The 2007 CEFOR NoMIS Report No rdic M arine I nsurance S tatistics

Underwriting Years 1995 –2007, as of 31 December 2007

2007 CEFOR Nordic Marine Insurance Statistics – Part 1

As of 31 December 2007

Part 1 – Introduction

•Contents •NoMIS •Explanations

Part 2 – NoMIS position in the Global insurance market

•Global Marine Hull Insurance Market 2006 •Norwegian Marine Hull Insurance Market 2007 •Average gross share written in the NoMIS market

Part 3 – NoMIS portfolio Key figures, underwriting years 1995-2007

•Number of vessels •Development of average insured values, DWT and premium •Average age •Average standard deductible •Loss Ratio (including IBNR), 1985-2007 •Premiums and claims (including IBNR) per vessel •Claims in claim bands – claim per vessel •Number and cost of claims by type •Claim frequency •Claim per vessel •Claim per Sum Insured •Key figures (table)

2007 CEFOR Nordic Marine Insurance Statistics – Part 1

As of 31 December 2007

Part 4 – Key figures by age group

•Distribution of number of vessels •Claim frequency •Claim per vessel •Claim per Sum Insured •Claim per DWT •Loss Ratio

Part 5 – Key figures by vessel type group

•Distribution of number of vessels •Claims frequency •Claim per vessel •Claim per Sum Insured •Claim per DWT •Loss Ratio

Legal disclaimer

CEFOR provides the statistics material in this presentation for general information purposes only. All key figures are derived from the CEFOR portfolio, which reflects a minor part of the world fleet, the selection of ships being biased by Norwegian underwriting preferences. Therefore CEFOR can accept no responsibility and shall not be liable for any loss which may arise from reliance upon the information provided.

2007 CEFOR Nordic Marine Insurance Statistics – Part 1

As of 31 December 2007

Part 6 – Key figures by size group

•Distribution of number of vessels •Claims frequency •Claim per vessel •Claim per Sum Insured •Claim per DWT •Loss Ratio

Part 7 – Distribution by flag and classification society

•Distribution of number of vessels by flag, 16 largest •Distribution by black, grey, white flags (Paris MOU classification 2005) •Distribution of number of vessels by classification society, 6 largest

Part 8 – Premium indices

•Premium per vessel – Premium per sum insured – Cash Renewal Index

Part 9 – Exposure curves (partial claims only)

•Sum Insured bands (<5, <20, <100, and >100 Mio USD) •Explanations

2007 CEFOR Nordic Marine Insurance Statistics – Part 1

As of 31 December 2007

Introduction

The No rdic M arine I nsurance S tatistics ( NoMIS ) is a joint database project of CEFOR members active on the Hull & Machinery market to compile insurance data and vessel characteristics for statistical purposes. The database is administered by CEFOR.

Since its foundation in 1985 until 1997 the data was compiled by appointing CEFOR a compulsory facultative reinsurer to which the members of the Norwegian Hull Agreement ceded 0.1% of their Hull & Machinery insurance. Premium and claims information was exchanged via Borderaux, the lead insurer providing details of each claim. When the Hull Agreement was discontinued in 1996, the statistics cooperation continued.

In 1998 steps were taken to update the NoMIS’ database electronically. All necessary routines were in place by December 1999, enabling CEFOR to produce up-to-date hull figures on a monthly basis and extending the database substantially by including non-lead business from underwriting year 1998. In 2000, the database was extended to include also non-lead business back to underwriting year 1995. In 2003, data from a major new member was integrated, dating back to underwriting year 1995. In 2004, the database was extended by data from two new members and in both 2005 and 2006 data from further members was added. This includes data written from other Nordic countries. In 2007, the number of vessels registered per underwriting year exceeded for the first time 11,000 vessels. Compared to the world fleet, the NoMIS database covers in 2007 about 25% of the world fleet above 300 GT in terms of numbers and about 50% in terms of tonnage.

