.695 Apr-18 20:42 5.3 10.7 33.013 131.092 Apr-19 06:20 4.3 10.0 33.014 131.003 Apr-19 17:52 5.1 3.2 32.512 130.567 Apr-19 20:47 4.8 10.0 32.600 130.542 Apr-20 03:38 4.1 5.0 32.480 130.656 Apr-21 05:16 4.5 8.0 33.250 131.433

Source: USGS

4 The Japan Meteorological Agency (JMA) reported the first and second earthquake to be of magnitudes Mj 6.5 and Mj 7.3 F-4 | DEPTH OF THE RYUKYU TRENCH AND DEPTH OF HISTORICAL EARTHQUAKES T-1 | EARTHQUAKE EVENTS IN JAPAN STANDARD F-5 | INDUSTRIAL PARKS AND CORPORATIONS IN KUMATOMO PREFECTURE F-1 | EVENTS OF MOMENT MAGNITUDE 6.0 AND LARGER (Mj is the local magnitude defined and calculated by the JMA) with depths of 11 kilometers (6.8 miles) and 12 kilometers (7.5 miles), respectively. The JMA named the sequence of earthquakes “The 2016 Kumamoto Earthquake”2. UTC+09 Moment Depth in Epicenter F-3 | EARTHQUAKE INTENSITY BY LOCATION USING MODIFIED MERCALLI INTENSITY F-4 | DEPTH OF THE RYUKYU TRENCH AND DEPTH OF HISTORICAL EARTHQUAKES T-1 | EARTHQUAKE EVENTS IN JAPAN STANDARD UTC+09 Moment Depth in Epicenter F-5 | INDUSTRIAL PARKS AND CORPORATIONS IN KUMATOMOIntensity 7.5 PREFECTURE F-1 | EVENTS OF MOMENT MAGNITUDE 6.0 AND LARGER Date Time Magnitudekilometers Latitude Longitude Date Time MagnitudekilometersLatitudeLongitude April 14, 2016 21:26:36 (UTC+09) Magnitude 6.2 April 16, 2016 01:25:06 (UTC+09) Magnitude 7.0 UTC+09 Moment Depth in Epicenter F-3 | EARTHQUAKE32.849oN 130.635oE INTENSITY Depth 10 kilometers BY LOCATION USING MODIFIED32.782oN MERCALLI 130.726oE Depth INTENSITY 10 kilometers Intensity 8.0 Apr-14 21:26 6.2 10.0 32.849 130.635 Apr-16UTC+0901:445Mome.3 nt De10.pt0h in 32.695Epicente130.r 735 D Intensity 7.5 Intensity 7.0 ApDar-te14 21Time:424Magnit.8 udekilo10.me0ters La32.titu578de Long130.63itud6e ApDar-te16 01Time:455Magnit.7 udekilom10.et0ersL32.atit881udeL130.ongi846tude April 14, 2016 21:26:36 (UTC+09) Magnitude 6.2 April 16, 2016 01:25:06 (UTC+09) Magnitude 7.0 32.849oN 130.635oE Depth 10 kilometers 32.782oN 130.726oE Depth 10 kilometers IntensityIntensity 8.5 8.0 ApApr-r-1414 2221:0:2756 6.4.2 10.10.00 32.32.788849 130.30.836355 ApApr-r-1616 0201:0:44445.6.3 11.10.70 32.32.757695 130.130.742735 D Intensity 7.0 ApApr-r-1414 2221:2:42424.8.8 10.10.00 32.32.683578 1130.30.646366 ApApr-r-1616 0201:4:49455.5.7 12.10.20 33.32.203881 131.130.321846 M Intensity 8.5 ApApr-r-1414 2222:3:08475.8.4 10.10.00 32.32.685788 1130.30.718315 ApApr-r-1616 0302:0:03544.4.6 11.4.97 32.32.926757 131.130.043742 L J K B ApApr-r-1414 2222:4:23424.5.8 10.10.00 32.32.704683 1130.30.696466 ApApr-r-1616 0302:1:46494.6.5 18.12.62 33.33.086203 130.131.836321 M ApApr-r-1414 2322:2:38484.5.8 10.10.00 32.32.785685 1130.30.747151 ApApr-r-1616 0303:2:00435.5.4 19.4.94 33.32.101926 130.131.997043 I L ApApr-r-1414 2322:2:49434.6.5 10.10.00 32.32.752704 1130.30.726966 ApApr-r-1616 0303:2:16464.5.6 10.18.06 32.33.870086 130.130.918836 J K B A Aisin Kyushu Co. I F ApApr-r-1414 2323:4:23484.9.5 10.10.00 32.32.783785 1130.30.757485 ApApr-r-1616 0303:5:25504.5.5 13.19.84 32.33.980101 131.130.136997 B Renesas Semiconductor Package & Testing AApprr--1145 0230::203946..60 10.6.00 332.2.675293 11330.0.772326 ApApr-r-1616 0403:1:28464.4.5 10.10.60 32.32.937870 130.130.950918 G C Aisin Kyushu Casting Co. DA ATAisin Ky ushuKyushu Co. Co. F ApApr-r-1514 0023:0:46534.3.9 10.10.00 32.32.707783 1130.30.707518 ApApr-r-1616 0403:5:51455.7.5 13.3.48 32.32.698980 130.131.734136 EB NECRenesas Semiconductors Semiconductor Kyushu Package Yamaguchi & Testin Co.g H G FC KumamotoAisin Kyushu Te Castingchnology Co. and Research Park ApApr-r-1515 0000:3:0443 6.7.0 10.6.00 32.32.698693 130.30.757392 ApApr-r-1616 0504:3:14484.5.4 10.10.06 32.32.569937 130.130.509950 E GD IsekiAT Ky Co.ushu Co. ApApr-r-1515 0000:5:00465.5.3 10.10.00 32.32.742707 1130.30.727071 ApApr-r-1616 0604:3:51414.3.7 11.3.40 32.32.867698 131.130.137734 C HE NECNEC SemiconductorsSemiconductors KyKyushuushu YaYamaguchimaguchi Co.Co. H A IF FKumamotouji Film Kyushu Technology Co. and Research Park ApApr-r-1515 0100:5:33444.6.7 11.10.80 32.32.696698 1130.30.767579 ApApr-r-1616 0605:4:30444.5.5 10.10.00 32.32.945569 130.130.917509 E N GJ SemiconIseki Co. Techno Park ApApr-r-1515 0200:1:54404.5.5 10.10.00 32.32.713742 1130.30.677217 ApApr-r-1616 0706:1:31514.1.3 10.11.00 