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A.M. Best Asia Pacific PortfolioRating and Building Block

DistributionsChi Yeung Lok

Head of Analytics, Southeast Asia and AustralasiaA.M. Best Asia-Pacific (Singapore) Pte. Ltd.

Christie LeeHead of Analytics, Northeast Asia

A.M. Best Asia-Pacific Ltd.

Table of Content

2

1) Rating Distributions of Asia Portfolio- North East Asia- South East Asia

2) Building Block Distributions of Asia Portfolio

3) Conclusion, Q&A

Rating Distributions of Asia Portfolio

4%

14%

47%

31%

4%0%

4%

16%

47%

31%

2% 0%

A + + A + A A - B + + B +

FSR at Sep 30, 2017 FSR at Sep 30, 2018

Northeast Asia – Rating Distribution

4

• High growth. • Heavily weighted to motor line.• Marginal underwriting results.

• Japan: Slow domestic growth and overseas expansion.

• Korea: Priority is capital management, to get prepared for IFRS 17 and K-ICS in 2021.

China Japan/ Korea

Key Market Characteristics

*excludes branches, entities not rated from A.M. Best’s Asia Pacific offices

Northeast Asia – Rating Distribution

5

• Most rated companies have robust balance sheet strength.

• Cat events have limited capital impact to rated companies.

Review

• Most companies’ fundamentals are expected to be stable in the short to medium term.

• The negative outlooks are not concentrated in any country or market sector, but reflect the individual company’s merits.

Preview

90%

2%6%

2%

Rating Actions

AffirmedUpgradedAssignedUnder Review

96%

0%4%0%

Outlook Summary

Stable

Negative

South East Asia – Rating Distribution

6

Key Market Characteristics

EmergingMature

• Growth slowdown.• Focus on efficiencies, risk management.• Personal lines, infrastructure.

• Shift from commercial to personal lines.• Commercial lines heavy, R/I. dependence.• India: High growth, negative U/W margins.

*excludes branches, entities not rated from A.M. Best’s Asia Pacific offices

3%

16%

42%

29%

11%

0%3%

18%

34%32%

11%

3%

A+ A A- B++ B+ C++

FSR as at Sep 17 FSR as at Sep 18

84%

16%

Outlooks

Stable

Negative

85%

5%

8%

2%

Rating Actions

Affirmed

Upgraded

Downgraded

Initial

South East Asia – Rating Distribution

7

• Most companies have solid risk adjusted capitalization.• Downgrades because of:

• Performance issues.• Reserving issues.

Review

• Underwriting margins still positive in most South East Asian markets – but becoming slimmer.

• Sluggish property / infrastructure growth.• Technology: channel, efficiency, risk management. • India: diverging trends.

Preview

Building Block Distributions of Asia Portfolio

Since October 13, 2017

9

Balance Sheet Strength

Baseline

Operating Performance

BusinessProfile

Enterprise Risk Management

Comprehensive Adjustment

RatingLift/Drag

Issuer Credit Rating

+2

+1 +1 +1

-1

-2

-3

-1

-2

-3

-1

-2

+2

Maximum +2

-4

Balance Sheet Strength:The Baseline Assessment

Overall Balance Sheet Strength Assessment

Com

bine

d Ba

lanc

e Sh

eet A

sses

smen

t (R

atin

g U

nit /

Hol

ding

Com

pany

)

Country Risk TierCRT-1 CRT-2 CRT-3 CRT-4 CRT-5

Strongest a+/a a+/a a/a- a-/bbb+ bbb+/bbb

Very Strong a/a- a/a- a-/bbb+ bbb+/bbb bbb/bbb-

Strong a-/bbb+ a-/bbb+ bbb+/bbb/bbbbbb/bbb-/bb+ bbb-/bb+/bb

Adequate bbb+/bbb/bbbbbb+/bbb/bbbbbb-/bb+/bb bb+/bb/bbbb-/b+/b

Weak bb+/bb/bbbb+/bb/bbbb-/b+/b b+/b/b- b/b-/ccc+

Very Weak b+ and below b+ and below b- and below ccc+ and below ccc and below

10

Rated NEA and SEA Markets by CRT

11

CRT -1 CRT – 2 CRT – 3 CRT – 4 CRT - 5

Singapore Hong Kong Malaysia India Bhutan

Japan Thailand Indonesia

Korea China Philippines

Macau Vietnam

Taiwan

Balance Sheet Strength:The Baseline Assessment

Overall Balance Sheet Strength Assessment

Com

bine

d Ba

lanc

e Sh

eet A

sses

smen

t (R

atin

g U

nit /

Hol

ding

Com

pany

)

Country Risk TierCRT-1 CRT-2 CRT-3 CRT-4 CRT-5

Strongest a+/a a+/a a/a- a-/bbb+ bbb+/bbb

Very Strong a/a- a/a- a-/bbb+ bbb+/bbb bbb/bbb-

Strong a-/bbb+ a-/bbb+ bbb+/bbb/bbbbbb/bbb-/bb+ bbb-/bb+/bb

Adequate bbb+/bbb/bbbbbb+/bbb/bbbbbb-/bb+/bb bb+/bb/bbbb-/b+/b

Weak bb+/bb/bbbb+/bb/bbbb-/b+/b b+/b/b- b/b-/ccc+

Very Weak b+ and below b+ and below b- and below ccc+ and below ccc and below

12

Balance Sheet Strength - BCAR

13

(Available Capital - Net Required Capital)

(Available Capital)=BCAR

A risk-adjusted capital measure

x 100

Net Required Capital: Investment Risk, Credit Risk, Reserve Risk, Net Premium Risk, Catastrophe PML, Business Risk, Covariance Adjustment

Confidence Level:VaR 95% (1-in-20 years)VaR 99% (1-in-100 years)VaR 99.5% (1-in-200 years)VaR 99.6% (1-in-250 years) => “Strongest” BCAR Assessment if > 25%

BCAR Scores of Rated Asian Portfolio Companies

14Source: A.M. Best data and research

-40

-20

0

20

40

60

80

100

BCA

R Sc

ore

Strongest Threshold

NEA – BCAR Scores @ 99.6% (1-in-250)

-40

-20

0

20

40

60

80

100

BCA

R Sc

ore

Strongest Threshold

SEA – BCAR Scores @ 99.6% (1-in-250)

-40

-20

0

20

40

60

80

100

BCA

R Sc

ore

Strongest Threshold

Reinsurer – BCAR Scores @ 99.6% (1-in-250)

Does BCAR Assessment = Balance Sheet Strength

Assessment?

Chart2

VaR 99.6%9388837170.59999999999999470686665.2656362605958.357.557565554.65452515049464138.5383633252321.117111110.4-19Strongest Threshold252525252525252525252525252525252525252525252525252525252525252525252525252525

BCAR Score

"Typical FSR"

Ex. XX

Asia – Most Common Notch by Financial Strength Rating

FSRBalance SheetOperating PerformanceBusiness ProfileEnterprise Risk Management

A++StrongestStrongVery FavorableVery Strong

A+StrongestStrongFavorableAppropriate

AVery StrongAdequateNeutralAppropriate

A-Very StrongAdequateNeutralAppropriate

B++StrongAdequateNeutralAppropriate

B+StrongMarginalLimitedAppropriate

Source: A.M. Best data and research

"Typical ICR"

Ex. XX

Asia – Most Common Notch by Long-Term Issuer Credit Rating

ICRBalance SheetOperating PerformanceBusiness ProfileEnterprise Risk Management

aaaN/AN/AN/AN/A

aa+StrongestStrongVery FavorableVery Strong

aaStrongestStrongFavorableAppropriate

aa-StrongestStrongFavorableAppropriate

a+Very StrongStrongFavorableAppropriate

aVery StrongAdequateNeutralAppropriate

a-Very StrongAdequateNeutralAppropriate

bbb+StrongStrongNeutralAppropriate

bbbStrongAdequateNeutralAppropriate

bbb-StrongMarginalLimitedAppropriate


BS vs. BCAR

Ex. XX

Asia – Median BCAR Score by Balance Sheet Strength

AssessmentVaR 95%VaR 99%VaR 99.5%VaR 99.6%

Strongest66.049.042.041.0

Very Strong73.061.656.355.2

Strong72.859.954.552.0

Adequate35.5-0.5-19.0-24.5

WeakN/AN/AN/AN/A

Very WeakN/AN/AN/AN/A


Strongest66494241

Very Strong72.9561.5556.2555.2

Strong72.859.954.552

Adequate35.5-0.5-19-24.5

WeakN/AN/AN/AN/A


x41.0

y55.2

u52.0

i-24.5

oN/A

pN/A

p

Strongest66494241Very StrongVaR 95%VaR 99%VaR 99.5%VaR 99.6%72.9561.5556.2555.2Strong72.859.954.552Adequate35.5-0.5-19-24.5Very Weak0000

Median BCAR Score

BS by FSR

Ex. XX

Asia – Balance Sheet Strength by Financial Strength Rating

(%)

FSRStrongestVery StrongStrongAdequateWeakVery Weak

A++100.0-0-0-0-0-0

A+80.020.0-0-0-0-0

A4.262.529.24.2-0-0

A--072.028.0-0-0-0

B++-033.366.7-0-0-0

B+-0-0100.0-0-0-0

BN/AN/AN/AN/AN/AN/A

B-N/AN/AN/AN/AN/AN/A

C++-0-0-0100.0-0-0

C+N/AN/AN/AN/AN/AN/A

CN/AN/AN/AN/AN/AN/A

C-N/AN/AN/AN/AN/AN/A

DN/AN/AN/AN/AN/AN/A


Weak000000Adequate

004.1666666666666661000Strong

0029.16666666666666828.00000000000000466.666666666666657100Very Strong

A++A+AA-B++B+02062.57233.3333333333333290Strongest

A++A+AA-B++B+100804.1666666666666661000

(%)

BS Distribution

Ex. XX

Asia – Balance Sheet Strength Distribution

(%)

Assessment%

Strongest9.7%

Very Strong52.8%

Strong34.7%

Adequate2.8%

Weak0.0%

Very Weak0.0%


StrongestVery StrongStrongAdequateWeakVery Weak9.7222222222222224E-20.527777777777777790.347222222222222212.7777777777777776E-200

BCAR by region

Ex. XX

NEA – BCAR Scores @ 99.6% (1-in-250)SEA – BCAR Scores @ 99.6% (1-in-250)Reinsurer – BCAR Scores @ 99.6% (1-in-250)0

CompanyVaR 99.6%Strongest ThresholdCompanyVaR 99.6%Strongest ThresholdCompanyVaR 99.6%Strongest Threshold

Construction Guarantee Cooperative93.025.0Samsung Vina Insurance Co., Ltd.89.025.0Samsung Reinsurance Pte. Ltd.83.025.0

Korea P&I Club88.025.0Samsung Reinsurance Pte. Ltd.83.025.0Asian Reinsurance Corporation81.025.0

China BOCOM Insurance Company Limited83.025.0Asian Reinsurance Corporation81.025.0Tune Protect Re Ltd.69.625.0

China Merchants Insurance Co Ltd71.025.0Energas Insurance (L) Limited79.425.0Asia Capital Reinsurance Group Pte. Ltd. (CS)68.125.0

Hong Leong Insurance (Asia) Limited70.625.0PT Asuransi Samsung Tugu78.025.0Central Reinsurance Corporation59.025.0

Blue Cross (Asia-Pacific) Insurance Ltd70.025.0MS First Capital Insurance Limited77.025.0Singapore Reinsurance Corporation Ltd56.725.0

Hyundai Insurance (China) Co., Ltd.68.025.0Tune Protect Re Ltd.69.625.0China Reinsurance (Group) Corporation (CS)54.625.0

The Toa Reinsurance Company, Limited (C)66.025.0Asia Capital Reinsurance Group Pte. Ltd. (CS)68.125.0Vietnam National Reinsurance Corp (C)52.025.0

China Taiping Insurance (HK) Co. Ltd. (CS)65.225.0PT Asuransi Tokio Marine Indonesia66.025.0Labuan Reinsurance (L) Ltd (C)51.825.0

LIG Insurance (China) Co Ltd65.025.0Lonpac Insurance Bhd63.125.0Taiping Reinsurance Company Limited51.025.0

Macau Insurance Company Limited63.025.0China Taiping Ins (Singapore) Pte Ltd57.725.0Peak Reinsurance Company Limited (CS)49.025.0

CMB Wing Lung Insurance Company Limited62.025.0Singapore Reinsurance Corporation Ltd56.725.0Asia Capital Reinsurance Malaysia Sdn43.025.0

Hotai Insurance Co., Ltd.60.025.0United Overseas Insurance Limited55.425.0General Insurance Corporation of India38.025.0

Central Reinsurance Corporation59.025.0AIG Asia Pacific Insurance Pte. Ltd.55.025.0Malaysian Reinsurance Berhad36.625.0

Peoples Ins Co of China (Hong Kong)58.325.0EQ Insurance Company Limited52.925.0PVI Reinsurance Joint-stock Corporation35.025.0

South China Insurance Co Ltd57.525.0BIDV Insurance Corporation (CS)52.025.0National Reinsurance Corp of Philippines30.025.0

Fubon Insurance Co., Ltd. (CS)57.025.0PT Asuransi Tugu Pratama Indonesia, Tbk (CS)52.025.0Korean Reinsurance Company (C)21.125.0

Starr Prop & Casualty Ins China Co Ltd (CS)56.025.0Vietnam National Reinsurance Corp (C)52.025.0

Tugu Insurance Company Limited55.025.0Labuan Reinsurance (L) Ltd (C)51.825.0

China Reinsurance (Group) Corporation (CS)54.625.0PT Asuransi Jasa Indonesia (Persero) (C)51.025.0

Sun Hung Kai Properties Insurance Ltd (C)54.025.0New India Assurance Company Limited45.025.0

AIG Insurance Hong Kong Limited (CS)52.025.0Asia Capital Reinsurance Malaysia Sdn43.025.0

Taiping Reinsurance Company Limited51.025.0General Insurance Corporation of India38.025.0

Shinkong Insurance Company Limited50.025.0Bao Minh Insurance Corporation (CS)37.025.0

Peak Reinsurance Company Limited (CS)49.025.0Malaysian Reinsurance Berhad36.625.0

Tokio Marine & Nichido Fire Ins Co Ltd (CS)46.025.0PVI Reinsurance Joint-stock Corporation35.025.0

Samsung Fire & Marine Insurance Co. Ltd. (CS)41.025.0Oriental Insurance Company Limited34.525.0

Sompo Japan Nipponkoa Insurance Inc. (CS)38.525.0ERGO Insurance Pte. Ltd.33.325.0

NongHyup Property & Casualty Ins Co Ltd (CS)38.025.0PVI Insurance Corporation33.025.0

Mitsui Sumitomo Insurance Company, Ltd. (CS)36.025.0Malayan Insurance Co., Inc. (CS)30.025.0

Aioi Nissay Dowa Insurance Company Ltd. (CS)33.025.0National Reinsurance Corp of Philippines30.025.0

Hanwha General Insurance Co Ltd (CS)25.025.0Bangkok Insurance Public Company Limited24.025.0

Meritz Fire & Marine Insurance Co., Ltd. (CS)23.025.0National Insurance Company Limited-30.025.0

Korean Reinsurance Company (C)21.125.0

DB Insurance Co., Ltd. (C)17.025.0

Hyundai Marine & Fire Insurance Co Ltd (CS)11.025.0

KB Insurance Co., Ltd. (CS)11.025.0

Aioi Nissay Dowa Ins (China) Co Ltd10.425.0

China Taiping Insurance (Macau) Co Ltd.-19.025.0

China BOCOM Insurance Company Limited83

China Merchants Insurance Co Ltd71

Hong Leong Insurance (Asia) Limited70.6

Blue Cross (Asia-Pacific) Insurance Ltd70

x93.0

y88.0

u83.0

i71.0

o70.6

p70.0

p


BCAR Score

VaR 99.6%89838179.400000000000006787769.59999999999999468.0999999999999946663.157.756.755.45552.952525251.8514543383736.63534.533.29999999999999733303024-30Strongest Threshold252525252525252525252525252525252525252525252525252525252525252525

BCAR Score

VaR 99.6%838169.59999999999999468.0999999999999945956.754.65251.85149433836.6353021.1Strongest Threshold2525252525252525252525252525252525

BCAR Score

BCAR vs FSC

Ex. XX

Asia – BCAR Scores @ 99.6% vs. Capital (Stong BSS)

CompanyVaR 99.6%Capital & Surplus (US '000s)BSS Assessment

DB Insurance Co., Ltd. (C)55.0113,886Strong

Hyundai Marine & Fire Insurance Co Ltd (CS)57.7104,627Strong

KB Insurance Co., Ltd. (CS)37.098,294Strong

Korean Reinsurance Company (C)52.091,047Strong

Meritz Fire & Marine Insurance Co., Ltd. (CS)81.068,688Strong

Hanwha General Insurance Co Ltd (CS)88.050,116Strong

NongHyup Property & Casualty Ins Co Ltd (CS)ERROR:#N/AERROR:#N/AERROR:#N/A

PT Asuransi Jasa Indonesia (Persero) (C)ERROR:#N/AERROR:#N/AERROR:#N/A

Singapore Reinsurance Corporation LtdERROR:#N/AERROR:#N/AERROR:#N/A

Tugu Insurance Company LimitedERROR:#N/AERROR:#N/AERROR:#N/A

National Reinsurance Corp of PhilippinesERROR:#N/AERROR:#N/AERROR:#N/A

China Taiping Ins (Singapore) Pte LtdERROR:#N/AERROR:#N/AERROR:#N/A

Bao Minh Insurance Corporation (CS)ERROR:#N/AERROR:#N/AERROR:#N/A

BIDV Insurance Corporation (CS)ERROR:#N/AERROR:#N/AERROR:#N/A

Hyundai Insurance (China) Co., Ltd.ERROR:#N/AERROR:#N/AERROR:#N/A

Asian Reinsurance CorporationERROR:#N/AERROR:#N/AERROR:#N/A

Samsung Reinsurance Pte. Ltd.ERROR:#N/AERROR:#N/AERROR:#N/A

PT Asuransi Tokio Marine IndonesiaERROR:#N/AERROR:#N/AERROR:#N/A

Korea P&I ClubERROR:#N/AERROR:#N/AERROR:#N/A

Samsung Vina Insurance Co., Ltd.ERROR:#N/AERROR:#N/AERROR:#N/A

EQ Insurance Company LimitedERROR:#N/AERROR:#N/AERROR:#N/A

PVI Reinsurance Joint-stock CorporationERROR:#N/AERROR:#N/AERROR:#N/A

Tune Protect Re Ltd.ERROR:#N/AERROR:#N/AERROR:#N/A

ERGO Insurance Pte. Ltd.ERROR:#N/AERROR:#N/AERROR:#N/A

PT Asuransi Samsung TuguERROR:#N/AERROR:#N/AERROR:#N/A

#N/A#N/A#N/A#N/A#N/A#N/A#N/A#N/A#N/A#N/A#N/A#N/ACapital & Surplus (US '000s)

BCAR Score

BS by ICR

Ex. XX

Asia – Balance Sheet Strength by Long-Term Issuer Credit Rating

(%)

ICRStrongestVery StrongStrongAdequateWeakVery Weak

aaaN/AN/AN/AN/AN/AN/A

aa+100.0-0-0-0-0-0

aa100.0-0-0-0-0-0

aa-66.733.3-0-0-0-0

a+25.050.025.0-0-0-0

a-065.030.05.0-0-0

a--072.028.0-0-0-0

bbb+-042.957.1-0-0-0

bbb-020.080.0-0-0-0

bbb--0-0100.0-0-0-0

bb+N/AN/AN/AN/AN/AN/A

bbN/AN/AN/AN/AN/AN/A

bb-N/AN/AN/AN/AN/AN/A

b+N/AN/AN/AN/AN/AN/A

b-0-0-0100.0-0-0

b-N/AN/AN/AN/AN/AN/A

ccc+N/AN/AN/AN/AN/AN/A


ccc-N/AN/AN/AN/AN/AN/A

ccN/AN/AN/AN/AN/AN/A

cN/AN/AN/AN/AN/AN/A


Weakaa+aaaa-a+aa-bbb+bbbbbb-000000000Adequate

aa+aaaa-a+aa-bbb+bbbbbb-000050000Strong

aa+aaaa-a+aa-bbb+bbbbbb-000253028.00000000000000457.14285714285713980100Very Strong

aa+aaaa-a+aa-bbb+bbbbbb-0033.33333333333332950657242.857142857142854200Strongest

aa+aaaa-a+aa-bbb+bbbbbb-10010066.6666666666666572500000

(%)

OP Distribution

Asia – Operating Performance Notch Dist'n

(%)

AssessmentNotch%

Very Strong+21.4%

Strong+136.1%

Adequate052.8%

Marginal-19.7%

Weak-20.0%

Very Weak-30.0%


+2+10-1Very StrongStrongAdequateMarginal1.3888888888888888E-20.36111111111111110.527777777777777799.7222222222222224E-2

OP by ICR

Ex. XX

Asia – Operating Performance Notch by Long-Term ICR

(%)

LegendVery Strong +2Strong +1Adequate 0Marginal -1Weak -2Very Weak -3

ICRVery StrongStrongAdequateMarginalWeakVery Weak


aa+-0100.0-0-0-0-0

aa-050.050.0-0-0-0

aa-33.366.7-0-0-0-0

a+-050.050.0-0-0-0

a-040.055.05.0-0-0

a--028.068.04.0-0-0

bbb+-042.942.914.3-0-0

bbb-0-080.020.0-0-0

bbb--033.3-066.7-0-0





b-0-0-0100.0-0-0






cN/AN/AN/AN/AN/AN/A


Marginal -1

aa+aaaa-a+aa-bbb+bbbbbb-00005414.2857142857142852066.666666666666657Adequate 0

aa+aaaa-a+aa-bbb+bbbbbb-05005055.0000000000000076842.857142857142854800Strong +1

aa+aaaa-a+aa-bbb+bbbbbb-1005066.666666666666657504028.00000000000000442.857142857142854033.333333333333329Very Strong +2

aa+aaaa-a+aa-bbb+bbbbbb-0033.333333333333329000000Weak -2

aa+aaaa-a+aa-bbb+bbbbbb-000000000

(%)

OP by FSR

Ex. XX

Asia – Operating Performance Notch by Financial Strength Rating

(%)

