Ralph MucerinoChief Distribution OfficerSenior Vice President Global Commercial Insurance

June 18, 2012

Strategies for Global GrowthIIS 2012

2

Macro GDP Trends

Source: Bain & Company: The Great Eight Trillion Dollar Trends. International Monetary Fund; Bain MTG Analysis, 2011Note: All values shown in 2010 US dollars at fixed exchange rates. Per Bain report, world GDP expected to be ~90T in 2020

GDP Growth Driver2010–2020 Contribution to Global GDP Growth

(Total = $27T)

Next BillionConsumers

Energy, Natural Resources, Commodities, Infrastructure

Social Infrastructure / Human Capital

Other

AdvancedEconomies

Dev

elo

pin

g C

ou

ntr

ies

Nearly 60% of GDP growth over the next decade will come from developing world macro-drivers and by 2020, developing economies will account for more than 50%

of world GDP

$11

$1

$2

$3

$10

$0 $5 $10 $15

3

The next billion consumers – Consumer, SME, DM

0

20

40

60

80

100%

Asia-Pacific

Indonesia

India

China

Other APAC

Philippines

Vietnam

971M

Non-APAC

USA

Ukraine

Brazil

Pakistan

Egypt

Other MidEast

All

other

Other

LatAm

Nigeria

Mexico

292M

Total =

1.3B

1.3 bn new consumers (HH income > $5K) generated in this decade

Real GDP per capita progression(USD thousands)

$11

$4 $3 $1

$32

$15

$9 $5

$3

$39

$0

$5

$10

$15

$20

$25

$30

$35

$40

$45

Brazil China Indonesia India Select Advanced

Economies

2010

2020

3%CAGR

8%CAGR 5%

CAGR 12%CAGR

2%CAGR

(1)

F

In the coming decade 37% of global demand will be driven by consumer spending and the new middle class in developing markets

Source: Euromonitor, Bain MTG Analysis 2011. Notes: (1) Simple average of US, Japan, and UK

4

Global Growth Opportunity

Source: 2010 GDP and 2011–2020 Non-Life Premium CAGR per Business Monitor International data and includes health insurance premiums. 2010 Non-Life Penetration per AIG Global Economics and is consumer lines and commercial lines premiums as a percentage of GDP

Size denotes $1T in 2010 GDP Chartis Growth Countries

Unmet Insurance Needs

Gro

wth

Po

tential

2010 Non-Life Insurance Penetration

Brazil

China Indonesia

Mexico

Turkey

Colombia

UAE

Vietnam

India

U.S.

UK

JapanGermany

France

(5%)

0%

5%

10%

15%

20%

25%

0% 2% 4% 6% 8%

Asia and Latin America represent the highest growth opportunity areas over the coming decade, based on high GDP growth and low insurance penetration

No

n-L

ife P

rem

ium

Gro

wth

(C

AG

R 2

011

– 2

02

0)

5

Brazil

Brazil

Brazil

Brazil

China

China Brazil

China Colombia

Colombia

Indonesia

Indonesia Mexico

Mexico

Mexico

Turkey

Turkey

Turkey

0%

10%

20%

30%

40%

50%

60%

0% 20% 40% 60% 80% 100%

2016

RAP

Spr

ead

2011 - 2016 NPW CAGR

Key Growth Economies Profit DriversRelative Growth vs Profitability – By Country and By Line

A&H TraditionalCommercial

SpecialtyCommercial

Auto ConsumerAll Other

= $100mm of 2016 NPW

(1)

Notes: (1) Currently, foreign insurers are excluded from the Chinese auto market; therefore, 2011-2016 NPW CAGR is not meaningful. For illustrative purposes, 2011 – 2016 NPW CAGR is set to 100%. Internal forecasts of MTPL rule change in 4Q 2012 with auto premiums written starting 1Q 2013 and growing to $156 mm of 2016 NPW.

