Gibbs & Cía. S.A.C.Lloyd´s Agent since 1911

Jaime Risopatrón V. Managing Director

London Conference October 2009Presentation

WORLD CRISIS AND EFFECTS ON TRADE & CLAIMS

World production collapsesGlobal IP m/m % Growth

Commodity prices fall sharply through early 2009 Commodity price indices, current U.S. dollars, 2000=100

Industrialized countries and emerging economies stock markets indexes

WORLD GDP GROWTH

-2

-1

0

1

2

3

4

% World

World 3,1 -1,4 2,5

2008 2009 2010

International Monetary Fund

WORLD GDP GROWTH

-2-101234

% World

World 3 -1,7 2,8

2008 2009 2010

World Bank

Projection world GDP by:

Index of world export volume

81,0

51,065,2

87,192,4

70,8

0

20

40

60

80

100

Fisrt World War GreatDepression

Second WorldWar

First Oil Crisis Second OilCrisis

Actual Crisis

%

Percentage of the world GDP involved in recessionduring the last century

World commerce evolution in principal crisis(Level prior to crisis = 100)

Sharp declines IP across the world, especially incountries especialized in investment goodsIndustrial Production, % Change, January 2009 v/s July 2008

-30

-20

-10

0

10

20

30

40

%

Latin America and the CaribbeanChile

Latin America and theCaribbean

12,3 15,9 -25 19 21 -19,5

Chile 15,3 -1,8 -23,2 22,6 30,8 -21

2007 2008 2009 2007 2008 2009Exports Imports

Latin America and the Caribbeanevolution of commerce (Goods)

Latin America: Trade Performance by Subregions(Percentage)

Latin America: Trade Performance by Subregions(Percentage)

Crisis effects in Chile&

In the Insurance Market

Chile’s export revenues collapseUS$ Million

4,70

3,20

4,50

-2,00

5,604,60

-3,00

-2,00

-1,00

-

1,00

2,00

3,00

4,00

5,00

6,00

2005 2006 2007 2008 2009 (p) 2010 (p)

% % Variation

Chile GDP

Effects in ChileanInsurance Market

1,12%

4,68%

7,67%

-2,06%

-4,01%

-22,59%

-2,11%

-5,00%

-

50.000

100.000

150.000

200.000

250.000

300.000

350.000

-25,00%

-20,00%

-15,00%

-10,00%

-5,00%

0,00%

5,00%

10,00%

MUS$ Jun. 2008 MUS$ Jun. 2009 Real Variation %

MUS$ Jun. 2008 116.631 168.253 263.568 52.121 34.837 71.749 48.980 295.442

MUS$ Jun. 2009 117.940 164.786 252.990 40.345 36.468 70.238 52.739 280.664

Real Variation % 1,12% -2,06% -4,01% -22,59% 4,68% -2,11% 7,67% -5,00%

Fire Earthquake Motor Marine Liability Personal AccidentCompulsory Motor

SOAP Others

Direct Premium P&C June 2008 - June 2009

Direct Loss Ratio(Percentage)

0,00

20,00

40,00

60,00

80,00

Inland Transit

Marine Transit

Inland Transit 61,59 54,00 60,82Marine Transit 50,26 25,97 56,61

2007 2008 2009

Effects in our BusinessAs Marine cSurveyors

Chile Cargo Exports Tonnage Variation 1st Semester 2008 & 2009

0 6.000.000 12.000.000 18.000.000

Total Tonnage13.872.791

17.572.447

Jan - May 2008

Jan - May 2009

Chile Cargo Imports Tonnage Variation - 21,05%

Number of Calling of National & International'sShips (- 9%)

TYPES OF CLAIMS

- More pilferage claims due to high unemployment.

- Slight increase in lorries highjaking, ( but still is not a big issue in Chile).

- Consignees are more reluctant to accept small damages.

- Through our strategic alliance with Mclarens Young Chilewe have seen in Commercial Line an increase in fraud cases.

- The number of Fidelity and Credit Insurace claims is higher.

0

50000

100000

150000

200000

250000

Sales

239.000

145.000

Sales 2008 Projection 2009

Motor Vehicles Sales Falls 40% in National Market

Number of Motor Vehicles Imported at San Antonio PortUp to July

Vehicles Inspected at Port up to July (-81,8%)

40.135

28.733

5.100

0

10.000

20.000

30.000

40.000

50.000

2007 2008 2009

2009

2008

2007

Cars at Ports Arrivals

Stock at Yards

2008

2009

1045

1243

798

0

200

400

600

800

1000

1200

1400

2007 2008 2009

2007

2008

2009

Number of Cargo Inspections up to July (-35,8%)

- Reduction in Exports and Imports of Goods

- Less number of cars imported.

- Decrease of Vessels Callings at Ports.

- Fall of vehicles inspected.

- Less Number of surveys requested.

- Decrease in Marine and Motor Direct Premium.

Summary of Crisis Effect in our Business in Chile

FORECASTS

53,3

46,3

45,7

50,8

48,1

48,9

53,2

42,6

45,2

47,8

47,9

44,8

0 10 20 30 40 50 60

China - PMI

Euro-zone - PMI

Germany - PMI

UK - PMI

France - PMI

USA - ISM

Points

June PointsJuly Points

June Points 53,2 42,6 45,2 47,8 47,9 44,8

July Points 53,3 46,3 45,7 50,8 48,1 48,9

China - PMI Euro-zone - PMI

Germany - PMI

UK - PMI France - PMI USA - ISM

Manufacturing Activity Index 2009

2008 and1st half 2009

World Recession

Going deep down butalive like this whale

2009 (2nd half) )

Slow recuperation like a turtle movement.

World GDP -1.5%

2010

As world GDP + 2,5% Depending on China, India and the others G20 economies….we see good sign of recovery….

Conclusion

but still are some clouds in the horizon .

THANKS

Bibliography:

http://www.eclac.org: Economic Commission for Latin America and the Caribbean Document: Despite Crisis Latin America and the Caribbean Avoid Protectionism

www.worldbank.org

http://www.ccs.cl: SCC Santiago Chamber of Commerce

http://www.imf.org: IMF International Monetary Fund

http://aach.cl: Chile’s Insurer’s Association

http://www.mundomaritimo.cl: Harbour Companies