By 31st December 2007, in all 122,152 vessel years (vessels with IMO-number) and 36,766 claims were registered on underwriting years 1985 through 2007. The NoMIS statistics in this report comprise data from: Bluewater Insurance ASA, Codan Group (Codan Marine, Denmark; Codan Marine Services, Norway; Trygg-Hansa Marine, Sweden), Gard, Gjensidige Forsikring, NEMI ASA, Norwegian Hull Club, Swedish Club, Zurich Protektor Forsikring AS.

2007 CEFOR Nordic Marine Insurance Statistics – Part 1

As of 31 December 2007 All amounts are presented in

USD

.

Rate of exchange

applicable to convert the figures from the original currencies into USD: Premiums: Paid claims: average monthly rate of exchange of the month of transaction average monthly rate of exchange of the month of transaction Outstanding claims: average monthly rate of exchange of December 2007 All

premiums are net

of all rebates and commissions.

All

claims are net of any deductibles applicable.

Total Claims = Paid claims + Outstanding claims

TLO (or Total Losses)

= claims in excess of 75% of the Sum Insured Partial Losses = all losses <= 75% of the Sum Insured

Loss Ratio

= Total claims / Net premium

Underwriting year

= year in which the insurance policy attaches

2007 CEFOR Nordic Marine Insurance Statistics – Part 1

As of 31 December 2007

Types of vessels specified Vessel Type group

BULK CAR/RORO CARGO CHEM./PRODUCT CONTAINER LNG/LPG OBO OTHER

Vessels Types included Lloyds Conf. Index Code

Bulk, Ore, Cement Car Carrier, RoRo Dry Cargo, General Cargo, Reefers, Pallett Vessels, Animal Transport Vessels Chemical Carriers, Product / Acid / Edible Oil / Fish Oil / Fruit Juice / Wine / Molasses / Waste/ Water Tankers Container Gas Carriers LNG, LPG, LNG/LPG BBU, BCB, BCE, BOR, BWC MVE, URC, URR GCT, GGC, GPC, GRF, MLV TAC, TCH, TCO, TEO, TFJ, TFO TMO, TPD, TWA, TWN, TWT UCC, UCR LNG, LPG, LNP Combined Vessels Bulk, Ore, Oil COO, CBO all other ships and floating units not specifically defined otherwise, like Fishing vessels, Barges, Cranes, Floating Storage, Floating Production, Pollution Control Vessels, Mud boat, Research vessels, Cable, Seismic Search vessel, Flo/Flo, etc.

all other codes

2007 CEFOR Nordic Marine Insurance Statistics – Part 1

As of 31 December 2007

Types of vessels specified contd.

Vessel Type group

PASSENGER SUPPL/OFF TANK

Vessels included Lloyds Conf. Index Code

All types of passenger vessels and ferries, Passenger/Roro, Highspeed Craft Supply, Anchorhandling, Standby, Drilling Vessel, General Service Vessel, Supply (Tug, Anchor), Tug/Icebreaker LOF, LOP, MPR, OFY, OHF, OHS, PRR OBS, OBT, ODS, OIB, OIF, OIS, OIT, OLT, OMN, OMT, OOS, OPP, ORP, OSU, OSY, OSZ, OWO, XAA, XAF, XAG, XAH, XAT, XCT, XFF, XFS, XPT, XTG, XTI, XTP, XTR, XTS, XTT, XTX Tanker, Sludge Vessel, Crude Oil Tanker OSC, OTC, TAS, TBK, TCR, Asphalt Carriers, Bunkering Tanker, TNA, TTA Naval Auxiliary

2007 CEFOR Nordic Marine Insurance Statistics – Part 2

Distribution of Global Marine Hull Premium

2006

UK (IUA) 5.7% UK (Lloyd's) 13.7% Rest of the World 28.2% Norway 14.0% USA 5.9% Spain 4.1% Korea 5.4% Japan 9.0% Italy 6.4% France 7.6% If 2.4% Gjensidige 3.7% Gerling 9.0% NEM I 7.4% Gard 35.0% Norwegian Hull Club 24.5% Vesta 2.0% (Business written from Norway only) Bluewater 9.5% Codan 2.3% Coastal M arine Clubs 4.3% (Business written from Norway only)

