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Proprietary and Confidential

Aon’s Reinsurance Aggregate Results for the six months ending June 30, 2019


Aon’s Reinsurance Aggregate

Contents Executive Summary 2

Global Reinsurer Capital 3

ARA Capital 4

Capital Development 5

Capital Management 6

Premium Income 7

P&C Gross Premium Development 8

P&C Reinsurance Purchasing 8

P&C Net Premium Development 9

Earnings 11

P&C Underwriting Performance 12

Investment Results 15

Net Income 16

Return on Equity 17

Valuation 18

Financial Strength Ratings 19

Appendix: ARA Data 20


Aon’s Reinsurance Aggregate 2

Executive Summary Welcome to the latest edition of our report series tracking the financial performance of leading reinsurance carriers in the global market, also known as Aon’s Reinsurance Aggregate (‘the ARA’). The ARA underwrites around 50% of the world’s non-life reinsurance premiums and a majority of the life reinsurance premiums. It is therefore a reasonable proxy for the sector as a whole.

The 23 companies included in the study are Alleghany, Arch, Argo, Aspen, AXIS, Beazley, Everest Re, Fairfax, Hannover Re, Hiscox, Lancashire, Mapfre, Markel, Munich Re, Partner Re, QBE, Qatar Insurance, RenRe, SCOR, Sirius, Swiss Re, Third Point Re and W.R. Berkley. Timely availability of relatively consistent financial data is a major factor in constituent selection.

----------

The ARA posted strong earnings for the first half of 2019, driven by premium growth, benign major loss experience and capital market conditions that were conducive to investment returns. Total equity rose by $17bn to $201bn at June 30, 2019, net of a capital return to investors of $7.0bn.

Total gross premiums written rose by 5% to $147bn. Property and casualty (P&C) premiums climbed by 8% to $108bn, while other premiums were flat at $39bn. Broad-based growth in assumed P&C premiums was suggestive of increased demand for reinsurance solutions.

The P&C reinsurance cession ratio was stable at an elevated level of 18.5%, partly reflecting the increasing amounts of peak risk now being transferred to the capital markets. P&C net premiums written rose by 9% to $89bn, while net premiums earned rose by 5% to $79bn.

The accident year combined ratio was unchanged at 95.7%. The calendar year combined ratio deteriorated by 2.0pp to 96.2%, driven almost entirely driven by additions to reserves for prior year catastrophe losses (notably Typhoon Jebi). P&C underwriting profit fell by a third to $3.0bn.

Ordinary investment income rose by 7% to $11.7bn, influenced by the impact of interest rate rises in the US and UK markets during 2018. Capital gains increased substantially to $7.1bn, reflecting unrealized gains on bond and equity portfolios.

Pre-tax profit stood at $15.7bn, an increase of 42% relative to the first half of 2018. Net income rose by 44% to $13.0bn, representing a relatively strong annualized return on equity of 13.7%. This result was significantly ahead of the cost of equity.

Bank base rates are likely to move lower, given the significant weakening of the global economic growth outlook over the past year. ‘Lower for longer’ interest rates will pressure investment returns, maintain focus on underwriting margins and increase the likelihood of further M&A activity.



Global Reinsurer Capital Aon estimates that global reinsurer capital rose by 4%, or $25bn, to $610bn over the six months to June 30, 2019. This calculation is a broad measure of the capital available for insurers to trade risk with and includes both traditional and alternative forms of reinsurer capital.

Exhibit 1: Global reinsurer capital

Source: Aon.

Traditional equity capital is estimated to have risen by 6%, or $29bn, to $517bn over the six months to June 30, 2019, driven by strong earnings and additional unrealized gains on bond portfolios (captured ‘below-the-line’, within other comprehensive income).

Assets under management in the alternative capital sector are estimated to have declined by 4%, or $4bn, to $93bn over the six months to June 30, 2019, driven by the payment of losses and investor redemptions. The total is shown gross of the collateral trapped on contracts impacted by the major natural catastrophe losses in 2017 and 2018.