33.32.256867 131.131.370137 C KH HondaNEC Semiconductors Motor Co. Kyushu Yamaguchi Co. ApApr-r-1515 0501:1:50434.7.6 10.11.08 32.32.754696 1130.30.697647 ApApr-r-1616 0706:2:43404.6.5 10.10.00 32.32.754945 130.130.744917 A LI KumamotoFuji Film Ky ushuCore Co. N MJ MirSemiconaiaru Co. Techno Park Source: USGS ApApr-r-1515 0702:2:19444.6.5 10.10.00 32.32.843713 1130.30.796711 ApApr-r-1616 0707:4:12415.1.1 10.10.00 32.33.788256 130.131.645370 NK SanwaHonda Kagaku Motor Co. Kenkyusho ApApr-r-1515 0705:4:16404.5.7 10.10.00 32.32.804754 1130.30.726994 ApApr-r-1616 0807:2:20434.5.6 10.10.00 32.32.645754 130.130.667744 Source: USGS L Kumamoto Core M Miraiaru Co. Source: USGS Source: Guy Carpenter AApprr--1156 0071::225947..60 110.0.00 332.2.784382 11330.0.779261 ApApr-r-1616 0907:1:46424.3.1 10.10.00 32.32.559788 130.130.583645 N Sanwa Kagaku Kenkyusho Apr-15 07:464.5 10.0 32.804 130.729 Source: USGS ApApr-r-1616 0908:4:28504.2.5 10.9.10 32.32.848645 130.130.777667 T-3 | NUMBER OF DWELLINGS AND THE PERCENTAGE INSURED WITH THE JER Source: Guy Carpenter Apr-16 01:25 7.0 10.0 32.782 130.726 ApApr-r-1616 1009:3:18464.3.3 10.10.00 32.32.486559 130.130.465583 Source: Guy Carpenter T-2 | MODIFIED MERCALLI INTENSITY SCALE AND THE POPULATION BY OBSERVED INTENSITY ApApr-r-1616 1109:0:42485.9.2 10.9.10 32.32.729848 130.130.670777 Number of Number of T-3 | NUMBER OFNum DWELLINGSber of Home sAND TTHEakeup PERCENTAGE INSUREDNu mWITHber of THEH JERomes Takeup Source: Guy Carpenter Prefecture Zone Prefecture Zone ApApr-r-1616 1410:0:33484.6.3 10.10.70 33.32.003486 131.130.118465 Homes Insured with Rate Homes Insured with Rate TI-2nstr u|m MODIFIEDental Intensity MERCALLII INTENSITYII-III SCALEIV ANDV THE POPULATIONVI VII BY OBSERVEDVIII IX INTENSITYX+ ApApr-r-1616 1411:2:07424.6.9 10.1.30 32.32.660729 130.130.639670 Ntuhme bJEeRr of Ntuhme bJEeRr of Number of Homes Takeup Number of Homes Takeup PHorefkkaiectudore Zo12ne ,727,000 619,000 22.7%HPryoefegocture Zo82ne ,460,000 616,000 25.0% ApApr-r-1616 1614:0:02534.3.6 16.10.27 32.33.747003 130.131.668118 Perceived Shaking Not felt Weak LightModerateStrongVery Strong Severe ViolentExtreme Homes Insured with Rate Homes Insured with Rate Instrumental Intensity I II-III IV V VI VII VIII IX X+ Akita2425,000 82,00019.3% Kyoto81,176,000 325,000 27.6% ApApr-r-1616 1714:4:20474.6.6 3.1.33 32.32.766660 130.130.555639 the JER the JER Peak Accelerage (%g) <.17 .17-1.41.4-3.9 3.9-9.29.2-1818-34 34-65 65-124>124 AoHomokkairido 212,585,00727,00001619,00014,000 19.522.7%N%Haryoa8go 82,577,000460,000 1658,00016,000 27.4%25.0% ApApr-r-1616 2116:0:05425.6.3 12.16.72 32.32.728747 130.130.750668 Perceived Shaking Not felt Weak LightModerateStrongVery Strong Severe ViolentExtreme NiigAkita2ata2 874,00425,0000179,00082,000120.59.3%%OKysakaoto8841,176,000,117,000 1,258,000325,000 30.6%27.6% ApApr-r-1716 0017:1:44404.7.6 10.3.30 32.32.933766 130.130.941555 Peak Velocity (cm/s) <0.10.1-1.1 1.1-3.43.4-8.1 8.1-16 16-3131-60 60-116>116 F-2 | EARTHQUAKE SHOCKS FROM APRIL 14TH THROUGH APRIL 17TH, UTC Peak Accelerage (%g) <.17 .17-1.41.4-3.9 3.9-9.29.2-1818-34 34-65 65-124>124 YaAomamogari ta 22 407,000585,000179,0014,0000119.59.4%%NShariga8a8548,000577,000 1142,00058,000 25.9%27.4% Resistant ApApr-r-1716 0321:3:00454.3.6 16.12.07 33.32.016728 131.130.050750 None None None Very light LightModerateMod./HeavyHeavy Very Heavy FuNiigkuatsha2ima3 760,00874,00020109,00079,000 27.520.5%W%Osakaakayama884,437,000117,000 1,258,000105,000 24.0%30.6% Structures Apr-r-17 0400:4:16444.6.7 10.0 32.725933 130.680941 PoPteankti aVle locity (cm/s) <0.10.1-1.1 1.1-3.43.4-8.1 8.1-16 16-3131-60 60-116>116 Iwate3515,000108,000 21.0%Hiroshima 91,273,000 364,000 28.6% F-2 | EARTHQUAKE SHOCKS FROM APRIL 14TH THROUGH APRIL 17TH, UTC Damage Vulnerable Yamagata 2 407,000 79,00019.4% Shiga8548,000 142,000 25.9% Resistant None None None LightModerateMod./HeavyHeavy Very HeavyVery Heavy Miyagi 3 950,000493,000 51.9%Okayama 9817,000 172,000 21.1% Apr-r-1717 1903:2:33404.7.3 16.5.10 32.33.733016 130.131.564050 Structures None None None Very light LightModerateMod./HeavyHeavy Very Heavy Fukushima3 760,000209,000 27.5%Wakayama8 437,000 105,000 24.0% Structures ApApr-r-1817 0804:3:45464.6.6 10.10.00 32.32.867725 130.130.695680 PPootpenutlaiatli on Exposed in GuIwatnme3a4 