World Norway

Source of global premium figures: IUMI ”Global Marine Insurance Report, published September 2007

2007 CEFOR Nordic Marine Insurance Statistics – Part 2 Rest of the World 24.9%

Distribution of Global Marine Hull Premium

2006

UK (IUA) 5.7% UK (Lloyd's) 13.7% CEFOR 17.3% NEM I 6.0% If 1.9% Gjensidige 3.0% Gerling 7.3% Norwegian Hull Club 19.8% Swedish Club 7.1% USA 5.9% Spain 4.1% Korea 5.4% Japan 9.0% Italy 6.4% France 7.6% Gard 28.3% Codan 9.4% Vesta 6.0% Bluewater 7.7% Coastal M arine Clubs 3.5%

World CEFOR

2007 CEFOR Nordic Marine Insurance Statistics – Part 2

Distribution of

CEFOR

Marine Hull Premium

2007

Gjensidige 5% Gerling 6% NEMI 6% If 4% Gard 29% Norwegian Hull Club 19% Swedish Club 7% TrygVesta Marine 6% Bluewater 8% Møre- og Tromstrygd 0% Codan 10% NEMI 6% Gjensidige 0% Gerling 8% Gard 35% Norwegian Hull Club 21% Swedish Club 8% TrygVesta Marine 5% Codan 8% Bluewater 9%

Including Coastal Excluding Coastal

! Note: The premium overview on this slide INCLUDES Loss of hire, hull and freight interest and building risk in addition to hull.

Whereas all following statistics are pure hull statistics and EXCLUDE Loss of hire, hull and freight interest and building risk !

2007 CEFOR Nordic Marine Insurance Statistics – Part 2

As of 31 December 2007

Average share written in the NoM IS market

60% 50% 40% 30% 20% 10% 0% 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 All business 33% 36% 36% 36% 38% 37% 44% 41% 37% 36% 36% 35% 31% Average share = Sum of members gross premiums according to their written share / Sum of premiums for 100% of the risk (Sum = sum over all vessels in the NoMIS portfolio)

2007 CEFOR Nordic Marine Insurance Statistics – Part 3

As of 31 December 2007

No. of Vessels per Underwriting Year

14,000 12,000 10,000 8,000 6,000

5,548 6,215 7,331 7,345 6,792 6,277 7,106 7,399 8,298 9,708 10,222 11,54411,412

4,000 2,000 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Comments: a) b) Decline in portfolio from 1997 to 2000 due to members concentrating on target business Increase 2000->2006 due to both market growth and new members joining the NoMIS datapool. Database comprises business underwritten from all Nordic countries in addition to Norway.

2007 CEFOR Nordic Marine Insurance Statistics – Part 3

As of 31 December 2007 200% 150% 100% 50% 0%

Evolution of average sum insured, DWT, net premium 1995=100%

Index Average Sum Insured, 1995=100% Index Average Net Premium, 1995=100% Index Average DWT, 1995=100%

2007 CEFOR Nordic Marine Insurance Statistics – Part 3

As of 31 December 2007

Average Age

16.0

14.0

13.0

13.4

13.8

14.0

13.9

13.8

13.8

13.6

13.1

12.9

12.6

12.3

12.7

12.0

10.0

8.0

2007 CEFOR Nordic Marine Insurance Statistics – Part 3

As of 31 December 2007

Average Standard Deductible Development All business, 100% ,

in USD 200,000 150,000 100,000 50,000 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Average Std. Deductible Av.Std. Ded. <= 500,000 USD

2007 CEFOR Nordic Marine Insurance Statistics – Part 3

As of 31 December 2007

Hull Net Loss Ratio, as reported per 31.12.07 (2007 incl. IBNR)

250% 200% 207% 224% 150% 100% 98% 134% 150%151% 50% 123% 74% 47% 48% 54% 78% 90% 124% 134% 124% 115%117% 98% 110% 100% 116% 110% 0% 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 L/R est. final (2006, 2007 incl. IBNR) 100%