17 22 19 22 24 28 44 50 64 72 81 89 97 93

368 388321

378447 428

461490

511 493 514 516 488 5176%

-17% 18%

18%-3% 11%

7%6% -2% 5%

2% -3% 4%

385 410

340400

470 455505

540575 565

595 605 585 610

0

100

200

300

400

500

600

700

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 1H 2019

$bn

Alternative capital Traditional capital Global reinsurer capital



ARA Capital Total capital deployed by the ARA stood at $254bn at June 30, 2019, up 8% relative to the end of 2018. Total equity rose by 8% to $201bn, split $187bn to common shareholders, $5bn to preferred shareholders and $9bn to minority interests. Issued debt rose by 9% to $53bn, generating a slightly increased debt-to-total-capital ratio of 20.9%.

Exhibit 2: ARA total capital

Source: Aon / company reports.

The total capital positions of the 23 ARA constituents at June 30, 2019 are shown in Exhibit 3. The three largest companies represented 45% of the total, while the median size was $9bn.

Exhibit 3: Total capital at June 30, 2019


130 146122

152 157 161184 186 196 192 199 200 184 201

3135

35

33 40 37

44 44 41 42 44 4648

53

161181

157185

198 198

228 230 237 234 243 246233

254

0

50

100

150

200

250

300

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 1H2019

$bn

Total equity Debt Total capital

0

5

10

15

20

25

30

35

40

45

$bn

Total equity Debt



Capital Development The drivers of the $17bn increase in ARA total equity in the first half of 2019 are shown in the top half of Exhibit 4. The main items were net income of $13.0bn and unrealized investment gains of $11.4bn, partly offset by dividends and share buybacks totalling $7.0bn.

Exhibit 4: Evolution of ARA total equity


In original reporting currencies, all but one of the 23 ARA constituents reported growth in total equity over the six months to June 30, 2019, as shown in Exhibit 5. The median increase was 10%.

Exhibit 5: 1H 2019 changes in total equity (original reporting currency)


184.1 0.113.0 0.1

11.4 -1.2 -5.8-0.7 201.2

160

180

200

220

FY 2018Equity

Additionalcapital

Netincome

Foreignexchange

Investmentgains

Sharebuybacks

Dividends Other 1H 2019Equity

$bn

200.2 0.69.0 -2.2 -5.9

-1.9 -5.7-1.1 193.0

160

180

200

220

FY 2017Equity

Additionalcapital

Netincome

Foreignexchange

Investmentlosses

Sharebuybacks

Dividends Other 1H 2018Equity

$bn

-2%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%



Capital Management In the period since 2006, the ARA has returned more than $140bn of capital to investors in the form of dividends and share buybacks, representing an average of around 6% of opening equity per year.

Exhibit 6: ARA dividends and share buybacks (% of opening equity)


Capital returns in the first half of 2019, were at a similar level to those seen a year earlier. The distribution by ARA constituent, relative to opening equity, is shown in Exhibit 7.

Exhibit 7: 1H 2019 dividends and share buybacks (% of opening equity)


0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 1H2018

1H2019

Dividends Share buybacks

0%

2%

4%

6%

8%

10%

12%

14%

16%Dividends Share buybacks



Premium Income Total gross premiums written (GPW) by the ARA rose by 5% to $147bn in the first half of 2019. Property and casualty (P&C) premiums climbed by 8% to $108bn, while other premiums were flat at $39bn. The latter mainly represents life and health reinsurance business written by the European composite reinsurers.

Exhibit 8: ARA total gross premiums written


Exhibit 9 shows a breakdown of the total GPW of each ARA constituent in the first half of 2019. In the case of Munich Re, all of ERGO’s primary insurance business is included within ‘Other’.

Exhibit 9: 1H 2019 total gross premiums written


111 119 126 124 127 146 154 163 164 161 169 175 194

100 108

4350 53 58 61

70 73 74 75 67 66 6869

39 39

153169 180 182 188

216 227 237 239 227 235 243263

140 147

0

50

100

150

200

250

300

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 1H2018

1H2019

$bn

P&C GPW Other

0

5

10

15

20

25

30

$bn

P&C Other



P&C Gross Premium Development In original reporting currencies, three ARA constituents reported growth in P&C GPW of more than 20% in the first six months of 2019. In the case of RenRe, this was mainly driven by the acquisition of Tokio Millennium Re, while Swiss Re and Hannover Re benefitted from strong renewals. Six companies reported reductions in P&C GPW, as shown in Exhibit 10.

Exhibit 10: 1H 2019 P&C GPW growth (original reporting currency)

Source: Aon / company reports. Note: * Excluding ERGO.