808,00515,00010159,00008,000 19.721.0%S%Hhiirmaoshinema 9291,273,00084,000 342,00064,000 14.8%28.6% Damage Vulnerable -8,510,000 1,757,000592,000 892,000 00 Damage Prone Areas None None None LightModerateMod./HeavyHeavy Very HeavyVery Heavy Ibaraki41,187,000 328,000 27.6%Tottori 9232,000 51,000 22.0% ApApr-r-1817 2019:4:22534.3.7 10.5.17 33.32.013733 131.130.092564 Structures Miyagi 3 950,000493,000 51.9%Okayama 9817,000 172,000 21.1% Source: Guy Carpenter Saitama43,085,000 948,000 30.7%Yamaguchi 9656,000 149,000 22.7% Population Exposed in Gunma4 808,000159,000 19.7%Shimane 9284,000 42,000 14.8% ApApr-r-1918 0608:2:30454.3.6 10.10.00 33.32.014867 131.130.003695 -8,510,000 1,757,000592,000 892,000 00 Damage Prone Areas Tochigi4 793,000206,000 26.0%Ehime 10 645,000 148,000 22.9% ApApr-r-1918 1720:5:42525.1.3 10.3.27 32.33.512013 130.131.567092 Ibaraki41,187,000 328,000 27.6%Tottori 9232,000 51,000 22.0% TheSour USGSce: Guy Carpenterestimates that 892,000 people were exposed to the severe shaking of the second earthquake. ChSaitibama5a42,704,0003,085,000 897,000948,000 33.230.7%K%Yagamawaga1uchi 960427,00056,000 1126,00049,000 29.5%22.7% April 14, 2016 April 15, 2016 April 16, 2016 April 17, 2016 ApApr-r-1919 2006:4:27404.8.3 10.10.00 32.33.600014 130.131.542003 KaTonachgaigi4wa 54,114,000793,00021,418,00006,000 34.526.0%K%Eochimehi 1010 353,000645,000 187,00048,000 24.6%22.9% (UTC) (UTC) (UTC) (UTC) ApApr-r-2019 0317:3:58425.1.1 5.3.02 32.32.480512 130.130.656567 ToChkyibo5a56,699,0002,704,000 2,446,000897,000 36.533.2%T%Kokagushiawa1ma 1004329,00027,000 189,00026,000 27.1%29.5% April 14, 2016 April 15, 2016 April 16, 2016 April 17, 2016 ApApr-r-2119 0520:1:46474.5.8 10.8.00 33.32.250600 131.130.433542 AiKachnai6gawa 543,096,000,114,000 1,261,0001,418,000 40.734.5%F%Kukocuohika 1110 2,296,000353,000 751,00087,000 32.7%24.6% (UTC) (UTC) (UTC) (UTC) Gifu 6 792,000266,000 33.6%Kagoshima 11 802,000 194,000 24.2% Source: Guy Carpenter Source:Ap USGSr-20 03:384.1 5.0 32.480 130.656 Tokyo56,699,000 2,446,000 36.5%Tokushima 10 329,000 89,000 27.1% Apr-21 05:164.5 8.0 33.250 131.433 MiAiche6i63,096,000768,00021,261,00013,000 27.740.7%%FKuukmuoamkaoto 1111 2,296,000757,000 217951,000,000 232.7%8.9% 2 Japan Meteorological Agency: Report for Kumamoto earthquake (No.4) NaGifugano 66 846,00792,00010256,00066,000 18.433.6%M%Kagiyazosakhii1ma 1115802,00015,000 1123,00094,000 23.9%24.2% Source: Guy Carpenter Source: USGS 5 ShMiize6uoka 61,518,000768,0002453,00013,000 29.827.7%N% Kagumasakami1oto 1161 7526,0007,000 2186,0009,000 213.7%8.9% YaNamaganashno i66 350,00846,00010103,00056,000 29.418.4%O%Mitiya1azaki1151525,00015,000 1118,00023,000 22.5%23.9% FuShkuizuoi7ka 61,284,000518,000 453,00070,000229.84.6%%NSaaggaasaki11116321,00026,000 59,00086,000 18.4%13.7% IsYahimakawanashi67 466,00350,00010111,00003,000 23.829.4%O%Okiitnaa1wa 1215600,00025,000 186,00018,000 14.3%22.5% ToFuyakumai77 405,000284,000 81,0070,0002020.0%4.6% ToSatagal 11 55,931,00321,000016,467,00059,000 29.4%18.4% SourIsce:hika http://www.nihonjishin.co.jp/disclosure/2015/a_05.pdfwa 7 466,000111,000 23.8%Okinawa 12 600,000 86,000 14.3% Toyama 7 405,000 81,00020.0% Total 55,931,00016,467,000 29.4% Source: http://www.nihonjishin.co.jp/disclosure/2015/a_05.pdf SEISMIC RISK IN THE KYUSHU AREA The Ryukyu Trench is situated southeast of Kyushu where the Philippine Sea plate begins its subduction beneath Japan. While earthquakes have occurred several hundred kilometers northwest of the Ryukyu Trench, most earthquakes are at significant depths along this subduction zone. Thirteen magnitude 5-plus earthquakes have occurred at shallow depths of less than 50 kilometers (31.1 miles) within 100 kilometers (62.1 miles) of the Kumamoto earthquake over the past century, according to the USGS. In addition to the two events in April, a shallow magnitude 6.6 earthquake occurred in 2005 off the north coast of Kyushu. Two other events occurred in 1975 that were of magnitude 5.8 and 6.1 at distances of 40 kilometers (24.9 miles) and 65 kilometers (40.4 miles) to the northwest. The graphic below from the USGS illustrates the depth of the Ryukyu Trench at 20 kilometer (12.4 miles) increments in orange. The depth of the trench beneath Kumamoto city is roughly 140 plus kilometers (87.0 miles).