*Products with < $50 mm 2016 NPW excluded from Chart*

(1)

Incr

easi

ng

Pro

fita

bili

ty (

2016

)

5-Year Premium Growth

Chartis Products Strategy

6

China

7

$35$44

$59

$79

$97

$119

$144

$171

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

2008 2009 2010 2011P 2012P 2013P 2014P 2015P

US

$Bn

0.0%

0.2%

0.4%

0.6%

0.8%

1.0%

1.2%

1.4%

% o

f G

DP

China P&C Insurance Market GPW(3)

(1) 2010 CIRC Year Book for 2009 data of auto and non-auto breakdown; 2010 FY data not available until CYE 2011 (2) CIRC statistics 2010 (3) Historical GPW from CIRC statistics; projected GPW by AIG Global Economics (4) CIRC 2010 Report on Insurance Intermediary Market; Definitions: Sideline agent-part-time agent not involved in the insurance sales (e.g. banks, travel, post-office, railway, auto dealer); Captive Agent-company employees; Corporate Agent-professional insurance agent company

China is a heavily concentrated auto (72%) dominated insurance market growing rapidly due to internal consumption, exports and infrastructure, with minimal foreign presence (~1%). It relies heavily on agency distribution and is highly regulated

China P&C Insurance Market Overview

20

P&C GPW Penetration

2009 Total GPW: US$44Bn

30%

8

Key strategies have been built to meet the market opportunities

Chartis China Strategic Initiatives

Opportunities:

485 million internet users in 2011 (1)

Travel market: 15% CAGR

Auto market size: 150 million vehicles by 2015 (2)

Middle class: 700 million by 2020

(1) Source: China 2011, June CNNIC report. (2) Source: Ministry of Industry and Information Technology of China. (3) Source: China Ministry of Commerce

In 2010, net FDI inflows US$106 billion with a growth rate of 17.4%(2)

ODI $59 billion USD in 2010 (3)

9

Brazil

10

Brazil’s insurance market is maturing and more balanced than other SBE countries due to commodities and infrastructure. It is heavily dominated by banking groups, often partnering with foreign global insurance groups, who distribute via bank and agency channels

Brazil Overview

4 4 4 5 5 6 7 7 8 9 10 7 7 8 9 11 12 13 15 17 20

22

7 9 1111

1215

1719

2224

27

19 21 23

26 28

33 37

42 47

53

59

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

US$ billion

Brazilian Insurance Market

Consumer Lines (- Auto) Auto Comercial Lines

CAGR = 11,6 %

CAGR = 12.4 %

Brazilian Insurance Market* Revenue – 41% of the Market is Auto

*Market excludes pensions

Source: Susep. *Consumer + Commercial Lines, 7/10 – 6/11

(Ex-Auto) Commercial Lines

11

Opportunities:

Chartis Brazil Strategic Initiatives

Mobile phone users: 110M

Internet users: 74M

2010 GDP Growth: 6.5%

Over $1T planned investments to 2020

Population of ~191M people and middle class ~50% by 2015

Host of 2014 World Cup

Host of 2016 Olympic Games

Source: eMarketers and IBGE 2010

12

Mexico

13

3,743 3,701 3,960 4,138 4,324 4,519 4,722 4,935

2,825

6,477

3,5244,017

4,5795,220

5,9516,784

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

2008 2009 2010 2011 P 2012 P 2013 P 2014 P 2015 P

US

D M

illi

on

s

0.0%

0.2%

0.4%

0.6%

0.8%

1.0%

1.2%

1.4%

Pen

etra

tio

n R

ate

% G

DP

Auto Non Auto Penetration

$11,719$10,674

$9,739$8,904

$8,155$7,484

$10,178

$6,568

CAGR 2008-2010 6.7%

CAGR 2011-2015 9.5%

Mexico P&C Insurance Market GPW (USD 000’s)(1)

Mexico P&C Insurance Market Overview

Source: Insurance Market from AMIS (Asociación Mexicana de Instituciones de Seguros 2010). GDP figures from World Bank. Distribution Channel breakdown per AXCO 2011 Mexico non-life report. (1) Includes one-time Pemex contract

Mexico is a fragmented auto (53%) dominated insurance market, with close links and correlation to the US GDP, with strong foreign and bank presence which relies heavily on brokers and agents

14

Chartis Mexico Strategic Initiatives

Total insurance market is $20Bn (P&C $7.4Bn) Expected to grow 4% annually

Highly effective and well regarded local Regulator

GDP growth expected of 5% on 2011 and 4.5% on 2012

Growing Middle Class (31% of total population of 112.3)

Government improving infrastructure making Mexico more attractive for foreign direct investment

10 year Internet user growth 600% (35M on 2010)

Opportunities: