2017 WSIA Conference San Diego, CA 2017 WSIA Agenda How are you - PowerPoint PPT Presentation

The Standard of Excellence in the E&S Wind Market 2017 WSIA Conference San Diego, CA

2017 WSIA Agenda  “ How are you doing?” • Elite Producer Statistics • Elite Producer Program Update – 10.1.2017  “How are we doing?” • AmRisc Overview • ACIC Update  “What are we doing?” • 2017 Product News and Updates  “What is The Market doing?” • Conditions/Forecast? • Hurricanes Harvey and Irma & OUR Team Rubicon Response

Producer Stats – Totals by EPP Rank Total YTD Premium through July 2017 $300.0 Diamond $250.0 In Millions ($) $259.00 $200.0 Sapphire $150.0 $116.00 Platinum $100.0 $65.00 $56.00 $50.0 Gold $0.0 YOY -10 % -11% -1% 8 % Total YOY Premium Change -7.5%

Producer Stats – Average by EPP Rank Average Premium by Office YTD through July 2017 $30.0 Diamond $25.0 Sapphire In Millions ($) $25.90 $20.0 Platinum $15.0 Gold $7.70 $10.0 $3.10 $5.0 $0.66 $0.0

Producer Stats –Average by EPP Rank Average Hit Ratios 40% 30% 32% Diamond 29% Sapphire 20% 21% 22% Platinum Gold 10% 0% Submitted

Elite Producer Program Analysis & Update Key conclusions from “Elite Producer Program 2016” evaluation: 2016 Performance – Very few Producers hit the EPP points threshold for their status • 2016 Performance using 2015 rules – Ditto – very few hit the 2015 point thresholds • Using hit ratio & complicated EPP points calculation no longer needed to prioritize • “scarce” underwriting resources Market conditions & surplus capacity - “High Demand” commission no longer needed • Maintaining GWP Volume requires a larger share of NEW Business • Objectives in 2017 Elite Producer Plan •  Simplify Plan  INCENTIVIZE NEW BUSINESS GROWTH  Increase overall commission revenue to Producers

Elite Producer Program Changes 2017 Elite Producer Program Features Effective 10.1.2017 Elite Status based on Gross Written Premium Only Clearance Windows increased for all Elite levels Annual Premium Clearance Days Elite Status Threshold to Eff Date Diamond 20,000,000 120 days Sapphire 10,000,000 120 days Platinum 5,000,000 110 days Gold 2,500,000 100 days SIMPLE NEW* (18%) and RENEWAL (17%) Commission Schedule = Increased Commission $$ TopGun Award exclusively for Top 10 NEW* BUSINESS Producers EACH QUARTER Enables Top NB Producers to target a Single NB account for focused “TopGun pursuit” 360 day reservation, No BOR, Sr. Mgmt. UW, Pricing flexibility on the TopGun Award account Automatic invite to annual Elite Producer Event * NEW= New Business to AmRisc

AmRisc Overview $5 Billion CAT PML capacity - $350m Per Risk Owned by BB&T - $221 B Assets BB&T Insurance Holdings – 5th Largest Retailer E&S Carriers Largest CAT Property MGA 4th Largest MGA in US $5 Billion ITD GWP for E&S Carriers $607 Million IFP July 2017 $2.3 Billion ITD GWP for AmCoastal $228 Million IFP July 2017 UPC-ACIC Merger April 2017 Admitted Carrier Target “Best in Class” vs. “best class” 175 CAT Property Specialists Premium Split Brokerage Agency % Total 89% 11% 72% E&S Two E&S Carriers added in 2017 Admitted 69% 31% 28% Distribution % Split unchanged from 2016 Split B/A 83% 17% 100%