2007 CEFOR Nordic Marine Insurance Statistics – Part 3

As of 31 December 2007 120 100 80 60 40 20 0

Premiums and claims per vessel per underwriting year

in USD 1000 CBNI IBNR Outstanding claims Paid claims Net premium CBNI IBNR Outstanding = Covered But Not yet Incurred = Incurred But Not yet Reported = Incurred and reported, but not yet paid

2007 CEFOR Nordic Marine Insurance Statistics – Part 3

As of 31 December 2007

USD Claim per vessel

100,000 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 Claim bands: >= 30 MUSD 10-30 MUSD 5-10 MUSD 1-5 MUSD <= 1 MUSD

2007 CEFOR Nordic Marine Insurance Statistics – Part 3

As of 31 December 2007

Claims by Claims type Numbers (%)

Inner ring: 2002-2006 Outer ring: 2006

15% 15% 36% 37% 10% 11% 20% 19% 2% 12% 2% 13%

Engine Fire and explosion Collision Contact Grounding Heavy weather Ice Other

Total 2006: 2,931

2007 CEFOR Nordic Marine Insurance Statistics – Part 3

As of 31 December 2007

Claims by Claims type Costs (%)

Inner ring: 2002-2065 Outer ring: 2006

0% 5% 15% 11% 0% 28% 28% 23% 25% 8% 13% 11% 4% 10% 15%

Engine Fire and explosion Collision Contact Grounding Heavy weather Ice Other

Total 2006: USDm 1,056

2007 CEFOR Nordic Marine Insurance Statistics – Part 3

As of 31 December 2007

Claim frequency per underwriting year

0.35

0.30

0.25

0.20

0.15

0.10

0.05

0.00

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 all claims claims > 10,000 USD claims > 500,000 USD 0.30

0.13

0.02

0.28

0.13

0.03

0.29

0.12

0.02

0.31

0.14

0.02

0.28

0.13

0.02

0.28

0.12

0.02

0.27

0.13

0.02

0.24

0.11

0.02

0.27

0.13

0.02

0.26

0.13

0.02

0.25

0.14

0.03

0.25

0.14

0.03

2002 2006 Av.

0.25

0.13

0.02

Comment: Claims < 10.000 USD account for about half of all claims. Registration of these may vary over time and in each company and will thus influence the registered frequency.

In addition any increase/decrease of insurance deductibles will have impact on the registered frequency

2007 CEFOR Nordic Marine Insurance Statistics – Part 3

As of 31 December 2007

Claim per vessel per underwriting year

100,000 80,000 60,000 40,000 20,000 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 all claims 59,419 66,152 55,288 62,047 57,113 53,960 51,362 60,982 63,817 79,799 76,717 91,457 partial claims 44,013 50,260 39,888 53,368 50,582 40,627 39,726 39,767 49,368 65,312 66,918 71,750 TLO claims 15,406 15,893 15,400 8,680 6,531 13,333 11,636 21,216 14,448 14,487 9,799 19,707 2002 2006 Av.

76,221 60,424 15,797

2007 CEFOR Nordic Marine Insurance Statistics – Part 3

As of 31 December 2007

Claim per sum insured per underwriting year

0.400% 0.350% 0.300% 0.250% 0.200% 0.150% 0.100% 0.050% 0.000% 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 all claims 0.315% 0.372% 0.311% 0.302% 0.287% 0.242% 0.238% 0.283% 0.290% 0.331% 0.282% 0.311% partial claims 0.233% 0.282% 0.224% 0.260% 0.254% 0.183% 0.184% 0.185% 0.224% 0.271% 0.246% 0.244% TLO claims 0.082% 0.089% 0.087% 0.042% 0.033% 0.060% 0.054% 0.099% 0.066% 0.060% 0.036% 0.067% 2002 2006 Av.

