2009 Cefor Claim Update June 09

Cefor Claims Update 2009 Portfolio as of 30 June 2009: No. of Vessels per Underwriting Year 14,000 140% 150% per 30 June 2009, issued by the Cefor Statistics Forum Change in insured value for renewed vessels per month of renewal 12,000 10,000 8,000 6,000 4,000 2,000 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 130% 120% Only renewals 1st half year 09! 100% 110% 90% 80% 70% 1 2 3 4 5 6 7 8 9 101112 1 2 3 4 5 6 7 8 9 101112 1 2 3 4 5 6 7 8 9 101112 1 2 3 4 5 6 2006 2007 2008 2009 Ultimate claim cost per vessel (USD) including IBNR, by date of loss 120,000 100,000 80,000 60,000 40,000 20,000 120,000 100,000 80,000 60,000 40,000 20,000 Claim cost per vessel (USD) by date of loss 2000 2001 2002 2003 2004 2005 2006 2007 2008 Ultimate claim per vessel excluding total losses 2000 2001 2002 2003 2004 2005 2006 2007 2008 Claim per vessel excluding total losses Ultimates estimated as of 31 Dec 2008 Claim frequency - losses reported as of 4th quarter of each calendar year 0.30 Actual reported figures as of 30 June 2009 Claim frequency - losses reported as of 2nd quarter of each calendar year 0.14 0.12 0.10 0.25 0.20 Signs of 2009 improvement, but still at high level 0.15 Strong increase in frequency from 2006, 2006 after years of stability. ? 2007 2008 2009 0.08 0.06 2000 Or ”improvement” due to lay-ups and missing charters? 2001 2002 2003 2004 2005 2006 0.10 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Claims frequency dependent on portfolio composition, as claim frequency varies by vessel type. Claims frequency - Claims excess a certain level by date of loss 0.40 0.35 0.30 0.25 0.20 0.15 0.10 0.05 0.00 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Average claim cost per individual claim, by date of loss (in USD) 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 0.035 0.030 0.025 0.020 0.015 0.010 0 010 0.005 0.000 All claims (left axis) Claims > 500,000 (right axis) Claims > 10,000 (left axis) Claims > 2 MUSD (right axis) 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 All claims excluding total losses 2006-2008 increase in the frequency of claims, especiall claims especially for major claims claims. USD Claim per vessel, by date of loss 120,000 100,000 80,000 60,000 60 000 40,000 20,000 Individual claim cost doubled from 2003 to2007, , but down again from 2008. Same impact of claims below 10 MUSD in 2007 and 2008. >= 30 MUSD 10-30 MUSD 5-10 MUSD 1-5 MUSD <= 1 MUSD But in 2008 less impact of major claims excess 10 MUSD. Av. individual  claim amount  per type of casualty  0 by date of loss (in USD 1,000) 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2,500 Fire/Explosion 2,000 1,500 1,000 500 0 Collision,  C lli i Contact,  Grounding Heavy Weather Engine Ice 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Check also: Claims Statistics from the Nordic Marine Insurance Statistics database (NoMIS) issued in spring 2009, data as of 31 December 2008: CEFOR Annual Report 2008, p.10-16 Cefor The 2008 CEFOR NoMIS Report Nordic Marine Insurance Statistics Underwriting Years 1995–2008, as of 31 December 2008 g , This report is on underwriting year basis (i.e. portfolio and claims data is allocated to the year the insurance policy attaches to). All figures are as reported by 31 December 2008, (i.e. without ”IBNR” loading for claims not yet registered or incurred by this date) Included are only vessels with a registered IMO-nr. (i.e. not small coastal tonnage) The 2008 CEFOR NoMIS Report Visit us at www.cefor.no for more information! Legal disclaimer: CEFOR provides the material contained in this Fact Sheet for general information purposes only. CEFOR accepts no responsibility and shall not be liable for any loss which may arise from reliance upon the information provided. This information is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to local law or regulation. 2009

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