P&C Reinsurance Purchasing Total P&C net premiums written (NPW) by the ARA rose by 9% to $89bn in the first half of 2019. The overall reinsurance cession ratio was stable at an elevated level of 18.5%, partly reflecting the increasing amounts of peak risk now being transferred to the capital markets.

Exhibit 11: ARA reinsurance cession ratios (P&C business only)


-10%

0%

10%

20%

30%

40%

50%

15.4% 15.9%14.0% 13.8%

16.1% 15.6% 16.4%18.5% 18.5%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

1H 2011 1H 2012 1H 2013 1H 2014 1H 2015 1H 2016 1H 2017 1H 2018 1H 2019



The external P&C reinsurance cession ratios of ARA constituents in the first half of each of the last two years are shown below. Twelve companies are buying proportionately more cover in 2019.

Exhibit 12: Reinsurance cession ratios (P&C business only)

Source: Aon / company reports. Note: * Excluding ERGO

P&C Net Premium Development Total P&C net premiums earned (NPE) by the ARA rose by 5% to $79bn in the first half of 2019. The volumes by ARA constituent are shown below.

Exhibit 13: 1H 2019 total P&C NPE


0%5%

10%15%20%25%30%35%40%45%50%

1H 2019 1H 2018

0

2

4

6

8

10

12

$bn



In original reporting currencies, eight companies reported growth in total P&C NPE of more than 10% in the first half of 2019, while five companies reported reductions, as shown below. The significant growth at RenRe was driven by the acquisition of Tokio Millennium Re.

Exhibit 14: 1H 2019 growth in P&C NPE (original reporting currency)

Source: Aon / company reports. Note: * Excluding Ergo.

-10%

0%

10%

20%

30%

40%

50%

60%

70%



Earnings The ARA reported pre-tax profit of $15.7bn for the first half of 2019, an increase of 42% relative to the first half of 2018. P&C underwriting profit fell by a third to $3.0bn, a major factor being adverse development of prior year catastrophe reserves (particularly in respect of Typhoon Jebi). Ordinary investment income rose by 7% to $11.7bn, while capital gains increased substantially to $7.1bn.

Exhibit 15: ARA pre-tax results


The distribution of the reported pre-tax results of the ARA constituents in the first half of each of the last two years is shown below. All companies except one reported a profit in the period under review. The loss at Aspen was influenced by exceptional expenses relating to its change of ownership.

Exhibit 16: Pre-tax results


25.228.3

10.6

21.9 19.6

7.6

24.0 21.325.1 22.5 20.5

7.211.0

11.0

15.7

-30

-20

-10

0

10

20

30

40

50

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 1H2018

1H2019

$bn

Other Pure life technical result P&C underwriting resultInvestment income Capital gains/losses Pre-tax profit

-0.5

0.0

0.5

1.0

1.5

2.0

2.5

$bn

1H 2019 1H 2018



P&C Underwriting Performance The ARA’s accident year combined ratio stood at 95.7% in the first half of 2019, unchanged relative to the prior year period, with higher, but still below average, natural catastrophe losses offset by improvement in the expense ratio. On a calendar year basis, the ARA’s combined ratio deteriorated by 2.0pp to 96.2%. Adverse prior year reserve development of $0.4bn added 0.5pp to the combined ratio, whereas releases of $1.1bn provided 1.5pp of benefit in the first half of 2018. The swing was almost entirely driven by additions to reserves for catastrophe losses, notably Typhoon Jebi.

Exhibit 17: ARA net combined ratio


The net combined ratios reported by the ARA constituents in the first half of each of the last two years are shown in Exhibit 18. Five companies posted underwriting losses in the period under review.

Exhibit 18: Net combined ratios


-0.8% -2.4% -3.9% -2.6% -3.6% -5.0% -4.3% -4.4% -4.8% -5.6% -5.4% -4.0% -3.5% -1.5%

0.5%27.4% 28.8% 28.6% 29.0% 29.7% 30.0% 30.2% 30.9% 31.4% 32.7% 32.8% 32.3% 32.4% 32.8% 32.3%

61.6% 61.0% 63.6% 63.1% 60.7% 61.2% 59.8% 60.6% 61.5% 61.9% 62.0% 63.3% 63.0% 62.0% 61.9%

1.6% 3.2%7.1%

1.7% 8.5%19.6%

6.9% 4.0% 2.4% 1.6% 4.1%14.9% 7.3%

0.9% 1.5%89.8% 90.6%

95.4%91.1% 95.3%

105.8%

92.6% 91.1% 90.5% 90.7% 93.6%106.6%

99.2%94.2% 96.2%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 1H2018

1H2019

Nat cat loss ratio Attritional loss ratio Expense ratio Prior year reserve adjustment

0%

20%

40%

60%

80%

100%

120%1H 2019 1H 2018



The net loss ratios reported by the ARA constituents in the first half of each of the last two years are shown in Exhibit 19. Most results deteriorated in the period under review, partly due to the impact of reserve strengthening on prior year catastrophe losses.

