The Aon Benfield Aggregate Three Months Ended March 31, 2011

Contents Global Reinsurer Capital

3 

Executive Summary

4 

Aon Benfield Aggregate Capital

5 

Capital Development

5 

Capital Management

7  8 

Premium Income

9 

Premium Distribution Earnings

10 

Underwriting Performance

10 

Investment Results

12 

Return on Equity

13 

Ratings

15 

Appendix 1: Aon Benfield Aggregate Data

16 

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Aon Benfield

Global Reinsurer Capital Aon Benfield estimates that Global Reinsurer Capital totaled USD440 billion at March 31, 2011, a reduction of 6% from the end of 2010. This calculation is a broad measure of capital available for reinsurance and includes both traditional and nontraditional forms of reinsurance capital. Exhibit 1: Global Reinsurer Capital 500 -6%

USD (billions)

17%

-17%

18%

400 470 440 411

402 342

300 FY 2007

FY 2008

FY 2009

FY 2010

1Q 2011

Source: Company reports, Aon Benfield Analytics

3

The Aon Benfield Aggregate – Three Months Ended March 31, 2011

Executive Summary Global Reinsurer Capital fell by 6.4% to USD440 billion during the first quarter of 2011, principally driven by the level of insured catastrophe losses. This calculation is a broad measure of capital available for reinsurance underwriting and includes both traditional and non-traditional forms of reinsurance capital. At March 31, 2011, the reported shareholders’ funds of the 28 reinsurers forming the ABA totaled USD238.3 billion, a decline of 3.4% in the quarter. The principal drivers were USD4.3 billion of net losses, USD2.5 billion of unrealized investment losses, USD2.0 billion of dividend payments and USD2.0 billion of share buy-backs. Gross property and casualty premiums written by the ABA in the first quarter totaled USD40.3 billion, an increase of 7.1% relative to the same period in 2010. The volume of reinsurance business rose by 7.7% to USD29.3 billion. Acquisitions and reinstatement premiums more than offset the effect of generally lower pricing. The ABA reported an aggregate pre-tax loss of USD5.7 billion for the quarter. The non-life underwriting deficit stood at USD11.5 billion, driven by USD15.1 billion of catastrophe losses. Low yields continued to hamper investment income and the capital market recovery effect seen in the prior year was not repeated. The first quarter combined ratio rose by 38.3 percentage points to 143.7%, with catastrophe losses representing 57.1% of net premiums earned, up from 19.7% in the first quarter of 2010. Prior year reserve releases declined 9.2% to USD1.2 billion, a beneficial impact of 4.7 percentage points. The ABA’s total investment return fell by 30.3% to USD9.0