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ReData

2009

REINSURANCE STATISTICAL AND UNDERWRITING PUBLICATIONS FROM THE RAA

Reinsurance Association of America


RAA S TATISTICAL

AND

U NDERWRITING P UBLICATIONS

I EXPECT MORE FROM REINSURANCE DATA ANALYSIS: • Convenient, one-of-a-kind compilations • Focused studies targeted to my reinsurance specific financial analysis needs • Expert research from leaders in the field • User-friendly presentations • Logical organization and quick searches • Proven industry track record

– AND THE RAA DELIVERS IT.

Trust the industry’s experts on reinsurance data for focused analysis targeted to meet your reinsurance-specific data needs. Statistical and underwriting publications from the RAA save you time and money. Access essential reinsurance financial information quickly and easily with an extensive, well-organized array of facts and figures.

Take advantage of special discounts when you purchase two or more ReSources. See the enclosed order form.

REINSURANCE ASSOCIATION OF AMERICA


RAA S TATISTICAL

AND

U NDERWRITING P UBLICATIONS

Historical Loss Development Study Catastrophe Loss Development Study Reinsurance Underwriting Review Offshore Reinsurance in the U.S. Market Reinsurance Underwriting Report (Quarterly via e-mail)

Look for the to take advantage of the special Package savings in 2009. 2009 RESOURCES DATA PACKAGES Successful financial forecasts and decisions require a full range of information. In 2009 the RAA is offering a number of packaged book sales and subscriptions to give you a complete range of reinsurance industry data at a substantially reduced price. These complete, reliable and unique sources of information assure smart business decisions and highly effective financial analysis for your firm. Loss Development Complete Loss Development Package (Casualty and Catastrophe Studies).

Complete U.S. Underwriting Information Reinsurance Underwriting Subscription - ythis early subscription includes Quarterly Reports and the annual Reinsurance Underwriting Review.

ScheduleF.com, developed by the RAA in cooperation with Specialty Insurance Research (a Dowling & Partners Company) is better than ever, with new features for evaluating NAIC Schedule F reinsurance data. Executives applaud the innovative easy-to-use interface and comprehensive data reports. Trial subscriptions are available. For more information visit www.ScheduleF.com.

For samples of all RAAs data products go to www.reinsurance.org and click on Publications or call (800) 570-1806.


Get instant access to reinsurance transactions with the easy-to-use search engine and powerful analysis of ScheduleF.com.

ScheduleF.com makes it easy to navigate otherwise cumbersome Schedule F data with: • Clean and Consistent Data • Group Names and S&P Ratings • Schedule F Parts 1,3,5,7 in One Simple Online Interface • “Reverse” Transactions” • Multiple Years of Data ScheduleF.com is an easy-to-use search engine and powerful analytical tool providing instant access to reinsurance transactions between U.S. cedants and their reinsurers. The data comes from Schedule F of the NAIC Annual Statement as reported by U.S. insurers and reinsurers. This online database is a joint venture of the Reinsurance Association of America (RAA) and Specialty Insurance Research (SIR), a Dowling & Partners Company.


Clean & Consistent Data Traditional Schedule F data products provide “raw” Schedule F reinsurance transaction data, which contain numerous inconsistencies made by the filing companies. One of the more common filing inconsistencies occurs when individual filers use different spellings for the same (re)insurer name. Take Germany-based Hannover Re (FEIN code AA-1340125) which is filed as Hannover Reins., Hannover Reinsurance Co., Hannover Ruckversicherung and over 100 additional unique spellings. Thanks to a sophisticated “matching” procedure, ScheduleF.com shows only one Hannover Re with all the needed information. This data consistency is a critical feature making ScheduleF.com both “user friendly” and powerful. Group Names & S&P Ratings ScheduleF.com provides group names and S&P ratings for both filing companies and transaction level (re)insurers (both domestic and foreign). Each Schedule F Exhibit In One Simple Interface Other Schedule F products typically require special training and therefore data runs are often carried out by the resident “number cruncher.” ScheduleF.com was designed to be easy to use for everyone from the sophisticated reinsurance analyst to the busy executive. With our unique interface (one view: “show me the reinsurers of a particular cedant”), each major exhibit (Parts 1, 3, 5 & 7) of Schedule F is available simultaneously to give users the complete picture instantaneously. “Reverse Transactions” Schedule F Part 1 & Part 3 are in essence “reverse” images of one another. ScheduleF.com allows users to search for the “reinsurers of a particular cedant” and see both: (1) Part 3 (“ceded reinsurance”) as filed by the chosen cedant; and (2) Part 1 (“assumed reinsurance”) transactions related to the chosen filer but as filed by all U.S. reinsurers. “Reverse” data is particularly useful for foreign (re)insurers who do not file U.S. statutory statements. Multiple Years of Data are provided (without the need to find and change to old CD’s!).


