A new approach to managing

complex risks

A Torus

presentation

About the Company

Torus Specialty Insurance Company

Torus National Insurance Company

A.M. Best Rating of A- g (Excellent)

Group Rating

Financial Size Category (FSC) of XI*

($750 Million to $1 billion)

(*effective November 8, 2011)

A.M. Best believes the Torus group's consolidated risk-

adjusted capitalization is likely to be maintained at a

strong level, based on performance forecasts and A.M.

Best's specific insurance start-up criteria.

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•Torus is a global specialty insurer.

•Local Underwriting, Global Reach: Torus has operations

in 10 countries, with five regional offices in the US.

•Torus is organized into two core underwriting units: Torus

Americas and Torus International, with each providing

direct insurance for Property, Casualty and Specialty

Lines.

•Torus specialized ventures include our Bermuda-based

reinsurance team, Lloyd’s Syndicate 1301, and our new

status as a licensed and admitted reinsurer in Brazil.

•Torus offers industry-driven insurance products for

Energy, Construction, Aviation, Space and of course,

Healthcare.

About our investors

15 years investing solely in financial services industry

New York-based investing in the US, Europe, Latin America, Asia and Central Europe

Portfolio companies include Axis, Catlin, Kyobo Life and Sparta Insurance

25 years specializing in the energy industry

Global platform with $20 billion of equity investments

Investments in over 100 platform

acquisitions

Portfolio companies include Abbot Group, Acteon & Dresser

A deeper understanding of clients’ risks

Transparency Advanced risk

modeling

More accurate

pricing of risk

Healthcare Overview

Torus believes that the best healthcare institutions work

together with insurance providers to assure that safe,

cost-effective care is provided to patients.

We believe that because dollars spent on malpractice

cases are dollars that are not available to provide care

for patients, we must work to ensure that inevitable

injuries are compensated fairly, not injudiciously.

Further, we believe that healthcare institutions should be

provided insurance mechanisms that reward the

provision of the safest, most effective evidence based

medicine reasonably achievable.

Torus demonstrates these beliefs by providing risk-transfer

tools that truly customize coverage to the needs of your

institution. Some of the tools we offer for customized

protection are:

Swing Plans/Retrospectively Rated Premium

Presumptive Premium Discount

Retention Buy-downs

Split Retentions

Commutation Provisions

Rate Stabilization Endorsements

Fronting Structures

Programs

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Healthcare Overview

Swing Plans/Retros

Swing plans or “retros” offer many advantages

for the insured. Organizations that achieve losses

significantly better than actuarially predicted

benefit from a premium that rewards low loss

activity. Unlike some of the retrospectively rated

plans of the past:

Plans can be structured to have a finite

adjustment period

Premium calculations are simplified.

Unlike some dividend plans, you do not have

to be an Insured five years from now to

receive return premiums

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Presumptive Premium Discount

Rather than requiring an insured to wait until year has

passed before adjusting a premium downward for no

losses occurring, the Presumptive Premium Discount

endorsement allows the Insured to bind coverage at a

reduced premium. Only if a loss occurs, the premium

is adjusted proportionately based upon paid loss

within the Torus layer. If 10% of the Torus limit is

exhausted by a paid claim, there is an additional

premium charge of 10%.

The premium adjustment is proportional to the

amount of exhausted limit.

This endorsement can be modified so the

additional premium is used to reinstate the

exhausted limit.

Healthcare Overview

Split Retentions

Retentions are rarely designed to address the

historical severity arising out a specific location,

procedure or time period. Through account-

specific modeling and manuscripted policy

language, Torus works with Insureds to design

programs that:

Split the retention for OB and Non-OB claims

Stair-step the retention, so incidents from

different time periods have specific

attachments

Allow multi-state risks to schedule different

retentions for each venue

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Post Expiration Retention Buy-downs

Torus provides Insureds the ability to buy-down their

attachment after the policy expires.

An ideal tool to protect against volatility within

the SIR/captive layer.

Prior to binding, we offer pre-determined cost

and time periods to purchase insurance within

the Insured’s SIR layer.

The buy-down of the retention can occur

during or after the policy period.

Healthcare Overview

Rate Stabilization Endorsement

Torus offers multi-year policies in situations when

we can predict the frequency of claims with a

high level of confidence. In situations where

claim activity is less predictable, Torus can offer a

Rate Stabilization Endorsement.

An endorsement that commits to renewal

terms based upon the current rate, terms

and conditions.

The terms remain unless there is a significant

change in loss experience, exposure or

ownership during the policy period.

Commutation Provision

There is a growing interest in reinsurance of lower

layers in captive programs, but Insureds struggle with

the costs and benefits of retaining less risk. When

results appear favorable, a commutation provision

allows the Insured/Reinsured to accept returned

premium by releasing Torus (the Reinsurer) from future

liabilities.

The request to commute may occur up to

three years after the policy expiration.

Depending upon the class of business, the

returned premium may be up to 40% for the

commutation.

This offer is usually made on multi-year policies

or annual policies with high predictability.

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Healthcare Overview

Fronting Structures

There are several reasons why a facility may need

admitted or rated paper, even when they retain a

large portion of the risk. When Insureds need a

“fronting company,” Torus can consider:

Matching deductible programs, where the

Policy’s deductible equals the per-claim limit of

liability.

Collateral in the form of a Letter of Credit or

114 Trust.

A funds-withheld structure to alleviate the

need for a Letter of Credit.

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Program Business

Torus entertains programs for most healthcare-related

casualty and professional lines of insurance. As long as

there is $5M in expected premium volume, we will

consider:

National or state-specific programs;

Single or multi-line;

In-house or third party claims handling;

Agency captive participation or 100% Torus.

Reducing the Cost of Risk

Like the best-in-class providers of medical care, Torus understands the balance between tried-and true

approaches to risk and the need for innovation. In placements where we are the lead insurer, we will

work with you as needed to identify risk consultants who can develop programs that improve your risk

profile…and reduce your total cost of risk.

Our goal is to provide the most appropriate and cost-effective coverage feasible, freeing resources for

your most important mission: maintaining and restoring the health of your community.

A new approach to managing

complex risks

A Torus

presentation