Lack of Volatility in Results and Excess Capital Returned to Shareholders slide image

Lack of Volatility in Results and Excess Capital Returned to Shareholders

SIGNIFICANTLY LESS VOLATILITY FROM CATASTROPHES Confidential (Percent) RATIO OF EVENT LOSS TO SURPLUS FOR LARGEST EVENTS SINCE 1992* 18% 16.2% 16.4% 16% 13.8% 14% 10.9% 11.4% 12% 9.6% 10% 6.9% 8% 6% 4.3% 4.3% 4.6% 3.9% 4% 2.4% 3.0% 1.7% 2.8% 1.9% 1.1% 0.9% 0.9% 0.8% 2% 0.0% 0.6% 0% 6/30/1992 12/31/1993 6/30/2001 6/30/2005 Hurricane Northridge Sept. 11 Hurricane Andrew Earthquake Katrina Attacks Financial 3/31/2011 9/30/2012 6/30/2017 Crisis as of 2Q11 Storms Storm Sandy 3Q2017 4Q2018 3/31/2009(1) Events Events 9/30/2018 12/31/2019 6/30/2021 COVID-19 Hurricane Ida 2020 (2) (3) Industry Event Loss/Surplus WRB Event Loss/Surplus * Ratio is for end-of-quarter surplus immediately prior to event. (1) Change in surplus from 12/31/2007 peak to date of maximum capital erosion at 3/31/09. Reflects losses offset by earnings. (2) Lloyd's estimate > $114mm (3) RMS estimate $31-44B Sources: PCS; Insurance Information Institute; A.M. Best; WRB bJ 8 12
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