Exhibit 19: Net loss ratios


Operating efficiency is becoming an increasingly important competitive differentiator across the reinsurance sector. The net expense ratios reported by the ARA constituents in the first half of each of the last two years are shown below.

Exhibit 20: Net expense ratios


0%

10%

20%

30%

40%

50%

60%

70%

80%

1H 2019 1H 2018

0%

10%

20%

30%

40%

50%

60%

1H 2019 1H 2018



Exhibit 21 shows disclosed prior year loss reserve adjustments as a percentage of P&C NPE in the first half of each of the last two years. Most ARA constituents continue to report redundancies benefiting their underwriting results. However, six companies reported overall reserve strengthening in the period under review, driven mainly by adverse development of prior year catastrophe losses.

Exhibit 21: Prior year loss reserve adjustments (combined ratio points)


Exhibit 22 shows the accident year combined ratios reported by the ARA constituents for the first half of each of the last two years (i.e. before the impact of prior year reserve adjustments). On this basis, six companies reported underwriting losses in the period under review.

Exhibit 22: Accident year combined ratios


-15%

-10%

-5%

0%

5%

10%

15%

20%

25%1H 2019 1H 2018

0%

20%

40%

60%

80%

100%

120%

1H 2019 1H 2018



Investment Results The ARA’s invested asset base totalled $820bn at June 30, 2019, split fixed-income securities 65%, loans 8%, cash/short-term 8%, deposits with cedants 5%, equities 6%, real estate 2% and other 6%. Ordinary and total yields reported through income statements since 2006 are shown in Exhibit 23.

Exhibit 23: ARA Investment Yield


Interest rates rose in the US and UK markets during 2018, aiding ordinary yields, but generating unrealized losses on bond portfolios. Adding the impact of the stock market correction in December, the total investment yield was at the lowest level since the financial crisis.

The outlook for global economic growth has weakened significantly over the past year. Interest rates now seem likely to go into reverse and existing bond portfolios therefore increased in value during the first half of 2019. Stock markets also rebounded, driving the highest total investment yield since 2007. However, interest rates now look set to be ‘lower for longer’, meaning that the recent uptick in ordinary investment yields seems unlikely to be sustained.

The annualized total investment yields reported through ARA constituent income statements in the first half of each of the last two years are shown below.

Exhibit 24: Annualized total investment yields


4.7% 4.8%

2.1%

3.8%4.1%

3.7% 4.0%

3.4%3.8%

3.0%3.4%

3.8%

2.7%

4.7%

3.8%4.3%

3.9%3.6%

3.3% 3.5%3.1%

2.9% 2.9%2.7% 2.6% 2.6% 2.8% 2.9%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

5.5%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 1H 2019

Total investment return (incl. capital gains/losses) Ordinary investment return

-5%

0%

5%

10%

15%

20%

25%1H 2019 1H 2018



Net Income The ARA reported total net income of $13.0bn in the first half of 2019, an increase of 44% relative to the first half of 2018. The progression since 2006 is shown in Exhibit 25. Net income aggregates to around $220bn over the period shown.

Exhibit 25: ARA net income


The reported net income of the ARA constituents in the first half of each of the last two years is shown in Exhibit 26. All companies with one exception reported overall profits for the period. The loss at Aspen was influenced by exceptional expenses relating to its change of ownership.

Exhibit 26: Net income


19.5

22.3

5.2

17.615.7

7.5

19.8 19.821.8

19.8

16.9

5.7

8.7 9.0

13.0

0

5

10

15

20

25

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 1H2018

1H2019

$bn

-0.20.00.20.40.60.81.01.21.41.61.82.0

$bn

1H 2019 1H 2018



Return on Equity The development of net income attributable to common shareholders relative to average common shareholders’ equity across the ARA since 2006 is shown below. Annualized return on equity rebounded to 13.7% in the first half of 2019, driven principally by strong investment performance.

