g GE Frankona Re

The World of GE Frankona Re

Toru Kumagai Sarajevo, 8th May 2002 GE European Business HQ’s

THE NETHERLANDS BELGIUM IRELAND • GE Plastics • GE Aviation Services • GE Appliances • Modular Space • GE Fleet Services Europe • GE Global Consumer • TIP Finance GERMANY • GE ITS • GE Frankona Re

CZECH REPUBLIC UK • GE Transportation • CNBC • GE Commercial Finance HUNGARY • GE Structured Finance Group • GE Lighting • GE European Equipment Finance ITALY • GE Equity Europe • GE Oil and Gas • GE Insurance Holdings • GE Rail Services FRANCE • GE Real Estate Europe • GE Medical Systems SPAIN • GE Energy Products Services Europe • GE Power Controls • GE Global eXchange Services GEGE hashas 70,00070,000 employeesemployees inin EuropeEurope g GE Frankona Re -2- Consistent Performance

GE vs. S&P 500 Returns 20012001 PerformancePerformance RevenuesRevenues UU$126B$126B NetNet IncomeIncome U$14.1BU$14.1B ÏÏ11%11% MarketMarket CapitalizationCapitalization 399399 BB EmployeesEmployees 313,000313,000 InsuranceInsurance PremiumsPremiums U$16BU$16B S&PS&P 500500

''8811 ''8282 ''8833 ''8484 ''8855 ''8686 ''8877 ''8888 ''8899 ''9900 ''9911 ''9292 ''9933 ''9494 ''9955 ''9696 ''9977 ''9898 ''9999 ''0000 Insurance & Reinsurance = 12.5% of GE Revenues g GE Frankona Re -3- 24 Businesses in Europe

CONSUMER (30%*) MID-MARKET FINANCING (13%) SPECIALIZED FINANCE (27%) Vendor Financial Commercial Structured Card Services Equipment Finance Commercial Services Group Financing European Finance Equipment Global Finance Consumer Finance Real Estate

Financial Assurance Equity

SPECIALIZED SERVICES GE Capital SPECIALTY INSURANCE (15%)

Capital Employers Markets Reinsurance Corporation Global Process Rail Mortgage Solutions Services Insurance Technology Services Penske Aviation Fleet Financial Truck Leasing Services Services Guaranty Modular Insurance Space GESeaCo Trailer Americom Leasing EQUIPMENT MANAGEMENT (15%)

g ** RepresentsRepresents %% OfOf TotalTotal GECSGECS 20002000 NetNet IncomIncomee ((PPrere Corporate/Other)Corporate/Other) GE Frankona Re -4- GE ERC History

Mid to Late 90s

Eagle Star $8.2B Kemper Re Phoenix Life MedPro $7.2B IRI NetNet WrWrittenitten PrPrememiumium $6.0B 3, 4 International Frankona, 3, 1 $4.6B $4.6B Aachen 3, 0 NRG $3.7B Victory 2, 2 $2.7B $2.6B 1, 3 2, 6 0, 4 4, 8 0, 5 4, 1 North America 3, 0 2, 3 2, 1 2, 4 2, 0 2, 4

93 94 95 96 97 98 99 00 All figures US Dollars g GE Frankona Re -5- GE ERC Until Today

P&C Re P&C Re Europe/Asia Americas • EUROPE NON-LIFE • ERC P&C DIRECT • ASIA NON-LIFE • GE REINSURANCE • LATIN AMERICA REGION

Global Life/ Commercial Health Re Insurance • NORTH AMERICA • HEALTHCARE •EUROPE •MED PRO • LATIN AMERICA •IRI • ASIA-PACIFIC •COREGIS • SPECIALTY

P&Ls Built Around Customers & Products g GE Frankona Re -6- GE ERC Today

Offices in 22 countries Rated A++, AAA Largest US Reinsurer 85 Years of Experience Number 4 Reinsurer in world Largest GE Capital Component

$1.8B$1.8B $0.7B$0.7B $2.1B$2.1B P&CP&C ReRe $0.5B$0.5B LifeLife ReRe AmericasAmericas Germany,Germany, ACEACE SpecialitySpeciality LinesLines $2.2B$2.2B $2.0B$2.0B $0.6B$0.6B P&CP&C ReRe CommercialCommercial RestRest ofof $0.4B$0.4B EuropeEurope AsiaAsia EuropeEurope AsiaAsia UKUK

All figures US Dollars Strong P&C Expertise g GE Frankona Re -7- European Reinsurance Market

Market situation: • Property Intensive • Small Shares Common • More Proportional than Excess of Loss • Quality (Rating) not fully recognized in price/share • Performance issues slow to surface

g GE Frankona Re -8- Our Response to the market

• Define and Target Key Customers • Achieve Higher Shares • Fewer transactions allow for more intensive underwriting • Require differential pricing or share for our AAA rating • More focus and time with Key Customers • Increase productivity g Efficiency, Underwriting & Value for Key Clients GE Frankona Re -9-