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Lloyd’s Overview

August 2014

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Agenda

• History

• Market Structure

• Distribution & The London Market

• Financial Strength

• Financial Results

• Global Reach

• Vision 2025

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► Lloyd’s is a market, not a company

► We have a long history of risk taking, dating back to 1688

► The Lloyd’s market insures complex and specialist risks

► London based international business

► Lloyd’s appetite for risk is tempered by 325 years of experience and a Performance Management Directorate that mandates responsible risk taking

► Regulated by the Prudential Regulatory Authority (PRA) and the Financial Conduct Authority (FCA)

► Products are distributed through brokers and coverholders

Lloyd’s Key Characteristics

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History

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From Coffee House…

First known reference to Edward Lloyd’s coffee house in Tower Street(London Gazette 18-21 February 1688)

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…To every type of Insurance

1877 1911 19691906

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PIPER ALPHA1988

EXXON VALDEZ

1989

HURRICANES1989

ASBESTOS1980s- 1990s

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…and an appetite for unusual risks requiring innovative solutions

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The Lloyd’s market is known for its specialist expertise…

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Market Structure

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SEE: www.lloyds.com/directories

The policyholder

The brokers

The coverholders

MembersManagingagents

Syndicates

Corporation of Lloyd’s

How the Market Works

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A DYNAMIC AND DIVERSE MARKETPLACEAt December 31st 2013, the Lloyd’s marketplace was home to 56 “live” managing

agents that manage 91 syndicates

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Syndication of Risk

Syndicate

Syndicate

Syndicate

Syndicate

Syndicate

Broker

Lloyd’s Policy

Mutualised Security

Fitch RatingsAA- (very strong)

Standard & Poor’sA+ (strong)

A.M. BestA (excellent)

Policyholder

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Distribution & The London Market

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A wide variety of insurers are within a stone’s throw of the Lloyd’s building

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… as are many of the world’s leading brokers

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Financial Strength

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INDEPENDENTLY ASSESSED

In the eyes of leading ratings agencies,Lloyd’s is viewed as enjoying robust capital reserves:

Standard and Poor’s: ‘A+’ (strong)

Fitch Ratings: ‘AA-’ (very strong)

A.M. Best: ‘A’ (excellent)

` Lloyd’s Annual Report 2013

Lloyd’s Ratings

Figures correct as at December 2013

OUR CHAIN OF SECURITY

• LINK ONE:SYNDICATE ASSETS(US$70,287m)

• Before writing business, a syndicatemust put up funds to cover their own share of claims

• These funds are the first port of callwhen paying policyholder claims

• LINK TWO:MEMBERS’ FUNDS AT LLOYD’S(US$25,301m)

• Every member (corporate or individual) must provide sufficient capital to support their underwriting

• These funds are held in trust for the benefit of policyholders and used only if the syndicate assets have been exhausted

Figures correct as at December 2013

OUR CHAIN OF SECURITY

• LINK THREE:LLOYD’S CENTRAL FUND(US$5,309m)

• The Central Fund includes members’ annual contributions and funds issued by the Corporation of Lloyd’s

• If a syndicate has failed to meet its liabilities and the two previous links proved insufficient, the Central Fund can provide a final reserve to cover those outstanding liabilities

Figures correct as at December 2013

OUR CHAIN OF SECURITY

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Financial Results

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Strong U/W Results

US$ m 2009 2010 2011 2012 2013

Gross written

premiums

35,376

£21,973

35,469

£22,592

36,389

£23,477

40,545

£25,000

$43,698

£26,106

Combined ratio

86.1%

93.3% 106.8% 91.1% 86.8%

Investment return 2,848

£1,769

1,975

£1,258

1,528

£955

2,084

£1,311

$1,406

£839

Result before tax 6,227

£3,868

3,446

£2,195

(800)

(£516)

4,517

£2,771

$5,734

£3,205

Return on capital

(pre-tax) %

23.9 12.1 (2.8) 14.8 16.2

Source: Lloyd’s Annual Report 2013. All figures as at 31 December 2013

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Source: Lloyd’s 2013 Annual Results (March 2014) Claims in foreign currency translated at the exchange rate prevailing at the date of loss

2013 major claims Significantly below long term average

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Global Reach

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Europe (including UK)

33%

Other Americas

8%

Central Asia & Asia Pacific

12%Rest of

the World

4%

US (including Canada)

43%

US & Canada

41% 2012

44% 2011

43% 2010

45% 2009

13% 2012

12% 2011

10% 2010

9 % 2009

Other Americas

8% 2012

8% 2011

7% 2010

6% 2009

Europe + UK

15% + 18% = 33% 2012

16% + 18% = 34% 2011

16% + 20% = 36% 2010

16% + 20% = 36% 2009

Sources: Lloyd’s Annual Reports (2008 – 2013): http://www.lloyds.com/Lloyds/Investor-Relations

2013 Lloyd’s Premiums by region

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1

1

1

1

2

22

2

33

3 3

3

3

33

1 1

1

11

4

4

4

3

3

3

3

2

4Local underwriting with co-located syndicates(or via a Lloyd’s regulated entity); Country Manager with Market Development Role

Europe

3 Country Manager with Market Development Role

2 Legal Representative for regulatory requirements

1 Legal Representative for minimum regulatory requirements

Type Market Development Scope Territories

Europe

Austria, Denmark, Norway, Portugal, LithuaniaArgentina, Belize, Chile

Namibia, Zimbabwe, US Virgin Islands

Cyprus, Greece, Israel, Malta,

New Zealand, India

South Africa,

Australia, Hong Kong (SAR)Benelux, France, Germany, Ireland, Italy, Poland, Spain, Sweden, Switzerland

Brazil

ChinaJapanSingapore

North America

www.lloyds.com/AMERICA 3

UK

Canada, US Northeast, US Southeast, US Central & US West

2

2014 Lloyd’s Office Network

1

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Vision 2025

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2012: Prime Minister David Cameron, Lloyd’s Chairman John Nelson and Lloyd’s CEO Richard Ward launch Vision 2025, a strategy to ensure Lloyd’s becomes the major global hub for specialist insurance and reinsurance

21st century

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► Growing our premium income from established markets in line with their economic growth with greater growth in new markets.

► A more diversified capital base, with a greater contribution from high growth economies.

► A truly internationalized underwriting community.

► A broker market, utilizing brokers’ international networks.

► Powerful oversees hubs in certain major oversees markets.

2025 Lloyd’s Vision

© Lloyd’s

The world’s leading specialist insurance market

Disclaimer

This presentation has been produced by Lloyd's for general information purposes only. While care has been taken in gathering

the data and preparing the presentation, Lloyd's does not make any representations or warranties as to its accuracy or

completeness and expressly excludes to the maximum extent permitted by law all those that might otherwise be implied.

Lloyd's accepts no responsibility or liability for any loss or damage of any nature occasioned to any person as a result of acting

or refraining from acting as a result of, or in reliance on, any statement, fact, figure or expression of opinion or belief contained

in this presentation. This presentation does not constitute advice of any kind.

© Lloyd’s 2014 All rights reserved

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