FSRVery StrongStrongAdequateMarginalWeakVery Weak

A++-0100.0-0-0-0-0

A+20.060.020.0-0-0-0

A-041.754.24.2-0-0

A--028.068.04.0-0-0

B++-025.058.316.7-0-0

B+-033.3-066.7-0-0

BN/AN/AN/AN/AN/AN/A


C++-0-0-0100.0-0-0


CN/AN/AN/AN/AN/AN/A


DN/AN/AN/AN/AN/AN/A


Weak

A++A+AA-B++B+000000Marginal

A++A+AA-B++B+004.1666666666666661416.66666666666666466.666666666666657Adequate

A++A+AA-B++B+02054.1666666666666646858.3333333333333360Strong

A++A+AA-B++B+1006041.66666666666667128.0000000000000042533.333333333333329Very Strong

A++A+AA-B++B+0200000

(%)

OP vs Exp. Ratio

Ex. XX

Asia – Median 5-Year Average Expense Ratio by Operating Performance Notch

AssessmentNotchMedian 5-Yr. Avg. Expense Ratio (%)

Very Strong+220.0

Strong+129.5

Adequate037.3

Marginal-155.5

Weak-2N/A

Very Weak-3N/A


Median 5-Yr. Avg. Expense Ratio (%)+2+10-1Very StrongStrongAdequateMarginal2029.537.29999999999999755.5Median 5-Yr. Avg. Expense Ratio (%)

OP vs Loss Ratio

Ex. XX

Asia – Median 5-Year Average Loss & LAE Ratio

AssessmentNotchMedian 5-Yr. Avg. Loss Ratio (%)

Very Strong+234.5N/A

Strong+153.7N/A

Adequate063.3N/A

Marginal-165.4N/A

Weak-2N/AN/A

Very Weak-3N/AN/A


Median 5-Yr. Avg. Loss Ratio (%)+2+10-1Very StrongStrongAdequateMarginal34.553.763.365.400000000000006Median 5-Yr. Avg. Loss Ratio (%)

OP vs Combined Ratio

Ex. XX

Asia – Median 5-Year Average Combined Ratio

AssessmentNotchMedian 5-Yr. Avg. Combined Ratio (%)

Very Strong+254.6

Strong+182.6

Adequate0100.2

Marginal-1114.6

Weak-2N/A

Very Weak-3N/A


Median 5-Yr. Avg. Combined Ratio (%)+2+10-1Very StrongStrongAdequateMarginal54.682.6100.19999999999999114.6Median 5-Yr. Avg. Combined Ratio (%)

OP vs Combined Ratio STD

Ex. XX

Asia – Median 10-Year Combined Ratio Standard Deviation by Operating Performance Notch

AssessmentNotchMedian 10-Yr. Combined Ratio STD (%)

Very Strong+29.8

Strong+17.8

Adequate07.0

Marginal-124.1

Weak-2N/A

Very Weak-3N/A


Median 10-Yr. Combined Ratio STD (%)+2+10-1Very StrongStrongAdequateMarginal9.80000000000000077.86.9524.1Median 10-Yr. Combined Ratio STD (%)

OP vs ROE

Ex. XX

Asia – Median 5-Year Average ROE

AssessmentNotchMedian 5-Yr. Avg. ROE (%)

Very Strong+28.8

Strong+111.9

Adequate06.9

Marginal-1-0.1

Weak-2N/A

Very Weak-3N/A


Median 5-Yr. Avg. ROE (%)+2+10-1Very StrongStrongAdequateMarginal8.800000000000000711.856.9-0.1Median 5-Yr. Avg. ROE (%)

OP vs ROE STD

Ex. XX

Asia – Median 10-Year ROE Standard Deviation

AssessmentNotchMedian 10-Yr. ROE STD (%)

Very Strong+22.9

Strong+14.7

Adequate05.5

Marginal-113.7

Weak-2N/A

Very Weak-3N/A


Median 10-Yr. ROE STD (%)+2+10-1Very StrongStrongAdequateMarginal2.94.69999999999999935.449999999999999313.7Median 10-Yr. ROE STD (%)

OP - ROE vs CS

Ex. XX

Asia – ROE vs. C&S (Strong OP)

CompanyROECapital & Surplus (US '000s)OP Assessment

Tokio Marine & Nichido Fire Ins Co Ltd (CS)5.741,619,216Strong

Mitsui Sumitomo Insurance Company, Ltd. (CS)5.221,633,590Strong

Sompo Japan Nipponkoa Insurance Inc. (CS)5.919,851,656Strong

Samsung Fire & Marine Insurance Co. Ltd. (CS)2.95,482,790Strong

Construction Guarantee Cooperative15.1559,901Strong


AIG Asia Pacific Insurance Pte. Ltd.9.9104,627Strong

Bangkok Insurance Public Company Limited10.250,116Strong

MS First Capital Insurance LimitedERROR:#N/AERROR:#N/AERROR:#N/A

PT Asuransi Tugu Pratama Indonesia, Tbk (CS)ERROR:#N/AERROR:#N/AERROR:#N/A

Energas Insurance (L) LimitedERROR:#N/AERROR:#N/AERROR:#N/A


South China Insurance Co LtdERROR:#N/AERROR:#N/AERROR:#N/A

CMB Wing Lung Insurance Company LimitedERROR:#N/AERROR:#N/AERROR:#N/A

Vietnam National Reinsurance Corp (C)ERROR:#N/AERROR:#N/AERROR:#N/A

Sun Hung Kai Properties Insurance Ltd (C)ERROR:#N/AERROR:#N/AERROR:#N/A

Blue Cross (Asia-Pacific) Insurance LtdERROR:#N/AERROR:#N/AERROR:#N/A


China Taiping Insurance (Macau) Co Ltd.ERROR:#N/AERROR:#N/AERROR:#N/A





Hong Leong Insurance (Asia) LimitedERROR:#N/AERROR:#N/AERROR:#N/A

41619216.1099999992163359019851655.940000001559901#N/A#N/A#N/A#N/A5.75.25.915.1#N/A#N/A#N/A#N/ACapital & Surplus (US '000s)ROE

OP vs ROA

Ex. XX

Asia – Median 5-Year Average ROA by Operating Performance Notch

AssessmentNotchMedian 5-Yr. Avg. ROA (%)

Very Strong+24.7

Strong+14.0

Adequate01.9

Marginal-10.4

Weak-2N/A

Very Weak-3N/A


Median 5-Yr. Avg. ROA (%)+2+10-1Very StrongStrongAdequateMarginal4.73.951.850.4Median 5-Yr. Avg. ROA (%)

OP vs ROA STD

Ex. XX

Asia – Median 10-Year ROA Standard Deviation by Operating Performance Notch

AssessmentNotchMedian 10-Yr. ROA STD (%)

Very Strong+21.5

Strong+11.8

Adequate01.9

Marginal-14.7

Weak-2N/A

Very Weak-3N/A


Median 10-Yr. ROA STD (%)+2+10-1Very StrongStrongAdequateMarginal1.51.81.94.7Median 10-Yr. ROA STD (%)

OP vs ROR

Ex. XX

Asia – Median 5-Year Average ROR by Operating Performance Notch

AssessmentNotchMedian 5-Yr. Avg. ROR (%)

Very Strong+272.1

Strong+133.2

Adequate09.7

Marginal-11.2

Weak-2N/A

Very Weak-3N/A


Median 5-Yr. Avg. ROR (%)+2+10-1Very StrongStrongAdequateMarginal72.09999999999999433.2000000000000039.651.2Median 5-Yr. Avg. ROR (%)

OP vs Net Yield

Ex. XX

Asia – Median 5-Year Average Net Yield by Operating Performance Notch

AssessmentNotchMedian 5-Yr. Avg. Net Yield (%)

Very Strong+22.9

Strong+12.8

Adequate03.6

Marginal-12.8

Weak-2N/A

Very Weak-3N/A


Median 5-Yr. Avg. Net Yield (%)+2+10-1Very StrongStrongAdequateMarginal2.92.83.62.8Median 5-Yr. Avg. Net Yield (%)

BP Distribution

Ex. XX

Asia – Business Profile Notch Distribution

(%)

CategoryNotch%

Very Favorable+22.8%

Favorable+118.1%

Neutral055.6%

Limited-123.6%

Very Limited-20.0%


+2+10-1-2Very FavorableFavorableNeutralLimitedVery Limited2.7777777777777776E-20.180555555555555550.555555555555555580.23611111111111110

BP by FSR

Ex. XX

Asia – Business Profile Notch by Financial Strength Rating

(%)

FSRVery FavorableFavorableNeutralLimitedVery Limited

A++100.0-0-0-0-0

A+-060.040.0-0-0

A-033.358.38.3-0

A--08.052.040.0-0

B++-0-083.316.7-0

B+-0-0-0100.0-0

BN/AN/AN/AN/AN/A

B-N/AN/AN/AN/AN/A

C++-0-0100.0-0-0

C+N/AN/AN/AN/AN/A

CN/AN/AN/AN/AN/A

C-N/AN/AN/AN/AN/A

DN/AN/AN/AN/AN/A


Very Limited

000000Limited

A++A+AA-B++B+008.33333333333333214016.666666666666664100Neutral

A++A+AA-B++B+04058.3333333333333365283.3333333333333430Favorable

A++A+AA-B++B+06033.333333333333329800Very Favorable

A++A+AA-B++B+10000000

(%)

BP by ICR

Ex. XX

Asia – Business Profile Notch by Long-Term ICR

(%)

ICRVery FavorableFavorableNeutralLimitedVery Limited

aaaN/AN/AN/AN/AN/A

aa+100.0-0-0-0-0

aa-050.050.0-0-0

aa--066.733.3-0-0

a+-075.025.0-0-0

a-025.065.010.0-0

a--08.052.040.0-0

bbb+-0-071.428.6-0

bbb-0-0100.0-0-0

bbb--0-0-0100.0-0

bb+N/AN/AN/AN/AN/A

bbN/AN/AN/AN/AN/A

bb-N/AN/AN/AN/AN/A

b+N/AN/AN/AN/AN/A

b-0-0100.0-0-0

b-N/AN/AN/AN/AN/A

ccc+N/AN/AN/AN/AN/A

ccc+N/AN/AN/AN/AN/A

ccc-N/AN/AN/AN/AN/A

ccN/AN/AN/AN/AN/A

cN/AN/AN/AN/AN/A


Very Limited

aa+aaaa-a+aa-bbb+bbbbbb-000000000Limited

aa+aaaa-a+aa-bbb+bbbbbb-0000104028.5714285714285690100Neutral

aa+aaaa-a+aa-bbb+bbbbbb-05033.33333333333332925655271.4285714285714311000Favorable

aa+aaaa-a+aa-bbb+bbbbbb-05066.66666666666665775258000Very Favorable


(%)

ERM Distribution

Ex. XX

Asia – ERM Notch Distribution

(%)

AssessmentNotch%

Very Strong+12.8%

Appropriate091.7%

Marginal-14.2%

Weak-21.4%

Very Weak-30.0%

Very Weak-40.0%


+10-1-2Very StrongAppropriateMarginalWeak2.7777777777777776E-20.916666666666666634.1666666666666664E-21.3888888888888888E-2

ERM by FSR

Ex. XX

Asia – Enterprise Risk Management Notch by Financial Strength Rating

(%)

FSRVery StrongAppropriateMarginalWeakVery Weak

A++100.0-0-0-0-0

A+-0100.0-0-0-0

A-0100.0-0-0-0

A--096.04.0-0-0

B++-091.78.3-0-0

B+-066.733.3-0-0

BN/AN/AN/AN/AN/A

B-N/AN/AN/AN/AN/A

C++-0-0-0100.0-0

C+N/AN/AN/AN/AN/A

CN/AN/AN/AN/AN/A

C-N/AN/AN/AN/AN/A

DN/AN/AN/AN/AN/A


Weak

000000Marginal

A++A+AA-B++B+00048.333333333333332133.333333333333329Appropriate

A++A+AA-B++B+01001009691.66666666666665766.666666666666657Very Strong

A++A+AA-B++B+10000000

(%)

ERM by ICR

Ex. XX

Asia – ERM Notch by Long-Term ICR

(%)

ICRVery StrongAppropriateMarginalWeakVery Weak

aaaN/AN/AN/AN/AN/A

aa+100.0-0-0-0-0

aa-0100.0-0-0-0

aa--0100.0-0-0-0

a+-0100.0-0-0-0

a-0100.0-0-0-0

a--096.04.0-0-0

bbb+-0100.0-0-0-0

bbb-080.020.0-0-0

bbb--066.733.3-0-0

bb+N/AN/AN/AN/AN/A

bbN/AN/AN/AN/AN/A

bb-N/AN/AN/AN/AN/A

b+N/AN/AN/AN/AN/A

b-0-0-0100.0-0

b-N/AN/AN/AN/AN/A

ccc+N/AN/AN/AN/AN/A

ccc+N/AN/AN/AN/AN/A

ccc-N/AN/AN/AN/AN/A

ccN/AN/AN/AN/AN/A

cN/AN/AN/AN/AN/A


Weak

aa+aaaa-a+aa-bbb+bbbbbb-000000000Marginal

aa+aaaa-a+aa-bbb+bbbbbb-00000402033.333333333333329Appropriate

aa+aaaa-a+aa-bbb+bbbbbb-0100100100100961008066.666666666666657Very Strong


(%)

ICR

Ex. XX

Asia – Rating Distribution

%

Exceptional0.0

Superior9.7

Excellent68.1

Good20.8

Fair0.0

Marginal1.4

Weak0.0

Very Weak0.0

Poor0.0


%

SuperiorExcellentGoodFairMarginalWeakVery Weak9.722222222222223268.05555555555555720.83333333333333601.388888888888888800

Outlook

Ex. XX

Asia – Outlook Distribution

%

Positive0.0

Stable87.5

Negative12.5

Under Review0.0


%

PositiveStableNegativeUnder Review087.512.50

Dist.

Ex. XX

Asia – Rating Assessment Distribution

Balance Sheet StrengthOperating PerformanceBusiness ProfileEnterprise Risk ManagementLong-term Issuer Credit Rating

BSS = Strongest / Very StrongOP = Very Strong / StrongBP = Very Favorable / FavorableERM = Very StrongICR = Exceptional / Superior45271527

BSS = Strong / AdequateOP = AdequateBP = NeutralERM = AppropriateICR = Excellent / Good2738406664

BSS = Weak / Very WeakOP = Marginal / Weak / Very WeakBP = Limited / Very LimitedERM = Marginal / Weak / Very WeakICR = Fair & Below071741


BSS = Weak / Very WeakOP = Marginal / Weak / Very WeakBP = Limited / Very LimitedERM = Marginal / Weak / Very WeakICR = Fair & BelowBalance Sheet StrengthOperating PerformanceBusiness ProfileEnterprise Risk ManagementLong-term Issuer Credit Rating071741BSS = Strong / AdequateOP = AdequateBP = NeutralERM = AppropriateICR = Excellent / GoodBalance Sheet StrengthOperating PerformanceBusiness ProfileEnterprise Risk ManagementLong-term Issuer Credit Rating2738406664BSS = Strongest / Very StrongOP = Very Strong / StrongBP = Very Favorable / FavorableERM = Very StrongICR = Exceptional / SuperiorBalance Sheet StrengthOperating PerformanceBusiness ProfileEnterprise Risk ManagementLong-term Issuer Credit Rating45271527

Info

Asia

BCAR Assessment = Balance Sheet Strength Assessment?

15

-40

-20

0

20

40

60

80

100

10,000 100,000 1,000,000 10,000,000

BCA

R Sc

ore

Capital & Surplus (US '000s)Logorithm Scale

Asia – BCAR Scores @ 99.6% vs Capital (Strong/ Very Strong Balance Sheet Strength)

Appropriateness of RI Capital Structure/Leverage Holding Company Analysis

Reinsurance Dependence Quality of Capital Financial Flexibility

Reserve Quality Liquidity Receivables

Stress Tests Quality of Assets ALM

Other Qualitative/ Quantitative Components:

Plotting those with BCAR > 25% against capital size…

Is size the reason?Causality

Chart2

11423500.584278055556.293399999859409311819365.60960000011258822.24845000011226877.839751113251.39999999991049511.7970400001911648811391626333.36164000002559901521650472719.88085000002448831403662.18163000001371957.71964999998343730282524.23499999999211378.76459000001205738.90570999999205618.09044193651186714.42348179553.01142176376157769.56159999999153047.70963999999152028.12422127376120743.411605115005113886113884.4105285.97164104627.0492598294.41489499999491047.36127999999785221.48795999999975163.06274999999771337.7712496868865823.55250000000565087.05819000000354821.78850116.142008.13698299999739123.38612000000339045.81867999999737025.65475000000236634.7859880000033332929996.1384120643.46924999999818003.2354.6384534.5575525514968.09999999999999465.2773859525036.679.40000000000000655.45157.563.156.7306051.862525652335455703057.7375258.3638368818343668889716552.93570.59999999999999469.59999999999999433.29999999999999778Capital & Surplus (US '000s)Logorithm Scale

BCAR Score

"Typical FSR"

Ex. XX

Asia – Most Common Notch by Financial Strength Rating

FSRBalance SheetOperating PerformanceBusiness ProfileEnterprise Risk Management

A++StrongestStrongVery FavorableVery Strong

A+StrongestStrongFavorableAppropriate

AVery StrongAdequateNeutralAppropriate

A-Very StrongAdequateNeutralAppropriate

B++StrongAdequateNeutralAppropriate

B+StrongMarginalLimitedAppropriate


"Typical ICR"

Ex. XX

Asia – Most Common Notch by Long-Term Issuer Credit Rating

ICRBalance SheetOperating PerformanceBusiness ProfileEnterprise Risk Management

aaaN/AN/AN/AN/A

aa+StrongestStrongVery FavorableVery Strong

aaStrongestStrongFavorableAppropriate

aa-StrongestStrongFavorableAppropriate

a+Very StrongStrongFavorableAppropriate

aVery StrongAdequateNeutralAppropriate

a-Very StrongAdequateNeutralAppropriate

bbb+StrongStrongNeutralAppropriate

bbbStrongAdequateNeutralAppropriate

bbb-StrongMarginalLimitedAppropriate


BS vs. BCAR

Ex. XX

Asia – Median BCAR Score by Balance Sheet Strength

AssessmentVaR 95%VaR 99%VaR 99.5%VaR 99.6%

Strongest66.049.042.041.0

Very Strong73.061.656.355.2

Strong72.859.954.552.0

Adequate35.5-0.5-19.0-24.5

WeakN/AN/AN/AN/A



Strongest66494241

Very Strong72.9561.5556.2555.2

Strong72.859.954.552

Adequate35.5-0.5-19-24.5

WeakN/AN/AN/AN/A


x41.0

y55.2

u52.0

i-24.5

oN/A

pN/A

p

Strongest66494241Very StrongVaR 95%VaR 99%VaR 99.5%VaR 99.6%72.9561.5556.2555.2Strong72.859.954.552Adequate35.5-0.5-19-24.5Very Weak0000

Median BCAR Score

BS by FSR

Ex. XX

Asia – Balance Sheet Strength by Financial Strength Rating

(%)

FSRStrongestVery StrongStrongAdequateWeakVery Weak

A++100.0-0-0-0-0-0

A+80.020.0-0-0-0-0

A4.262.529.24.2-0-0

A--072.028.0-0-0-0

B++-033.366.7-0-0-0

B+-0-0100.0-0-0-0

BN/AN/AN/AN/AN/AN/A


C++-0-0-0100.0-0-0


CN/AN/AN/AN/AN/AN/A


DN/AN/AN/AN/AN/AN/A


Weak000000Adequate

004.1666666666666661000Strong

0029.16666666666666828.00000000000000466.666666666666657100Very Strong

A++A+AA-B++B+02062.57233.3333333333333290Strongest

A++A+AA-B++B+100804.1666666666666661000

(%)

BS Distribution

Ex. XX


(%)

Assessment%

Strongest9.7%

Very Strong52.8%

Strong34.7%

Adequate2.8%

Weak0.0%

Very Weak0.0%


StrongestVery StrongStrongAdequateWeakVery Weak9.7222222222222224E-20.527777777777777790.347222222222222212.7777777777777776E-200

BCAR by region

Ex. XX

NEA – BCAR Scores @ 99.6% (1-in-250)SEA – BCAR Scores @ 99.6% (1-in-250)Reinsurer – BCAR Scores @ 99.6% (1-in-250)0

CompanyVaR 99.6%Strongest ThresholdCompanyVaR 99.6%Strongest ThresholdCompanyVaR 99.6%Strongest Threshold

Construction Guarantee Cooperative93.025.0Samsung Vina Insurance Co., Ltd.89.025.0Samsung Reinsurance Pte. Ltd.83.025.0

Korea P&I Club88.025.0Samsung Reinsurance Pte. Ltd.83.025.0Asian Reinsurance Corporation81.025.0

China BOCOM Insurance Company Limited83.025.0Asian Reinsurance Corporation81.025.0Tune Protect Re Ltd.69.625.0

China Merchants Insurance Co Ltd71.025.0Energas Insurance (L) Limited79.425.0Asia Capital Reinsurance Group Pte. Ltd. (CS)68.125.0

Hong Leong Insurance (Asia) Limited70.625.0PT Asuransi Samsung Tugu78.025.0Central Reinsurance Corporation59.025.0

Blue Cross (Asia-Pacific) Insurance Ltd70.025.0MS First Capital Insurance Limited77.025.0Singapore Reinsurance Corporation Ltd56.725.0

Hyundai Insurance (China) Co., Ltd.68.025.0Tune Protect Re Ltd.69.625.0China Reinsurance (Group) Corporation (CS)54.625.0

The Toa Reinsurance Company, Limited (C)66.025.0Asia Capital Reinsurance Group Pte. Ltd. (CS)68.125.0Vietnam National Reinsurance Corp (C)52.025.0

China Taiping Insurance (HK) Co. Ltd. (CS)65.225.0PT Asuransi Tokio Marine Indonesia66.025.0Labuan Reinsurance (L) Ltd (C)51.825.0

LIG Insurance (China) Co Ltd65.025.0Lonpac Insurance Bhd63.125.0Taiping Reinsurance Company Limited51.025.0

Macau Insurance Company Limited63.025.0China Taiping Ins (Singapore) Pte Ltd57.725.0Peak Reinsurance Company Limited (CS)49.025.0

CMB Wing Lung Insurance Company Limited62.025.0Singapore Reinsurance Corporation Ltd56.725.0Asia Capital Reinsurance Malaysia Sdn43.025.0

Hotai Insurance Co., Ltd.60.025.0United Overseas Insurance Limited55.425.0General Insurance Corporation of India38.025.0

Central Reinsurance Corporation59.025.0AIG Asia Pacific Insurance Pte. Ltd.55.025.0Malaysian Reinsurance Berhad36.625.0

Peoples Ins Co of China (Hong Kong)58.325.0EQ Insurance Company Limited52.925.0PVI Reinsurance Joint-stock Corporation35.025.0

