Lack of Volatility in Results and Excess Capital Returned to Shareholders

MANAGING THE INSURANCE CYCLE IS CRITICAL TO LONG-TERM SUCCESS Confidential WRB: Write as much good business as possible WRB: Accelerate growth as price adequacy returns Price Increases High Profitability to various market segments WRB: Capitalize on market Capacity Withdrawal/ Reduced Competition WRB: Slower growth and more selective underwriting Increased Capital Needs a Return + New capacity = Increased competition WRB: Focus on retention; maintain disciplined underwriting dislocations Create new units/divisions to Low Profitability Price Reductions position for market turn WRB: Be willing to sacrifice volume for profitability 10 10

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