Exhibit 27: ARA return on common equity

Source: Aon / Bloomberg / company reports.

The annualized return on common equity reported by the ARA constituents in the first half of each of the last two years is shown in Exhibit 28. Five companies reported returns of more than 20% in the period under review.

Exhibit 28: Annualized return on common equity


15.5% 16.2%

3.7%

12.9%

10.1%

4.4%

11.5%10.7%

11.3%10.1%

8.4%

2.7%4.2%

13.7%

8.9%10.0% 10.0%

9.2%

10.8%

9.0% 8.8% 8.7% 8.1% 7.7% 7.5%8.6%

8.9%

8.1%

0%

5%

10%

15%

20%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 1H2019

ARA return on common equity ARA cost of equity (median)

-5%

0%

5%

10%

15%

20%

25%

30%1H 2019 1H 2018



Valuation The development of total ARA market capitalization since the beginning of 2008 is shown below.

Exhibit 29: ARA market capitalization index

Source: Bloomberg. Note: As of September 5, 2019.

The development of the ARA’s trailing price-to-book ratio since the beginning of 2008 is shown below. New highs above 1.3x were tested earlier in 2019, before more recent reversion to the 1.25x level.

Exhibit 30: ARA price-to-book ratio

Source: Bloomberg. Note: As of September 5, 2019.

40

60

80

100

120

140

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

0.6

0.7

0.8

0.9

1.0

1.1

1.2

1.3

1.4

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019



Financial Strength Ratings Exhibit 31 captures the current financial strength ratings and rating outlooks of the lead reinsurance operating entities within each ARA constituent, as assigned by A.M. Best and Standard & Poor’s. Changes since September 2018 are colour-coded.

Exhibit 31: Financial strength ratings

ARA constituent Lead reinsurance operating entity A.M. Best Standard & Poor’s Alleghany Transatlantic Reinsurance Company A+ Stable A+ Stable Arch Arch Reinsurance Ltd A+ Stable A+ Stable Argo Argo Re Ltd A Stable - - Aspen Aspen Bermuda Ltd A Stable A Negative AXIS AXIS Specialty Ltd A+ Negative A+ Stable Beazley Lloyd’s Syndicate 2623 A Stable A+ Stable Everest Re Everest Reinsurance (Bermuda) Ltd A+ Stable A+ Stable Fairfax Odyssey Reinsurance Company A Stable A- Positive Hannover Re Hannover Rück SE A+ Stable AA- Stable Hiscox Hiscox Insurance Company (Bermuda) Ltd A Stable A Stable Lancashire Lancashire Insurance Company Ltd A Stable A- Stable Mapfre MAPFRE Re, Compania de Reaseguros SA A Stable A Positive Markel Markel Bermuda Ltd A Stable A Stable Munich Re Munich Reinsurance Company A+ Stable AA- Stable PartnerRe Partner Reinsurance Company Ltd A+ Stable A+ Stable Qatar Insurance Qatar Reinsurance Company Limited A Stable A Stable QBE QBE Europe SA/NV A Stable A+ Stable RenRe Renaissance Reinsurance Ltd A+ Stable A+ Stable SCOR SCOR SE A+ Stable AA- Stable Sirius Sirius International Insurance Corporation (publ) A Stable A- Stable Swiss Re Swiss Reinsurance Company A+ Stable AA- Stable Third Point Re Third Point Reinsurance Company Ltd A- Negative - - W.R. Berkley Berkley Insurance Company A+ Stable A+ Stable

Key: ● Upgrade / outlook raised since September 1, 2018. ● Downgrade / outlook lowered since September 1, 2018. Source: Aon / A.M. Best / Standard and Poor’s. Ratings as at September 5, 2019.