South China Insurance Co Ltd57.525.0BIDV Insurance Corporation (CS)52.025.0National Reinsurance Corp of Philippines30.025.0

Fubon Insurance Co., Ltd. (CS)57.025.0PT Asuransi Tugu Pratama Indonesia, Tbk (CS)52.025.0Korean Reinsurance Company (C)21.125.0

Starr Prop & Casualty Ins China Co Ltd (CS)56.025.0Vietnam National Reinsurance Corp (C)52.025.0

Tugu Insurance Company Limited55.025.0Labuan Reinsurance (L) Ltd (C)51.825.0

China Reinsurance (Group) Corporation (CS)54.625.0PT Asuransi Jasa Indonesia (Persero) (C)51.025.0

Sun Hung Kai Properties Insurance Ltd (C)54.025.0New India Assurance Company Limited45.025.0

AIG Insurance Hong Kong Limited (CS)52.025.0Asia Capital Reinsurance Malaysia Sdn43.025.0

Taiping Reinsurance Company Limited51.025.0General Insurance Corporation of India38.025.0

Shinkong Insurance Company Limited50.025.0Bao Minh Insurance Corporation (CS)37.025.0

Peak Reinsurance Company Limited (CS)49.025.0Malaysian Reinsurance Berhad36.625.0

Tokio Marine & Nichido Fire Ins Co Ltd (CS)46.025.0PVI Reinsurance Joint-stock Corporation35.025.0

Samsung Fire & Marine Insurance Co. Ltd. (CS)41.025.0Oriental Insurance Company Limited34.525.0

Sompo Japan Nipponkoa Insurance Inc. (CS)38.525.0ERGO Insurance Pte. Ltd.33.325.0

NongHyup Property & Casualty Ins Co Ltd (CS)38.025.0PVI Insurance Corporation33.025.0

Mitsui Sumitomo Insurance Company, Ltd. (CS)36.025.0Malayan Insurance Co., Inc. (CS)30.025.0

Aioi Nissay Dowa Insurance Company Ltd. (CS)33.025.0National Reinsurance Corp of Philippines30.025.0

Hanwha General Insurance Co Ltd (CS)25.025.0Bangkok Insurance Public Company Limited24.025.0

Meritz Fire & Marine Insurance Co., Ltd. (CS)23.025.0National Insurance Company Limited-30.025.0

Korean Reinsurance Company (C)21.125.0

DB Insurance Co., Ltd. (C)17.025.0

Hyundai Marine & Fire Insurance Co Ltd (CS)11.025.0

KB Insurance Co., Ltd. (CS)11.025.0

Aioi Nissay Dowa Ins (China) Co Ltd10.425.0

China Taiping Insurance (Macau) Co Ltd.-19.025.0

China BOCOM Insurance Company Limited83

China Merchants Insurance Co Ltd71

Hong Leong Insurance (Asia) Limited70.6

Blue Cross (Asia-Pacific) Insurance Ltd70

x93.0

y88.0

u83.0

i71.0

o70.6

p70.0

p


BCAR Score

VaR 99.6%89838179.400000000000006787769.59999999999999468.0999999999999946663.157.756.755.45552.952525251.8514543383736.63534.533.29999999999999733303024-30Strongest Threshold252525252525252525252525252525252525252525252525252525252525252525

BCAR Score

VaR 99.6%838169.59999999999999468.0999999999999945956.754.65251.85149433836.6353021.1Strongest Threshold2525252525252525252525252525252525

BCAR Score

BCAR vs FSC (Data)

Ex. XX

Asia – BCAR Scores @ 99.6% vs. Capital (Stong BSS)



Hyundai Marine & Fire Insurance Co Ltd (CS)57.7104,627Strong

KB Insurance Co., Ltd. (CS)37.098,294Strong

Korean Reinsurance Company (C)52.091,047Strong

Meritz Fire & Marine Insurance Co., Ltd. (CS)81.068,688Strong

Hanwha General Insurance Co Ltd (CS)88.050,116Strong

NongHyup Property & Casualty Ins Co Ltd (CS)ERROR:#N/AERROR:#N/AERROR:#N/A


Singapore Reinsurance Corporation LtdERROR:#N/AERROR:#N/AERROR:#N/A

Tugu Insurance Company LimitedERROR:#N/AERROR:#N/AERROR:#N/A

National Reinsurance Corp of PhilippinesERROR:#N/AERROR:#N/AERROR:#N/A


Bao Minh Insurance Corporation (CS)ERROR:#N/AERROR:#N/AERROR:#N/A

BIDV Insurance Corporation (CS)ERROR:#N/AERROR:#N/AERROR:#N/A

Hyundai Insurance (China) Co., Ltd.ERROR:#N/AERROR:#N/AERROR:#N/A

Asian Reinsurance CorporationERROR:#N/AERROR:#N/AERROR:#N/A

Samsung Reinsurance Pte. Ltd.ERROR:#N/AERROR:#N/AERROR:#N/A

PT Asuransi Tokio Marine IndonesiaERROR:#N/AERROR:#N/AERROR:#N/A



EQ Insurance Company LimitedERROR:#N/AERROR:#N/AERROR:#N/A


Tune Protect Re Ltd.ERROR:#N/AERROR:#N/AERROR:#N/A

ERGO Insurance Pte. Ltd.ERROR:#N/AERROR:#N/AERROR:#N/A


#N/A#N/A#N/A#N/A#N/A#N/A#N/A#N/A#N/A#N/A#N/A#N/ACapital & Surplus (US '000s)

BCAR Score

BCAR vs FSC (Strong)

Ex. XX

Asia – BCAR Scores @ 99.6% vs Capital (Strong/ Very Strong Balance Sheet Strength)

CompanyVaR 99.6%Capital & Surplus (US '000s)Logorithm Scale BSS Assessment

China Reinsurance (Group) Corporation (CS)54.611,423,501Very Strong

General Insurance Corporation of India38.08,055,556Very Strong

New India Assurance Company Limited45.05,940,931Very Strong

Oriental Insurance Company Limited34.51,819,366Very Strong

Fubon Insurance Co., Ltd. (CS)57.01,258,822Very Strong

AIG Asia Pacific Insurance Pte. Ltd.55.01,226,878Very Strong

Hanwha General Insurance Co Ltd (CS)25.01,113,251Strong

Taiping Reinsurance Company Limited51.01,049,512Very Strong

Peak Reinsurance Company Limited (CS)49.0911,648Very Strong

Asia Capital Reinsurance Group Pte. Ltd. (CS)68.1811,391Very Strong

China Taiping Insurance (HK) Co. Ltd. (CS)65.2626,333Very Strong

MS First Capital Insurance Limited77.0559,901Very Strong

NongHyup Property & Casualty Ins Co Ltd (CS)38.0521,650Strong

Central Reinsurance Corporation59.0472,720Very Strong

PT Asuransi Tugu Pratama Indonesia, Tbk (CS)52.0448,831Very Strong

Shinkong Insurance Company Limited50.0403,662Very Strong

Malaysian Reinsurance Berhad36.6371,958Very Strong

Energas Insurance (L) Limited79.4343,730Very Strong

United Overseas Insurance Limited55.4282,524Very Strong

PT Asuransi Jasa Indonesia (Persero) (C)51.0211,379Strong

South China Insurance Co Ltd57.5205,739Very Strong

Lonpac Insurance Bhd63.1205,618Very Strong

Singapore Reinsurance Corporation Ltd56.7193,651Strong

Malayan Insurance Co., Inc. (CS)30.0186,714Very Strong

Hotai Insurance Co., Ltd.60.0179,553Very Strong

Labuan Reinsurance (L) Ltd (C)51.8176,376Very Strong

CMB Wing Lung Insurance Company Limited62.0157,770Very Strong

AIG Insurance Hong Kong Limited (CS)52.0153,048Very Strong

Starr Prop & Casualty Ins China Co Ltd (CS)56.0152,028Very Strong

Vietnam National Reinsurance Corp (C)52.0127,376Very Strong

PVI Insurance Corporation33.0120,743Very Strong

Sun Hung Kai Properties Insurance Ltd (C)54.0115,005Very Strong

Tugu Insurance Company Limited55.0113,886Strong

Blue Cross (Asia-Pacific) Insurance Ltd70.0113,884Very Strong

National Reinsurance Corp of Philippines30.0105,286Strong

China Taiping Ins (Singapore) Pte Ltd57.7104,627Strong

Bao Minh Insurance Corporation (CS)37.098,294Strong

BIDV Insurance Corporation (CS)52.091,047Strong

Peoples Ins Co of China (Hong Kong)58.385,221Very Strong

Macau Insurance Company Limited63.075,163Very Strong

China BOCOM Insurance Company Limited83.071,338Very Strong

Hyundai Insurance (China) Co., Ltd.68.071,249Strong

Asian Reinsurance Corporation81.068,688Strong

Samsung Reinsurance Pte. Ltd.83.065,824Strong

Asia Capital Reinsurance Malaysia Sdn43.065,087Very Strong

PT Asuransi Tokio Marine Indonesia66.054,822Strong

Korea P&I Club88.050,116Strong

Samsung Vina Insurance Co., Ltd.89.042,008Strong

China Merchants Insurance Co Ltd71.039,123Very Strong

LIG Insurance (China) Co Ltd65.039,046Very Strong

EQ Insurance Company Limited52.937,026Strong

PVI Reinsurance Joint-stock Corporation35.036,635Strong

Hong Leong Insurance (Asia) Limited70.633,329Very Strong

Tune Protect Re Ltd.69.629,996Strong

ERGO Insurance Pte. Ltd.33.320,643Strong

PT Asuransi Samsung Tugu78.018,003Strong

11423500.584278055556.293399999859409311819365.60960000011258822.24845000011226877.839751113251.39999999991049511.7970400001911648811391626333.36164000002559901521650472719.88085000002448831403662.18163000001371957.71964999998343730282524.23499999999211378.76459000001205738.90570999999205618.09044193651186714.42348179553.01142176376157769.56159999999153047.70963999999152028.12422127376120743.411605115005113886113884.4105285.97164104627.0492598294.41489499999491047.36127999999785221.48795999999975163.06274999999771337.7712496868865823.55250000000565087.05819000000354821.78850116.142008.13698299999739123.38612000000339045.81867999999737025.65475000000236634.7859880000033332929996.1384120643.46924999999818003.2354.6384534.5575525514968.09999999999999465.2773859525036.679.40000000000000655.45157.563.156.7306051.862525652335455703057.7375258.3638368818343668889716552.93570.59999999999999469.59999999999999433.29999999999999778Capital & Surplus (US '000s)Logorithm Scale

BCAR Score

BCAR vs FSC (Strongest)

Ex. XX

Asia – BCAR Scores @ 99.6% vs. Capital (Stongest/ Very Strong BSS)