0.301% 0.239% 0.062%

2007 CEFOR Nordic Marine Insurance Statistics – Part 4

As of 31 December 2007

Number of vessels per age group

Inner ring: 2002-2006 Outer ring: 2007 25.1% 26.1% 26.1% 26.7% 10.5% 12.0% 14.8% 16.6% 21.1% 21.1% 0-5 years 5-10 years 10-15 years 15-20 years > 20 years Total number of vessels 2002-2006: 47,171 2007: 11,412

2007 CEFOR Nordic Marine Insurance Statistics – Part 4

As of 31 December 2007

Claim frequency per age group

0.4

0.3

0.2

0.1

0.0

2001-2003 2004-2006 2001-2006 0-5 years 0.25

0.23

0.24

5-10 years 0.31

0.30

0.30

10-15 years 0.28

0.28

0.28

15-20 years 0.27

0.26

0.26

> 20 years 0.22

0.23

0.22

Comment: Claims < 10.000 USD account for about half of all claims. Registration of these may vary over time and in each company and will thus influence the registered frequency.

In addition any increase/decrease of insurance deductibles will have impact on the registered frequency

2007 CEFOR Nordic Marine Insurance Statistics – Part 4

As of 31 December 2007

Claim per vessel per age group

in USD 100000.0

80000.0

60000.0

40000.0

20000.0

0.0

2001-2003 2004-2006 2001-2006 0-5 years 71,406 83,696 78,800 5-10 years 50,301 81,305 69,624 10-15 years 53,300 77,068 67,695 15-20 years 57,575 93,262 74,145 > 20 years 58,488 84,471 73,253

2007 CEFOR Nordic Marine Insurance Statistics – Part 4

As of 31 December 2007

Claim per sum insured per age group

1.0% 0.8% 0.6% 0.4% 0.2% 0.0% 2001-2003 2004-2006 2001-2006 0-5 years 0.185% 0.190% 0.188% 5-10 years 0.180% 0.248% 0.225% 10-15 years 0.262% 0.323% 0.301% 15-20 years 0.470% 0.543% 0.510% > 20 years 0.666% 0.800% 0.748%

2007 CEFOR Nordic Marine Insurance Statistics – Part 4

As of 31 December 2007

Claim per DWT per age group

in USD 3.0

2.5

2.0

1.5

1.0

0.5

0.0

2001-2003 2004-2006 2001-2006 0-5 years 1.2

1.5

1.4

5-10 years 0.9

1.7

1.4

10-15 years 1.0

1.5

1.3

15-20 years 1.6

2.1

1.9

> 20 years 1.7

3.0

2.4

2007 CEFOR Nordic Marine Insurance Statistics – Part 4

As of 31 December 2007 200% 150% 100% 50% 0% 2001-2003 2004-2006 2001-2006 0-5 years 117.5% 104.6% 108.9%

Loss ratio per age group

5-10 years 82.0% 97.0% 92.4% 10-15 years 99.3% 107.1% 104.6% 15-20 years 119.3% 131.8% 126.3% > 20 years 118.7% 120.4% 119.8%

2007 CEFOR Nordic Marine Insurance Statistics – Part 5

As of 31 December 2007 50,000,000 40,000,000 30,000,000 20,000,000 10,000,000 0

Number of vessels per vessel type

Sum Insured per Vessel (excl. Passenger)

Bulk Cargo Cont./Car/RoRo Tank Supply/Off Car/RoRo all

Inner ring: 2002-2006 Outer ring: 2007 8.3% 6.0% 3.7% 3.9% 0.4% 3.6% 7.0% 3.8% 3.5% 0.8% 3.8% 10.8% 21.4% 21.8% 5.3% 13.5% 4.3% 17.9% 13.9% 11.6% 21.7% Bulk Car/RoRo Cargo Chem./Prod.

Container LNG/LPG OBO Other Passenger Suppl./Off.