Appendix: ARA Data Exhibit 32: Results for the six months ended June 30, 2019

Company

Reporting currency (millions)

P&C GPW 1H 2018

P&C GPW 1H 2019 Change

P&C NPE 1H 2018

P&C NPE 1H 2019 Change

Alleghany USD 2,932 3,277 12% 2,445 2,653 9% Arch USD 3,535 4,016 14% 2,572 2,833 10% Argo USD 1,413 1,534 9% 832 852 2% Aspen USD 1,971 1,854 -6% 1,053 1,040 -1% AXIS USD 4,314 4,231 -2% 2,353 2,258 -4% Beazley USD 1,324 1,484 12% 990 1,118 13% Everest Re USD 3,998 4,294 7% 3,349 3,550 6% Fairfax USD 7,999 9,062 13% 5,738 6,069 6% Hannover Re EUR 6,467 7,847 21% 5,175 5,964 15% Hiscox USD 2,229 2,338 5% 1,278 1,314 3% Lancashire USD 393 430 9% 218 213 -2% Mapfre EUR 9,272 9,704 5% 6,878 6,874 0% Markel USD 4,044 4,502 11% 2,299 2,403 5% Munich Re* EUR 9,940 10,327 4% 8,860 9,877 11% PartnerRe USD 2,867 3,272 14% 2,066 2,363 14% QBE USD 7,887 7,637 -3% 5,647 5,671 0% RenRe USD 2,137 3,041 42% 870 1,462 68% SCOR EUR 3,026 3,446 14% 2,589 2,805 8% Swiss Re USD 11,383 14,373 26% 9,619 10,782 12% Qatar Insurance QAR 6,573 6,385 -3% 5,649 5,329 -6% Sirius USD 1,120 1,109 -1% 593 683 15% Third Point Re USD 428 402 -6% 284 299 5% W.R. Berkley USD 3,927 4,136 5% 3,148 3,240 3% ARA (Total) USD 100,446 108,119 8% 75,349 79,083 5%

Notes: * P&C reinsurance segment only (as disclosed). Figures in reporting currencies but converted to $m for ARA lines. Source: Aon / company reports.



Exhibit 32: Results for the six months ended June 30, 2019 (continued)

Calendar Year

Company

Net loss ratio

1H 2018

Net loss ratio

1H 2019

Expense ratio

1H 2018

Expense ratio

1H 2019

Combined ratio

1H 2018

Combined ratio

1H 2019 Change

Alleghany 57.6% 59.9% 33.1% 32.6% 90.7% 92.5% 1.8pp Arch 53.0% 52.5% 29.0% 28.5% 82.0% 81.0% -1.0pp Argo 58.0% 61.3% 38.1% 37.7% 96.1% 99.0% 3.0pp Aspen 58.9% 60.7% 36.7% 37.7% 95.7% 98.4% 2.8pp AXIS 58.1% 59.2% 33.8% 37.3% 92.0% 96.5% 4.6pp Beazley 55.5% 62.0% 39.4% 38.3% 94.9% 100.3% 5.4pp Everest Re 71.6% 60.4% 27.8% 28.6% 99.4% 88.9% -10.5pp Fairfax 61.4% 62.9% 34.7% 34.0% 96.1% 96.9% 0.8pp Hannover Re 64.7% 67.8% 31.4% 29.3% 96.0% 97.1% 1.1pp Hiscox 42.9% 53.3% 45.0% 45.5% 87.9% 98.8% 10.9pp Lancashire 15.1% 34.5% 52.0% 52.0% 67.1% 86.6% 19.4pp Mapfre 69.4% 67.5% 28.0% 28.5% 97.4% 95.9% -1.5pp Markel 52.8% 56.8% 38.1% 38.2% 90.9% 95.0% 4.1pp Munich Re* 62.1% 59.4% 33.5% 33.5% 95.6% 92.9% -2.7pp PartnerRe 66.4% 67.3% 28.5% 27.7% 94.8% 95.0% 0.1pp QBE 63.1% 69.5% 32.3% 30.9% 95.4% 100.4% 5.0pp RenRe 26.7% 46.6% 32.4% 31.2% 59.0% 77.8% 18.7pp SCOR 57.9% 62.0% 33.6% 31.8% 91.4% 93.7% 2.3pp Swiss Re 60.8% 73.9% 33.8% 32.8% 94.6% 106.6% 12.0pp Qatar Insurance 70.8% 67.6% 29.8% 32.5% 100.6% 100.2% -0.5pp Sirius 49.3% 67.7% 35.6% 31.0% 84.9% 98.7% 13.8pp Third Point Re 62.2% 59.4% 41.8% 43.0% 104.0% 102.5% -1.5pp W.R. Berkley 61.5% 62.3% 33.3% 31.8% 94.8% 94.1% -0.7pp ARA 61.4% 63.9% 32.8% 32.3% 94.2% 96.2% 2.0pp

Note: * P&C reinsurance segment only (as disclosed). Source: Aon / company reports.