China Reinsurance (Group) Corporation (CS)54.611,423,501Very Strong

General Insurance Corporation of India38.08,055,556Very Strong

New India Assurance Company Limited45.05,940,931Very Strong

Oriental Insurance Company Limited34.51,819,366Very Strong

Fubon Insurance Co., Ltd. (CS)57.01,258,822Very Strong

AIG Asia Pacific Insurance Pte. Ltd.55.01,226,878Very Strong

Bangkok Insurance Public Company Limited24.01,079,668Very Strong

Taiping Reinsurance Company Limited51.01,049,512Very Strong

Peak Reinsurance Company Limited (CS)49.0911,648Very Strong

Asia Capital Reinsurance Group Pte. Ltd. (CS)68.1811,391Very Strong

China Taiping Insurance (HK) Co. Ltd. (CS)65.2626,333Very Strong

MS First Capital Insurance Limited77.0559,901Very Strong

Central Reinsurance Corporation59.0472,720Very Strong

PT Asuransi Tugu Pratama Indonesia, Tbk (CS)52.0448,831Very Strong

Shinkong Insurance Company Limited50.0403,662Very Strong

Malaysian Reinsurance Berhad36.6371,958Very Strong

Energas Insurance (L) Limited79.4343,730Very Strong

United Overseas Insurance Limited55.4282,524Very Strong

South China Insurance Co Ltd57.5205,739Very Strong

Lonpac Insurance Bhd63.1205,618Very Strong

Malayan Insurance Co., Inc. (CS)30.0186,714Very Strong

Hotai Insurance Co., Ltd.60.0179,553Very Strong

Labuan Reinsurance (L) Ltd (C)51.8176,376Very Strong

CMB Wing Lung Insurance Company Limited62.0157,770Very Strong

AIG Insurance Hong Kong Limited (CS)52.0153,048Very Strong

Starr Prop & Casualty Ins China Co Ltd (CS)56.0152,028Very Strong

Vietnam National Reinsurance Corp (C)52.0127,376Very Strong

PVI Insurance Corporation33.0120,743Very Strong

Sun Hung Kai Properties Insurance Ltd (C)54.0115,005Very Strong

Blue Cross (Asia-Pacific) Insurance Ltd70.0113,884Very Strong

Peoples Ins Co of China (Hong Kong)58.385,221Very Strong

Macau Insurance Company Limited63.075,163Very Strong

Aioi Nissay Dowa Ins (China) Co Ltd10.473,677Very Strong

China BOCOM Insurance Company Limited83.071,338Very Strong

Asia Capital Reinsurance Malaysia Sdn43.065,087Very Strong

China Merchants Insurance Co Ltd71.039,123Very Strong

LIG Insurance (China) Co Ltd65.039,046Very Strong

Hong Leong Insurance (Asia) Limited70.633,329Very Strong

1819365.60960000011079667.97824000011049511.7970400001626333.36164000002559901472719.88085000002448831403662.18163000001371957.71964999998343730282524.23499999999205738.90570999999205618.09044186714.42348179553.01142176376157769.56159999999153047.70963999999152028.12422127376120743.411605115005113884.485221.48795999999975163.06274999999773676.8859671337.765087.05819000000339123.38612000000339045.8186799999973332934.5245165.27759525036.679.40000000000000655.457.563.1306051.86252565233547058.36310.48343716570.599999999999994Capital & Surplus (US '000s)

BCAR Score

BS by ICR

Ex. XX


(%)

ICRStrongestVery StrongStrongAdequateWeakVery Weak


aa+100.0-0-0-0-0-0

aa100.0-0-0-0-0-0

aa-66.733.3-0-0-0-0

a+25.050.025.0-0-0-0

a-065.030.05.0-0-0

a--072.028.0-0-0-0

bbb+-042.957.1-0-0-0

bbb-020.080.0-0-0-0

bbb--0-0100.0-0-0-0





b-0-0-0100.0-0-0






cN/AN/AN/AN/AN/AN/A


Adequate

aa+aaaa-a+aa-bbb+bbbbbb-b000050000100Strong

aa+aaaa-a+aa-bbb+bbbbbb-bb+bbbb-b+b000253028.00000000000000457.14285714285713980100Very Strong

aa+aaaa-a+aa-bbb+bbbbbb-bb+bbbb-b+b0033.33333333333332950657242.857142857142854200Strongest

aa+aaaa-a+aa-bbb+bbbbbb-bb+bbbb-b+b10010066.6666666666666572500000Weakaa+aaaa-a+aa-bbb+bbbbbb-b0000000000

(%)

OP Distribution


(%)

AssessmentNotch%

Very Strong+21.4%

Strong+136.1%

Adequate052.8%

Marginal-19.7%

Weak-20.0%

Very Weak-30.0%


+2+10-1Very StrongStrongAdequateMarginal1.3888888888888888E-20.36111111111111110.527777777777777799.7222222222222224E-2

OP by ICR

Ex. XX


(%)

LegendVery Strong +2Strong +1Adequate 0Marginal -1Weak -2Very Weak -3

ICRVery StrongStrongAdequateMarginalWeakVery Weak


aa+-0100.0-0-0-0-0

aa-050.050.0-0-0-0

aa-33.366.7-0-0-0-0

a+-050.050.0-0-0-0

a-040.055.05.0-0-0

a--028.068.04.0-0-0

bbb+-042.942.914.3-0-0

bbb-0-080.020.0-0-0

bbb--033.3-066.7-0-0





b-0-0-0100.0-0-0






cN/AN/AN/AN/AN/AN/A


Marginal -1

aa+aaaa-a+aa-bbb+bbbbbb-b00005414.2857142857142852066.666666666666657100Adequate 0

aa+aaaa-a+aa-bbb+bbbbbb-bb+bbbb-b+b05005055.0000000000000076842.857142857142854800Strong +1

aa+aaaa-a+aa-bbb+bbbbbb-bb+bbbb-b+b1005066.666666666666657504028.00000000000000442.857142857142854033.333333333333329Very Strong +2

aa+aaaa-a+aa-bbb+bbbbbb-bb+bbbb-b+b0033.333333333333329000000Weak -2

aa+aaaa-a+aa-bbb+bbbbbb-bb+bbbb-b+b000000000

(%)

OP by FSR

Ex. XX

Asia – Operating Performance Notch by Financial Strength Rating

(%)

FSRVery StrongStrongAdequateMarginalWeakVery Weak

A++-0100.0-0-0-0-0

A+20.060.020.0-0-0-0

A-041.754.24.2-0-0

A--028.068.04.0-0-0

B++-025.058.316.7-0-0

B+-033.3-066.7-0-0

BN/AN/AN/AN/AN/AN/A


C++-0-0-0100.0-0-0


CN/AN/AN/AN/AN/AN/A


DN/AN/AN/AN/AN/AN/A


Weak

A++A+AA-B++B+000000Marginal

A++A+AA-B++B+004.1666666666666661416.66666666666666466.666666666666657Adequate

A++A+AA-B++B+02054.1666666666666646858.3333333333333360Strong

A++A+AA-B++B+1006041.66666666666667128.0000000000000042533.333333333333329Very Strong

A++A+AA-B++B+0200000

(%)

OP vs Exp. Ratio

Ex. XX

Asia – Median 5-Year Average Expense Ratio by Operating Performance Notch

AssessmentNotchMedian 5-Yr. Avg. Expense Ratio (%)

Very Strong+220.0

Strong+131.0

Adequate037.0

Marginal-155.5

Weak-2N/A

Very Weak-3N/A


Median 5-Yr. Avg. Expense Ratio (%)+2+10-1Very StrongStrongAdequateMarginal2030.96958272165131736.95000000000000355.5Median 5-Yr. Avg. Expense Ratio (%)

OP vs Loss Ratio

Ex. XX

Asia – Median 5-Year Average Loss & LAE Ratio

AssessmentNotchMedian 5-Yr. Avg. Loss Ratio (%)

Very Strong+234.5N/A

Strong+155.6N/A

Adequate063.3N/A

Marginal-165.4N/A

Weak-2N/AN/A

Very Weak-3N/AN/A


Median 5-Yr. Avg. Loss Ratio (%)+2+10-1Very StrongStrongAdequateMarginal34.555.663.365.400000000000006Median 5-Yr. Avg. Loss Ratio (%)

OP vs Combined Ratio

Ex. XX

Asia – Median 5-Year Average Combined Ratio

AssessmentNotchMedian 5-Yr. Avg. Combined Ratio (%)

Very Strong+254.6

Strong+184.1

Adequate0100.1

Marginal-1114.6

Weak-2N/A

Very Weak-3N/A


Median 5-Yr. Avg. Combined Ratio (%)+2+10-1Very StrongStrongAdequateMarginal54.684.1100.05114.6Median 5-Yr. Avg. Combined Ratio (%)

OP vs Combined Ratio STD

Ex. XX

Asia – Median 10-Year Combined Ratio Standard Deviation by Operating Performance Notch

AssessmentNotchMedian 10-Yr. Combined Ratio STD (%)

Very Strong+29.8

Strong+17.0

Adequate06.8

Marginal-124.1

Weak-2N/A

Very Weak-3N/A


Median 10-Yr. Combined Ratio STD (%)+2+10-1Very StrongStrongAdequateMarginal9.80000000000000076.956.7524.1Median 10-Yr. Combined Ratio STD (%)

OP vs ROE

Ex. XX

Asia – Median 5-Year Average ROE

AssessmentNotchMedian 5-Yr. Avg. ROE (%)

Very Strong+28.8

Strong+111.9

Adequate06.9

Marginal-1-0.1

Weak-2N/A

Very Weak-3N/A


Median 5-Yr. Avg. ROE (%)+2+10-1Very StrongStrongAdequateMarginal8.800000000000000711.856.9-0.1Median 5-Yr. Avg. ROE (%)

OP vs ROE STD

Ex. XX

Asia – Median 10-Year ROE Standard Deviation

AssessmentNotchMedian 10-Yr. ROE STD (%)

Very Strong+22.9

Strong+14.5

Adequate05.5

Marginal-113.7

Weak-2N/A

Very Weak-3N/A


Median 10-Yr. ROE STD (%)+2+10-1Very StrongStrongAdequateMarginal2.94.55.449999999999999313.7Median 10-Yr. ROE STD (%)

OP - ROE vs CS

Ex. XX

Asia – ROE vs. C&S (Strong OP)

CompanyROECapital & Surplus (US '000s)OP Assessment

Tokio Marine & Nichido Fire Ins Co Ltd (CS)7.741,619,216Strong

Mitsui Sumitomo Insurance Company, Ltd. (CS)6.421,633,590Strong

Sompo Japan Nipponkoa Insurance Inc. (CS)8.019,851,656Strong

Samsung Fire & Marine Insurance Co. Ltd. (CS)2.95,482,790Strong

Construction Guarantee Cooperative15.1559,901Strong


AIG Asia Pacific Insurance Pte. Ltd.9.9104,627Strong

Bangkok Insurance Public Company Limited10.250,116Strong

MS First Capital Insurance LimitedERROR:#N/AERROR:#N/AERROR:#N/A

PT Asuransi Tugu Pratama Indonesia, Tbk (CS)ERROR:#N/AERROR:#N/AERROR:#N/A

Energas Insurance (L) LimitedERROR:#N/AERROR:#N/AERROR:#N/A


South China Insurance Co LtdERROR:#N/AERROR:#N/AERROR:#N/A

CMB Wing Lung Insurance Company LimitedERROR:#N/AERROR:#N/AERROR:#N/A

Vietnam National Reinsurance Corp (C)ERROR:#N/AERROR:#N/AERROR:#N/A

Sun Hung Kai Properties Insurance Ltd (C)ERROR:#N/AERROR:#N/AERROR:#N/A

Blue Cross (Asia-Pacific) Insurance LtdERROR:#N/AERROR:#N/AERROR:#N/A


China Taiping Insurance (Macau) Co Ltd.ERROR:#N/AERROR:#N/AERROR:#N/A





Hong Leong Insurance (Asia) LimitedERROR:#N/AERROR:#N/AERROR:#N/A

41619216.1099999992163359019851655.940000001559901#N/A#N/A#N/A#N/A7.67749818843836976.40479196032412998.011268837331829915.1#N/A#N/A#N/A#N/ACapital & Surplus (US '000s)ROE