F-4 | DEPTH OF THE RYUKYU TRENCH AND DEPTH OF HISTORICAL EARTHQUAKES T-1 | EARTHQUAKE EVENTS IN JAPAN STANDARD F-5 | INDUSTRIAL PARKS AND CORPORATIONS IN KUMATOMO PREFECTURE F-1 | EVENTS OF MOMENT MAGNITUDE 6.0 AND LARGER UTC+09 Moment Depth in Epicenter F-3 | EARTHQUAKE INTENSITY BY LOCATION USING MODIFIED MERCALLI INTENSITY UTC+09 Moment Depth in Epicenter Intensity 7.5 Date Time Magnitudekilometers Latitude Longitude Date Time MagnitudekilometersLatitudeLongitude April 14, 2016 21:26:36 (UTC+09) Magnitude 6.2 April 16, 2016 01:25:06 (UTC+09) Magnitude 7.0 32.849oN 130.635oE Depth 10 kilometers 32.782oN 130.726oE Depth 10 kilometers Intensity 8.0 Apr-14 21:26 6.2 10.0 32.849 130.635 Apr-16 01:445.3 10.0 32.695 130.735 D Intensity 7.0 Apr-14 21:424.8 10.0 32.578 130.636 Apr-16 01:455.7 10.0 32.881 130.846 Intensity 8.5 Apr-14 22:075.4 10.0 32.788 130.835 Apr-16 02:044.6 11.7 32.757 130.742 Apr-14 22:224.8 10.0 32.683 130.646 Apr-16 02:494.5 12.2 33.203 131.321 M Apr-14 22:384.8 10.0 32.685 130.711 Apr-16 03:035.4 4.9 32.926 131.043 L Apr-14 22:434.5 10.0 32.704 130.696 Apr-16 03:164.6 18.6 33.086 130.836 J K B Apr-14 23:284.5 10.0 32.785 130.745 Apr-16 03:204.5 19.4 33.101 130.997 I Apr-14 23:294.6 10.0 32.752 130.726 Apr-16 03:264.5 10.0 32.870 130.918 A Aisin Kyushu Co. F Apr-14 23:434.9 10.0 32.783 130.758 Apr-16 03:555.5 13.8 32.980 131.136 B Renesas Semiconductor Package & Testing Apr-15 00:03 6.0 6.0 32.693 130.732 Apr-16 04:184.4 10.6 32.937 130.950 G C Aisin Kyushu Casting Co. D AT Kyushu Co. Apr-15 00:065.3 10.0 32.707 130.701 Apr-16 04:514.7 3.4 32.698 130.734 E NEC Semiconductors Kyushu Yamaguchi Co. H F Kumamoto Technology and Research Park Apr-15 00:344.7 10.0 32.698 130.759 Apr-16 05:344.5 10.0 32.569 130.509 E G Iseki Co. Apr-15 00:504.5 10.0 32.742 130.727 Apr-16 06:314.3 11.0 32.867 131.137 C H NEC Semiconductors Kyushu Yamaguchi Co. Apr-15 01:534.6 11.8 32.696 130.767 Apr-16 06:404.5 10.0 32.945 130.917 A I Fuji Film Kyushu Co. N J Semicon Techno Park Apr-15 02:144.5 10.0 32.713 130.671 Apr-16 07:115.1 10.0 33.256 131.370 K Honda Motor Co. Apr-15 05:104.7 10.0 32.754 130.694 Apr-16 07:234.6 10.0 32.754 130.744 L Kumamoto Core M Miraiaru Co. Source: USGS Apr-15 07:294.6 10.0 32.843 130.791 Apr-16 07:424.1 10.0 32.788 130.645 N Sanwa Kagaku Kenkyusho Apr-15 07:464.5 10.0 32.804 130.729 Apr-16 08:204.5 10.0 32.645 130.667 Source: USGS Apr-16 01:25 7.0 10.0 32.782 130.726 Apr-16 09:164.3 10.0 32.559 130.583 Source: Guy Carpenter Apr-16 09:485.2 9.1 32.848 130.777 TEARTHQUAKE-3 | NUMBER OF DWELLINGS COVERAGE AND INTHE JAPAN PERCENTAGE INSURED WITH THE JER Source: Guy Carpenter Apr-16 10:384.3 10.0 32.486 130.465 T-2 | MODIFIED MERCALLI INTENSITY SCALE AND THE POPULATION BY OBSERVED INTENSITY Japan is known for its earthquake potential; and like many other earthquake-prone countries, the government participates Apr-16 11:024.9 10.0 32.729 130.670 Number of Number of in insuring earthquakeNum risk.ber o Forf housesHomes and residentialTakeup buildings there are twoN majorumber osourcesf H ofom earthquakees Tak einsurance.up One Prefecture Zone Prefecture Zone Apr-16 14:034.6 10.7 33.003 131.118 is via commercial non-lifeHom einsurances Insur ecompaniesd with R awithte support from the governmentHom andes theI othernsured is w iviath cooperativeRate insurers. Instrumental Intensity I II-III IV V VI VII VIII IX X+ Apr-16 14:274.6 1.3 32.660 130.639 For all buildings and man-made structuresthe JER other than houses and residential buildings, earthquakethe JER insurance is available Hokkaido 12,727,000 619,000 22.7%Hyogo 82,460,000 616,000 25.0% Apr-16 16:025.3 16.2 32.747 130.668 Perceived Shaking Not felt Weak LightModerateStrongVery Strong Severe ViolentExtreme from commercial non-life insurance companies, albeit on a strictly controlled basis. Akita2425,000 82,00019.3% Kyoto81,176,000 325,000 27.6% Apr-16 17:404.6 3.3 32.766 130.555 Peak Accelerage (%g) <.17 .17-1.41.4-3.9 3.9-9.29.2-1818-34 34-65 65-124>124 EarthquakeAomori coverage2 585,00can typically01 14,000be included19.5 on%N marine hull,ara8 ocean cargo and577,000 aviation hull1 58,000risks. It is typically27.4% excluded Apr-16 21:054.6 12.7 32.728 130.750 forNiig motorata2 vehicles and874,00 personal01 accident79,000 insurance,20.5%O thoughsaka can be obtained.84 ,117,000 1,258,000 30.6% Apr-17 00:144.7 10.0 32.933 130.941 Peak Velocity (cm/s) <0.10.1-1.1 1.1-3.43.4-8.1 8.1-16 16-3131-60 60-116>116 F-2 | EARTHQUAKE SHOCKS FROM APRIL 14TH THROUGH APRIL 17TH, UTC EarthquakeYamagata coverage2 407,000includes earthquake,79,0001 fire9.4% following, Shtsunamiiga8 and volcanic548,000 eruption. 