Company

Prior year reserve

adjustment 1H 2018

Prior year reserve

adjustment 1H 2019

Adjustment as % of

NPE 1H 2018

Adjustment as % of

NPE 1H 2019

Acc. year combined

ratio 1H 2018

Acc. year combined

ratio 1H 2019 Change

Alleghany -138 -94 5.6% 3.5% 96.3% 96.0% -0.3pp Arch -116 -78 4.5% 2.7% 86.5% 83.7% -2.8pp Argo -4 20 0.5% -2.3% 96.6% 96.7% 0.1pp Aspen -80 -9 7.6% 0.9% 103.3% 99.3% -4.0pp AXIS -114 -38 4.9% 1.7% 96.8% 98.2% 1.4pp Beazley -48 -3 4.9% 0.3% 99.7% 100.6% 0.9pp Everest Re 435 8 -13.0% -0.2% 86.4% 88.7% 2.3pp Fairfax -199 -91 3.5% 1.5% 99.5% 98.4% -1.2pp Hannover Re -200 0 3.9% 0.0% 99.9% 97.1% -2.8pp Hiscox -154 -26 12.1% 2.0% 100.0% 100.8% 0.8pp Lancashire -52 -16 23.8% 7.5% 90.9% 94.0% 3.2pp Mapfre 7 0 -0.1% 0.0% 97.3% 95.9% -1.4pp Markel -266 -189 11.6% 7.9% 102.5% 102.9% 0.4pp Munich Re -381 -483 4.3% 4.9% 99.9% 97.8% -2.1pp PartnerRe -56 15 2.7% -0.6% 97.5% 94.3% -3.2pp QBE -51 -112 0.9% 2.0% 96.3% 102.4% 6.1pp RenRe -188 -4 21.6% 0.3% 80.6% 78.0% -2.6pp SCOR 0 53 0.0% -1.9% 91.4% 91.8% 0.4pp Swiss Re -89 940 0.9% -8.7% 95.5% 97.9% 2.4pp Qatar Insurance 0 0 0.0% 0.0% 100.6% 100.2% -0.5pp Sirius -13 81 2.2% -11.8% 87.0% 86.9% -0.2pp Third Point Re 9 -9 -3.2% 3.0% 100.8% 105.5% 4.7pp W.R. Berkley -19 -14 0.6% 0.4% 95.4% 94.5% -0.9pp ARA (Total) -1,143 381 1.5% -0.5% 95.7% 95.7% 0.0pp

Note: * P&C reinsurance segment only (as disclosed). Figures in reporting currencies but converted to $m for ARA lines. Source: Aon / company reports.




Company

Net investment

income 1H 2018

Net investment

income 1H 2019

Capital gains / losses

1H 2018

Capital gains / losses

1H 2019

Total investment

return 1H 2018

Total investment

return 1H 2019 Change

Alleghany 250 266 193 543 443 809 82% Arch 299 391 -182 161 117 553 373% Argo 69 77 -5 65 64 141 121% Aspen 98 99 -58 -58 39 41 4% AXIS 211 245 -67 36 144 282 96% Beazley 40 54 -32 116 8 170 n.m. Everest Re 280 320 -9 123 270 443 64% Fairfax 452 723 768 1,054 1,220 1,777 46% Hannover Re 692 736 52 130 744 866 16% Hiscox 47 58 -28 91 19 148 675% Lancashire 17 27 -2 0 15 27 84% Mapfre 836 1,062 -21 134 815 1,196 47% Markel 213 226 -18 1,038 196 1,264 546% Munich Re 3,015 3,113 610 857 3,625 3,970 10% PartnerRe 208 231 -296 651 -89 882 n.m. QBE 312 293 -60 482 252 775 208% RenRe 135 209 -97 314 38 522 n.m. SCOR 270 302 22 10 292 312 7% Swiss Re 2,023 1,907 -108 931 1,915 2,838 48% Qatar Insurance 417 433 0 0 417 433 4% Sirius 30 45 45 114 75 159 112% Third Point Re 29 224 0 0 29 224 674% W.R. Berkley 328 347 118 142 446 489 10% ARA 10,979 11,747 963 7,078 11,942 18,826 58%

Notes: Figures in reporting currencies but converted to $m for ARA lines. n.m. = not meaningful. Source: Aon / company reports.