Reinsurance Underwriting Review – 2008 Data – Expanded Data and Analysis Includes Data from the Balance Sheet and Schedule F Published annually since 1980, the Reinsurance Underwriting Review (RUR) reports and summarizes the underwriting and operating results of the nation’s major property/casualty reinsurers, providing timely and comprehensive information on the U.S. reinsurance market. With additional tables and analytics on reinsurance recoverables, reserve and leverage ratios, and invested assets that go beyond the traditional income statement review and include data from the balance sheet and Schedule F, this is a unique and trusted data report. Table A: Table B: Table C: Table D: Table E:

Underwriting Results Operating results Ceded Reinsurance and Recoverables Reserve Development and Leverage Ratios Invested Assets

This edition of the RUR reflects the experience of over 40 organizations, including both individual companies and groups, whose data are reported in the appendices. The contents are based on data assembled by the NAIC as well as data received from the companies themselves, complementing the RAA’s Quarterly Reinsurance Underwriting Report with additional information from a broader group of reinsurers. The booklet contains historical data on combined ratios and net income and is a unique source of financial information for the U.S. reinsurance market. Publication Schedule: Annually (2008 edition published May 2009) Cost: $250

Allocation of Long Term Bonds 40% 35% 30% 25% 20% 15% 10% 5% 0% 1997

1998

1999

Spec Rev Bond%

Mun Bond%

2000

Gvt. Bond%

2001

Corp Bond%

Invested Assets 70 60 50 40 30 20 10 0 1997

1998 Preferred Stocks

1999 Common Stocks

Cash

2000 Oth Inv Assets

LT Bonds

2001 Invested Assets

Excerpts - Reinsurance Underwriting Review

Preferred Stocks

Common Stocks

Mtg Loans&RE

Cash

Oth Inv Assets

LT Bonds

2001


Quarterly Reinsurance Underwriting Report The only reinsurance underwriting statistics collected and made publicly available on a quarterly basis. Compiled quarterly and delivered to subscribers via e-mail, this comprehensive report is comprised of a spreadsheet containing underwriting information from major U.S. reinsurers. The reinsurance underwriting information includes: premiums written and earned; policyholders’ surplus; loss, expense and combined ratios; and several other categories of statistical information.

Quarterly statistics delivered via e-mail

MARKET TRENDS AND ANALYSIS

Publication Schedule: Quarterly Cost: $195 for a one-year subscription (back issues $25 each)

LOSS DEVELOPMENT

A Reinsurance Underwriting Subscription brings you the convenience of the RAA’s Quarterly Reinsurance Underwriting Reports via e-mail each quarter as well as the comprehensive Reinsurance Underwriting Review – 2008 Data for substantial savings. Receive the quarterly statistics via e-mail and the yearly report with expanded data reporting and analysis for the single payment of $395.

UNDERWRITING

Reinsurance Underwriting Subscription


Complete Loss Development Package Purchase the RAA Historical Loss Development Study together with the Catastrophe Loss Development Study for only $1695 – saving you nearly $600!

Catastrophe Loss Development Study Available only from the RAA, 2008 Catastrophe Loss Development Study is a unique reinsurance excess of loss study. It provides an unparalleled look at aggregated reinsurer loss development from extreme events, on both a paid and incurred basis. Leading U.S. reinsurers contribute paid, reported, and IBNR data to this study, which analyzes losses by type of reinsurance, including facultative, treaty pro rata, treaty risk excess, treaty catastrophe excess and finite/financial/aggregate stop loss. The 2008 study updates the loss development experience for significant extreme events and catastrophes in the U.S. over a sixteen year period, from Hurricane Hugo and the Loma Prieta Earthquake in 1989 to Hurricanes Katrina, Rita and Wilma in 2005. The World Trade Center event is included and broken out by line of business, including property, aviation, liability, workers’ compensation, and incidental life (personal accident and accidental death and dismemberment). New to the 2008 study is a comparison of the individual 2004 and 2005 hurricanes to their composite pattern. An electronic file containing the quarterly loss development factors for these events is provided to study purchasers. Publication Schedule: Cost:

Biennially $895

Above: Northridge Earthquake Exhibits Left: WTC Property Exhibits


Casualty Loss Development Study – Historical Loss Development, 2009 Edition – Casualty Excess Reinsurance For Auto, General Liability, Workers Comp and Medical Malpractice

Composite Loss Development Data of Major U.S. Reinsurers

Data Provided By Attachment Point Range

Indicates Range of Variation and Impact of Asbestos and Other Environmental Liability on Loss Development

Produced biennually since 1969, the study provides information on 40 years of historical loss development patterns in companies writing casualty excess reinsurance business and in primary companies writing high deductible or umbrella insurance. The historical loss development data – compiled from leading U.S. reinsurance companies – contains: casualty excess data for four lines of reinsurance – auto, general liability, workers compensation and medical malpractice. To facilitate in-depth analysis, the study also includes the historical loss development triangles in Microsoft Excel format accessed via the internet.