142,000 25.9% Resistant Apr-17 03:304.3 16.0 33.016 131.050 None None None Very light LightModerateMod./HeavyHeavy Very Heavy Fukushima3 760,000209,000 27.5%Wakayama8 437,000 105,000 24.0% Structures Apr-17 04:464.6 10.0 32.725 130.680 Potential Iwate3515,000108,000 21.0%Hiroshima 91,273,000 364,000 28.6% Damage Vulnerable None None None LightModerateMod./HeavyHeavy Very HeavyVery Heavy 6 Apr-17 19:234.7 5.1 32.733 130.564 Structures Miyagi 3 950,000493,000 51.9%Okayama 9817,000 172,000 21.1% Population Exposed in Gunma4 808,000159,000 19.7%Shimane 9284,000 42,000 14.8% Apr-18 08:354.6 10.0 32.867 130.695 -8,510,000 1,757,000592,000 892,000 00 Damage Prone Areas Apr-18 20:425.3 10.7 33.013 131.092 Ibaraki41,187,000 328,000 27.6%Tottori 9232,000 51,000 22.0% Source: Guy Carpenter Saitama43,085,000 948,000 30.7%Yamaguchi 9656,000 149,000 22.7% Apr-19 06:204.3 10.0 33.014 131.003 Tochigi4 793,000206,000 26.0%Ehime 10 645,000 148,000 22.9% Apr-19 17:525.1 3.2 32.512 130.567 Chiba52,704,000 897,000 33.2%Kagawa10427,000 126,000 29.5% April 14, 2016 April 15, 2016 April 16, 2016 April 17, 2016 Apr-19 20:474.8 10.0 32.600 130.542 Kanagawa 54,114,000 1,418,000 34.5%Kochi 10 353,000 87,000 24.6% (UTC) (UTC) (UTC) (UTC) Apr-20 03:384.1 5.0 32.480 130.656 Tokyo56,699,000 2,446,000 36.5%Tokushima 10 329,000 89,000 27.1% Apr-21 05:164.5 8.0 33.250 131.433 Aichi63,096,000 1,261,000 40.7%Fukuoka 11 2,296,000 751,000 32.7% Gifu 6 792,000266,000 33.6%Kagoshima 11 802,000 194,000 24.2% Source: Guy Carpenter Source: USGS Mie6768,000213,000 27.7% Kumamoto 11 757,000 219,000 28.9% Nagano 6 846,000156,000 18.4%Miyazaki11515,000 123,000 23.9% Shizuoka 61,518,000 453,000 29.8%Nagasaki11626,000 86,000 13.7% Yamanashi6 350,000103,000 29.4%Oita11525,000 118,000 22.5% Fukui7284,000 70,00024.6% Saga 11 321,000 59,000 18.4% Ishikawa 7 466,000111,000 23.8%Okinawa 12 600,000 86,000 14.3% Toyama 7 405,000 81,00020.0% Total 55,931,00016,467,000 29.4% Source: http://www.nihonjishin.co.jp/disclosure/2015/a_05.pdf F-4 | DEPTH OF THE RYUKYU TRENCH AND DEPTH OF HISTORICAL EARTHQUAKES T-1 | EARTHQUAKE EVENTS IN JAPAN STANDARD F-5 | INDUSTRIAL PARKS AND CORPORATIONS IN KUMATOMO PREFECTURE F-1 | EVENTS OF MOMENT MAGNITUDE 6.0 AND LARGER UTC+09 Moment Depth in Epicenter F-3 | EARTHQUAKE INTENSITY BY LOCATION USING MODIFIED MERCALLI INTENSITY UTC+09 Moment Depth in Epicenter Intensity 7.5 Date Time Magnitudekilometers Latitude Longitude Date Time MagnitudekilometersLatitudeLongitude April 14, 2016 21:26:36 (UTC+09) Magnitude 6.2 April 16, 2016 01:25:06 (UTC+09) Magnitude 7.0 32.849oN 130.635oE Depth 10 kilometers 32.782oN 130.726oE Depth 10 kilometers Intensity 8.0 Apr-14 21:26 6.2 10.0 32.849 130.635 Apr-16 01:445.3 10.0 32.695 130.735 D Intensity 7.0 Apr-14 21:424.8 10.0 32.578 130.636 Apr-16 01:455.7 10.0 32.881 130.846 Intensity 8.5 Apr-14 22:075.4 10.0 32.788 130.835 Apr-16 02:044.6 11.7 32.757 130.742 RESIDENTIAL EARTHQUAKE COVERAGE Apr-14 22:224.8 10.0 32.683 130.646 Apr-16 02:494.5 12.2 33.203 131.321 M Residential earthquake insurance provided by non-life insurers is strictly governed by a special law concerning earthquake Apr-14 22:384.8 10.0 32.685 130.711 Apr-16 03:035.4 4.9 32.926 131.043 insurance that was enacted in 1966 following the Niigata earthquake of 1964. Earthquake insurance is provided for an L J K B Apr-14 22:434.5 10.0 32.704 130.696 Apr-16 03:164.6 18.6 33.086 130.836 additional premium as an endorsement to the fire insurance policy, which covers buildings in residential use. The amount Apr-14 23:284.5 10.0 32.785 130.745 Apr-16 03:204.5 19.4 33.101 130.997 insured under the earthquake policy must be between 30 percent and 50 percent of the amount insured under the I Apr-14 23:294.6 10.0 32.752 130.726 Apr-16 03:264.5 10.0 32.870 130.918 associated fire policy, with a maximum amount of earthquake insurance of JPY50 million (USD467,000) for buildings and A Aisin Kyushu Co. JPY10 million (USD93,000) for contents. F Apr-14 23:434.9 10.0 32.783 130.758 Apr-16 03:555.5 13.8 32.980 131.136 B Renesas Semiconductor Package & Testing Apr-15 00:03 6.0 6.0 32.693 130.732 Apr-16 04:184.4 10.6 32.937 130.950 G C Aisin Kyushu Casting Co. Earthquake insurance on residential risks written by commercial non-life insurance companies is 100 percent ceded to the D AT Kyushu Co. Apr-15 00:065.3 10.0 32.707 130.701 Apr-16 04:514.7 3.4 32.698 130.734 Japan Earthquake Reinsurance Company, Ltd (JER). The JER in turn retrocedes most of this risk to the Japanese government E NEC Semiconductors Kyushu Yamaguchi Co. H F Kumamoto Technology and Research Park Apr-15 00:344.7 10.0 32.698 130.759 Apr-16 05:344.5 10.0 32.569 130.509 via an excess of loss structure, with a small portion retroceded back to the non-life insurance companies and reinsurer E Toa Re. The companies must retain 100 percent