Tank 12.6% Total number of vessels 2002-2006: 47,171 2007: 11,412

2007 CEFOR Nordic Marine Insurance Statistics – Part 5

As of 31 December 2007

Claim frequency per vessel type group

0.5

0.4

0.3

0.2

0.1

0.0

2001-2003 2004-2006 2001-2006 Bulk 0.19

0.18

0.19

Cargo 0.31

0.32

0.32

Cont./Car/R oRo 0.38

0.36

0.37

Passenger 0.30

0.35

0.32

Tank 0.20

0.19

0.19

Supply/Off 0.20

0.22

0.21

Notes: ”Tank” includes in this and the following slides: Chemical/Product, LNG/LPG, OBO and other tank vessels - Claims < 10.000 USD account for about half of all claims. Registration of these may vary over time and in each company and will thus influence the registered frequency.

In addition any increase/decrease of insurance deductibles has impact on the registered frequency

2007 CEFOR Nordic Marine Insurance Statistics – Part 5

As of 31 December 2007

Claim per vessel per vessel type group

300,000 200,000 100,000 0 2001-2003 2004-2006 2001-2006 Bulk 48,905 68,667 60,437 Cargo 39,736 57,391 50,636 Cont./Car/R oRo Passenger 76,913 97,075 88,870 123,768 263,550 196,517 Tank 61,929 69,469 66,180 Supply/Off 27,361 69,730 50,446

2007 CEFOR Nordic Marine Insurance Statistics – Part 5

As of 31 December 2007

Claim per sum insured per vessel type group

0.8% 0.6% 0.4% 0.2% 0.0% 2001-2003 2004-2006 2001-2006 Bulk 0.369% 0.346% 0.354% Cargo 0.500% 0.644% 0.593% Cont./Car/R oRo Passenger 0.369% 0.354% 0.359% 0.123% 0.229% 0.182% Tank 0.237% 0.205% 0.217% Supply/Off 0.453% 0.709% 0.622%

2007 CEFOR Nordic Marine Insurance Statistics – Part 5

As of 31 December 2007

Claim per DWT per vessel type group

6.0

5.0

4.0

3.0

2.0

1.0

0.0

2001-2003 2004-2006 2001-2006 Bulk 0.8

1.1

1.0

Cargo 3.0

5.1

4.2

Cont./Car/R oRo Passenger 2.7

3.0

2.9

28.7

50.4

41.0

Tank 0.7

0.8

0.8

Supply/Off 20.9

46.7

35.8

2007 CEFOR Nordic Marine Insurance Statistics – Part 5

As of 31 December 2007 250% 200% 150% 100% 50% 0% 2001-2003 2004-2006 2001-2006 Bulk 100% 108% 105%

Loss ratio per vessel type group

Cargo 105% 107% 107% Cont./Car/R oRo Passenger 143% 129% 134% 85% 98% 93% Tank 109% 94% 99% Supply/Off 135% 206% 182%

2007 CEFOR Nordic Marine Insurance Statistics – Part 6

As of 31 December 2007

Number of vessels per Size Group

Inner ring: 2002-2006 Outer ring: 2007 4.9% 0.4% 3.1% 1.5% 4.7% 4.8% 0.3% 4.7% 13.5% 12.4% 28.7% 28.5% 14.2% 15.2% 16.0% 11.5% 12.6% 15.4% < 10,000 10,000-20,000 20,000-35,000 35,000-50,000 50,000-75,000 75,000-100,000 100,000-150,000 150,000-200,000 200,000-250,000 250,000-300,000 >300,000 Total number of vessels 2002-2006: 47,171 2007: 11,412

2007 CEFOR Nordic Marine Insurance Statistics – Part 6

As of 31 December 2007

Claim frequency per DWT size group

0.4

0.3

0.2

0.1

0.0

2001-2003 2004-2006 2001-2006 < 10,000 0.31

0.32

0.32

10,000 20,000 20,000 35,000 35,000 50,000 50,000 75,000 75,000 100,000 100,000 150,000 200,000 250,000 >300,00 150,000 200,000 250,000 300,000 0 0.33

0.32

0.32

0.30

0.29

0.30

0.25

0.23

0.24

0.15

0.17

0.16

0.15

0.19

0.17

0.16

0.16

0.16

0.11

0.11

0.11

0.08

0.12

0.10

0.16

0.13

0.14

0.15

0.11

0.13

Comment: Claims < 10.000 USD account for about half of all claims. Registration of these may vary over time and in each company and will thus influence the registered frequency.