(2009 Edition published September 2009)

Volume of Submitted Data

AUTOMOBILE LIABILITY

Exhibit E-2

Automobile Liability

Combined Treaty and Facultative

2 -------

3 -------

4 -------

5 -------

6 -------

7 -------

8 -------

9 -------

10 -------

11 -------

Range of Variation in Historical Loss Development General Liability Excl. Asbestos & Environmental

88,287 109,881 158,555 213,876 236,301 224,455 266,471 280,643 286,842 312,494 350,692 348,171 388,759 383,861 456,754 450,383

100,699 114,064 126,693 165,906 237,905 293,234 328,419 310,921 369,696 427,610 402,589 428,000 492,950 489,223 533,703 540,859

90,756 108,849 122,350 136,463 180,643 248,450 311,637 337,282 331,659 391,655 481,157 435,642 439,533 512,278 516,432 567,890

93,903 95,925 112,357 129,887 143,188 185,299 249,599 320,611 350,689 335,537 416,534 488,223 450,843 454,654 526,248 543,695

109,238 97,029 100,504 118,747 136,666 146,735 187,438 254,067 326,287 357,181 344,802 425,906 495,170 453,977 457,871 532,031

107,163 114,027 120,796 106,279 104,407 121,404 141,749 149,395 191,167 258,284 331,222 363,460 350,352 428,879 500,512 460,936

81,814 109,457 115,285 123,502 108,754 105,204 122,307 142,556 153,502 191,763 258,047 331,150 365,530 357,763 430,516 501,320

74,960 82,404 111,527 117,176 125,330 111,399 105,544 124,777 148,753 153,276 191,999 259,132 334,352 366,637 357,858 431,231

100%

100%

90%

90%

10.0 80%

80%

8.0

70%

70%

Percentage of Ultimate

52,154 65,995 89,380 113,348 103,211 134,602 127,829 135,504 156,028 185,771 164,498 194,495 196,319 198,529 194,969 204,903

99,545 113,064 139,188 210,085 271,418 297,831 285,157 330,645 379,863 360,585 394,984 434,182 435,190 486,131 478,347 586,136

111,860 117,286 101,034 104,011 120,695 139,720 148,906 187,878 256,521 330,917 362,563 349,524 428,869 498,778 463,326 462,777

Total Reported Losses ($billions) - All Accident Years

12.0

Exhibit F-2

Impact of Attachment Points on Historical Loss Development General Liability Excl. Asbestos & Environmental

14.0

Evaluations in Years 1 -------

Automatic Fac

6.0 Combined

Indivisible Fac Individual Fac

4.0

60% Range 1 ($536mm)

50%

Range 2 ($592mm)

40%

Range 3 ($1,087mm)

Treaty

30%

2.0 All Ranges

Percentage of Ultimate

Incurred Case Losses (in Thousands)

Accident Year ---------1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

Composite Pattern

50%

75% Confidence Interval 50% Confidence Interval

40%

30%

Range 4 ($485mm) Range 5 ($431mm)

20%

60%

20%

0.0 Treaty and Facultative Combined

Treaty vs. Facultative

Attachment Ranges

Based on 17 Companies

10%

10% 0%

0% 1

3

5

7

9

11

13

15

Report Period (Years)

1

3

5

7

9

11

57

50

34

Graph Excerpts - Historical Loss Development Study

13

Report Period (Years)

Assumes the same development pattern (derived from the 1998 combined treaty and facultative data) beyond 14 years. 38

15

17

19

MARKET TRENDS AND ANALYSIS

Publication Schedule: Biennially Cost: $1395

LOSS DEVELOPMENT

UNDERWRITING

“Historical LDS is the best resource for analyzing a book of old claims.” (Carl R. Pingel - Pingel, Maltby & Associates, Inc.)


Offshore Reinsurance in the U.S. Market Offshore Reinsurance in the U.S. Market provides statistics and analyses of the National Association of Insurance Commissioners’ (NAIC) Annual Statement’s 2007’s ceded reinsurance data. The study includes: • Total U.S. premium ceded to offshore reinsurers • Total ceded recoverables • Offshore reinsurers’ share of U.S. unaffiliated reinsurance premium • Market share of offshore reinsurers and U.S. subsidiaries of offshore companies • Statistics from more than 4,700 reinsurers in 108 jurisdictions • Affiliated and unaffiliated premium and recoverable data segregated by country of domicile Publication Schedule: Cost:

Annually $250

OFFSHORE REINSURANCE IN THE U.S. MARKET

Excerpts - Offshore Reinsurance in the U.S. Market

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$ 60

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$ 30

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Historical Loss Development Study - 2009 Edition

$ 1395

Catastrophe Loss Development Study - 2008 Edition

$ 895

Price

Complete Loss Development Package - includes 2007 Historical & 2008 Catastrophe Loss Development Studies $ 1695 Reinsurance Underwriting Review

$ 250

Reinsurance Underwriting Report (Quarterly via e-mail)

$ 195

Reinsurance Underwriting Subscription

$ 395

Offshore Reinsurance in the U.S. Market

$ 250

Compendium of Reinsurance Laws and Regulations

$ 1495

Online Digest of Reinsurance Caselaw

$ 595

Reinsurance Contract Clauses — Case Law Annotations

$ 1095

Manual for the Resolution of Reinsurance Disputes

$ 395

U.S. Reinsurance Law and Regulation Reporter

$ 395 Subtotal

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Reinsurance Statistical Publications  

Reinsurance Statistical Publications from the Reinsurance Association of America