of the retrocession. As of April 1, 2014, the program’s limit was JPY7,000 G Iseki Co. Apr-15 00:504.5 10.0 32.742 130.727 Apr-16 06:314.3 11.0 32.867 131.137 C H NEC Semiconductors Kyushu Yamaguchi Co. billion (USD 65.421 billion) with the government assuming JPY6,738.6 billion (USD62.978 billion) in limit (96.3 percent), Apr-15 01:534.6 11.8 32.696 130.767 Apr-16 06:404.5 10.0 32.945 130.917 A I Fuji Film Kyushu Co. the JER retaining JPY224.7 billion (USD2.100 billion) (3.2 percent) and the non-life insurance companies retaining JPY36.7 N Apr-15 02:144.5 10.0 32.713 130.671 J Semicon Techno Park Apr-16 07:115.1 10.0 33.256 131.370 billion (USD0.343 billion) (0.5 percent). Starting April 1, 2016, the program’s limit was increased to JPY11,300 billion (USD K Honda Motor Co. Apr-15 05:104.7 10.0 32.754 130.694 Apr-16 07:234.6 10.0 32.754 130.744 105.607 billion) with the government retaining JPY10,990.2 billion (USD102.712 billion) in limit (97.3 percent)3. L Kumamoto Core M Miraiaru Co. Source: USGS Apr-15 07:294.6 10.0 32.843 130.791 Apr-16 07:424.1 10.0 32.788 130.645 N Sanwa Kagaku Kenkyusho Apr-15 07:464.5 10.0 32.804 130.729 AsSour ofce: 2014, USGS the countrywide take-up rate with the JER was approximately 29.4 percent with the take-up in Kumamoto Apr-16 08:204.5 10.0 32.645 130.667 Prefecture at 28.9 percent. Apr-16 01:25 7.0 10.0 32.782 130.726 Apr-16 09:164.3 10.0 32.559 130.583 Source: Guy Carpenter Apr-16 09:485.2 9.1 32.848 130.777 T-3 | NUMBER OF DWELLINGS AND THE PERCENTAGE INSURED WITH THE JER Source: Guy Carpenter Apr-16 10:384.3 10.0 32.486 130.465 T-2 | MODIFIED MERCALLI INTENSITY SCALE AND THE POPULATION BY OBSERVED INTENSITY Apr-16 11:024.9 10.0 32.729 130.670 Number of Number of Number of Homes Takeup Number of Homes Takeup Prefecture Zone Prefecture Zone Apr-16 14:034.6 10.7 33.003 131.118 Homes Insured with Rate Homes Insured with Rate Instrumental Intensity I II-III IV V VI VII VIII IX X+ Apr-16 14:274.6 1.3 32.660 130.639 the JER the JER Hokkaido 12,727,000 619,000 22.7%Hyogo 82,460,000 616,000 25.0% Apr-16 16:025.3 16.2 32.747 130.668 Perceived Shaking Not felt Weak LightModerateStrongVery Strong Severe ViolentExtreme Akita2425,000 82,00019.3% Kyoto81,176,000 325,000 27.6% Apr-16 17:404.6 3.3 32.766 130.555 Peak Accelerage (%g) <.17 .17-1.41.4-3.9 3.9-9.29.2-1818-34 34-65 65-124>124 Aomori 2 585,000114,000 19.5%Nara8577,000 158,000 27.4% Apr-16 21:054.6 12.7 32.728 130.750 Niigata2 874,000179,000 20.5%Osaka 84,117,000 1,258,000 30.6% Peak Velocity (cm/s) <0.10.1-1.1 1.1-3.43.4-8.1 8.1-16 16-3131-60 60-116>116 F-2 | EARTHQUAKE SHOCKS FROM APRIL 14TH THROUGH APRIL 17TH, UTC Apr-17 00:144.7 10.0 32.933 130.941 Yamagata 2 407,000 79,00019.4% Shiga8548,000 142,000 25.9% Resistant Apr-17 03:304.3 16.0 33.016 131.050 None None None Very light LightModerateMod./HeavyHeavy Very Heavy Fukushima3 760,000209,000 27.5%Wakayama8 437,000 105,000 24.0% Structures Apr-17 04:464.6 10.0 32.725 130.680 Potential Iwate3515,000108,000 21.0%Hiroshima 91,273,000 364,000 28.6% Damage Vulnerable None None None LightModerateMod./HeavyHeavy Very HeavyVery Heavy Apr-17 19:234.7 5.1 32.733 130.564 Structures Miyagi 3 950,000493,000 51.9%Okayama 9817,000 172,000 21.1% Population Exposed in Gunma4 808,000159,000 19.7%Shimane 9284,000 42,000 14.8% Apr-18 08:354.6 10.0 32.867 130.695 -8,510,000 1,757,000592,000 892,000 00 Damage Prone Areas Apr-18 20:425.3 10.7 33.013 131.092 Ibaraki41,187,000 328,000 27.6%Tottori 9232,000 51,000 22.0% Source: Guy Carpenter Saitama43,085,000 948,000 30.7%Yamaguchi 9656,000 149,000 22.7% Apr-19 06:204.3 10.0 33.014 131.003 Tochigi4 793,000206,000 26.0%Ehime 10 645,000 148,000 22.9% Apr-19 17:525.1 3.2 32.512 130.567 Chiba52,704,000 897,000 33.2%Kagawa10427,000 126,000 29.5% April 14, 2016 April 15, 2016 April 16, 2016 April 17, 2016 Apr-19 20:474.8 10.0 32.600 130.542 Kanagawa 54,114,000 1,418,000 34.5%Kochi 10 353,000 87,000 24.6% (UTC) (UTC) (UTC) (UTC) Apr-20 03:384.1 5.0 32.480 130.656 Tokyo56,699,000 2,446,000 36.5%Tokushima 10 329,000 89,000 27.1% Apr-21 05:164.5 8.0 33.250 131.433 Aichi63,096,000 1,261,000 40.7%Fukuoka 11 2,296,000 751,000 32.7% Gifu 6 792,000266,000 33.6%Kagoshima 11 802,000 194,000 24.2% Source: Guy Carpenter Source: USGS Mie6768,000213,000 27.7% Kumamoto 11 757,000 219,000 28.9% Nagano 6 846,000156,000 18.4%Miyazaki11515,000 123,000 23.9% Shizuoka 61,518,000 453,000 29.8%Nagasaki11626,000 86,000 13.7% Yamanashi6 350,000103,000 29.4%Oita11525,000 118,000 22.5% Fukui7284,000 70,00024.6% Saga 11 321,000 59,000 18.4% Ishikawa 7 466,000111,000 23.8%Okinawa 12 600,000 86,000 14.3% Toyama 7 405,000 81,00020.0% Total 55,931,00016,467,000 29.4% Source: http://www.nihonjishin.co.jp/disclosure/2015/a_05.pdf