OP vs ROA

Ex. XX

Asia – Median 5-Year Average ROA by Operating Performance Notch

AssessmentNotchMedian 5-Yr. Avg. ROA (%)

Very Strong+24.7

Strong+14.0

Adequate01.9

Marginal-10.4

Weak-2N/A

Very Weak-3N/A


Median 5-Yr. Avg. ROA (%)+2+10-1Very StrongStrongAdequateMarginal4.73.951.850.4Median 5-Yr. Avg. ROA (%)

OP vs ROA STD

Ex. XX

Asia – Median 10-Year ROA Standard Deviation by Operating Performance Notch

AssessmentNotchMedian 10-Yr. ROA STD (%)

Very Strong+21.5

Strong+11.8

Adequate01.9

Marginal-14.7

Weak-2N/A

Very Weak-3N/A


Median 10-Yr. ROA STD (%)+2+10-1Very StrongStrongAdequateMarginal1.51.81.94.7Median 10-Yr. ROA STD (%)

OP vs ROR

Ex. XX

Asia – Median 5-Year Average ROR by Operating Performance Notch

AssessmentNotchMedian 5-Yr. Avg. ROR (%)

Very Strong+272.1

Strong+131.0

Adequate08.8

Marginal-11.2

Weak-2N/A

Very Weak-3N/A


Median 5-Yr. Avg. ROR (%)+2+10-1Very StrongStrongAdequateMarginal72.09999999999999430.9500000000000038.751.2Median 5-Yr. Avg. ROR (%)

OP vs Net Yield

Ex. XX

Asia – Median 5-Year Average Net Yield by Operating Performance Notch

AssessmentNotchMedian 5-Yr. Avg. Net Yield (%)

Very Strong+22.9

Strong+12.8

Adequate03.6

Marginal-12.8

Weak-2N/A

Very Weak-3N/A


Median 5-Yr. Avg. Net Yield (%)+2+10-1Very StrongStrongAdequateMarginal2.92.83.62.8Median 5-Yr. Avg. Net Yield (%)

BP Distribution

Ex. XX


(%)

CategoryNotch%

Very Favorable+22.8%

Favorable+118.1%

Neutral055.6%

Limited-123.6%

Very Limited-20.0%


+2+10-1-2Very FavorableFavorableNeutralLimitedVery Limited2.7777777777777776E-20.180555555555555550.555555555555555580.23611111111111110

BP by FSR

Ex. XX

Asia – Business Profile Notch by Financial Strength Rating

(%)

LegendVery Favorable +2Favorable +1Neutral 0Limited -1Very Limited -2

FSRVery FavorableFavorableNeutralLimitedVery Limited

A++100.0-0-0-0-0

A+-060.040.0-0-0

A-033.358.38.3-0

A--08.052.040.0-0

B++-0-083.316.7-0

B+-0-0-0100.0-0

BN/AN/AN/AN/AN/A

B-N/AN/AN/AN/AN/A

C++-0-0100.0-0-0

C+N/AN/AN/AN/AN/A

CN/AN/AN/AN/AN/A

C-N/AN/AN/AN/AN/A

DN/AN/AN/AN/AN/A


Very Limited -2

000000Limited -1

A++A+AA-B++B+008.33333333333333214016.666666666666664100Neutral 0

A++A+AA-B++B+04058.3333333333333365283.3333333333333430Favorable +1

A++A+AA-B++B+06033.333333333333329800Very Favorable +2

A++A+AA-B++B+10000000

(%)

BP by ICR

Ex. XX


(%)

LegendVery Favorable +2Favorable +1Neutral 0Limited -1Very Limited -2

ICRVery FavorableFavorableNeutralLimitedVery Limited

aaaN/AN/AN/AN/AN/A

aa+100.0-0-0-0-0

aa-050.050.0-0-0

aa--066.733.3-0-0

a+-075.025.0-0-0

a-025.065.010.0-0

a--08.052.040.0-0

bbb+-0-071.428.6-0

bbb-0-0100.0-0-0

bbb--0-0-0100.0-0

bb+N/AN/AN/AN/AN/A

bbN/AN/AN/AN/AN/A

bb-N/AN/AN/AN/AN/A

b+N/AN/AN/AN/AN/A

b-0-0100.0-0-0

b-N/AN/AN/AN/AN/A

ccc+N/AN/AN/AN/AN/A

ccc+N/AN/AN/AN/AN/A

ccc-N/AN/AN/AN/AN/A

ccN/AN/AN/AN/AN/A

cN/AN/AN/AN/AN/A


Very Limited -2

aa+aaaa-a+aa-bbb+bbbbbb-bb+bbbb-b+b000000000Limited -1

aa+aaaa-a+aa-bbb+bbbbbb-b0000104028.57142857142856901000Neutral 0

aa+aaaa-a+aa-bbb+bbbbbb-b05033.33333333333332925655271.4285714285714311000100Favorable +1

aa+aaaa-a+aa-bbb+bbbbbb-bb+bbbb-b+b05066.66666666666665775258000Very Favorable +2


(%)

ERM Distribution

Ex. XX


(%)

AssessmentNotch%

Very Strong+12.8%

Appropriate091.7%

Marginal-14.2%

Weak-21.4%

Very Weak-30.0%

Very Weak-40.0%


+10-1-2Very StrongAppropriateMarginalWeak2.7777777777777776E-20.916666666666666634.1666666666666664E-21.3888888888888888E-2

ERM by FSR

Ex. XX

Asia – Enterprise Risk Management Notch by Financial Strength Rating

(%)

FSRVery StrongAppropriateMarginalWeakVery Weak

A++100.0-0-0-0-0

A+-0100.0-0-0-0

A-0100.0-0-0-0

A--096.04.0-0-0

B++-091.78.3-0-0

B+-066.733.3-0-0

BN/AN/AN/AN/AN/A

B-N/AN/AN/AN/AN/A

C++-0-0-0100.0-0

C+N/AN/AN/AN/AN/A

CN/AN/AN/AN/AN/A

C-N/AN/AN/AN/AN/A

DN/AN/AN/AN/AN/A


Weak

000000Marginal

A++A+AA-B++B+00048.333333333333332133.333333333333329Appropriate

A++A+AA-B++B+01001009691.66666666666665766.666666666666657Very Strong

A++A+AA-B++B+10000000

(%)

ERM by ICR

Ex. XX


(%)

LegendVery Strong +1Appropriate 0Marginal -1Weak -2Very Weak -3/4

ICRVery StrongAppropriateMarginalWeakVery Weak

aaaN/AN/AN/AN/AN/A

aa+100.0-0-0-0-0

aa-0100.0-0-0-0

aa--0100.0-0-0-0

a+-0100.0-0-0-0

a-0100.0-0-0-0

a--096.04.0-0-0

bbb+-0100.0-0-0-0

bbb-080.020.0-0-0

bbb--066.733.3-0-0

bb+N/AN/AN/AN/AN/A

bbN/AN/AN/AN/AN/A

bb-N/AN/AN/AN/AN/A

b+N/AN/AN/AN/AN/A

b-0-0-0100.0-0

b-N/AN/AN/AN/AN/A

ccc+N/AN/AN/AN/AN/A

ccc+N/AN/AN/AN/AN/A

ccc-N/AN/AN/AN/AN/A

ccN/AN/AN/AN/AN/A

cN/AN/AN/AN/AN/A


Weak -2

aa+aaaa-a+aa-bbb+bbbbbb-b000000000100Marginal -1

aa+aaaa-a+aa-bbb+bbbbbb-bb+bbbb-b+b00000402033.333333333333329Appropriate 0

aa+aaaa-a+aa-bbb+bbbbbb-bb+bbbb-b+b0100100100100961008066.666666666666657Very Strong +1


(%)

ICR

Ex. XX

Asia – Rating Distribution

%

Exceptional0.0

Superior9.7

Excellent68.1

Good20.8

Fair0.0

Marginal1.4

Weak0.0

Very Weak0.0

Poor0.0


%

SuperiorExcellentGoodFairMarginalWeakVery Weak9.722222222222223268.05555555555555720.83333333333333601.388888888888888800

Outlook

Ex. XX

Asia – Outlook Distribution

%

Positive0.0

Stable87.5

Negative12.5

Under Review0.0


%

PositiveStableNegativeUnder Review087.512.50

Dist.

Ex. XX

Asia – Rating Assessment Distribution

Balance Sheet StrengthOperating PerformanceBusiness ProfileEnterprise Risk ManagementLong-term Issuer Credit Rating

BSS = Strongest / Very StrongOP = Very Strong / StrongBP = Very Favorable / FavorableERM = Very StrongICR = Exceptional / Superior45271527

BSS = Strong / AdequateOP = AdequateBP = NeutralERM = AppropriateICR = Excellent / Good2738406664

BSS = Weak / Very WeakOP = Marginal / Weak / Very WeakBP = Limited / Very LimitedERM = Marginal / Weak / Very WeakICR = Fair & Below071741


BSS = Weak / Very WeakOP = Marginal / Weak / Very WeakBP = Limited / Very LimitedERM = Marginal / Weak / Very WeakICR = Fair & BelowBalance Sheet StrengthOperating PerformanceBusiness ProfileEnterprise Risk ManagementLong-term Issuer Credit Rating071741BSS = Strong / AdequateOP = AdequateBP = NeutralERM = AppropriateICR = Excellent / GoodBalance Sheet StrengthOperating PerformanceBusiness ProfileEnterprise Risk ManagementLong-term Issuer Credit Rating2738406664BSS = Strongest / Very StrongOP = Very Strong / StrongBP = Very Favorable / FavorableERM = Very StrongICR = Exceptional / SuperiorBalance Sheet StrengthOperating PerformanceBusiness ProfileEnterprise Risk ManagementLong-term Issuer Credit Rating45271527

Info

Asia

Asia – Balance Sheet Strength

16Source: A.M. Best data and research

0

10

20

30

40

50

60

70

80

90

100

aa+ aa aa- a+ a a- bbb+ bbb bbb- bb+

(%)

Strongest Very Strong Strong Adequate


Strongest

Very Strong

Strong

Adequate


Balance Sheet Strength = BCAR + Other Qualitative/ Quantitative Components


17


Baseline


BusinessProfile



RatingLift/Drag


+2

+1 +1 +1

-1

-2

-3

-1

-2

-3

-1

-2

+2

Maximum +2

-4


UnderwritingPerformance

Investment Performance

Total Operating Earnings Financial Forecasts

• Claims ratio• Expense ratio• Combined ratio

• Investment income ratio

• Yields• Capital gains and

losses

• Pre-tax margin• ROE• ROA• ROP

• Prospective performance

• Ability to meet forecasts

• Sustainability

18

Asia – Operating Performance


19

Very Strong +2

Strong +1

Adequate 0

Marginal -1


0102030405060708090

100

aa+ aa aa- a+ a a- bbb+ bbb bbb- bb+(%

)Very Strong +2 Strong +1 Adequate 0 Marginal -1


Business Profile

20


Baseline


BusinessProfile



RatingLift/Drag


+2

+1 +1 +1

-1

-2

-3

-1

-2

-3

-1

-2

+2

Maximum +2

-4

Asia – Business Profile

21

Degree of Competition

Product Risk

ConcentrationsMarketPosition

Regulatory, Event

& Market Risk

Management Quality

Pricing Sophistication & Data Quality

Distribution

Not intended to be prescriptive

Asia – Business Profile


22

Very Favorable +2

Favorable +1

Neutral 0

Limited -1


0102030405060708090

100

aa+ aa aa- a+ a a- bbb+ bbb bbb- bb+

(%)

Very Favorable +2 Favorable +1 Neutral 0 Limited -1



23


Baseline


BusinessProfile



RatingLift/Drag


+2

+1 +1 +1

-1

-2

-3

-1

-2

-3

-1

-2

+2

Maximum +2

-4

Asia – Enterprise Risk Management


24

Very Strong +1

Appropriate 0

Marginal -1Weak -2


0102030405060708090

100

aa+ aa aa- a+ a a- bbb+ bbb bbb- bb+(%

)Very Strong +1 Appropriate 0 Marginal -1 Weak -2


25

Putting it All Together…

0% 20% 40%

aa+

aa

aa-

a+

a

a-

bbb+

bbb

bbb-

b

CRT 1 & 2

Long

Ter

m IC

R

0% 20% 40%

aa+

aa

aa-

a+

a

a-

bbb+

bbb

bbb-

b

CRT 3Lo

ng T

erm

ICR

Most common balance sheet assessments: CRT 1 & 2

Very Stronga / a-

CRT 3Very Strong

a- / bbb+

CRT 4Strong

bbb / bbb- / bb+

Actual Rating Distribution by Country Risk Tier:

0% 20% 40%

aa+

aa

aa-

a+

a

a-

bbb+

bbb

bbb-

b

CRT 4

Long

Ter

m IC

R

26

Conclusion

• Ratings depend on more than just balance sheet strength.