In addition any increase/decrease of insurance deductibles will have impact on the registered frequency

2007 CEFOR Nordic Marine Insurance Statistics – Part 6

As of 31 December 2007

Claim per vessel per DWT size group

in USD 140,000 120,000 100,000 80,000 60,000 40,000 20,000 0 2001-2003 2004-2006 2001-2006 < 10,000 10,000 20,000 20,000 35,000 35,000 50,000 50,000 75,000 75,000 100,000 100,000 150,000 200,000 250,000 >300,00 150,000 200,000 250,000 300,000 0 47,489 86,739 67,323 76,861 105,437 90,743 64,675 97,483 80,607 49,586 71,304 62,131 64,822 68,839 67,276 80,904 67,005 130,964 116,643 17,221 72,911 46,420 95,333 39,830 85,059 18,481 107,282 48,962 17,784 64,118 85,240 68,651 59,888

2007 CEFOR Nordic Marine Insurance Statistics – Part 6

As of 31 December 2007

Claim per sum insured per DWT size group

0.6% 0.5% 0.4% 0.3% 0.2% 0.1% 0.0% < 10,000 10,000 20,000 20,000 35,000 35,000 50,000 50,000 75,000 75,000 100,000 100,000 150,000 200,000 250,000 >300,00 150,000 200,000 250,000 300,000 0 2001-2003 0.228% 0.518% 0.449% 0.276% 0.245% 0.242% 0.138% 0.123% 0.076% 0.271% 0.109% 2004-2006 0.372% 0.471% 0.479% 0.314% 0.210% 0.144% 0.264% 0.249% 0.052% 0.119% 0.097% 2001-2006 0.312% 0.488% 0.467% 0.300% 0.222% 0.178% 0.222% 0.208% 0.061% 0.182% 0.101%

2007 CEFOR Nordic Marine Insurance Statistics – Part 6

As of 31 December 2007

Claim per DWT per DWT size group

in USD 18.0

16.0

14.0

12.0

10.0

8.0

6.0

4.0

2.0

0.0

2001-2003 2004-2006 2001-2006 < 10,000 10,000 20,000 20,000 35,000 35,000 50,000 50,000 75,000 75,000 100,000 100,000 150,000 200,000 250,000 >300,00 150,000 200,000 250,000 300,000 0 11.6

17.3

15.1

5.8

7.3

6.7

2.5

3.3

2.9

1.2

1.7

1.5

1.0

1.1

1.1

0.9

0.8

0.8

0.4

1.1

0.8

0.2

0.7

0.5

0.1

0.1

0.1

0.4

0.2

0.3

0.1

0.2

0.2

2007 CEFOR Nordic Marine Insurance Statistics – Part 6

As of 31 December 2007

Loss ratio per DWT size group

200% 150% 100% 50% 0% 2001-2003 2004-2006 2001-2006 < 10,000 10,000 20,000 20,000 35,000 35,000 50,000 50,000 75,000 75,000 100,000 100,000 150,000 200,000 250,000 >300,00 150,000 200,000 250,000 300,000 0 95% 105% 102% 173% 140% 151% 136% 134% 135% 103% 109% 107% 106% 92% 97% 115% 73% 88% 69% 132% 111% 60% 133% 108% 20% 20% 20% 135% 53% 84% 54% 58% 56%

2007 CEFOR Nordic Marine Insurance Statistics – Part 7

As of 31 December 2007

Number of vessels per largest flags

Inner ring: 2002-2006 Outer ring: 2007 8% 21% 21% 3% 3% 4% 3% 5% 3% 5% 3% 3% 3% 6% 4% 3% 4% 4% 5% 7% 5% 2% 5% 2% 11% 11% 6% 2% 8% 6% 1% 6% 8% 1% 4% 4% BHS - Baham as CYP - Cyprus GRC - Greece LBR - Liberia NIS - Norw ay int.reg.