Portfolio Overview 1000 E&S Premium Split E&S Admitted RETAIL Other 800 307 PUBLIC 2% 5% 228 14% Apartment 66 UWs @ 18 yrs avg s 600 CONDO 26% 15% 204 400 643 607 27 BRISK 200 5% 380 287 REAL & LRO TECH IND & 125 18% MFG 25 0 15% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 IFP 2Q17 E&S TIV by State Other SC NC GA 9% 7% FL MS AL 41% 5% CA *excludes shared 8% Policy Count 5,830 4,429 2,508 LA Average TIV $33 M $10.7 M $1.7 M 9% Average Premium $95k $51k $9.6k TX 21%

2017 ACIC Update Maintaining Exposure & Market Share ACIC Premium and Account Retention  ACIC TIV and policy count in force are flat YOY. 100.0% 90.0%  Premium is stable, and we are 80.0% looking to grow in Q3 and Q4 70.0% 60.0% 50.0% 40.0% Combined Strength 30.0%  Larger Treaty for 2017 $2.76b 20.0% 10.0%  UPC + ACIC + $1b In Force Premium 0.0% Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 May-17 Jul-17  2018 Filing more competitive  Quicker Q/B/Policy System Premium Retention Account Retention Product has been extensively updated: Enhancement and Condo WRAP  Enhancement Endorsement  ~ 20% take-up since late-2016 launch  New Wrap  September 15th – Improved WRAP form to match up with  Blanket Coverage recent ACIC recently approved ACIC Enhancement Endt.:  AOP 1,000 and 2% W+H additional Ord & Law, WDP, Newly Acquired, among others.

2017 Product News & Update  SNAP (Super National Accounts Program) Estimate ~$20m GWP by yearend • Targeting all shared & layered, forms, layers • Exclusive to wholesale •  TechShare (April 2017 rollout) Shared and Layered (“SNAP” like) for Industrial & Manufacturing • Recent successes with coastal aviation and logistics risks •  Loxley DIC 2017 Program move/transition to AmRisc DIC Team • Scottsdale (Nationwide E&S) support continues •  AROL Adding North Carolina December 1 st • Continuous improvements to customer experience •

CAT % Model Price* Timeline Charley, Francie, Ivan, Jeanne Katrina, Rita, Wilma Financial Crisis 3Q08 - 2009 RMS 11 Feb 2011 and 2017 season is not over yet!.. ~100%CAT MP JULY 2017 100% MP = “still profitable” * RisCalc % Model Price measures technical price adequacy over time based on: Premium, Deductibles, Coverage, Terms & Conditions – not just Rate” (100% MP = 32% Design Loss Ratio)

E&S CAT % MP Change YOY E&S RENEWAL CAT %MP CHANGE Year Over Year 12 Month Moving Average Financial Crisis 3Q08 - 2009 RMS 11 Feb 2011 3 year YOY %MP Decreases Harvey, Irma,..? TBD

EXPANDED AmRisc & TEAM RUBICON Hurricane(s) Relief Efforts https://fundraise.teamrubiconusa.org/fundraiser/1084358 All employees are safe and we are heartened by all of the support we have received from our industry peers and colleagues. While we continue the important business of insurance including taking in claims, we are contributing to relief efforts to HELP ALL AREAS AFFECTED BY HURRICANES BACK ON THEIR FEET. AmRisc is supporting Team Rubicon (teamrubiconusa.org) and their volunteer veterans whose mission is captured in their motto: DISASTERS ARE OUR BUSINESS. VETERANS ARE OUR PASSION. All proceeds go 100% to Hurricane Relief efforts.

EXPANDED AmRisc & TEAM RUBICON’s Hurricane(s) Relief Efforts https://fundraise.teamrubiconusa.org/fundraiser/1084358 Join us Tuesday 5:30-8:00pm for an Update on the TEAM efforts and learn how you can support AmRisc and Team Rubicon’s response: Ultimate SkyBox at Diamond View 350 10th Avenue San Diego, CA 92101 All proceeds go 100% to Hurricane Relief efforts

The Standard of Excellence in the E&S Wind Market Thank You!