3 Source: https://www.mof.go.jp/english/financial_system/earthquake_insurance/outline_of_earthquake_insurance.html 7 The other source of residential earthquake insurance is through a limited number of cooperative insurers. As opposed to residential earthquake insurance under the government’s program, cooperative earthquake insurance is entirely run and managed by each individual cooperative insurer that writes the class, with no governmental support. The original policy terms tend to be somewhat similar in basic design to those of the government’s program backed policies, but reinsurance arrangements are entirely at the discretion of the individual cooperatives. Almost all the cooperatives writing this class purchase non-proportional reinsurance from the international reinsurance market and, in certain cases, also access the capital markets for protection via catastrophe bond issuance.

In the cooperative sector, Zenkyoren, the agricultural mutual, is by far the largest. The number of policies Zenkyoren had in force in 2014 was 10,529 million4, which is 64 percent of the size of the JER in terms of number of policies. The next largest cooperative is Zenrosai, which had 2.1 million natural peril policies in force in 20145.

COMMERCIAL AND INDUSTRIAL EARTHQUAKE COVERAGE For all commercial and industrial risks, earthquake insurance is only available from commercial non-life insurance companies. The policy terms, including original rates, are set by the individual insurance companies or determined following negotiations between the insured and the insurer(s). Because of the high loss potential, insurance companies strictly control their earthquake aggregate exposure by sub limiting the potential payments. It is not unusual for these sublimits to be less than 5 percent of the fire sum insured for very large corporate insureds holding a large amount of property across Japan. Also, non-life insurance companies typically provide only very limited coverage for business interruption.

