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        Guy Carpenter Publishes Report on Impact of Typhoon Saomai
                       On Chinese Coastal Provinces

New York, December 5, 2006
Guy Carpenter & Company, Inc., the leading global risk and reinsurance specialist and part of
the Marsh & McLennan Companies (NYSE: MMC), today announced that its Instrat® unit has
published Typhoon Saomai: Impact and Historical Comparison. In addition to providing an
overview of the meteorological background to Typhoon Saomai, which made landfall in China
on August 10, 2006, the report examines damages and estimated economic and insured losses
along China’s eastern coast. Using historical data and comparisons, with additional analysis
from Professor Johnny Chan at the City University of Hong Kong, the report also explores the
typhoon hazard in general in China and the threat that typhoons pose to the country’s coastal

“Saomai’s impact was devastating, especially in the Zhejiang and Fujian provinces, where it
destroyed thousands of buildings and displaced more than 1.7 million residents,” said David
Lightfoot, Managing Director and Instrat leader for the Asia Pacific region. “However, the
storm had its greatest impact on regions of China that are still relatively undeveloped, which
should limit overall insured losses. Saomai underscores that tropical cyclones are a persistent
risk along the Chinese coastal provinces – one that insurance companies will need to take steps
to manage as insurance coverage continues to grow across the region.”

According to the report, Saomai affected more than six million people throughout China. In
addition to forcing the closure of several major ports and disrupting transport, the storm sank
more than 1,000 boats and downed power lines and cut off electricity in six cities. While 441
deaths have officially been reported as a result of Saomai, some unofficial estimates put the
death toll at closer to 1,000. Munich Re estimates insured losses to be around 400 million yuan
(US$50.5m), while AIR Worldwide puts insured costs at between 500 million and 1 billion
yuan (US$63m and US$126m) – or between 4 percent and 9 percent of total economic loss.

In terms of the general typhoon hazard in China, the report indicates that different regions of
the coast are exposed to varying degrees of typhoon risk, with the highest risk located along
China’s southern and eastern coast. Although the risk decreases in China’s more northern
regions, a significant threat remains for large northern cities such as Shanghai.
Guy Carpenter Publishes Report on Impact of Typhoon Saomai
On Chinese Coastal Provinces
December 5, 2006

A copy of the full report is available for download at For printed copies,
please contact Guy Carpenter at

Guy Carpenter & Company, Inc. is the world’s leading risk and reinsurance specialist and
a part of the Marsh & McLennan Companies. Guy Carpenter creates and executes
reinsurance and risk management solutions for clients worldwide through 2,600
professionals across the globe. The firm' full breadth of services includes 16 centers of
excellence in Accident & Health, Agriculture, Alternative Risk Transfer, Environmental,
General Casualty, Investment Banking*, Life & Annuity, Marine & Energy, Professional
Liability, Program Manager Solutions, Property, Retrocessional, Structured Risk, Surety,
Terror Risk, and Workers Compensation. In addition, Guy Carpenter’s Instrat® unit
utilizes industry-leading quantitative skills and modeling tools that optimize the
reinsurance decision-making process and help make the firm’s clients more successful.
Guy Carpenter’s website address is

*Securities or investments, as applicable, are offered in the (i) United States through
MMC Securities Corp., a US registered broker-dealer and member NASD/SIPC, and (ii)
European Union through MMC Securities Ltd., regulated by the Financial Services
Authority for the conduct of investment business in the United Kingdom. Reinsurance
products are placed through qualified affiliates of Guy Carpenter. MMC Securities Corp.
and MMC Securities Ltd. are affiliates of Guy Carpenter.



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