• Balance sheet strength depends on more than just BCAR score.

• Trends in operating performance, business profile, ERM just as important.

Questions?

28

Appendix – Assessment Keywords and Notching

Global ReinsuranceResults and Trends

Discussion Outline

Global Reinsurance Results, Trends and Outlook

Global Reinsurance Market Capacity

Global Reinsurance Market Evolution

2

Segment Outlook – Global Reinsurance

3

Headwinds TailwindsIntense competition Cession rates increasingIncreasing interest from third-party capital

Cat losses temporarily stabilise rates

Earnings stabilise but remain under pressure

Favourable reserve development,but waning

Excess capacity hinders further improvement

Strong risk-adjusted capital

Potential for increased inflation Increase in interest ratesM&A

Although capitalisation remains strong and rate deterioration temporarily halted, pressure on margins continues. Over the intermediate term, returns for some reinsurers will fall short on a risk-adjusted basis. Maintain negative market outlook.

Central Bank Base Lending Rates

-1

0

1

2

3

4

5

6

7

8

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

(%)

China

ECB

Japan

UK

US

4

Global GDP Growth – Major Economies

-6

-4

-2

0

2

4

6

8

10

12

14

16

2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022

(%)

China France Germany Japan United Kingdom United States *Forecast

5

2017 represented the most significant year for catastrophe losses since 2011

Hurricane Harvey, Irma, Maria combined with Earthquake in Mexico and Wildfire in California produced industry losses in the range of USD 80 to 100 billion

Despite timing of these events, negative reserve surprises have been limited thus far

6

Global Reinsurance Market Trends

Global Reinsurance Market TrendsOverall 2017 catastrophes amounted to an earnings events as rated balance sheets emerged flat for the year

Alternative capital did participate in the events in a meaningful way resulting in collateral locks prior and through the 1/1 and mid year renewal periods

Alternative capital investors were NOT hindered by the losses and brought additional capacity to the market for the renewals

7

Global Reinsurance Market TrendsOptimism

that followed quickly faded

as January renewal

negations progressed.

Significant push back from Clients not impacted by

losses. But hope lingered into the

June / July renewal.

Overall, reinsurance pricing stabilized. More

pronounced improvement in

underlying business.

As a result pricing is not optimal for certain classes and structures but there are opportunities out there...

8

Total Economic and Insured Losses (USD billions)

9

Source: Swiss Re Institute

2017 2016 Annual Change (%)10-YearAverage

% of 10-Year Average

Economic Losses

Economic LossesNatural Catastrophe 300 178 69% 178Man-made 6 10 -42% 12

Total 306 188 63% 190

Insured Losses

Natural Catastrophe 131 56 133% 51 29%Man-made 5 8 -45% 7 58%

Total 136 65 110% 58 31%


55.9% 56.2% 56.2% 60.6%

76.5%

60.6%

61.1%

31.9%33.5%

34.2% 34.7%

33.6%

33.9% 33.6%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

0%

20%

40%

60%

80%

100%

120%

2013 2014 2015 2016 2017 2018 H1 5yr Avg

Expense Ratio

Loss Ratio

Loss ReserveDevelopment


Global Reinsurance Sector – Combined Ratio

10

86.8% 88.1% 90.0%97.9%

114.0%

95.0%

2013 2014 2015 2016 2017 2018Q2

Combined Ratio by Reinsurance Sector

11

European “Big Four” U.S. & Bermuda Lloyd’s

86.6% 87.4% 90.7%92.5%

109.0%

92.9%

2013 2014 2015 2016 2017 2018Q2

Loss Ratio Expense Ratio

89.3% 92.4% 91.8%96.3%

109.0%95.0%

0%

20%

40%

60%

80%

100%

120%

2013 2014 2015 2016 2017 2018 Q2


13.0%

11.6%

9.5%8.3%

-0.3%

-2%

0%

2%

4%

6%

8%

10%

12%

14%

2013 2014 2015 2016 2017

Return on Equity Five-Year Average


Return on Equity (2013 to present) and Five-Year Average

12


European “Big Four” U.S. & Bermuda Lloyd’s

Return on Equity by Reinsurance Sector

Five-Year AverageSource: A.M. Best data and research

2017

13

13.1%11.0% 11.5%

9.7%

2.7%

9.3%

2013 2014 2015 2016 2017 2018 Q2

11.4% 10.9%

7.5% 6.8%

-0.5%

6.0%

2013 2014 2015 2016 2017 2018 Q2

16.2%14.7%

8.9% 8.1%

-7.3%

4.3%

2013 2014 2015 2016 2017 2018 Q22017

Global Reinsurance Market TrendsGlobal Reinsurance Market

5 Year Average Return on Equity Less Reserve Development


10.9%

8.3%

6.8%

4.5%

Composite at YE2016 Composite at YE2017

5 Year Average Return on Equity5 Year Average Return on Equity excluding Loss Reserve Development

14

Global ReinsuranceMarket Capacity

15


Top 10 Global Reinsurance Groups –Non-Life

Top 10 Global Reinsurance Groups –Life

Munich Reinsurance Company

Swiss Re Ltd.

Berkshire Hathaway Inc.

Lloyd’s

Hannover Ruck SE

SCOR S.E.

Everest Re Group Ltd.

XL Group plc

Transatlantic Holdings, Inc.

PartnerRe Ltd.

Munich Reinsurance Company

Swiss Re Ltd.

Reinsurance Group of America Inc.

SCOR S.E.

Hannover Ruck SE

Great West Lifeco

Berkshire Hathaway Inc.

Pacific LifeCorp

PartnerRe Ltd.

Assicurazioni Generali SpA

Source: A.M. Best data and research. Ranked by unaffiliated gross premium written in 2017

16


Rank 1-1070.2%

Rank 11-2015.5%

Rank 21-307.2%

Rank 31-404.6%

Rank 41-502.5%

Life and Non-Life Reinsurance GPW Distribution by Ranking

17

Global Reinsurance Market Capital

292 320 340 332 345 345

362

19

48 60 68

75 87 100

2012 2013 2014 2015 2016 2017 2018E

Convergence Capital

Traditional Capital

Estimate for Total Dedicated Reinsurance Capital (USD billions)

Notes and Sources: Estimates by Guy Carpenter and A.M. Best

18

Global Market TrendsConvergence Capacity

(2018 estimated) (USD billions)

19

71

23

6

0

10

20

30

40

50

60

70

80

90

100

Direct Institutional Investors

Reinsurance Sponsored Managers

Dedicated Insurance-linked securities (ILS)Managers

Source: Guy Carpenter and A.M. Best

Global Market Evolution

20

“Global” Franchises

• Arch• Aspen• AXIS• Everest Re• Hannover Re• Lloyd’s• Munich Re• RenaissanceRe• SCOR Re• Swiss Re

ShelteredFranchises

• Allied World• Endurance(Sompo Intl)• General Re• MS Amlin• Odyssey Re• National Indemnity• Partner Re• Tokio Millennium Re• TransRe• Validus• XL Catlin

Franchises That Are Gone

• Ariel Re• Flagstone• Harbor Point / Max (Alterra)• IPC Re• Montpellier • New Castle Re• Paris Re• Platinum Re

What Does The Future Hold?

• Fidelis• Greenlight Re• Hamilton• Harrington Re• Humboldt Re• Kelvin Re• Lumen Re• Maiden Re• Third Point Re• Watford Re

Market Landscape ~10 Years In Time

21

The Case for M&A

22

Broader product capability

Broader geographic reach

Greater influence

Greater attractiveness to alternative capital

Opportunity for growth

Alternatively…M&A is the result of a strategic

opportunity

Alternative Capital

23

Market is still largely

influenced by global leaders

M&A will continue

Alternative capital is driving change

Alternative capital is driving a great deal of structural change in the market

However, the market continues to be heavily influenced by the global reinsurance leaders

The Drive for Efficiency

24

The market will

continue to become

more efficient as all

players strive to

become closer to

the client

Global Market Trends

Traditional Dual Platform

Controlthe client

Build primary business

Alternative Capital Platform

Manage or have a relationship with

alternative capital

Build fee income stream

Mergers &Acquisitions

Relevanceand size

Ability to be small and nimble with parental

protection

Strategy Evolution

25

Q & A

26

rmbsirc2018distributionslidesA.M. Best Asia Pacific Portfolio�Rating and Building Block DistributionsTable of ContentRating Distributions of Asia PortfolioNortheast Asia – Rating DistributionNortheast Asia – Rating DistributionSouth East Asia – Rating DistributionSouth East Asia – Rating DistributionBuilding Block Distributions of Asia PortfolioSince October 13, 2017Balance Sheet Strength:�The Baseline AssessmentRated NEA and SEA Markets by CRTBalance Sheet Strength:�The Baseline AssessmentBalance Sheet Strength - BCARBCAR Scores of Rated Asian Portfolio Companies BCAR Assessment = Balance Sheet Strength Assessment?Asia – Balance Sheet StrengthOperating PerformanceOperating PerformanceAsia – Operating PerformanceBusiness ProfileAsia – Business ProfileAsia – Business ProfileEnterprise Risk ManagementAsia – Enterprise Risk Management Slide Number 25Slide Number 26Questions?Slide Number 28

rmbsirc2018globalslidesSlide Number 1Discussion OutlineSegment Outlook – Global ReinsuranceCentral Bank Base Lending RatesGlobal GDP Growth – Major EconomiesGlobal Reinsurance Market TrendsGlobal Reinsurance Market TrendsGlobal Reinsurance Market TrendsTotal Economic and Insured Losses (USD billions)Global Reinsurance Market TrendsCombined Ratio by Reinsurance SectorGlobal Reinsurance Market TrendsGlobal Reinsurance Market TrendsGlobal Reinsurance Market TrendsSlide Number 15Global Reinsurance Market CapacityGlobal Reinsurance Market CapacityGlobal Reinsurance Market CapitalGlobal Market TrendsSlide Number 20Market Landscape ~10 Years In TimeThe Case for M&AAlternative CapitalThe Drive for EfficiencyGlobal Market TrendsQ & A

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