EARTHQUAKE FIRE EXPENSE INSURANCE (EFEI) Earthquake Fire Expense Insurance (EFEI) is an expense insurance coverage specific to Japan that is designed to pay additional expenses caused by fire following an earthquake. For non-life insurers, EFEI is included as a standard feature in their normal fire insurance policies, for both residential and non-residential insureds. EFEI does not fall under the government’s JER program.

POTENTIAL LOSSES FROM THE KUMAMOTO EARTHQUAKE The catastrophe modeling firm RMS estimated the economic loss for property risks to be between USD2.5 billion and USD3.5 billion6. This estimate includes only residential, commercial, and industrial property and contents. Catastrophe modeling firm AIR estimated the insured loss to be between USD1.7 billion and USD2.9 billion for property risks7. Both catastrophe modeling firms’ estimates exclude infrastructure, business interruption and contingent business interruption.

The Japan Fire and Disaster Management Agency (FDMA) released its forty-fourth Kumamoto Earthquake Bulletin on April 28. The bulletin reports 65 fatalities, 332 severe injuries and 1,161 minor injuries. The bulletin also reports residential building damage of:

• Total damage to 2,111 buildings • Half damage to 2,414 buildings • Partial damage to 9,592 buildings

4 Source: http://www.ja-kyosai.or.jp/ebook/2015annual/index.html#page=15 5 Source: https://www.zenrosai.coop/english/ 6 Source: RMS Own Event Response webpage update 27 and Asia Insurance Review, http://www.asiainsurancereview.com/News/View-NewsLetter- Article?id=35722&Type=eDaily 7 Source: http://www.air-worldwide.com/Facet-Search/Search-Results/ 8 For non-residential buildings, FDMA reported damage to 94 public buildings and 351 other buildings. They also reported 16 fires as a result of the earthquakes.

There is a potential for business interruption and contingent business interruption losses to companies relying on supplies from factories in the Kumamoto region. There are a number of industrial parks in the area that are shown in blue in the map below and some of the companies in these parks are highlighted in the table insert.

CONTACTS

Michael Owen Edward Fenton Managing Director, Managing Director, Head of GC Analytics, Asia Pacific Regional Manager for Japan +65 6922 1951 +44 20 7357 3513 [email protected] [email protected]

12 Source: https://newswitch.jp/p/4395 10 About Guy Carpenter

Guy Carpenter & Company, LLC is a leading global risk and reinsurance specialist. Since 1922, the company has delivered integrated reinsurance and capital market solutions to clients across the globe. As a most trusted and valuable reinsurance broker and strategic advisor, Guy Carpenter leverages its intellectual capital to anticipate and solve for a range of business challenges and opportunities on behalf of its clients. With over 2,300 professionals in more than 60 offices around the world, Guy Carpenter delivers a powerful combination of broking expertise, strategic advisory services and industry-leading analytics to help clients achieve profitable growth. For more information on Guy Carpenter’s complete line-of-business expertise and range of business units, including GC Specialties, GC Analytics®, GC Fac®, Global Strategic Advisory, GC Securities*, Client Services and GC Micro Risk Solutions®, please visit www.guycarp. com and follow Guy Carpenter on LinkedIn and Twitter @GuyCarpenter.

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