NOR - Norw ay PAN - Panam a USA ATG - Antigua&Barbuda DIS - Denm ark DEU- Germ any HKG - Hongkong MLT - Malta MHL - Marshall Islands NLD - Netherlands SGP - Singapore GBR - UK other Total number of vessels 2002-2006: 47,171 2007: 11,412

2007 CEFOR Nordic Marine Insurance Statistics – Part 7

As of 31 December 2007 Medium risk Black 33% Very high risk Black 0% High risk Black 5%

Vessel distribution by flag by Paris MOU classification

(Black Grey and White list 2006, as of 5 June 2007) Black 1% Other 4% Medium to high risk Black 62% Grey 16% White 79%

2007 CEFOR Nordic Marine Insurance Statistics – Part 7

As of 31 December 2007

Number of vessels per classification society

Inner ring: 2002-2006 Outer ring: 2007 9.8% 11.5% 20.8% 23.0% 9.1% 12.3% 8.5% 9.3% 16.7% 20.3% 9.5% 9.6% 20.9% 18.8% American Bureau Bureau Veritas Germanischer Lloyd Lloyd's Register Nippon Kaiji Kyokai Det Norske Veritas others Total number of vessels 2002-2006: 47,171 2007: 11,412

2007 CEFOR Nordic Marine Insurance Statistics – Part 9

As of 31 December 2007

Exposure curves by Sum Insured Partial Claims only (<75% SI) PA claims in % of all claims :

0-5 Mio USD: 70% 5-20 Mio USD: 83% 20-75 Mio USD: 77% > 75 Mio USD: 100% 110% 100% 90% 80% 70% 60% 50%

Sum Insured

10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0-5 Mio USD 5-20 Mio USD 20-75 Mio USD > 75 Mio USD 100% 0.595 0.775 0.870 0.933 0.968 0.988 0.999 1.000 1.000 1.000

0.716 0.850 0.914 0.952 0.977 0.992 0.999 1.000 1.000 1.000

0.741 0.853 0.921 0.966 0.984 0.993 0.999 1.000 1.000 1.000

0.903 0.972 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000

1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000

Ceding company's retention as % of SI

2007 CEFOR Nordic Marine Insurance Statistics – Part 9

As of 31 December 2007

Exposure Curves

• Exposure curves are used by reinsurers to price excess of loss reinsurance.

• The curves indicate the ceding company's retained share of PA claims after ceding claims in excess of a given percentage of a vessel’s sum insured.

• The curves should be applied on individual vessels or groups of vessels with similar values and written shares. • The curves are calculated for 100% values. In applications the choice of curve should thus also be based on 100% values.

Exposure Curves technicalities

• The curves are based on H&M covers only for vessels with valid IMO-No.

• The curves are based on the underwriting years 2002-2007 (12,117 claims) • The curves are calculated as follows: x = percentage retained C = Individual partial claims V = Vessel value f(x) = Σ min[C, V*x]/ Σ C

2007 CEFOR Nordic Marine Insurance Statistics – Part 9

As of 31 December 2007 • • •

CEFOR marine insurance statistics publications, all at

http://www.cefor.no

:

CEFOR Annual Report 2007,

p.18-25, Nordic Marine Insurance Statistics http://www.cefor.no/news/CEFOR%20&%20Annual%20Report/CEFOR_AnnualReport2007.pdf

The 2007 CEFOR NoMIS Report

http://www.cefor.no/statistics/documents/2007%20CEFOR%20The%20NoMIS%20report.ppt

The 2007 CEFOR Report on Hull claim trends

http://www.cefor.no/statistics/documents/2007%20CEFOR%20Hull%20Claim%20Trends.pdf

• •

Links to other marine insurance statistics: CEFOR website, Statistics section:

(CEFOR and IUMI statistics for download, including historical data) http://www.cefor.no/statistics/statistics.htm

IUMI (International Union of Marine Insurance): Statistics issued by IUMI’s Facts & Figures Committee:

http://www.iumi.com/index.cfm?id=7165