Company

Net income

1H 2018

Net income

1H 2019 Change

Return on equity*

1H 2018

Return on equity*

1H 2019 Change

Alleghany 470 753 60% 11.4% 18.0% 6.6pp Arch 423 981 132% 8.0% 19.2% 11.3pp Argo 67 120 80% 7.5% 13.1% 5.6pp Aspen 16 -37 n.m. 0.1% -4.2% -4.3pp AXIS 177 286 62% 7.0% 11.7% 4.6pp Beazley 48 139 191% 6.4% 18.4% 11.9pp Everest Re 280 692 147% 6.9% 16.5% 9.6pp Fairfax 1,122 1,394 24% 12.0% 20.4% 8.5pp Hannover Re 596 693 16% 12.8% 14.3% 1.5pp Hiscox 148 145 -2% 12.8% 12.7% -0.1pp Lancashire 76 39 -48% 13.9% 7.1% -6.8pp Mapfre 585 541 -7% 9.3% 8.9% -0.4pp Markel 214 1,084 407% 4.6% 22.1% 17.4pp Munich Re 1,554 1,626 5% 11.4% 11.7% 0.3pp PartnerRe 28 805 n.m. 0.2% 25.3% 25.1pp QBE 353 462 31% 8.3% 11.0% 2.7pp RenRe 344 802 133% 11.9% 26.6% 14.7pp SCOR 265 286 8% 8.7% 9.6% 0.9pp Swiss Re 1,013 962 -5% 6.5% 6.6% 0.1pp Qatar Insurance 401 419 5% 9.5% 10.3% 0.8pp Sirius 142 112 -21% 14.9% 11.4% -3.5pp Third Point Re -6 186 n.m. -0.8% 26.6% 27.5pp W.R. Berkley 348 399 15% 12.2% 13.3% 1.1pp ARA 9,002 12,993 44% 9.0% 13.7% 4.6pp

Notes: * Common net income as a percentage of average common equity. Figures in reporting currencies but converted to $m for ARA lines. n.m. = not meaningful. Source: Aon / company reports.




Company

Cash and investments

FY 2018

Cash and investments

1H 2019 Change Total equity

FY 2018 Total equity

1H 2019 Change

Alleghany 19,306 20,302 5% 7,862 8,861 13% Arch 22,056 23,275 6% 9,440 10,757 14% Argo 4,926 5,060 3% 1,747 1,929 10% Aspen 7,915 7,779 -2% 2,656 2,729 3% AXIS 14,986 15,393 3% 5,030 5,566 11% Beazley 5,046 5,189 3% 1,467 1,552 6% Everest Re 18,878 20,292 7% 7,904 8,884 12% Fairfax 38,683 41,304 7% 17,365 17,843 3% Hannover Re 52,871 55,950 6% 9,542 10,507 10% Hiscox 6,327 6,435 2% 2,259 2,322 3% Lancashire 1,881 1,879 0% 1,068 1,121 5% Mapfre 48,820 53,172 9% 9,198 10,134 10% Markel 19,238 21,160 10% 9,274 10,564 14% Munich Re 219,761 228,532 4% 26,500 29,543 11% PartnerRe 17,097 19,299 13% 6,517 7,254 11% QBE 22,915 23,121 1% 8,400 8,379 0% RenRe 12,994 17,059 31% 5,045 5,913 17% SCOR 29,703 30,054 1% 5,828 6,088 4% Swiss Re 132,750 142,118 7% 28,727 31,792 11% Qatar Insurance 23,639 23,128 -2% 7,972 8,248 3% Sirius 3,729 3,834 3% 1,938 2,028 5% Third Point Re 2,237 2,142 -4% 1,205 1,396 16% W.R. Berkley 18,541 19,505 5% 5,480 6,020 10% ARA 778,641 819,662 5% 184,123 201,165 9%

Figures in reporting currencies but converted to $m for ARA lines. Source: Aon / company reports.



Contact Information Mike Van Slooten Marie Teissier Head of Business Intelligence Senior Analyst, Business Intelligence Reinsurance Solutions, Aon Reinsurance Solutions, Aon +44 (0) 7522 8106 +44 (0) 7522 3951 [email protected] [email protected]

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